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art.004/7/004/6/004/5/004/4/004/3/004/2/004/1

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     ARTICLE 4 AS AMENDED

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTIONS

     SECTION 1. This article consists of joint resolutions that are submitted pursuant to

Rhode Island General Laws § 35-18-1, et seq.

     SECTION 2 Garrahy Courthouse Parking Project.

     WHEREAS, given the prime geographic location of the Garrahy Courthouse surface

parking lot site and its current limitations to adequately serve the Courthouse and surrounding

buildings; and

     WHEREAS, given the results of the Garrahy Courthouse Parking Garage Conceptual

Analysis presented to a Special Legislative Commission for the Garrahy Parking Garage in

January, 2014 which identifies development of the current site into a multi-level parking garage

as a way to alleviate parking demand in the area and to spur economic activity; and

     WHEREAS, the I-195 Redevelopment District Commission (“Commission”) has the

principal responsibility for developing the surplus land from the relocation of Interstate 195 (“the

Link”) to promote economic development through the best use of nearby freed-up parcels; and

     WHEREAS, the Commission has indicated that adequate structured parking is essential

to the development of the Link and that authorization for construction of a garage will assist it in

attracting interest in parcels of land; and

     WHEREAS, the State would enter into an agreement with the Convention Center

Authority to develop, construct and operate a garage on the Garrahy Courthouse parking lot site;

and

     WHEREAS, the project costs associated with the construction of a garage is estimated at

forty-five million dollars ($45,000,000) based on industry guidelines of $31,250 per parking

space for 1,250 spaces, plus costs for build out of retail space on the first floor and costs

associated with the financing. Debt service payments on the bonds are not expected to exceed

seventy-eight million five hundred thousand dollars ($78,500,000) in the aggregate based on an

average interest rate of six percent (6.0%), with annual debt service payments expected to be

approximately three million, nine hundred twenty-five thousand dollars ($3,925,000) over a

twenty (20) year term, now, therefore be it

     RESOLVED, that the State is authorized to effectuate the development of the garage, to

lease or sell the surface lot adjacent to the Garrahy Courthouse to the Convention Center

Authority, to enter into a long-term parking lease for court employees and other state employees,

as appropriate, and to enter into appropriate agreements including financing arrangements that

would permit the development and operation of the garage by the Convention Center Authority;

and be it further

     RESOLVED, that no debt shall be issued by the Convention Center Authority until such

time that the Commission certifies to the State and the Authority that it has entered into at least

three (3) purchase and sale agreements for parcels of land under its control, excluding parcels 6, 8

and 9; and be it further

     RESOLVED, that the Department of Administration may advance from the Rhode Island

Capital Plan Fund (“Fund”) an amount not to exceed five hundred thousand dollars ($500,000)

for preliminary architectural and engineering work on the planned garage, the sum of which shall

be repaid to the Fund upon issuance of the debt by the Convention Center Authority, and be it

further

     RESOLVED, that the general assembly hereby authorizes the Convention Center

Authority to issue debt in accordance with its authority under Chapter 42-99 of the General Laws

in an amount not to exceed forty-five million dollars ($45,000,000) to finance the construction of

a parking garage at the current site of the Garrahy surface parking lot providing approximately

1,250 parking spaces and 13,800 square feet of retail space on the ground level; and further

     RESOLVED, that this Joint Resolution shall take effect immediately upon its passage by

this General Assembly; and further

     RESOLVED, that this Resolution shall apply to debt issued within five (5) years of the

date of passage of this Resolution.

     SECTION 3. Rhode Island Airport Corporation.

     WHEREAS, the Rhode Island Commerce Corporation is a public instrumentality of the

State of Rhode Island (the "State"), created by the General Assembly pursuant to Rhode Island

General Laws §§ 42-64-1 et seq. (as enacted, reenacted and amended, the "Act"); and

     WHEREAS, the Act declares, in part, that new industrial, manufacturing, recreational,

and commercial facilities are required to attract and house new industries and thereby reduce the

hazards of unemployment; and that unaided efforts of private enterprises have not met and cannot

meet the needs of providing those facilities due to problems encountered in assembling suitable

building sites, lack of adequate public service, unavailability of private capital for development,

and the inability of private enterprise alone to plan, finance, and coordinate industrial,

recreational, and commercial development; and

     WHEREAS, the Act further declares it to be the public policy of the state to furnish

proper and adequate airport facilities within the state and to encourage the integration of these

facilities so far as practicable; and

     WHEREAS, in furtherance of these goals, it is the policy of the state to retain existing

industries and to induce, encourage and attract new industries through the acquisition,

construction, reconstruction and rehabilitation of industrial, manufacturing, recreational, and

commercial facilities, as well as transportation, residential, environmental, utility, public service,

institutional and civic and community facilities, and to develop sites for such facilities; and

     WHEREAS, the Act has empowered the Rhode Island Commerce Corporation to

establish subsidiary corporations to exercise its powers and functions, or any of them, and,

pursuant to such power, the Rhode Island Commerce Corporation has established the Rhode

Island Airport Corporation to plan, develop, construct, finance, manage, and operate airport

facilities in the state; and

     WHEREAS, the Act provides that the Rhode Island Airport Corporation shall have the

power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and

otherwise deal in and with, real or personal property, or any interest therein, wherever situated;

and

     WHEREAS, the Act also provides that the Rhode Island Airport Corporation shall have

the power to sell, mortgage, lease, exchange, transfer or otherwise dispose of or encumber any

project, (or in the case of a sale, to accept a purchase money mortgage in connection therewith) or

to grant options for any such purposes with respect to any real or personal property or interest

therein, all of the foregoing for such consideration as the Rhode Island Airport Corporation shall

determine. Any lease by the Rhode Island Airport Corporation to another party may be for such

part of the Rhode Island Airport Corporation's property, real or personal, for such period, upon

such terms or conditions, with or without an option on the part of the lessee to purchase any or all

of the leased property for such consideration, at or after the retirement of all indebtedness

incurred by the Rhode Island Airport Corporation on account thereof, as the Rhode Island Airport

Corporation shall determine; and

     WHEREAS, the Act authorizes the Rhode Island Commerce Corporation to borrow

money and issue bonds for any of its corporate purposes; and

     WHEREAS, pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4, the

Rhode Island Commerce Corporation has requested the approval of the General Assembly of the

Rhode Island Commerce Corporation's issuance of airport revenue bonds (the "Bonds") for the

purpose of providing funds to the Rhode Island Airport Corporation for financing the various

capital projects including by way of example and not limitation runway and taxiway

improvements and facility developments on the premises, the provision of architectural,

engineering, surveying, construction management and other professional services necessary or

appropriate therefore, funding capitalized interest, costs of issuing the Bonds and related costs,

and the establishment of reserves for the project and the Bonds, including a debt service reserve

fund (the "Airport Project"); and

     WHEREAS, the financing of the Airport Project will be accomplished through one or

more loan agreements having the Rhode Island Airport Corporation as borrower, such agreement

or agreements to require that the Rhode Island Airport Corporation make loan payments in an

amount equal to the debt service on the Bonds.

     RESOLVED, the General Assembly hereby approves the Rhode Island Commerce

Corporation's issuance of the Bonds (as defined below) and notes in anticipation thereof. The

Bonds will be special obligations of the Rhode Island Commerce Corporation payable exclusively

from loan repayments under a loan agreement with the Rhode Island Airport Corporation and

from Bond proceeds, funds, accounts, and properties and the proceeds thereof pledged therefor,

and thus the Rhode Island Commerce Corporation's maximum liability will be limited to loan

repayments received under the loan agreement and the aggregate amount of such other funds,

accounts, properties, and proceeds.

     RESOLVED, that the total amount of debt approved to be issued in the aggregate shall be

limited to not more than $60,000,000 (the "Bonds"). Total debt service on the Bonds is not

expected to exceed approximately $4,600,000 annually and approximately $135,000,000 in the

aggregate based on anticipated level annual payments, an estimated average interest rate of 6.25%

and a maturity of 30 years.

     RESOLVED, the General Assembly hereby approves the Rhode Island Airport

Corporation's entering into the loan agreements described above. Payments under the loan

agreements shall be derived exclusively from project revenues and such other proceeds, funds,

accounts, projects and the proceeds thereof as the Rhode Island Airport Corporation may pledge

therefor.

     RESOLVED, the Bonds or the amounts due under the loan agreements shall not

constitute indebtedness of the State or a debt for which the full faith and credit of the State is

pledged or a moral obligation thereof.

     RESOLVED, that this resolution shall apply to debt issued within two (2) years of the

date of passage of this resolution.

     SECTION 4. Rhode Island Refunding Bond Authority Bonds.

     WHEREAS, the Rhode Island Depositors Economic Protection Corporation ("DEPCO"),

was created by the General Assembly pursuant to the Rhode Island General Laws § 42-116-1 et

seq.; and

     WHEREAS, all of the remaining outstanding DEPCO Bonds have been defeased

pursuant to various escrow agreements; and

     WHEREAS, because of declines in interest rates, certain of the remaining outstanding

DEPCO Bonds can be called and refunded with savings accruing to the State; and

     WHEREAS, DEPCO can no longer issue refunding bonds since it was dissolved and

terminated pursuant to the provisions of Rhode Island General Laws § 42-116-25; and

     WHEREAS, the Rhode Island Refunding Bond Authority (the "Refunding Bond

Authority") was created by the General Assembly pursuant to Rhode Island General Laws § 35-

8.1-1 et seq., initially to authorize the refunding of certain State General Obligation Bonds that

could not otherwise be refunded without a new referendum; and

     WHEREAS, the General Assembly desires to authorize the Refunding Bond Authority to

refund certain DEPCO Bonds in order to accrue the benefits of savings to the State, now,

therefore, be it

     RESOLVED, the General Assembly approves the issuance of up to $35,000,000 in

Bonds by the Refunding Bond Authority (the "Bonds") to refund a portion of DEPCO's remaining

outstanding $138,835,000 Rhode Island Economic Protection Corporation Special Obligation

Refunding Bonds, 1992 Series B, and the Refunding Bond Authority is authorized to proceed

with the financing, provided that payment of the debt service on the Bonds shall be fully secured

by non-callable direct obligations of the United States of America, or non-callable obligations

fully guaranteed as to principal and interest by the United States of America, and

     RESOLVED, savings accruing from the refunding shall be transferred to and shall vest in

the State's sinking fund established under Rhode Island General Laws § 35-8-1 et seq. and as

provided in Rhode Island General Laws § 42-116-25, and

     RESOLVED, the Governor is authorized to enter into agreements with the Refunding

Bond Authority to effectuate the savings to the State. None of such agreements or the Bonds shall

constitute indebtedness of the State or a debt for which the full faith and credit of the State is

pledged or a moral obligation thereof, and

     RESOLVED, that this joint resolution shall take effect immediately upon passage by the

general assembly.

     SECTION 5. Section 35-8.1-8 of the General Laws in Chapter 35-8.1 entitled "Refunding

Bond Authority" is hereby amended to read as follows:

     35-8.1-8. General powers. -- To carry out the purposes of this chapter, the authority has

the power to:

      (1) Sue and be sued;

      (2) Adopt and have an official seal and alter the seal at its pleasure;

      (3) Make and alter bylaws, rules, and regulations for the conduct of its affairs and

business;

      (4) Maintain an office at such place or places within the state as it may determine;

      (5) Acquire, hold, use, and dispose of its revenue income, funds, and moneys;

      (6) Acquire, purchase, hold, and use any property, real, personal or mixed, tangible or

intangible, or any interest therein necessary or desirable for carrying out the purposes of the

authority, and to mortgage, lease, or sell any of the property; and (without limitation of the

foregoing) to lease as lessee, any property, real, personal, or mixed, or any interest therein to

lease as lessor to the federal government, the state, and any municipality any project of the

authority, and to sell, transfer, and convey to any lessee or to any other person upon such terms

and conditions and for such considerations as the authority shall determine.

      (7) Borrow money, issue its bonds, provide for and secure the payment thereof, and

provide for the rights of the holders thereof, and purchase, hold, and dispose of any of its bonds;

      (8) Lend money for its purposes, invest and reinvest its funds, and, at its option, take and

hold property, real or personal, as security for the payment of funds so loaned and invested,

except that at no time will the authority take and hold property of the state as security for the

payment of funds so loaned;

      (9) Accept, in furtherance of its purposes, appropriations, gifts, or grants of property,

funds, money, materials, labor, supplies, or services from the United States of America or the

state or any other state or agencies or departments thereof, or from any governmental unit or any

person, firm, or corporation, and to carry out the terms or provisions or make agreements with

respect to those appropriations, gifts, or grants, and to do any and all things necessary, useful,

desirable, or convenient in connection with the procurement, acceptance, or disposition of those

appropriations, gifts, or grants;

      (10) Do and perform any acts and things authorized by this chapter under, through, or by

means of its officers or consultants or by contracts with any person, firm, or corporation;

      (11) Make, enter into, and enforce all contracts or agreements necessary, convenient, or

desirable for the purposes of the authority or pertaining to any loan to the state or to the

performance of its duties and execution or carrying out of any of its powers under this chapter;

      (12) Purchase any bond or interest rate insurance and establish such credit or liquidity

enhancement arrangements with financial institutions as the authority shall deem advisable;

      (13) Invest any funds or moneys of the authority in the same manner as permitted for

investment of funds belonging to the state or held in the state treasury; and

      (14) Do all acts and things necessary, convenient, or desirable to carry out the powers

expressly granted or necessarily implied in this chapter;

      (15) Acquire by purchase, lease, or otherwise, and to construct, improve, equip, furnish,

maintain, repair, and operate projects, and to establish rules and regulations for the use of any

project;

      (16) Rent such space in such public facilities as from time to time may not be needed by

any governmental entity to any person for such other purposes as the authority may determine

and upon such terms and in such manner as the authority may determine;

      (17) Employ, in its discretion, planning, architectural, or engineering consultants,

attorneys, accountants, construction, and financial experts, superintendents, managers, and such

other officers, employees and agents as may be necessary in its judgment, and to fix their

compensation;

      (18) Fix and revise from time to time, subject to the provisions of this chapter, and to

charge and collect fees, rentals, and other charges for the use of the facilities of, or for the

services rendered by, the authority or projects thereof, at rates to be determined by the authority,

for the purpose of providing for the payment of the expenses of the authority, the acquisition,

construction, improvement, repair, equipping, furnishing, maintenance, and operation of its

facilities and properties, the payment of the principal of and interest on its obligations, and to

fulfill the terms and provisions of any agreements made with the purchasers or holders of any

obligations;

      (19) Without limitation of the foregoing, to borrow money from, to receive, and accept

grants for or in aid of construction or acquisition of projects authorized under this chapter from,

and to enter into contracts, leases, or other transactions with, any federal agency; and to receive

and accept from the state or any municipality, and from any other source, aid or contributions of

either money, property, labor, or other things of value, to be held, used, and applied only for the

purposes for which the grants and contributions may be made;

      (20) Combine for financing purposes any two (2) or more projects authorized to be

acquired or constructed under the provisions of this chapter;

      (21) Be a promoter, partner, member, owner, associate, or manager of any partnership,

condominium, or other enterprise or venture;

      (22) Acquire in the name of the authority by purchase or otherwise, on such terms and

conditions and in such manner as it may deem proper, or by the exercise of the rights of

condemnation in the manner hereinafter provided, such public or private lands, including public

parks, playgrounds, or reservations, or parts thereof or rights therein, rights of way, property,

rights, easements, and interests as it may deem necessary for carrying out the provisions of this

chapter; provided, however, that all public property damaged in carrying out the powers granted

by this chapter shall be restored or repaired and placed in its original condition as nearly as

practicable.

     (23)(i) Issue bonds and notes of the type and for those projects and for those purposes

specified in any Joint Resolution of the general assembly enacted by the Rhode Island house of

representatives and the Rhode Island senate pursuant to section 18 of title 35 of the general laws

entitled "Rhode Island Public Corporation Debt Management Act," which project and purposes

specified in such Joint Resolution shall constitute a "project" within the meaning of this chapter;

and

     (ii) To enter into such agreements, to deliver such instruments, and to take such other

actions as it shall deem necessary or desirable to effectuate the financing of such project.

     SECTION 6. (a) The Tobacco Settlement Financing Corporation (the "Corporation"),

which was established pursuant to Rhode Island general laws chapter 42-133 (as amended and

supplemented, the "Tobacco Settlement Financing Corporation Act"), is authorized to raise

additional money pursuant to the Tobacco Settlement Financing Corporation Act through the

issuance of its bonds and to apply net bond proceeds:

     (i) For payment to the state of Rhode Island in an amount at least equal to twenty million

dollars ($20,000,000);

     (ii) For payment of the redemption price and/or the tender price of outstanding bonds of

the Corporation that are to be retired; and

     (iii) To establish reserves to secure the bonds, and pay the costs of issuance of the bonds

and all other expenditures of the Corporation incident to and necessary to carry out the

Corporation's purposes and powers.

     (b) To implement and effectuate the purposes of this act, the Governor, acting by and

through state general officers, state departments, agencies and the Corporation, is hereby

authorized and empowered to:

     (1) Effectuate a transaction pursuant to the provisions of the Tobacco Settlement

Financing Corporation Act, which authorizes and governs the issuance of Bonds, as such term is

defined in the Tobacco Settlement Financing Corporation Act, for the purposes described in this

act;

     (2) Cooperate with the Corporation in the amendment of existing bond documentation,

which actions by the Corporation are hereby authorized in order to carry out the purposes

described in this act, including facilitation of payment to the state of amounts in one or more

installments, as a current payment of the state's residual interest in and to the "state's tobacco

receipts", as such term is defined in the Tobacco Settlement Financing Corporation Act, including

disputed amounts withheld from payment to the state and subsequently released to the state;

     (3) Distribute the proceeds of amounts payable to the state pursuant to this act, provided

that the allocation of funds shall be made by the general assembly pursuant to the annual

appropriation process; and

     (4) Take such additional actions, or enter into such additional agreements, as may be

necessary or desirable to effectuate the purposes of this act.

     (c) The Tobacco Settlement Financing Trust, a fund established pursuant to section 42-

133-9, shall receive all amounts payable to the state pursuant to this act.

     SECTION 7. The Corporation shall make the following transfers from the Tobacco

Settlement Financing Trust:

     (1) Five million dollars ($5,000,000) to the state general fund;

     (2) Five million dollars ($5,000,000) to the municipal road and bridge revolving fund,

established pursuant to § 24-18-4 of the Rhode Island general laws; and

     (3) All remaining net bond proceeds to the information technology investment fund,

established pursuant to § 42-11-2.5 of the Rhode Island general laws.

     SECTION 8. Nursing Education Center for the University of Rhode Island College of

Nursing and the Rhode Island College School of Nursing in the South Street Power Station

Building (also referred to within as South Street Landing).

     WHEREAS, the University of Rhode Island (the "University") and Rhode Island College

(the "College") offer undergraduate, graduate, and certificate academic programs in Nursing

through the University's College of Nursing and the College's School of Nursing with teaching,

research, and outreach that benefits students seeking exceptional education and training in the

nursing profession, as well as Rhode Island medical institutions and patient care settings where

nurses practice; and

     WHEREAS, the Board of Governors for Higher Education supported a Nursing

Education Center, to be shared by the University and the College, in the Board's Capital

Improvement Program in FY 2010; and

     WHEREAS, the Rhode Island General Assembly requested in June 2010 that a feasibility

study be performed to define the objectives of the project and to refine both the space

requirements, specific sites, and comparative development methods for the project, resulting in

the completion of the "Feasibility Study for a Rhode Island Nursing Education Center" in May

2011; and

     WHEREAS, in that study, the University and the College examined both the Nursing

program needs to educate and train an increasing number of nurses to fulfill the future workforce

needs of the State and the conceptual design of a shared facility, including the availability of

technology rich, simulation-based instructional settings, preferably offering a "Smart Hospital"

configuration, for upper class undergraduate and graduate nursing education in the former

Jewelry District in downtown Providence, Rhode Island. This would meet those needs as an

alternative to two independent projects to renovate and expand existing buildings for the

University's College of Nursing and the College's School of Nursing, proposed by both programs

independently in FY 2010 on their respective main campuses in Kingston, Rhode Island and in

Providence, Rhode Island; and

     WHEREAS, the location within the former Jewelry District was well supported for its

opportunities for collaboration and economic growth with proximity to the State's major medical

and hospital facilities, higher education institutions, access to multiple transportation modes, and

the State's and the City of Providence's desire to see development and business activity expand in

the area; and

     WHEREAS, during the 2013 General Assembly Session, an opportunity emerged for the

realization of the Nursing Education Center in a co-tenancy with Brown University as part of a

private developer lease project, led by Commonwealth Ventures of Boston, Massachusetts, for

the former South Street Power Station Building in the core of the former Jewelry District.

Nonbinding resolutions were issued individually by the House and the Senate during the 2013

Legislative Session, encouraging and supporting the efforts of the Board of Education and the

Department of Administration to locate a Nursing Education Center at the South Street Power

Station Building in Providence; and

     WHEREAS, the University, the College, and the Board of Education, together with the

Department of Administration, have worked as a collective team in the evaluation of the

planning, design, and structure of the developer's project, and in negotiation of the financial and

legal terms of the Lease Agreement; and

     WHEREAS, the team, utilizing five hundred thousand dollars ($500,000) in Rhode Island

Capital Plan Fund financing, dedicated for professional services support to the Nursing Education

Center in the budget for FY 2014, has been supported by legal counsel, an owners' agent project

manager, and specialized consultants; and

     WHEREAS, the team and its consultants have conducted its planning, design and

negotiating in consultation with Brown University; and

     WHEREAS, at a meeting duly noticed on March 11, 2014, the State Properties

Committee provided approval to negotiate a lease for the Nursing Education Center at the former

South Street Power Station Building; and

     WHEREAS, the Department of Administration has proposed a Lease (the "Proposed

Lease Agreement"), with a term of fifteen (15) years, with an option to extend the lease for a

period not to exceed two (2) years, for approximately one hundred thirty two thousand four

hundred forty-nine (132,449) square feet of space on the first, second, and a portion of the third

floor of the planned renovated and expanded former South Street Power Station Building for the

Nursing Education Center. The term of the Lease Agreement is anticipated to begin on July 1,

2016; and

     WHEREAS, the Proposed Lease Agreement would require the Board of Education to

pay:

     (1) Base Rent for the proportionate share of the core building design, renovation and

construction expenses of fourteen dollars ($14.00) per square foot, or one million eight hundred

fifty five thousand dollars ($1,855,000) annually during the first five (5) years of the lease term;

     (2) Tenant Improvement Rent for the anticipated cost of developer financing, design, and

construction of the Nursing Education Center space, presently estimated at eighteen dollars and

eighty-one cents ($18.81) per square foot per year, or an average of two million four hundred

ninety one thousand dollars ($2,491,000) annually for each year of the lease term, the exact

amount to be determined in accordance with a formula in the Lease Agreement; and

     (3) Additional Rent for the proportionate share of the actual building operating,

maintenance, and metered utility expenses, estimated at twelve dollars and seventy-five cents

($12.75) per square foot, or one million six hundred eighty nine thousand dollars ($1,689,000) for

the first year following the commencement of occupancy; and

     WHEREAS, the Base Rent under the Proposed Lease Agreement would increase to

fifteen dollars and twelve cents ($15.12) per square foot in years six (6) through ten (10), sixteen

dollars and thirty-three cents ($16.33) per square foot for years eleven (11) through fifteen (15),

and seventeen dollars and fifteen cents ($17.15) during the Option Period. During the Option

Period, the Tenant Improvement Rent would be reduced to zero dollars ($0.00). The Operating

Expense Rent and metered utilities would be adjusted annually, based on a reconciliation of

estimated costs and actual costs; and

     WHEREAS, the Proposed Lease Agreement provides that, during lease year six (6) and

after the end of lease year twelve (12), the Board of Education would have an option to purchase,

as a condominium unit, that portion of the building leased for the Nursing Education Center,

exercise of such option and the financing thereof subject to General Assembly approval; and

     WHEREAS, the State shall be responsible for paying the Base Rent and the Tenant

Improvement Rent, and the Board of Education shall fairly apportion the Additional Rent

between the University and the College; and

     WHEREAS, the Proposed Lease Agreement provides that no rent is payable until:

     (1) the renovation and construction of the South Street Landing Project is completed;

     (2) the developer has secured a certificate of occupancy for the Building, including

specifically the Nursing Education Center space; and

     (3) the Nursing Education Center space is determined to be completed according to the

project specifications and terms of the Proposed Lease Agreement; now, therefore, be it

     RESOLVED, that this General Assembly hereby approves the Proposed Lease

Agreement for the Nursing Education Center for the space in the former South Street Power

Station Building for a term not to exceed seventeen (17) years and at a total cost not to exceed

thirty four million six hundred forty-one thousand dollars ($34,641,000) for the Base Rent; and an

amount not to exceed twenty-five million dollars ($25,000,000), plus the applicable interest and

financing costs for the Tenant Improvement Rent; and Additional Rent for the proportionate share

of operating and maintenance expenses and metered utilities; and be it further

     RESOLVED, that this Joint Resolution shall take effect upon passage by the General

Assembly; and be it further

     RESOLVED, that the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the Governor, the Chair of the Board of Education, the

Director of Administration, the State Budget Officer, and the Chair of the State Properties

Committee.

     SECTION 9. Public Finance Debt Management Act Authorization for Alternative Direct

State Financing of the Cost of the Tenant Improvements for the Nursing Education Center as an

Alternative and Substitution for the Developer Financing Offered as part of the Lease Agreement.

     WHEREAS, the Department of Administration's Proposed Lease Agreement grants to the

Board of Education the right to finance the Tenant Improvements itself, without availing itself of

the provision of developer financing as contemplated in the Proposed Lease Agreement, if such

an alternative method is determined to be advantageous and in the best interest of Board of

Education and the State; and

     WHEREAS, the exercise of the Board of Education's option to finance the Tenant

Improvements will thereby eliminate Tenant Improvement Rent (encompassing construction and

design costs) during the term of the Proposed Lease Agreement, provided that the proceeds of

such financing are available to the developer no earlier than the rent commencement date in the

Proposed Lease Agreement which is when the renovation and construction of the South Street

Landing Project is completed and the developer has secured a certificate of occupancy for the

Building, including specifically the Nursing Education Center space, and the Nursing Education

Center space is determined to be completed according to the project specifications and terms of

the Proposed Lease Agreement and no later than six (6) months thereafter; and

     WHEREAS, the alternative Tenant Improvement project costs to be financed for the

Nursing Education Center are anticipated not to exceed twenty-five million dollars ($25,000,000),

plus costs associated with the issuance o f such financing; and

     WHEREAS, the term of such financing would not exceed fifteen (15) years, with

provisions made in the structure of the financing to permit early payment of the outstanding

amount of such financing, if the option to purchase in the Proposed Lease Agreement is approved

and executed during either of the two (2) time periods when such an option is exercisable under

the Lease Agreement; and

     WHEREAS, because o f the use of Federal Historic Preservation Tax Credits applicable

to the Tenant Improvement work for the Nursing Education Center, taxable rate financing must

be employed at a rate not expected to exceed eight percent (8.0%); and

     WHEREAS, the resulting annual debt service associated with the state financing of the

Nursing Education Center is expected not to exceed three million eight hundred three thousand

dollars ($3,803,000) annually and forty eight million two hundred four thousand dollars

($48,204,000) for the duration of an up to fifteen (15) year term; now, therefore, be it

     RESOLVED, that the General Assembly hereby approves alternative financing not to

exceed twenty-five million five hundred thousand dollars ($25,500,000), including twenty-five

million dollars ($25,000,000) for the estimated Tenant Improvement Project Costs and five

hundred thousand dollars ($500,000) for the estimated cost of financing; and be it further

     RESOLVED, that this Joint Resolution shall take effect immediately upon its passage by

the General Assembly and shall be limited to debt issued prior to January 1, 2018.

     SECTION 10. Public Finance Debt Management Act Authorization for the

lease/purchase of Equipment, Fixtures and Furnishings Associated with the occupancy and

conduct of Nursing Education Programs by the University and the College in the Nursing

Education Center spaces in the South Street Landing Project.

     WHEREAS, the University's College of Nursing and the College's Nursing School, and

personnel from both institutions who support networking and instructional technology have

worked closely with the developer's architectural team on the complement and configuration of

the instructional, simulation, and practice lab configuration of spaces through the schematic

design phase of the Nursing Education Center facilities, with the objective of achieving a

technology rich, realistic, high-caliber learning and training experience for nursing undergraduate

students, graduate students, and those practicing nurses seeking higher levels of certification and

training; and

     WHEREAS, the manner in which the facilities are furnished and equipped is an

extremely important aspect of assuring that the completed and occupied Nursing Education

Center exceeds the educational and training expectations of students and faculty when it opens

and into the future with opportunities for expanded use by other higher education institutions,

hospitals, and medical institutions for medical students, pharmacy students, physician assistant

students, medical technician trainees, as well as nurses in a simulated "Smart Hospital" physician

offices, and home care settings; and

     WHEREAS, the initial and continuing success of a teaching and learning center such as

this is highly dependent upon the quality and sophistication of the equipment, including

computerized mannequins, interactive audio/visual, realistic hospital beds with support systems,

and video recording systems to enable post training review and critique of experiential learning

experiences; fixtures; and furnishings that are acquired and deployed to outfit both the formal

teaching and simulation facilities, as well as the traditional classrooms, gathering, meeting and

faculty office spaces; and

     WHEREAS, architects and consultants on the developer's design team focusing on the

Nursing Education Center have provided a detailed inventory and pricing analysis of the

equipment, fixtures, and furnishings, on a room-by-room basis, recommended to meet the

objectives of the shared Nursing Education Center; and

     WHEREAS, the investment in technology, equipment, fixtures and furnishings is

projected to cost ten million fifty thousand dollars ($10,050,000) and the intent is to secure

lease/purchase financing through the issuance of certificates of participation in order to spread the

cost of that investment over ten (10) fiscal years, at an anticipated non-taxable interest rate

estimated not to exceed seven percent (7.0%); and

     WHEREAS, the resulting annual debt service associated with the state financing of the

technology, equipment, fixtures and furnishing is expected not to exceed one million four

hundred ninety-seven thousand dollars ($1,497,000) annually and fourteen million nine hundred

fifty thousand dollars ($14,950,000) for the duration of the term of financing; now, therefore, be

     RESOLVED, that the General Assembly hereby approves lease/purchase financing not to

exceed ten million five hundred thousand dollars ($10,500,000), including ten million fifty

thousand dollars ($10,050,000) for the estimated cost of technology, equipment, fixtures and

furnishings and four hundred fifty thousand dollars ($450,000) for the estimated cost of

financing; and be it further

     RESOLVED, that this Joint Resolution shall take effect immediately upon its passage by

the General Assembly and shall be limited to debt issued prior to January I , 2018.

     SECTION 11. This article shall take effect upon passage.