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art.006/3/006/2/006/1

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     ARTICLE 6

RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTION

     SECTION 1. This article consists of a joint resolution that is submitted pursuant to Rhode

Island General Law § 35-18-1, et seq.

     SECTION 2. Quonset Harbor, Pier, and Port Improvements.

     WHEREAS, the Rhode Island commerce corporation is a public instrumentality of the

State of Rhode Island (hereafter the “State”), created by the general assembly pursuant to §

42641 et seq. (as enacted, reenacted and amended, hereafter 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

     WHEREAS, the Act further declares it to be the public policy of the State to encourage

the expansion and development of the State’s harbors and ports and to foster and improve the

handling of waterborne commerce from and to any port of this State and other states and foreign

countries; 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, harbors and ports, 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

     WHEREAS, the general assembly, pursuant to § 4264.101 et seq. (as enacted, reenacted

and amended, hereafter the “QDC Act”) created the Quonset development corporation as a

subsidiary of the Rhode Island commerce corporation; and

     WHEREAS, the QDC Act provided that the Quonset development 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,

including those certain transportation, harbor, pier, and waterfront facilities located at the

Quonset business park; and

     WHEREAS, the QDC Act also provides that the Quonset development 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, as the lawful agent and attorney-in-fact of the Rhode Island commerce

corporation with respect to all property of the Rhode Island commerce corporation at the Quonset

business park, all of the foregoing for such consideration as the Quonset development corporation

shall determine; and

     WHEREAS, any lease by the Quonset development corporation to another party may be

for such part of the Quonset business park, 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

Quonset development corporation on account thereof, as the Quonset development 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 §§ 35-18-3 and 35-18-4 of the Rhode Island General Laws, the

Rhode Island commerce corporation has requested the approval of the general assembly for the

issuance of harbor, pier, and port revenue bonds (hereafter "bonds") for the purpose of providing

funds to the Quonset development corporation for financing capital projects for harbor, pier, port,

and all other costs related to the improvements necessary at and in the immediate vicinity of the

Davisville piers at the Quonset business park, including without limitation, improvements to

modernize port infrastructure at the Port of Davisville (hereafter the "2016 Davisville Piers

Project"), including 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;

and

     WHEREAS, the financing of the 2016 Davisville Piers Project and repayment of the

bonds will be accomplished through one or more loan agreements having the Quonset

development corporation as borrower, such agreement or agreements to require that the Quonset

development corporation to make loan payments in an amount equal to the debt service on the

bonds; now, therefore, be it:

     RESOLVED, the general assembly hereby approves the Rhode Island commerce

corporation’s issuance of the bonds in a private placement or through a public offering, in one or

more series. The bonds will be special obligation bonds of the Rhode Island commerce

corporation payable exclusively from loan repayments under a loan agreement with the Quonset

development 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; and be it further

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

not more than twenty-five million dollars ($25,000,000); and be it further

     RESOLVED, that the general assembly hereby approves the Quonset development

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 Quonset development corporation may pledge

therefor; and be it further

     RESOLVED, that none of the bonds or the loan agreements 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 be it further

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

date of passage of this resolution; and be it further

     RESOLVED, that this joint resolution shall take effect immediately upon its passage.

     SECTION 3. This article shall take effect upon passage.