2016 -- H 8294

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LC005920

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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J O I N T   R E S O L U T I O N

APPROVING THE ISSUANCE OF NOT TO EXCEED $45,000,000 REVENUE BONDS BY

THE RHODE ISLAND CONVENTION CENTER AUTHORITY TO FINANCE

CONSTRUCTION OF A PUBLIC PARKING GARAGE AT THE GARRAHY COURTHOUSE

PARKING LOT SITE AND AUTHORIZING THE STATE TO ENTER INTO A FINANCING

LEASE IN CONNECTION THEREWITH

     Introduced By: Representatives Carnevale, Almeida, McKiernan, and Slater

     Date Introduced: June 07, 2016

     Referred To: House Finance

     (The I-195 Redevelopment District Commission)

     SECTION 1. This act consists of a joint resolution that is 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 Rhode Island Convention Center Authority ("Convention Center

Authority") is a public instrumentality of the State of Rhode Island, created by the General

Assembly pursuant to Rhode Island General Laws §42-99-1 et seq. (as enacted, reenacted and

amended, the "Convention Center Act"); and

     WHEREAS, Pursuant to the Convention Center Act and this joint resolution and act (this

joint resolution and act are herein referred to as the "Joint Resolution"), the Convention Center

Authority shall have the authority to develop, construct and operate a garage on the Garrahy

Courthouse parking lot site; 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 Commission and CV Properties, LLC and Wexford Science &

Technology, LLC ("CV/Wexford") have entered into a purchase and sale agreement (the

"CV/Wexford Agreement") pursuant to which CV/Wexford has agreed to purchase land within

the Link in order to develop a mixed-use complex consisting of laboratory space, office space,

hotel, meeting space, and residential units (the "CV/Wexford Development"); and

     WHEREAS, The CV/Wexford Development is across Clifford Street from the Garrahy

Courthouse and Garrahy Courthouse parking lot site; and

     WHEREAS, CV/Wexford expressed in the CV/Wexford Agreement its intention to

acquire spaces in a public parking garage located on the Garrahy Courthouse parking lot site at

applicable market rates in order to assure adequate parking is available for the CV/Wexford

Development; 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 thirty-one thousand two

hundred fifty dollars ($31,250) per parking space for approximately one thousand two hundred

(1,200) or more parking spaces and build out of commercial or retail space on some portion of the

first floor, funding debt service reserve fund, and issuance and other costs associated with the

financing. Debt service payments on the bonds are not expected to exceed eighty-eight million

one hundred twenty-five thousand dollars ($88,125,000) in the aggregate based on an average

interest rate of six percent (6.0%) assuming that the project must be financed with taxable debt

rather than tax-exempt debt, with average annual debt service payments on a fiscal year basis

expected to be approximately three million five hundred twenty-five thousand dollars

($3,525,000) over a twenty-five (25) year term (the "Financing Parameters"); 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,

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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 for the

garage until such time that the Commission certifies to the state and the Convention Center

Authority that either: (1) CV/Wexford or their nominee(s) have closed on the purchase of Parcel I

as described in the CV/Wexford Agreement and have agreed to lease not fewer than four hundred

(400) spaces in the garage at market rates; or (2) The Commission has entered into at least three

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

9 of the Link; 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 develop, construct and operate a garage on the Garrahy Courthouse parking lot site

and to issue debt in accordance with its authority under chapter 99 of title 42 of the General Laws

in an amount not to exceed forty-five million dollars ($45,000,000), in conformity with the

Financing Parameters, to finance the project; and be it further

     RESOLVED, That this Joint Resolution shall take effect immediately upon passage; and

be it further

     RESOLVED, That this Joint Resolution supersedes the authorization contained in

Section 2, Article 4 of Chapter 145 of the 2014 Public Laws; and be it further

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

the date of passage of this Joint Resolution.

     SECTION 3. This joint resolution shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

J O I N T   R E S O L U T I O N

APPROVING THE ISSUANCE OF NOT TO EXCEED $45,000,000 REVENUE BONDS BY

THE RHODE ISLAND CONVENTION CENTER AUTHORITY TO FINANCE

CONSTRUCTION OF A PUBLIC PARKING GARAGE AT THE GARRAHY COURTHOUSE

PARKING LOT SITE AND AUTHORIZING THE STATE TO ENTER INTO A FINANCING

LEASE IN CONNECTION THEREWITH

***

     This joint resolution approves the issuance of not more than forty-five million dollars

($45,000,000) in revenue bonds by the Rhode Island convention center authority to finance

construction of a public parking garage at the Garrahy Courthouse parking lot site and authorizing

the state to enter into a financing lease in connection therewith.

     This joint resolution would take effect upon passage.

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