2016 -- S 2821

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LC005438

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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

AUTHORIZING THE STATE TO EFFECTUATE THE DEVELOPMENT OF A 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

     Introduced By: Senators Ruggerio, Goodwin, and Miller

     Date Introduced: March 23, 2016

     Referred To: Senate Finance

     (The I-195 Redevelopment District Commission)

     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 "Act"); 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, Pursuant to the Act and this 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 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 $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 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

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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 42-99 of the General Laws in an

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

garage providing approximately 1,200 or more parking spaces and containing retail space on

some portion of the ground level; and further

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

and further

     RESOLVED, That this Joint Resolution supersedes the authorization contained in

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

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

the date of passage of this Joint Resolution.

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LC005438

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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

AUTHORIZING THE STATE TO EFFECTUATE THE DEVELOPMENT OF A 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

***

     This Joint Resolution would authorize the state to effectuate the development of a 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.

     This Joint Resolution would take effect immediately upon its passage.

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LC005438

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