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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

      AND AN ACT

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: Senators Ruggerio, Goodwin, and Miller

     Date Introduced: March 23, 2016

     Referred To: Senate 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 "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%) 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"); and

     WHEREAS, the location of the garage is central to the "Link" and other essential city and

state services; and

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     WHEREAS, the general assembly has determined that because the garage will be an

extremely visible structure on the city/state landscape, the garage's appearance, design and use

concept should be considered in a holistic manner so that the garage can serve as more than a

"utilitarian" garage; now, therefore be it

     RESOLVED AND ENACTED, 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 AND ENACTED, 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 1 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 AND ENACTED, 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 AND ENACTED, 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 AND ENACTED, The Convention Center Authority shall seek, through a

public notice and competitive process, proposals that provide for the design and construction of

the garage, and shall encourage respondents to include in their proposals creative uses for the

garage that are compatible with the property's primary function as a garage; provided, however,

that nothing herein shall require the Convention Center Authority to use a particular method of

procurement nor require it to proceed with a proposal that it determines cannot deliver a garage of

the size and character required under this Joint Resolution in a timely manner and within budget,

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and be it further

     RESOLVED AND ENACTED, That this Joint Resolution shall take effect immediately

upon its passage; and be it further

     RESOLVED AND ENACTED, 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 AND ENACTED, 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 act shall take effect upon passage.

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