2017 -- S 0567

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LC002086

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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J O I N T   R E S O L U T I O N

TO APPROVE FINANCING FOR CONSTRUCTION OF A NEW RESIDENCE FACILITY

ON THE UNIVERSITY OF RHODE ISLAND KINGSTON CAMPUS

     Introduced By: Senators Sosnowski, Algiere, Jabour, Sheehan, and Gallo

     Date Introduced: March 15, 2017

     Referred To: Senate Finance

     WHEREAS, The Rhode Island Council on Postsecondary Education is proposing a

project which involves the construction of a new residence hall on the west bank of the White

Horn Brook located in the northwest corner of the Kingston campus of the University of Rhode

Island in the Town of South Kingstown, Rhode Island; and

     WHEREAS, The growth of undergraduate student enrollment is critical to the fiscal

health of the University; and

     WHEREAS, There is high undergraduate student demand for apartment style on-campus

housing; and

     WHEREAS, The University is committed to providing adequate and appropriate housing

opportunities for its students; and

     WHEREAS, The University continues to undertake significant improvements to existing

dormitory style housing facilities and has built new units that offer both suite style and apartment

living options with the goal of providing over fifty percent (50%) of its undergraduate students

on-campus housing in keeping with its peer institutions; and

     WHEREAS, Apartment style housing units are critical for the on-campus retention of

third and fourth year students that often seek alternative housing off campus; and

     WHEREAS, A recent market study has demonstrated that the market demand for

additional, apartment style campus housing indicates that this project will be fully occupied upon

completion and into the future; and

     WHEREAS, The Rhode Island Public Corporation Debt Management Act requires the

General Assembly to provide its consent to the issuance or incurring by the State of Rhode Island

and other public agencies of certain obligations including financing guarantees or other

agreements; and

     WHEREAS, The design and construction of the project will be financed through Rhode

Island Health and Educational Building revenue bonds, with an expected term of thirty (30)

years; and

     WHEREAS, The total project costs associated with the completion of the project and

proposed financing method would be supported approximately ninety-five percent (95%) by

auxiliary fee revenues for URI Housing and Residential Life for the apartment building and

approximately five percent (5%) by University general funds for site enabling facility relocation,

utility and hardscape and landscape infrastructure and site work; and

      WHEREAS, The project is currently in design and targeting a total project financing cost

of eighty-eight million seven hundred and eighty-seven thousand dollars ($88,787,000), with a

request to have seventy-eight million, four hundred forty thousand dollars ($78,440,000)

deposited into a construction fund, eight million, thirty-seven thousand dollars ($8,037,000)

deposited in a capitalized interest fund, and two million, three hundred ten thousand dollars

($2,310,000) to pay the associated cost of financing, and with an assumed interest rate of five

percent (5%) debt service, repayments will not exceed one hundred seventy-three million, two

hundred seventy-one thousand, six hundred fifty-three dollars ($173,271,653); and

     WHEREAS, The University has been advised by its architectural and project

management firms to anticipate potential additional escalation of construction costs leading up to

the final pricing of the construction of this project; now therefore be it

     RESOLVED, That the General Assembly hereby approves financing in an amount not to

exceed total debt service payments of one hundred seventy-three million, two hundred seventy-

one thousand, six hundred fifty-three dollars ($173,271,653) for construction of a new apartment

style residence facility on the University of Rhode Island Kingston Campus, with the not-to-

exceed amount to be financed determined by the actual financing interest rate at the time of the

bond issuance; and be it further

     RESOLVED, That this Joint Resolution shall take effect upon passage.

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LC002086

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