2022 -- H 8352

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LC006135

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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J O I N T   R E S O L U T I O N

RELATING TO PUBLIC CORPORATION DEBT MANAGEMENT

     Introduced By: Representatives Fogarty, McEntee, Carson, and Tanzi

     Date Introduced: June 16, 2022

     Referred To: House Finance

     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. Brookside Apartments II -- University of Rhode Island

     WHEREAS, The University of Rhode Island Board of Trustees is proposing a project

which involves the construction of a new residence hall on the Kingston campus; and

     WHEREAS, The 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 change has necessitated this additional, apartment style

campus housing; 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 by auxiliary fee revenues for URI Housing and

Residential Life for the apartment building and potentially up to three and one half percent (3.5%)

by University general funds for site enabling facility relocation, utility infrastructure and site

work; and

     WHEREAS, The URI Auxiliary bond indenture stipulates that in order to issue new debt,

the auxiliary revenues less auxiliary enterprise expenditures, excluding capital expenditures and

debt service, must cover auxiliary debt service 1.2 times, thus ensuring that any new bonds will

be issued on a financially sound basis; and

     WHEREAS, The project is targeting a total project financing level of one hundred sixty-

three million one hundred thousand dollars ($163,100,000), which includes capitalized interest

and the associated cost of financing, with an assumed interest rate of six percent (6%) and a thirty

(30) year term, which has debt service repayments that will not exceed three hundred fifty-six

million dollars ($356,000,000).

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

exceed total debt service payments of three hundred fifty-six million dollars ($356,000,000) for

construction of a new apartment style residence facility on the University of Rhode Island

Kingston Campus; and be it further

     RESOLVED, That, this Joint Resolution shall take effect upon passage by this General

Assembly.

     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

RELATING TO PUBLIC CORPORATION DEBT MANAGEMENT

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     This Joint Resolution would authorize approval of financing in an amount not to exceed

three hundred fifty-six million dollars ($356,000,000) for construction of a new apartment style

residence facility at the University of Rhode Island.

     This Joint Resolution would take effect upon passage.

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LC006135

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