2001 --

ARTICLE 6 SUBSTITUTE A AS AMENDED

RELATING TO CAPITAL DEVELOPMENT PROGRAM

SECTION 1. Sections 35-18-2, 35-18-3 and 35-18-4 of the General Laws in Chapter 35-18 entitled "Public Corporation Debt Management" are hereby amended to read as follows:

35-18-2. Definitions. -- The words defined in this section shall have the meanings set forth below whenever they appear in this chapter, unless the context in which they are used clearly requires a different meaning:

(1) "Bond" and "obligation" mean an agreement by any person to repay borrowed money.

(2) "Economic development project" means any project which the Rhode Island industrial facilities corporation is authorized to undertake, including, without limitation, a project related to financing the acquisition of any land and any building or other improvement which shall be suitable for manufacturing, warehousing, or other industrial or commercial purposes, including research, production, processing, agricultural, and marine commerce; provided, however, that the project may include, in addition, the construction or improvement of access roads and utilities, but only access roads and utilities, and only those which are necessary for the operation of that project.

(3) "Essential public facilities" means roads, bridges, airports, prisons, reservoirs, waste and wastewater treatment facilities, educational facilities, and any other facilities used by any state agency, department, board, or commission, including the board of governors for higher education, to provide services to the public pursuant to the requirements of state or federal law, all fixtures for any of those facilities and facilities financed or refinanced by bonds or other obligations of the water resources board corporate. It does not include any personal property.

(4) "Financing lease" means an agreement in the form of a lease between the state and any person which provides that upon payment by the state as lessee of aggregate rent equal to no less than all of the principal and interest on bonds or other obligations issued by the lessor to finance the acquisition, construction, or improvement of all or any part of an essential public facility, the state shall have the right to possess, use and enjoy that facility pursuant to the lease for a specified period and the option to purchase that facility for a nominal sum at the end of the period.

(5) "Governor" means the governor of the state.

(6) "Guarantee" and "guarantee lease" mean an agreement on the part of the state to guarantee any liability of a public corporation except a liability of the Rhode Island industrial recreational building authority.

(7) ~~"Moral obligation bonds" mean revenue bonds issued under section 42-64-18 (as that section was in effect on June 1, 1994) or any substantially similar provision in the general laws.~~

(8) "Person" means an individual, partnership, corporation, public corporation, trust, or association.

(9) "Public corporation" means any body corporate and politic created or to be created pursuant to statute, including, without limitation, the Rhode Island industrial recreational building authority, the Rhode Island economic development corporation and any subsidiaries thereof, the Rhode Island industrial facilities corporation, the Rhode Island refunding bond authority, the Rhode Island health and educational building authority, the board of governors for higher education, the Rhode Island housing and mortgage finance corporation, the Rhode Island resource recovery corporation, the Rhode Island public transit authority, the Rhode Island student loan authority, the water resources board corporate, (except as provided below), the Rhode Island health and educational building corporation, the Rhode Island depositors economic protection corporation, the Rhode Island convention center authority, the Rhode Island turnpike and bridge authority, their successors and assigns. Cities, towns, and any corporation created by a city or town pursuant to statute, and fire and water districts, are not public corporations under this chapter. The water resources board corporate is not a public corporation under this chapter to the extent it is financing or refinancing bonds or other obligations on behalf of a city, town, city or town instrumentalities or agencies, or fire or water districts.

(10) "State" means the state of Rhode Island and Providence Plantations, and any department, office, board, commission, or agency of the state.

35-18-3. Approval by the general assembly. -- (a) No elected or appointed state official may enter into any financing lease or into any guarantee with any person without the prior approval of the general assembly unless:

(1) ~~Total payments under the financing lease or guarantee will not exceed the sum of four million dollars ($4,000,000);~~

(2) [Expired pursuant to P.L. 1994, ch. 148, section 2.]

(3) The governor certifies that federal funds will be available to make all of the payments which the state is or could be obligated to make under the financing lease or guarantee; or

(4) The general assembly has adjourned for the year with the expectation that it will not meet again until the following year and the governor certifies that action is necessary, because of events occurring after the general assembly has adjourned, to protect the physical integrity of an essential public facility, to ensure the continued delivery of essential public services, or to maintain the credit worthiness of the state in the financial markets.

(b) No bonds may be issued or other obligation incurred by any public corporation to finance, in whole or in part, the construction, acquisition, or improvement of any essential public facility without the prior approval of the general assembly, unless:

(1) ~~Total payments under the bonds or other obligation will not exceed the sum of four million dollars ($4,000,000);~~

(2) [Expired pursuant to P.L. 1994, ch. 148, section 2.]

(3) The governor certifies that federal funds will be available to make all of the payments required to be made by the public corporation in connection with the bond or obligation. The certification shall be transmitted to the speaker of the house and the president of the senate with copies to the chairpersons of the respective finance committees and fiscal advisors; or

(c) In addition to, and not by way of limitation on, the exemptions provided in subsections (a) and (b), prior approval by the general assembly shall not be required under this chapter for bonds or other obligations issued by, or financing leases or guarantee agreements entered into by:

(1) Any public corporation in connection with the financing of any economic development project; provided, however, that the outstanding principal balance of moral obligation bonds issued by all public corporations in connection with economic development projects shall not exceed at any one time the sum of two hundred fifty million dollars ($250,000,000); The Rhode Island Industrial Facilities Corporation; provided financing leases, bonds or other obligations are being issued for an economic development project;

(2) The Rhode Island clean water finance agency;

(3) The Rhode Island housing and mortgage finance corporation;

(4) The Rhode Island student loan authority;

(5) Any public corporation to refund any bond or other obligation issued by the public corporation to finance the acquisition, construction, or improvement of an essential public facility provided that the governor certifies to the speaker of the house and the president of the senate, with copies to the chairpersons of the respective finance committees and fiscal advisors that the refunding shall provide a net benefit to the issuer; provided, however, obligations of the Rhode Island resource recovery corporation outstanding on July 31, 1999, may be refunded by the issuance of obligations on or before August 1, 1999, and the state through appropriate state and elected officials, including, but not limited to, the attorney general, the director of the department of administration and the chairman of the state properties committee, and the Rhode Island resource recovery corporation may enter into, approve, or extend, any financing lease, guarantee, or guarantee lease similar to the existing lease arrangements between the state and the Rhode Island resource recovery corporation in effect on August 1, 1997, and any financing lease, guarantee, or guarantee lease, or extension thereof, shall be exempt from the provisions of this chapter;

(6) The Narragansett Bay water quality management district commission; and

(7) The Rhode Island health and educational building corporation, except bonds or other obligations issued in connection with the acquisition, construction, or improvement of any facility used by any state agency, department, board, or commission, including the board of governors for higher education, to provide services to the public pursuant to the requirements of state or federal law, and all fixtures for any of those facilities.

(d) Nothing contained in this section applies to any loan authorized to be borrowed under Article VI, section 16 or 17 of the Rhode Island Constitution.

(e) Nothing in this section is intended to expand in any way the borrowing authority of any public corporation under its charter.

(f) (1) Any certification made by the governor under subsection (a), (b), or (c) of this section may be relied upon by any person, including without limitation, bond counsel.

(2) The certifications shall be transmitted to the speaker of the house and the president of the senate with copies to the chairpersons of the respective finance committees and fiscal advisors.

(g) Except as provided for in this chapter, the requirements of this chapter supersede any other special or general provision of law, including any provision which purports to exempt sales or leases between the state and a public corporation from the operation of any law.

35-18-4. Procedure. -- (a) A financing lease, guarantee, bond, or other obligation shall be deemed to have been approved by the general assembly when the general assembly passes a concurrent resolution of approval regarding the financing lease, guarantee, bond, or other obligation which the governor or a public corporation, as the case may be, requests that the financing lease, guarantee, bond, or other obligation be approved by the general assembly. These requests shall be transmitted to the speaker of the house and the president of the senate with copies to the chairpersons of the respective finance committees and fiscal advisors. The request for approval shall include:

(1) A full description of the essential public facility to which the financing lease, guarantee, bond, or other obligation is related;

(2) An explanation as to why the facility is needed and how it will be paid off; and

(3) The maximum possible obligation of the state or of any public corporation under the financing lease, guarantee, bond, or other obligation.

(b) The governor shall provide the general assembly with a timely explanation of any certification made by him or her pursuant to this chapter in connection with any financing lease, guarantee, bond, or other obligation. These explanations shall be transmitted to the speaker of the house and the president of the senate with copies to the chairpersons of the respective finance committees and fiscal advisors. The explanation shall also include:

(1) A full description of the essential public facility to which the financing lease, guarantee, bond, or other obligation is related;

(2) An explanation as to why the facility is needed and how it will be paid off; and

(3) The maximum possible obligation of the state or of any public corporation under the financing lease, guarantee, bond, or other obligation.

(c) The state shall not enter into any financing lease or guarantee relating to, nor shall any public corporation issue any bond or other obligation in connection with, any essential public facility unless the facility conforms to the description included in the request for approval or in the explanation for certification submitted by the governor in connection with the financing lease, guarantee, bond, or other obligation; nor shall the state's obligation in connection with the financing lease, guarantee, bond, or other obligation exceed the amount set forth in the request for approval or explanation of certification.

(d) Immediately following the first sale of each issue of ~~moral obligation~~ bonds in connection with the financing of an economic development project, the governor shall provide the general assembly with copies of any offering statement for those bonds and his or her analysis of the benefits and risks to the state of the project. These statements and analyses shall be transmitted to the speaker of the house and the president of the senate, with copies to the chairpersons of the respective finance committees and fiscal advisors.

SECTION 2. Section 42-64-18 of the General Laws in Chapter 42-64 entitled "Rhode Island Economic Development Corporation" is hereby amended to read as follows:

42-64-18. Reserve funds and appropriations. -- To assure the continued operation and solvency of the corporation for the carrying out of its corporate purposes:

(1) The corporation may create and establish one or more special funds ("capital reserve funds"), and may pay into each capital reserve fund: (i) any moneys appropriated and made available by the state for the purpose of the fund; (ii) proceeds from the sale of notes or bonds to the extent provided in the resolution or resolutions of the corporation authorizing the issuance thereof; and (iii) any other moneys that may be made available to the corporation for the purpose of that fund from any other source. All moneys held in a capital reserve fund, except as provided, shall be used solely for the payment of the principal of bonds secured in whole or in part by that fund or of the sinking fund payments hereinafter mentioned with respect to the bonds, the purchase or redemption of the bonds, the payment of interest on the bonds or the payment of any redemption premium required to be paid when the bonds are redeemed prior to maturity; provided, that moneys in the fund shall not be withdrawn (except for the purpose of making (with respect to bonds secured in whole or in part by the fund) payment when due of principal, interest, redemption premiums, and the sinking fund payments hereinafter mentioned, for the payment of which other moneys of the corporation are not available) if the withdrawal would reduce the amount of the fund to less than the minimum capital reserve requirement established for the fund as provided in this section. Any income or interest earned by, or incremental to, any capital reserve fund due to the investment of the funds may be transferred by the corporation to other funds or accounts of the corporation if the transfer would not reduce the amount of the capital reserve fund below the minimum capital reserve fund requirement for the fund;

(2) The corporation shall not at any time issue bonds secured in whole or in part by a capital reserve fund if, upon the issuance of the bonds, the outstanding principal balance of such bonds would exceed the sum of two hundred fifty million dollars ($250,000,000), or the amount of the capital reserve fund would be less than the minimum capital reserve required for the fund, unless the corporation, at the time of issuance of the bonds, shall deposit in the fund from the proceeds of the bonds to be issued, or from other sources, an amount that, together with the amount then in the fund, is not less than the minimum capital reserve fund requirement for the fund. For the purpose of this section, the term "minimum capital reserve fund requirement" means, as of any particular date of computation, an amount of money, as provided in the resolution or resolutions of the corporation authorizing the bonds or notes with respect to which the fund is established, equal to not more than the greatest of the respective amounts, for the current or any future fiscal year of the corporation, of annual debt service on the bonds of the corporation secured in whole or in part by the fund, the annual debt service for any fiscal year being the amount of money equal to the sum of: (i) the interest payable during the fiscal year on all bonds secured in whole or in part by the fund outstanding on the date of computation plus; (ii) the principal amount of all the bonds and bond anticipation notes outstanding on the date of computation that mature during the fiscal year; plus (iii) all amounts specified in any resolution of the corporation authorizing the bonds as payable during the fiscal year as a sinking fund payment with respect to any of the bonds that mature after the fiscal year, all calculated on the assumption that the bonds will after the date of computation cease to be outstanding by reason, but only by reason, of the payment of bonds when due and application in accordance with the resolution authorizing those bonds of all of the sinking fund payments payable at or after the date of computation;

(3) In computing the amount of the capital reserve funds for the purpose of this section, securities in which all or a portion of the funds shall be invested, shall be valued as provided in the proceedings under which the bonds are authorized but in no event shall be valued at a value greater than par;

(4) In order further to assure the continued operation and solvency of the corporation for the carrying out of its corporate purposes, the executive director shall annually, on or before December first, make and deliver to the governor a certificate stating the sum, if any, required to restore each capital reserve fund to the minimum capital reserve fund requirement for the fund. During each January session of the general assembly, the governor shall submit to the general assembly printed copies of a budget including the total of the sums, if any, as part of the governor's budget required to restore each capital reserve fund to the minimum capital reserve fund requirement for the fund. All sums appropriated by the general assembly for this purpose, and paid to the corporation, if any, shall be deposited by the corporation in the applicable capital reserve fund;

(5) All amounts paid over to the corporation by the state pursuant to the provisions of this section shall constitute and be accounted for as advances by the state to the corporation and, subject to the rights of the holders of any bonds or notes of the corporation issued before or after, shall be repaid to the state without interest from all available operating revenues of the corporation in excess of amounts required for the payment of bonds, notes, or other obligations of the corporation, the capital reserve funds and operating expenses;

(6) The corporation may create and establish any other fund or funds as may be necessary or desirable for its corporate purposes;

(7) The corporation may by resolution permit the issuance of bonds and notes to carry out the purposes of this chapter without establishing a capital reserve fund pursuant to this section and without complying with the limitations set forth in this section. Bonds and notes issued pursuant to this subdivision may be secured by any other funds or methods as the corporation may in its discretion determine by resolution.

(8) On or before January 1 of each year, the Rhode Island Economic Development Corporation shall issue a report on all such bonds issued by the corporations. The report shall include at a minimum the following: a list of each bond issued; the purpose of each bond issued; the amount of each bond issued; the amount of principal and interest of each bond issued paid to date; the outstanding principal balance of each bond issued; and the total outstanding principal balance of all such bonds issued subject to this section. The report shall be transmitted to the chairpersons of the house and senate finance committees, with copies to the house and senate fiscal advisors.

SECTION 3. Sections 4 through 11 shall serve as joint resolutions required pursuant to Rhode Island General Laws section 35-18-1 et seq.

SECTION 4. Neighborhood Opportunities Program.

WHEREAS, The state of Rhode Island has a significant need for affordable housing; and

WHEREAS, These projects will increase the amount of affordable housing and transitional housing services available in the state to its citizens; and

WHEREAS, The State developed and utilized a program in Fiscal Year 2002 that would allow the Neighborhood Opportunities Program to be financed through bonds issued by the Rhode Island Housing and Mortgage Finance Corporation, insured, secured, or otherwise credit-enhanced or purchased by a major financial institution, to be repaid by the state (the "Financing"); and

WHEREAS, This financing proposal is a prudent funding mechanism that provides replacement funding for these housing programs and an additional $7,500,000 for the Neighborhood Opportunities Program in Fiscal Year 2006; and

WHEREAS, $7,500,000 of funding for the Neighborhood Opportunities Program will result in creation of over 100 units of affordable housing; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1, et seq.) requires the General Assembly to provide its consent to the issuance or incurring by the state of Rhode Island of certain obligations including financing guarantees or other agreements; and

WHEREAS, This act shall serve as the concurrent resolution of approval required by the Rhode Island Public Corporation Debt Management Act (R.I. General Laws section 35-18-1 et seq.); and

WHEREAS, The project costs associated with the Neighborhood Opportunities Program are estimated to be $7,500,000 in Fiscal Year 2006. The total financing obligation of the state of Rhode Island would be approximately $10.6 million, with $7.5 million deposited in the construction fund provided that up to $0.5 million be made available to pay the associated costs of financing if required. Total payments on the state’s obligation over six (6) years on the $7.5 million issuance are projected to be $10.6 million, assuming an average effective interest rate of 5%. The payments would be financed within the Department of Administration from general revenue appropriations; now, therefore be it

RESOLVED, That providing affordable housing and transitional housing services to the State's population is a priority of this general assembly.

RESOLVED, That this general assembly hereby authorizes the governor, the Director of the Department of Administration or other appropriate state officials to enter into a financial obligation, guarantee, or other agreement, or agreements evidencing the financing obligation of the state of Rhode Island for the term of the Financing in an amount not to exceed $10.6 million for the provision of funds for the Neighborhood Opportunities Program in Fiscal Year 2006.

RESOLVED, That this Joint Resolution shall take effect immediately upon passage by the General Assembly.

SECTION 5. State Police and Other Vehicles.

WHEREAS, The state of Rhode Island finds that it is cost-effective to use the state's tax-exempt borrowing capacity to finance vehicle, trucks, and heavy equipment; and

WHEREAS, The state of Rhode Island finds that it is cost effective when such borrowings are consolidated into one borrowing package rather than executed on an individual basis with financing companies; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws Section 35-18-1, et seq.) requires the general assembly to provide its consent to the issuance of incurring by the state of Rhode Island and other public agencies of certain obligations; and

WHEREAS, This methodology has been approved in past years by the general assembly when the issuance amount exceeds the amount allowed under the Rhode Island Public Corporation Debt Management Act (R.I. General Laws Section 35-18-1, et seq.); and

WHEREAS, The state of Rhode Island Department of Administration desires to enter into financing agreements to finance the purchase of thirty (30) State Police Trooper vehicles and associated equipment, ten (10) state Police Detective vehicles and associated equipment, heavy equipment for the Department of Transportation, and other replacement vehicles for various state agencies, as required; and

WHEREAS, The Department of Administration estimates that the total issuance for vehicles and equipment will not exceed $6,000,000, with $5,950,000 deposited in the vehicle fund and $50,000 available to pay the associated costs of issuance. Total lease payments over a period of three (3) years for State Police and other vehicles and ten (10) years for transportation heavy equipment are projected to be $7,072,500, assuming an average coupon of 5%. The lease payments would be financed within the various general revenue, federal, restricted, and other fund appropriations available to the respective departments; now, therefore be it

RESOLVED, That it is cost-effective when such borrowings are consolidated into a one borrowing package; and be it further

RESOLVED, That this general assembly hereby approves financing in an amount not to exceed $6,000,000 for the purchase of vehicles, heavy equipment and trucks for fiscal year 2005 and fiscal year 2006.

SECTION 6. Tyler Hall Addition.

WHEREAS, The University of Rhode Island is proposing a project which involves the purchase of the former Theta Delta Chi (Beta Psi Alpha Chapter) fraternity house located at 22 East Alumni Avenue on University-owned land in Kingston, Rhode Island, the removal of the now vacant building, in order to permit the construction of a multi-story addition to the adjacent Tyler Hall building; and

WHEREAS, This new Tyler Hall addition encompassing approximately eight thousand six hundred (8,600) square feet of building space is proposed to accommodate the centralized location of the University's information technology operation, which is presently housed along with the computer equipment supporting the University's academic and administrative systems in portions of Tyler Hall and in Lippitt Hall; and

WHEREAS, In accordance with the University's Kingston Campus Master Plan Lippitt Hall is being dedicated to the Department of Mathematics and the honors program, placing academic programs on the main quadrangle, and the design work is underway to define the renovations that will be performed in that building utilizing previously authorized general obligation bonds for that purpose; and

WHEREAS, Tyler Hall, with the proposed new addition will be assigned to the Information Technology and Telecommunications operations and the Department of Computer Science and Statistics, a compatible, long-term cohabitation of Tyler Hall; and

WHEREAS, The Beta Psi Alpha Chapter is prepared to sell its former fraternity house to the University in accordance with the provisions of the agreement that enabled the financing of the construction and renovation of the fraternity house; and

WHEREAS, A professional assessment has recommended the acquisition and removal of the former fraternity house to permit the construction of an integrated addition to Tyler Hall as the most favorable and efficient long-term solution versus the option of acquiring and renovating the former fraternity house; and

WHEREAS, The Rhode Island Public Corporation Debt Management Act (R.I. General Laws Section 35-18-1, et seq.) required 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; and

WHEREAS, The acquisition and removal of the former fraternity house and the design, construction, and equipping of this building addition will be financed through RIHEBC revenue bonds, with an expected term of thirty (30) years; and

WHEREAS, Debt service payments would be supported by university general revenues; now, therefore be it

RESOLVED, That the total amount of the debt approved to be issued in the aggregate shall be limited to not more than three million two hundred forty seven thousand dollars ($3,247,000). Total debt service on the bonds is not expected to exceed two hundred sixty thousand dollars ($260,000) annually and five million two hundred thousand dollars ($5,200,000) in the aggregate based on an average interest rate of five percent (5%) and a twenty (20) year maturity; and be it further

RESOLVED, That this fraternity purchase and Tyler Hall Addition Project is important to improve and accommodate the daily operations of URI: and that this general assembly hereby approves financing; and be it further

RESOLVED, That this Joint Resolution shall apply to bonds issued on or before June 30, 2006; and be it further

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

SECTION 7. URI Parking Improvements.

WHEREAS, The University of Rhode Island is proposing a project, which involves the continuation of construction and reconstruction of paving and landscaping on the University's campuses, referred to as the "Paving II Project;" and

WHEREAS, The University is responsible for over nine (9) miles of roads, twenty-five (25) miles of walkways, over seventy-five (75) individual parking lots with a capacity of over seven thousand six hundred (7,600) vehicles, and landscaped property extending over some nine hundred (900) acres developed and improved land over the last century; and

WHEREAS, Significant work has been completed over the past decade on paved surfaces, but progress must continue to sustain and improve parking capacity, and the function, condition, and aesthetics of the pavement infrastructure and landscape elements on the University's campuses; and

WHEREAS, This current project is intended to address improvements such as the construction, rehabilitation, and reconstruction of parking lots such as Lower Flagg Road, Plains Road, Fine Arts, Mosby Center, Chafee, Sherman, and East Lot; road repairs on several major campus arteries, like East Alumni Avenue, Greenhouse Road, Heathman Road, Upper College Road, and the causeway approaching the Whispering Pines Conference Center at the W. Alton Jones Campus in West Greenwich; and landscape improvements and new, reconfigured and renovated walkways, lighting, and drainage systems; and

WHEREAS, Debt service payments would be supported by University general revenues; now, therefore be it

RESOLVED, That the total amount of the debt approved to be issued in the aggregate shall be limited to not more than two million dollars ($2,000,000). Total debt service on the bonds is not expected to exceed one hundred sixty thousand dollars ($160,000) annually and three million one hundred eighty-seven thousand dollars ($3,187,000) in the aggregate based on an average interest rate of five percent (5%) and a twenty (20) year maturity; and be it further

RESOLVED, That this Paving II Project is important to improve and accommodate the daily operations of URI; and that this general assembly hereby approves financing; and be it further

RESOLVED, That this Joint Resolution shall apply to bonds issued on or before June 30, 2006; and be it further

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

SECTION 8. Warwick Intermodal Train Station Project.

WHEREAS, The general assembly has previously approved the Rhode Island Economic Development Corporation's issuance of special revenue bonds to finance the acquisition, construction, furnishing, and equipping of the Warwick Intermodal Train Station Project; and

WHEREAS, The issuance of the special revenue bonds to finance the project will not occur on or before June 30, 2005, but will instead be issued on or before June 30, 2006; and

WHEREAS, The previous resolution in Section 7 of Article 43 of 2004 H-8219 is rescinded and replaced by the authorization contained herein; and

WHEREAS, The Rhode Island Economic Development Corporation is a public instrumentality of the state of Rhode Island (the "State"), created by the general assembly pursuant to Rhode Island General Laws Section 42-64-1 et seq. (as enacted, reenacted and amended, the "Act"); and

WHEREAS, The Article declares, in part, the new industrial, manufacturing, recreational, and commercial facilities are required to attract and house new industries and thereby reduce the hazards of unemployment; and that unaided efforts of private enterprises have not met and cannot meet the needs of providing those facilities due to problems encountered in assembling suitable building sites, lack of adequate public service, unavailability of private capital for development, and the inability of private enterprise alone to plan, finance, and coordinate industrial, recreational, and commercial development; and

WHEREAS, The Article further declares it to be the public policy of the state to furnish proper and adequate airport facilities within the state and to encourage the integration of these facilities so far as practicable; and

WHEREAS, In furtherance of these goals, it is the policy of the state to retain existing industries and to induce, encourage and attract new industries through the acquisition, construction, reconstruction and rehabilitation of industrial, manufacturing, recreational, and commercial facilities, as well as transportation, residential, environmental, utility, public service, institutional and civic and community facilities, and to develop sites for such facilities; and

WHEREAS, The Article has empowered the Rhode Island Economic Development Corporation to establish subsidiary corporations to exercise its powers and functions, or any of them, and, pursuant to such power, the Rhode Island Economic Development Corporation has established the Rhode Island Airport Corporation to plan, develop, construct, finance, manage, and operate airport facilities in the state; and

WHEREAS, The Article provides that the Rhode Island Airport Corporation shall have the power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; and

WHEREAS, The Article also provides that the Rhode Island Airport Corporation shall have the power to sell, mortgage, lease, exchange, transfer or otherwise dispose of or encumber any project, (or in the case of a sale, to accept a purchase money mortgage in connection therewith) or to grant options for any such purposes with respect to any real or personal property or interest therein, all of the foregoing for such consideration as the Rhode Island Airport Corporation shall determine. Any lease by the Rhode Island Airport Corporation to another party may be for such part of the Rhode Island Airport Corporation's property, real or personal, for such period, upon such terms or conditions, with or without an option on the part of the lessee to purchase any or all of the leased property for such consideration, at or after the retirement of all indebtedness incurred by the Rhode Island Airport Corporation on account thereof, as the Rhode Island Airport Corporation shall determine; and

WHEREAS, The Act authorizes the Rhode Island Economic Development Corporation to borrow money and issue bonds for any of its corporate purposes; and

WHEREAS, Pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4, the Rhode Island Economic Development Corporation has requested the approval of the general assembly of the Rhode Island Economic Development Corporation's issuance of special purpose revenue bonds (the "Bonds") for the purpose of providing funds to the Rhode Island Airport Corporation for financing the acquisition, construction, furnishing and equipping of the Warwick Station Project, as defined below, funding capitalized interest, costs of issuing the bonds and related costs, and the establishment reserves for the project and the Bonds, including a debt service reserve fund; and

WHEREAS, The Warwick Station Project will be erected on land owned or to be owned by the state and leased to the Rhode Island Airport Corporation and the project will therefore be subject to the terms and provisions of the lease agreement between the state and the Rhode Island Airport Corporation; and

WHEREAS, The Rhode Island Airport Corporation has entered or will enter into agreements with rental car companies, and it expects that receipts from such agreements and from a customer facility charge will provide adequate revenues so that the full faith and credit of the state, the Rhode Island Economic Development Corporation, and the Rhode Island Airport Corporation will be unnecessary in order to issue and market the Bonds; and

WHEREAS, The state has established the Rhode Island Department of Transportation to have responsibility for preparing short-range plans, project plans, and implementation programs for transportation and for maintaining an adequate level of rail passenger and freight services, including the administration of any financial or technical assistance which may be made available to operators of railroad transportation facilities and for carrying out the supervision of the state airport at Warwick (to the event such responsibility has not heretofore been delegated to the Rhode Island Airport Corporation); and

WHEREAS, The Rhode Island Department of Transportation is authorized to cooperate with the appropriate agencies of the federal government, this state, other states, and regional agencies in the planning, design, construction, operation, and maintenance of transportation facilities and programs; and

WHEREAS, The Rhode Island Department of Transportation is authorized to apply for and accept funds from federal and regional agencies to carry out any of its functions, and to contract with the federal government and regional agencies concerning the use and disposition of those funds; and

WHEREAS, Pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4, the governor has requested, on behalf of the Rhode Island Airport Corporation, the approval of the General Assembly of the Rhode Island Airport Corporation's obtaining a loan under the Transportation Infrastructure Finance and Innovation Act (hereinafter referred to as the "TIFIA" Loan) for the purpose of reducing the amount of bonds that must be issued or held outstanding; and

WHEREAS, The hard and soft construction costs of the project are anticipated to be not more than $170,000,000, of which approximately $25,000,000 has been earmarked from the Transportation Equity Act for the 21^st Century (herein after referred to as "TEA-21"), and the aggregate amount of the bonds and TIFIA Loan therefor is requested in a principal amount not to exceed $123,000,000; and

WHEREAS, The financing of the project will be accomplished through one or more loan agreements having the Rhode Island Airport Corporation as borrower, such agreement or agreements to require that the Rhode Island Airport Corporation make loan payments (but only from project revenues and such other funds and assets as the Rhode Island Airport Corporation may designate) in an amount equal to the debt service on the bonds, the TIFIA Loan, or both, as the case may be; and

WHEREAS, For purposes of this resolution:

(a) "Additional TIFIA elements shall mean the freight rail improvement project and the acquisition and construction of rolling stock and commuter rail facilities and equipment;

(b) "Bonds" shall mean special purpose revenue bonds issued by the Rhode Island Economic Development Corporation for the purpose of financing the acquisition, construction, furnishing and equipping of the project, funding capitalized interest, costs of issuing the bonds and related costs, and the establishment reserves for the project and the bonds, including a debt service reserve fund;

(c) "TIFIA Loan" means any loan granted by or at the direction of the Federal Highway Administration to a participating agency for the benefit of the project or the additional TIFIA elements under the Transportation Infrastructure Finance and Innovation Act;

(d) "Warwick Station Project" or "project" shall mean an intermodal ground transportation facility located within one-half (1/2) mile of the Bruce Sundlun Terminal of T.F. Green State Airport, which facility may include one or more of the following elements; a train and bus station, a commuter parking facility, and a consolidated rental car facility, an automated people mover system to connect that facility to the Bruce Sundlun Terminal of the T.F. Green State Airport; and related roadway improvements; now, therefore be it

RESOLVED, That the general assembly hereby approves the Rhode Island Economic Development Corporation's issuance of the bonds. The bonds will be special obligations of the Rhode Island Economic Development Corporation payable exclusively from loan repayments under a loan agreement with the Rhode Island Airport Corporation and from bond proceeds, funds, accounts, and properties and the proceeds thereof pledged therefor, and thus the Rhode Island Economic Development Corporation's maximum liability will be limited to loan repayments received under the loan agreement and the aggregate amount of such other funds, accounts, properties, and proceeds; and be it further

RESOLVED, That the general assembly hereby approves the taking by the Rhode Island Airport Corporation of a TIFIA Loan for the purposes outlined herein. The TIFIA Loan will be payable from project revenues and from proceeds, funds, accounts, and properties and the proceeds thereof pledged therefor; and be it further

RESOLVED, That the total amount of debt approved to be issued in the aggregate as Bonds or as a TIFIA Loan be limited to not more than $123,000,000 at any one time. (The principal amount of any Bonds of TIFIA Loan that has been legally or economically defeased shall not be counted against the limit of outstanding Bonds or TIFIA Loan). Total debt service on the bonds and TIFIA Loan is not expected to exceed $230,000,000 based on an average interest rate of six percent (6%) for any bonds issued on a federally tax-exempt basis, seven percent (7%) for any federally taxable bonds, and six percent (6%) for any amount borrowed through a TIFIA Loan, and a thirty (30) year maturity; and be it further

RESOLVED, That it is the intention of the state of Rhode Island to finance any costs of the project in excess of $115,215,000 with federally earmarked transit or highway grants or other funds appropriated for the project; and be it further

RESOLVED, That the general assembly hereby approves the Rhode Island Airport Corporation's entering into the loan agreements described above. Payments under the loan agreements shall be derived exclusively from project revenues and such other proceeds, funds, accounts, projects and the proceeds thereof as the Rhode Island Airport Corporation may pledge therefor; and be it further

RESOLVED, That none of the bonds, the TIFIA Loan, or the loan agreements shall constitute indebtedness of the state or a debt for which the full faith and credit of the state is pledged or a moral obligation thereof; and be it further

RESOLVED, That this resolutions shall apply to bonds issued on or before June 30, 2006.

SECTION 9. Providence Civic Center Project

WHEREAS, The Rhode Island Convention Center Authority (the “Authority”) is a public corporation of the State of Rhode Island (the “State”), constituting a public instrumentality and agency exercising public and essential governmental functions of the State, created by the General Assembly pursuant to Rhode Island General Laws Sections 42-99-1 et seq. (as enacted, reenacted and amended, the “Act”); and

WHEREAS, The State recognizes that there is a serious shortage of suitable facilities for conventions and related exhibition, meeting, banquet, and other facilities customarily incident thereto, in the State; that private enterprise alone is not able to provide the necessary facilities; and it is the policy of the State that the public welfare and the further economic development and the prosperity of the State requires the establishment of these facilities and the financing thereof; and

WHEREAS, The Act provides that the Authority shall have the power to purchase, take, receive, lease or otherwise acquire, own, hold, improve, use and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; and

WHEREAS, The Act also provides that the Authority shall have the power to sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets, and to purchase, take, receive, subscribe for, or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend, pledge or otherwise dispose of, and otherwise use and deal in and with, shares or other interests in, or obligations of, other domestic or foreign corporations, associations, partnerships or individuals, direct or indirect obligations of the United States or of any other government, state, territory, governmental district or municipality or of any instrumentality thereof; and

WHEREAS, The Act authorizes the Authority to make and enter into all contracts, agreements, and guarantees and incur liabilities, borrow money at those rates of interest that the corporation may determine, issue its notes, bonds, and other obligations, and secure any of its obligations by mortgage or pledge of all or any of its property, franchises, and income, necessary or incidental to the performance of its duties and the execution of its powers; and

WHEREAS, It is contemplated the Authority, the Providence Civic Center Authority, a body corporate and politic of the City, and the City of Providence (the “City”) will enter into an agreement to sell the Providence Civic Center facilities to the Authority; and

WHEREAS, It is contemplated the Authority, the Providence Civic Center Authority and the City will agree that the fair market value of the real estate associated with the Providence Civic Center is $27,500,000 and value of the building for the purposes of that sale shall be $1,000,000; and

WHEREAS, It is contemplated that agreement, among other provisions, will call for the satisfaction by the Providence Civic Center Authority of all its debts and obligations upon the occurrence of the sale and the delivery of the Providence Civic Center by the Providence Civic Center Authority free and clear of all encumbrances; and

WHEREAS, The Authority agrees to undertake the renovation of the Providence Civic Center and the integration of the facility with those of the Authority, which work is estimated to cost $62,000,000; and

WHEREAS, In furtherance of its corporate purposes, the Authority is authorized to issue from time to time its negotiable bonds and notes in one or more series in such principal amounts as shall be necessary to provide sufficient funds for achieving its purposes, including the payment of interest on the bonds and notes of the Authority, the establishment of reserves to secure the bonds and notes, and the making of all other expenditures of the Authority incident to and necessary or convenience to carrying out its purposes and powers; and

WHEREAS, Pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4 of the Rhode Island Public Corporation Debt Management Act (as enacted, reenacted and amended, the “Debt Management Act”), the Authority hereby requests the approval of the General Assembly of the Authority’s issuance of not more than $92,500,000 Rhode Island Convention Center Authority Revenue Bonds (the “Bonds”) to be secured in part by a financing lease to be entered into by the State, subject to annual budget appropriation by the General Assembly (the “State Financing Lease”), for the purpose of providing funds to finance the acquisition the real property and improvements constituting the Providence Civic Center in the City, and the renovation, equipping, improvement and redevelopment of that facility, and the costs of issuing and insuring the Bonds (the “Project”); and

WHEREAS, The Project constitutes an essential public facility directly benefiting the City and the State; and

WHEREAS, The Authority is authorized pursuant to Section 42-99-9 of the Act to secure its bonds out of the revenues and receipts derived from the lease, mortgage, or sale by the Corporation of its facilities, or of any part thereof or from any other financing arrangement with respect to that; and

WHEREAS, The State shall directly benefit economically from the Project by the ability of the Authority to attract larger conventions and organized events to the Rhode Island Convention Center through, among other things, increases in sales tax and income tax revenues and the creation of jobs for its residents; and

WHEREAS, The financing of the Project will be accomplished through one or more bond financings by the Authority supported in part by the State Financing Lease; and

WHEREAS, The State Financing Lease shall be for a period not to exceed thirty (30) years; and

WHEREAS, The Authority, through payments to be received from the State under the State Financing Lease, will pay debt service on the Bonds to the extent amounts received from the operations of the Providence Civic Center are insufficient to pay debt service on the Bonds. Therefore, the maximum fiscal year obligation of Authority and the State is the total debt service on the Bonds which is approximately $7,000,000; and

WHEREAS, In the event that not all of the Bond proceeds are used to carry out the specified Project, the Authority will use any remaining funds to pay debt service on the Bonds; now, therefore be it

RESOLVED, That this General Assembly finds that the Project is an essential public facility and is of a type and nature consistent with the purposes and within the powers of the Authority to undertake, and hereby approves the Authority’s issuance of not more than $92,500,000 in Bonds and the State entering into the State Financing Lease to secure the debt service on the Bonds, subject to annual budget appropriation by the General Assembly; and be it further

RESOLVED, That the Bonds will be special obligations of the Authority payable from funds received by the Authority from the operations of the Project and the State Financing Lease. The Authority’s and the State’s maximum liability will be the total debt service on the Bonds, estimated to be $7,000,000 per year or $204,000,000 in the aggregate based on level debt service, an average interest rate of 6.40% and a 30 year maturity; and be it further

RESOLVED, That the Bonds will not constitute indebtedness of the State or any of its subdivisions or a debt for which the full faith and credit of the State or any of its subdivisions is pledged except to the extent that the State appropriates funds for the State Financing Lease subject to annual budget appropriations; and be it further

RESOLVED, That this Joint Resolution shall take effect upon passage, provided that the delivery of the Bonds shall be not later than two (2) years from the date of such passage.

SECTION 10. Master Bond Program for Minority Contractors.

WHEREAS, The Rhode Island Economic Development Corporation (the "Corporation") is a public instrumentality of the state of Rhode Island (the "State"), created by the general assembly pursuant to Rhode Island general laws section 42-64-4 et seq. (as enacted, reenacted, and amended, the "Act"); and

WHEREAS, The general assembly finds that small businesses are the backbone of the Rhode Island economy and that the 24,000 small businesses in Rhode Island are responsible for 196,000 jobs, $16.8 billion in gross state product, and $41.5 million in state tax revenues; and

WHEREAS, There are a number of private sources of capital (commercial banks, the Small Business Administration, venture capitalist's and mezzanine lenders) but gaining access to capital from these sources can be time consuming and is sometimes unsuccessful; and

WHEREAS, The Corporation currently has a number of programs that provide assistance to small businesses to gain access to capital, but that in some cases these programs are outmoded and expensive to access for small businesses; and

WHEREAS, Minority contractors have traditionally had difficulty securing bonding for performance of construction contracts; and

WHEREAS, Bonds are required for most contracts but without a historic track record minority owned businesses have difficulty security the needed bonds; and

WHEREAS The act also provides that the Corporation shall have the power to purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; to sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets for any consideration and upon any terms and conditions as the corporation shall determine; to lend money for its purposes, invest and reinvest its funds, and at its option to take and hold real and personal property as security for the payment of funds so loaned or invested; to acquire or contract to acquire, from any person, firm, corporation, municipality, the federal government, or the state, or any agency of either the federal government or the state, by grant, purchase, lease, gift, condemnation, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, and interests in land less than the fee thereof; and to own, hold, clear, improve, develop, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose or encumber that property for the purposes of carrying out the provisions and intent of this chapter, for any consideration as the corporation shall determine; and to be a promoter, partner, member, associate, or manager of any partnership, enterprise, or venture; and

WHEREAS, The act authorizes the Corporation to make contracts and guarantees and incur liabilities, borrow money at any rates of interest as the corporation may determine; to make and execute agreements of lease, conditional sales contracts, installment sales contracts, loan agreements, mortgages, construction contracts, operation contracts, and other contracts and instruments necessary or convenient in the exercise of the powers and functions of the corporation; and

WHEREAS, Pursuant to Rhode Island general laws sections 35-18-3 and 35-18-4, the Corporation hereby requests the approval of the general assembly of the Corporations issuance of not more than $3,000,000 to arrange for a master bond umbrella facility from appropriate bonding or reinsurance sources (the "Obligations"), and financing capital interest and costs of issuance; and

WHEREAS, Minority contractors will be encouraged to meet bonding requirements as sub-participants under this umbrella policy; and

WHEREAS, It is anticipated that contractors will be able to establish a track record and become bondable on their own within several years; and

WHEREAS, The Master Bond Program for Contractors will directly benefit the state; and

WHEREAS, The total obligations related to the program are anticipated to be $3,000,000; and

WHEREAS, The Corporation is authorized pursuant to section 42-64-18 of the act to create and establish one or more special reserve funds ("capital reserve funds") which fund shall be used solely for the payment of debt service on any notes or claims against any guarantees; and

WHEREAS, Such capital reserve fund create a moral obligation of the state; and

WHEREAS, The financing of the program will be accomplished through a financing or issuance of guarantees by the Corporation supported by a capital reserve fund pursuant to section 42-64-18 of the act, which shall be funded by programmatic assessments, holdbacks, or other means; and

WHEREAS, The Corporation, through the use of the capital reserve fund mechanism under the act, will pay debt service on the obligations to the extent amounts received from the operations of the fund are insufficient to pay debt service on the obligations. Therefore, the maximum fiscal year obligation of Corporation and the state is $679,500; now, therefore be it

RESOLVED, That this general assembly finds that the program is a project of a type and nature consistent with the purposes and within the powers of the Cororation to undertake, and hereby approves its issuance of not more than $3,000,000 notes and guarantees and the establishment of the capital reserve fund mechanism for the purposes outlined herein. The notes may be delivered in a single issuance or in multiple tranches; and be it further

RESOLVED, That the obligations will be special obligations of the Corporation payable from funds received by it from the operations of the program and the capital reserve fund. The Corporations and the state's maximum annual liability will be the maximum annual debt service of approximately $679,500 and the net debt service over the maximum term of the note of $3,679,500, assuming a five (5) year term and a five percent (5%) rate of interest; and be it further

RESOLVED, That the obligation will not constitute indebtedness of the state or any of its subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is pledged except to the extent that the state funds any deficiency in the capital reserve fund in an amount not to exceed $679,500 per year subject to annual budget appropriations; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by this general assembly; provided, that the creation or issuance of the guarantees shall be not later than twenty-four (24) months from the date of such passage and the issuance of the notes shall be no later than five (5) years from the date of such passage.

SECTION 11. Fire Code Loans.

WHEREAS, The Rhode Island Economic Development Corporation (the "Corporation") is a public instrumentality of the State of Rhode Island (the "State"), created by the General Assembly pursuant to Rhode Island General Laws Section 42-64.4 et seq. (as enacted, reenacted, and amended, the "Act"); and

WHEREAS, There are a number of private sources of capital but gaining access to capital from these sources can be time consuming and is sometimes unsuccessful; and

WHEREAS, New Fire Codes have put a financial strain on many small businesses; and

WHEREAS, Existing Corporation loan programs require owner/user status; and

WHEREAS, Many of the businesses that are being subjected to the new code requirements are in leased facilities; and

WHEREAS, Protracted negotiations between operator and owner over who will pay for the upgrades could put the businesses at risk; and

WHEREAS, The act also provides that the Corporation shall have the power to purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; to sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets for any consideration and upon any terms and conditions as the corporation shall determine; to lend money for its purposes, invest and reinvest its funds, and at its option to take and hold real and personal property as security for the payment of funds so loaned or invested; to acquire or contract to acquire, from any person, firm, corporation, municipality, the federal government, or the state, or any agency of either the federal government or the state, by grant, purchase, lease, gift, condemnation, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, and interests in land less than the fee thereof; and to own, hold, clear, improve, develop, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose or encumber that property for the purposes of carrying out the provisions and intent of this chapter, for any consideration as the corporation shall determine; and to be a promoter, partner, member, associate, or manager of any partnership, enterprise, or venture; and

WHEREAS, The act authorizes the Corporation to make contracts and guarantees and incur liabilities, borrow money at any rates of interest as the corporation may determine; to make and execute agreements of lease, conditional sales contracts, installment sales contract, loan agreements, mortgages, construction contracts, operation contracts, and other contracts and instruments necessary or convenient in the exercise of the powers and functions of the corporation; and

WHEREAS, Pursuant to Rhode Island General Laws Sections 35-18-3 and 35-18-4, the Corporation hereby requests the approval of the General Assembly to issue no more than $3,000,000 Rhode Island Economic Development Corporation Revenue Notes or Guarantees (the "Obligations") for the purpose of creating a Fire Code Loan Program, and financing capital interest and costs of issuance; and

WHEREAS, The Corporation proposes making loans directly to the operators; and

WHEREAS, A new Fire Code Loan Program, which will be allocated $3,000,000, will provide for loans up to $250,000 per business; and

WHEREAS, The Fire Code Loan Program will borrow from private lending institutions at one percent (1%) over prime to make loans to small business operators for upgrades needed in order to comply with new fire codes; and

WHEREAS, The Fire Code Loan Program will directly benefit the State; and

WHEREAS, The total obligations related to the Program are anticipated to be $3,000,000; and

WHEREAS, Such capital reserve funds create a moral obligation of the state; and

WHEREAS, The financing of the Program will be accomplished through a financing or issuance of guarantees by the Corporation supported by a capital reserve fund pursuant to section 42-64-18 of the act, which shall be funded by programmatic assessments, holdbacks, or other means; and

WHEREAS, The Corporation, through the use of the capital reserve fund mechanism under the Act, will pay debt service on the obligations to the extent amounts received from the operations of the fund are insufficient to pay debt service on the obligations. Therefore, the maximum fiscal year obligation of the Corporation and the state is $679,500 and the likely maximum fiscal year obligation should not exceed $297,275; now, therefore be it

RESOLVED, That this general assembly finds that the Program is a project of a type and nature consistent with the purposes and within the powers of the Corporation to undertake, and hereby approve the its issuance of not more than $3,000,000 in notes and guarantees and the establishment of the capital reserve fund mechanism for the purposes outlined herein. The notes may be delivered in a single issuance or in multiple tranches; and be it further

RESOLVED, That the obligations will be special obligations of the Corporation payable from its funds from the operations of the Program and the capital reserve fund. The Corporation's and the state's maximum annual liability will be the maximum annual debt service of approximately $679,500 and the net debt service over the maximum term of the note of $3,679,500, assuming a five (5) year term and a five percent (5.0%) rate of interest; and be it further

RESOLVED, That this Joint Resolution shall take effect immediately upon its passage by this general assembly; provided, that the creation or issuance of the guarantees shall be no later than twenty-four (24) months from the date of such passage and the issuance of the notes shall be no later than five (5) years from the date of such passage.

SECTION 12. Urban Revitalization Program

WHEREAS, There are a number of private sources of capital but gaining access to capital from these sources can be time consuming and is sometimes unsuccessful; and

WHEREAS, Changes in the demographics of Rhode Island's small business workforce have resulted in a significant number of small businesses being owned by minorities and women, and these groups particularly need improved access to capital in order to grow their businesses; and

WHEREAS, The act also provides that the Corporation shall have the power to purchase, take, receive, lease, or otherwise acquire, own, hold, improve, use, and otherwise deal in and with, real or personal property, or any interest therein, wherever situated; to sell, convey, mortgage, pledge, lease, exchange, transfer, and otherwise dispose of all or any part of its property and assets for any consideration and upon any terms and conditions as the corporation shall determine; to lend money for its purposes, invest and reinvest its funds, and at its option to take and hold real and personal property at security for the payment of funds so loaned or invested; to acquire or contract to acquire, from any person, firm, corporation, municipality, the federal government, or the state, or any agency of either the federal government or the state, by grant, purchase, lease, gift, condemnation, or otherwise, or to obtain options for the acquisition of any property, real or personal, improved or unimproved, and interests in land less than the fee thereof; and to own, hold, clear, improve, develop, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, mortgage, or otherwise dispose or encumber that property for the purposes of carrying out the provisions and intent of this chapter, for any consideration as the corporation shall determine; and to be a promoter, partner, member, associate, or manager of any partnership, enterprise, or venture; and

WHEREAS, Pursuant to Rhode Island general laws sections 35-18-3 and 35-18-4, the Corporation hereby requests the approval of the general assembly of the Corporation's issuance of not more than $2,000,000 Rhode Island Economic Development Corporation Revenue Notes or Guarantees (the "Obligations"') for the purpose of revitalizing commercial projects in urban areas and financing capital interest and costs of issuance; and

WHEREAS, The Corporation will make up to $2,000,000 available to The Urban Revitalization Fund; and

WHEREAS, These funds are to be used strictly as a line of credit to fund loans for urban revitalization projects and may not be used for overhead; and

WHEREAS, The program will directly benefit the state; and

WHEREAS, The total obligations related to the program are anticipated to be $2,000,000; and

WHEREAS, Such capital reserve funds create a moral obligation of the state; and

WHEREAS, The Corporation, through the use of the capital reserve fund mechanism under the act, will pay debt service on the obligations to the extent amounts received from the operations of the fund are insufficient to pay debt service on the obligations. Therefore, the maximum fiscal year obligation of the Corporation and the state is $455,265 and the likely maximum fiscal year obligation should not exceed $200,000; now, therefore be it

RESOLVED, That this general assembly finds that the program is a project of a type and nature consistent with the purposes and within the powers of the Corporation to undertake, and hereby approves the Corporation's issuance of not more than $2,000,000 as a line of credit to fund loans for urban revitalization projects that may not be used for overhead; and be it further

RESOLVED, That the obligations will be special obligations of the Corporation payable from funds received by the Corporation from the operations of the fund and the capital reserve fund. The Corporation's and the state's maximum annual liability will be the maximum annual debt service of approximately $455,265 and the net debt service over the maximum term of the note of $2,276,325, assuming a five (5) year term and a five percent (5%) rate of interest; and be it further

RESOLVED, That the obligation will not constitute indebtedness of the state or any of its subdivisions or a debt for which the full faith and credit of the state or any of its subdivisions is pledged except to the extent that the state funds any deficiency in the capital reserve fund in an amount not to exceed $455,265 per year subject to annual budget appropriations; and be it further

SECTION 13. This article shall take effect upon passage.