ARTICLE 8 AS AMENDED

RELATING TO LEASE AGREEMENTS FOR LEASED OFFICE AND OPERATING SPACE

 

     SECTION 1. This article consists of Joint Resolutions that are submitted to the General

Assembly for its approval pursuant to section 37-6-2 of the Rhode Island General Laws.

 

     SECTION 2. Department of Corrections.

 

     WHEREAS, The Rhode Island Department of Corrections currently has a lease

agreement, in full force and effect, with the Urban League of Rhode Island for approximately

2,900 square feet of office space located at 234 Prairie Avenue in Providence, which will expire

on June 30, 2013; and

     WHEREAS, The annual rent under the current lease agreement in the fiscal year ending

June 30, 2013 is $40,000; and

     WHEREAS, At a meeting duly noticed on February 12, 2013, the State Properties

Committee approved the Department of Corrections' request to advertise a Request for Proposals

in order to secure new office space in Providence; and

     WHEREAS, The Rhode Island Department of Corrections requests to enter into a new

lease agreement with a landlord to be determined for the use of approximately 4,500 square feet

of office space at a location to be determined in the city of Providence and for a five (5) year

term; and

     WHEREAS, The leased premises will provide a critical location for the offices of the

Department of Corrections from which the Department can serve the needs of Providence and

surrounding communities and otherwise fulfill the mission of the Department; and

     WHEREAS, The anticipated annual rent of the new lease agreement in each of the initial

five (5) years of the term will not exceed $88,000; and

     WHEREAS, The payment of annual rent will be made from funds available to the

Department of Corrections for the payment of rental and lease costs based on annual

appropriations made by the General Assembly; and

     WHEREAS, The State Properties Committee now respectfully requests the approval of

the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement

between the Department of Corrections and a landlord to be determined, for a facility located at a

site to be determined, in the city of Providence; now therefore be it

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby approves a lease agreement, at a location to be determined, for an initial term

not to exceed five (5) years along with an option to renew for an additional five years. The total

cost of the initial five year term shall not exceed $440,000; and it be further

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

assembly; and be it further

     RESOLVED, That the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the Director of the Department of Corrections, the State

Budget Officer, and the Chair of the State Properties Committee.

 

     SECTION 3. Judiciary.

 

     WHEREAS, The Judiciary currently has a lease agreement, in full force and effect, with

56 Associates, LP for approximately 39,043 square feet of records storage space located at 450

Main Street in the city of Pawtucket; and

     WHEREAS, This lease will expire on May 31, 2013 and the Rhode Island Judiciary

wishes to renew for a ten (10) year term; and

     WHEREAS, The Rhode Island Judiciary respectfully requests that this Resolution

supersede that which was previously approved during the 2011 Legislative Session as House

Resolution 6233 Sub A as the Judiciary has successfully negotiated a longer lease term at the

same rental rate; and

     WHEREAS, The State of Rhode Island, acting by and through the Rhode Island Judiciary

attests to the fact that there are no clauses in the lease agreement with 56 Associates, LP that

would interfere with the Rhode Island Judiciary's lease agreement or use of the facility; and

     WHEREAS, The leased premises provide a central location from which the Rhode Island

Judiciary can serve the needs of the Rhode Island community and otherwise further and fulfill the

mission of the Judiciary; and

     WHEREAS, The annual rent in the current lease agreement for the fiscal year ending

June 30, 2013 is $234,540; and

     WHEREAS, The annual rent of the proposed lease agreement in each of the ten (10)

years of the term is not to exceed $234,540; and

     WHEREAS, At a meeting duly noticed on May 22, 2012, the State Properties Committee

considered the siting criteria for leased facilities under Rhode Island General Laws section 37-6-2

and found this site met all relevant criteria; and

     WHEREAS, The State Properties Committee now respectfully requests the approval of

the Rhode Island House of Representatives and the Rhode Island Senate for a lease agreement

between 56 Associates, LP and the Rhode Island Judiciary, for the facility located at 450 Main

Street in the city of Pawtucket, Rhode Island; now therefore be it

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby approves the lease agreement, for a term not to exceed ten (10) years and at a

total cost not to exceed $2,345,400; and be it further

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

assembly; and be it further

     RESOLVED, That the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the Administrator of the Rhode Island Judiciary, the

State Budget Officer, and the Chair of the State Properties Committee.

 

     SECTION 4. Department of Labor and Training.

 

     WHEREAS, The Department of Labor and Training currently has a lease agreement, in

full force and effect, with One Reservoir, LLC for 25,000 square feet of office space located at

One Reservoir Avenue in the city of Providence; and

     WHEREAS, The current lease expires on June 17, 2013 and the Department of Labor and

Training requests to renew for a period of ten (10) years the lease agreement with One Reservoir,

LLC; and

     WHEREAS, The State of Rhode Island, acting by and through the Department of Labor

and Training attests to the fact that there are no clauses in the lease agreement with One

Reservoir, LLC that would interfere with the Department of Labor and Training's lease agreement

or use of the facility; and

     WHEREAS, The leased premises provide a central location from which the Department

of Labor and Training can serve the needs of the Rhode Island community and otherwise further

and fulfill the mission of the Department; and

     WHEREAS, The annual rent in the current lease agreement in the fiscal year ending June

30, 2013 is $609,628; and

     WHEREAS, The annual rent of the proposed lease agreement in each of the initial five

(5) years of the term is not to exceed $512,500; and $525,250 in year six, $538,250 in year seven,

$551,500 in year eight, $565,250 in year nine, and $579,250 in year ten.

     WHEREAS, The State Properties Committee now respectfully requests the approval of

the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement

between the Department of Labor and Training and One Reservoir, LLC, for the facility located

at One Reservoir Avenue in the city of Providence, Rhode Island; now therefore be it

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby approves the lease agreement, for a term not to exceed ten (10) years and at a

total cost not to exceed $5,322,000; and be it further

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

assembly; and be it further

     RESOLVED, That the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the Director of the Department of Labor and Training,

the State Budget Officer, and the Chair of the State Properties Committee.

 

     SECTION 5. Department of Human Services.

 

     WHEREAS, The Department of Human Services currently has a lease agreement with

Kellaway Realty Corporation for approximately 18,000 square feet of office space located at 24

Commerce Street in the city of Pawtucket; and

     WHEREAS, The State of Rhode Island, acting by and through the Department of Human

Services attests to the fact that there are no clauses in the lease agreement with Kellaway Realty

Corporation that would interfere with the Department of Human Services lease agreement or use

of the facility; and

     WHEREAS, The aforementioned lease expires on December 31, 2013 and the

Department of Human Services wishes to advertise a Request for Proposals and enter into a new

lease agreement with a landlord to be determined for the use of approximately 18,000 square feet

of office space located in the city of Pawtucket; and

     WHEREAS, The Department of Human Services and its programs operating in their

current location may relocate to a new location based on the results of the Request for Proposals

process; and

     WHEREAS, The proposed leased premises will provide a location from which the

Department of Human Services can serve the needs of the Pawtucket and surrounding

communities and otherwise fulfill the mission of the Department; and

     WHEREAS, The rent in the current lease agreement in the fiscal year ending June 30,

2013 is $252,000; and

     WHEREAS, The annual rent of the proposed lease agreement for each of the five (5)

years of the term is not to exceed $360,000; and

     WHEREAS, At a meeting duly noticed on April 10, 2012 the State Properties Committee

approved the Department of Human Services request to advertise a Request for Proposals in order

to secure new office space in the city of Pawtucket; and

     WHEREAS, The State Properties Committee now respectfully requests the approval of

the Rhode Island House of Representatives and the Rhode Island Senate for the lease agreement

between the Department of Human Services and a landlord to be determined, for the facility

located at a location to be determined in the city of Pawtucket, Rhode Island; now therefore be it

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby approves the lease agreement, for an initial term not to exceed five (5) years

and at a total cost not to exceed $1,800,000; and be it further

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

assembly; and be it further

     RESOLVED, That the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the Director of the Department of Human Services, the

State Budget Officer, and the Chair of the State Properties Committee.

 

     SECTION 6. University of Rhode Island - Physical Therapy Program.

 

     WHEREAS, The University of Rhode Island (the University) has academic programs in

Physical Therapy, Communicative Disorders, and Kinesiology with teaching, research, and

outreach that benefits Rhode Island adults and children with injuries and disabilities: and

     WHEREAS, The Independence Square Foundation (the Foundation) is a non profit

corporation that develops and manages community center buildings, leasing space at affordable

rates to not for profit operations, with a historical emphasis on operations supporting individuals

with disabilities; and

     WHEREAS, The Foundation promotes and fosters collaborative relationships between its

non profit tenants in the interest of enhancing the range and quality of services offered to these

special populations, recognized at the national level as a unique model to be emulated; and

     WHEREAS, In 1991, the University and the Board of Governors for Higher Education,

(the Board), and the State Properties Committee (the Properties Committee) approved a lease

(Ground Lease) for a parcel of land at 25 West Independence Way on the Kingston Campus of

the University in Kingston, Rhode Island to the Foundation, enabling Independence Square to

build a 40,000 square foot community center building for the University and not for profit

tenants, and in 2007 approved an extension of that Ground Lease through 2032, enabling

Independence Square to qualify for $1,200,000 in federal grant funding toward the successful

construction of a 28,000 square foot addition to the building in 2009; and

     WHEREAS, Per the Ground Lease Agreement, the Foundation is required to make

payments of $1 per year and at the end of the term or further extension of the Ground Lease, the

University and the Board will obtain title to the building and associated improvements for the

payment of $1; and

     WHEREAS, The Board and the State Properties Committee, at that same time and in

2002, approved space leases (Lease) for the University's Physical Therapy Program and

Communicative Disorders Speech and Hearing Clinic, respectively, within the existing building

at 25 West Independence Way and those programs, associated students and faculty, and clinical

clients have benefited from the quality, accessible, well maintained facilities for the duration of

those Leases; and

     WHEREAS, The present Lease for 16,400 square feet of space in the Independence

Square Foundation II building at 25 West Independence Way on the University's Kingston

Campus had reached the end of its extended term as of December 31, 2012; and

     WHEREAS, The University, the Board, and the State Properties Committee have

approved a Lease for the same 16,400 square feet of space in the Independence Square

Foundation II building for a period of one year beginning on January 1, 2013, in the interest of

continuing the presence of the University's Physical Therapy Program in that space while a nine

(9) year lease extension undergoes consideration per the requirements of section 37-6-2 of the

Rhode Island General Laws during the 2013 Legislative Session; and

     WHEREAS, There is a strong interest in continuing the Physical Therapy Program's

academic and clinical programs within the space they presently occupy in the Independence

Square II building for a period coincident with the existing, applicable Ground Lease, which is

scheduled to end as of December 31, 2032; and

     WHEREAS, The University, the Board, and the State Properties Committee have

approved a Lease (the Lease Agreement), with a term of nine (9) years, for 16,400 square feet of

space in the Independence Square II building for the University's Physical Therapy Program, with

that Lease Agreement and associated obligations beginning on January 1, 2014, subject to the

required Executive and Legislative authorizations; and

     WHEREAS, The Lease Agreement requires the University to pay a Base Rent for the

University's proportionate share of building operating expenses, including heating, cooling,

lighting, and basic electrical service, such Base Rent in the first year being $200,616, calculated

on an annualized basis, this Base Rent being subject to incremental changes in actual operating

expenses incurred to support the building, applicable to the proportional share of the building

occupied by the Physical Therapy Program under The Lease in future years; and

     WHEREAS, Under the Lease Agreement, the University will be required to pay

Additional Rent for the University's proportionate share of Property Taxes, if applicable, and

Operating Expenses in excess of those covered by the Base Rent as determined by calculation of

actual expenses incurred by the Foundation for the Independence Square Foundation II Building

at the end of each calendar year of the Lease. Such Additional Rent payments, which have been

between $14,000 and $25,000 over the previous eight (8) years under the expiring Lease, are to

be supported by University general revenues; now, therefore, be it

     RESOLVED, That the Foundation's Project is a favorable investment on the University's

Kingston Campus that ultimately becomes an asset of the University and the State, serving an

important academic program and critical operations serving children with special needs, while

further building upon a successful University, Foundation, and Community partnership and this

General Assembly hereby approves this Lease Agreement; and be it further

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby approves the lease agreement, for a term not to exceed nine (9) years and at a

total cost not to exceed $1,990,000; and be it further

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

assembly; and be it further

     RESOLVED, That the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the President of the University of Rhode Island, the

State Budget Officer, and the Chair of the State Properties Committee.

 

     SECTION 7. University of Rhode Island - Communicative Disorders Program.

 

     WHEREAS, The University of Rhode Island (the University) has academic programs in

Physical Therapy, Communicative Disorders, and Kinesiology with teaching, research, and

outreach that benefits Rhode Island adults and children with injuries and disabilities; and

     WHEREAS, The Independence Square Foundation (the Foundation) is a non profit

corporation that develops and manages community center buildings, leasing space at affordable

rates to not for profit operations, with a historical emphasis on operations supporting individuals

with disabilities; and

     WHEREAS, The Foundation promotes and fosters collaborative relationships between its

non profit tenants in the interest of enhancing the range and quality of services offered to these

special populations, recognized at the national level as a unique model to be emulated; and

     WHEREAS, In 1991, the University and the Board of Governors for Higher Education,

(the Board), and the State Properties Committee (the Properties Committee) approved a lease of

land (Ground Lease), for a parcel of land at 25 West Independence Way on the Kingston Campus

of the University in Kingston, Rhode Island to the Foundation enabling Independence Square to

build a 40,000 square foot community center building for the University and not for profit

tenants, and in 2007 approved an extension of that Ground Lease through 2032, enabling

Independence Square to qualify for $1,200,000 in federal grant funding toward the successful

construction of a 28,000 square foot addition to the building in 2009; and

     WHEREAS, Per the Ground Lease Agreement, the Foundation is required to make

payments of $1 per year and at the end of the term or further extension of the Ground Lease, the

University and the Board obtain title to the building and associated improvements for the

payment of $1; and

     WHEREAS, The Board and the State Properties Committee, in 2002, approved a space

lease (Lease) for the University's Communicative Disorders Program's Speech and Hearing Clinic

within the existing building at 25 West Independence Way and the Program's associated students

and faculty, and clinical clients have benefited from the quality, accessible, well maintained

facilities for the duration of that Lease; and

     WHEREAS, The present Lease for 4,300 square feet of space for the Communicative

Disorders Program in the Independence Square Foundation II building at 25 West Independence

Way on the University's Kingston Campus reached the end of its initial term as of January 31,

2013; and

     WHEREAS, The University, the Board, and the State Properties Committee have

approved an Amendment One to the Lease for the same 4,300 square feet of space in the

Independence Square Foundation II building for a period of one year beginning on February 1,

2013, in the interest of continuing the presence of the University's Communicative Disorders

Program in that space under the same terms and conditions, excepting that the terms of Section

5.05 pertaining to the University's obligations to compensate for renovation work performed by

Independence Square will no longer apply, while a long term lease extension undergoes

consideration per the requirements of section 37-6-2 of the Rhode Island General Laws during the

2013 Legislative Session; and

     WHEREAS, There is a strong interest in continuing the Communicative Disorders

Program's academic and clinical programs within the space they presently occupy in the

Independence Square II building for a period beyond the initial ten-year term plus the one year

extension that will end as of January 31, 2013; and

     WHEREAS, The University, the Board, and the State Properties Committee have

approved a continuation of the Lease Agreement's terms and conditions excepting that the terms

of Section 5.05 pertaining to the University's obligations to compensate for renovation work

performed by Independence Square will no longer apply, (Amendment Two to the Lease

Agreement), with a term of nine (9) years, for the same 4,300 square feet of space in the

Independence Square II building for the University's Communicative Disorders Program, with

that Amendment Two to the Lease Agreement and associated obligations beginning on February

1, 2014 and continuing through January 31, 2023; and

     WHEREAS, The Lease Agreement requires the University to pay a Base Rent for the

University's proportionate share of building operating expenses, including heating, cooling,

lighting, and basic electrical service, such Base Rent in the first year and the nine years being

$45,408, calculated on an annualized basis, this Base Rent being subject to incremental changes

in actual operating expenses incurred to support the building, applicable to the proportional share

of the building occupied by the Communicative Disorders Program under The Lease in future

years; and

     WHEREAS, Under the Lease Agreement, the University will be required to pay

Additional Rent for the University's proportionate share of Property Taxes, if applicable, and

Operating Expenses in excess of those covered by the Base Rent as determined by calculation of

actual expenses incurred by the Foundation for the Independence Square Foundation II Building

at the end of each calendar year of the Lease. Such Additional Rent payments, which have been

between $5,676 and $12,984 over the previous eight (8) years under the expiring Lease, are to be

supported by University general revenues; now, therefore, be it

     RESOLVED, That the Foundation's Project is a favorable investment on the University's

Kingston Campus that continues to serve the facility needs of the University's academic and

clinical programs and ultimately becomes an asset of the University and the State, serving an

important academic program and critical operations serving children and adults with special

needs, while further building upon a successful University, Foundation, and Community

partnership and this General Assembly hereby approves this Amendment Two to the Lease

Agreement for the University's Communicative Disorders Program; and be it further

     RESOLVED, That this General Assembly of the State of Rhode Island and Providence

Plantations hereby approves the lease agreement, for a term not to exceed nine (9) years and at a

total cost not to exceed $515,000; and be it further

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

Assembly; and be it further

     RESOLVED, That the Secretary of State is hereby authorized and directed to transmit

duly certified copies of this resolution to the President of the University of Rhode Island, the

State Budget Officer, and the Chair of the State Properties Committee.

 

     SECTION 8. This article shall take effect upon passage.