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art.006/3/006/2/006/1
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ARTICLE 6
RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTION

     SECTION 1. This article consists of a joint resolution that is submitted pursuant to Rhode
Island General Law § 35-18-1, et seq.
     SECTION 2. Quonset Harbor, Pier, and Port Improvements.
     WHEREAS, the Rhode Island commerce corporation is a public instrumentality of the
State of Rhode Island (hereafter the “State”), created by the general assembly pursuant to §
42641 et seq. (as enacted, reenacted and amended, hereafter the “Act”); and
     WHEREAS, the Act declares, in part, that new industrial, manufacturing, recreational,
and commercial facilities are required to attract and house new industries and thereby reduce the
hazards of unemployment; and
     WHEREAS, the Act further declares it to be the public policy of the State to encourage
the expansion and development of the State’s harbors and ports and to foster and improve the
handling of waterborne commerce from and to any port of this State and other states and foreign
countries; 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, harbors and ports, residential, environmental,
utility, public service, institutional, and civic and community facilities, and to develop sites for
such facilities; and
     WHEREAS, the Act has empowered the Rhode Island commerce corporation to establish
subsidiary corporations to exercise its powers and functions, or any of them; and
     WHEREAS, the general assembly, pursuant to § 4264.101 et seq. (as enacted, reenacted
and amended, hereafter the “QDC Act”) created the Quonset development corporation as a
subsidiary of the Rhode Island commerce corporation; and
     WHEREAS, the QDC Act provided that the Quonset development 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,
including those certain transportation, harbor, pier, and waterfront facilities located at the
Quonset business park; and
     WHEREAS, the QDC Act also provides that the Quonset development 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, as the lawful agent and attorney-in-fact of the Rhode Island commerce
corporation with respect to all property of the Rhode Island commerce corporation at the Quonset
business park, all of the foregoing for such consideration as the Quonset development corporation
shall determine; and
     WHEREAS, any lease by the Quonset development corporation to another party may be
for such part of the Quonset business park, 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
Quonset development corporation on account thereof, as the Quonset development corporation
shall determine; and
     WHEREAS, the Act authorizes the Rhode Island commerce corporation to borrow
money and issue bonds for any of its corporate purposes; and
     WHEREAS, pursuant to §§ 35-18-3 and 35-18-4 of the Rhode Island General Laws, the
Rhode Island commerce corporation has requested the approval of the general assembly for the
issuance of harbor, pier, and port revenue bonds (hereafter "bonds") for the purpose of providing
funds to the Quonset development corporation for financing capital projects for harbor, pier, port,
and all other costs related to the improvements necessary at and in the immediate vicinity of the
Davisville piers at the Quonset business park, including without limitation, improvements to
modernize port infrastructure at the Port of Davisville (hereafter the "2016 Davisville Piers
Project"), including funding, capitalized interest, costs of issuing the bonds, and related costs, and
the establishment of reserves for the project and the bonds, including a debt service reserve fund;
and
     WHEREAS, the financing of the 2016 Davisville Piers Project and repayment of the
bonds will be accomplished through one or more loan agreements having the Quonset
development corporation as borrower, such agreement or agreements to require that the Quonset
development corporation to make loan payments in an amount equal to the debt service on the
bonds; now, therefore, be it:
     RESOLVED, the general assembly hereby approves the Rhode Island commerce
corporation’s issuance of the bonds in a private placement or through a public offering, in one or
more series. The bonds will be special obligation bonds of the Rhode Island commerce
corporation payable exclusively from loan repayments under a loan agreement with the Quonset
development corporation and from bond proceeds, funds, accounts, and properties and the
proceeds thereof pledged therefor, and thus the Rhode Island commerce 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 total amount of debt approved to be issued in the aggregate shall be
not more than twenty-five million dollars ($25,000,000); and be it further
     RESOLVED, that the general assembly hereby approves the Quonset development
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 Quonset development corporation may pledge
therefor; and be it further
     RESOLVED, that none of the bonds 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 resolution shall apply to bonds issued within five (5) years of the
date of passage of this resolution; and be it further
     RESOLVED, that this joint resolution shall take effect immediately upon its passage.
     SECTION 3. This article shall take effect upon passage.