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| ARTICLE 6 |
RELATING TO DEBT MANAGEMENT ACT JOINT RESOLUTION
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| 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 § |
| 42 64 1 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 § 42 64.10 1 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. |