Chapter 540

2016 -- H 8294 AS AMENDED Enacted 09/07/2016

J O I N T   R E S O L U T I O N

A N D A N   A C T

APPROVING THE ISSUANCE OF NOT TO EXCEED $45,000,000 REVENUE BONDS BY THE RHODE ISLAND CONVENTION CENTER AUTHORITY TO FINANCE CONSTRUCTION OF A PUBLIC PARKING GARAGE AT THE GARRAHY COURTHOUSE PARKING LOT SITE AND AUTHORIZING THE STATE TO ENTER INTO A FINANCING LEASE IN CONNECTION THEREWITH

Introduced By: Representatives Carnevale, Almeida, McKiernan, and Slater

Date Introduced: June 07, 2016

It is enacted by the General Assembly as follows:

SECTION 1. This act consists of a joint resolution that is submitted pursuant to Rhode

Island General Laws § 35-18-1, et seq.

SECTION 2. Garrahy Courthouse Parking Project.

WHEREAS, Given the prime geographic location of the Garrahy Courthouse surface

parking lot site and its current limitations to adequately serve the Ccourthouse and surrounding

buildings; and

WHEREAS, Given the results of the Garrahy Courthouse Parking Garage Conceptual

Analysis presented to a Special Legislative Commission for the Garrahy Parking Garage in

January, 2014, which identifies development of the current site into a multi-level parking garage

as a way to alleviate parking demand in the area and to spur economic activity; and

WHEREAS, The I-195 Redevelopment District Commission ("Commission") has the

principal responsibility for developing the surplus land from the relocation of Interstate 195 ("the

Link") to promote economic development through the best use of nearby freed-up parcels; and

WHEREAS, The Commission has indicated that adequate structured parking is essential

to the development of the Link and that authorization for construction of a garage will assist it in

attracting interest in parcels of land; and

WHEREAS, The Rhode Island Convention Center Authority ("Convention Center

Authority") is a public instrumentality of the State of Rhode Island, created by the Ggeneral

Aassembly pursuant to Rhode Island General Laws §42-99-1 et seq. (as enacted, reenacted, and

amended, the "Convention Center Act"); and

WHEREAS, Pursuant to the Convention Center Act and this joint resolution and act (this

joint resolution and act are herein referred to as the "Joint Resolution"), the Convention Center

Authority shall have the authority to develop, construct, and operate a garage on the Garrahy

Courthouse parking lot site; and

WHEREAS, The state would enter into an agreement with the Convention Center

Authority to develop, construct, and operate a garage on the Garrahy Courthouse parking lot site;

and

WHEREAS, The Commission and CV Properties, LLC and Wexford Science &

Technology, LLC ("CV/Wexford") have entered into a purchase and sale agreement (the

"CV/Wexford Agreement") pursuant to which CV/Wexford has agreed to purchase land within

the Link in order to develop a mixed-use complex consisting of laboratory space, office space,

hotel, meeting space, and residential units (the "CV/Wexford Development"); and

WHEREAS, The CV/Wexford Development is across Clifford Street from the Garrahy

Courthouse and Garrahy Courthouse parking lot site; and

WHEREAS, CV/Wexford expressed in the CV/Wexford Agreement its intention to

acquire spaces in a public parking garage located on the Garrahy Courthouse parking lot site at

applicable market rates in order to assure adequate parking is available for the CV/Wexford

Development; and

WHEREAS, The project costs associated with the construction of a garage is estimated at

forty-five million dollars ($45,000,000) based on industry guidelines of thirty-one thousand two

hundred fifty dollars ($31,250) per parking space for approximately one thousand two hundred

(1,200) or more parking spaces and build out of commercial or retail space on some portion of the

first floor, funding debt service reserve fund, and issuance and other costs associated with the

financing. Debt service payments on the bonds are not expected to exceed eighty-eight million

one hundred twenty-five thousand dollars ($88,125,000) in the aggregate based on an average

interest rate of six percent (6.0%) assuming that the project must be financed with taxable debt

rather than tax-exempt debt, with average annual debt service payments on a fiscal year basis

expected to be approximately three million five hundred twenty-five thousand dollars

($3,525,000) over a twenty-five (25) year term (the "Financing Parameters"); now, therefore be it

RESOLVED, AND ENACTED, That the state is authorized to effectuate the

development of the garage, to lease or sell the surface lot adjacent to the Garrahy Courthouse to

the Convention Center Authority, to enter into a long-term parking lease for court employees and

other state employees, as appropriate, and to enter into appropriate agreements including

financing arrangements that would permit the development and operation of the garage by the

Convention Center Authority; and be it further

RESOLVED, AND ENACTED, That no debt shall be issued by the Convention Center

Authority for the garage until such time that the Commission certifies to the state and the

Convention Center Authority that either: (1) CV/Wexford or their nominee(s) have closed on the

purchase of Parcel I as described in the CV/Wexford Agreement and have agreed to lease not

fewer than four hundred (400) spaces in the garage at market rates; or (2) The Commission has

entered into at least three (3) purchase and sale agreements for parcels of land under its control,

excluding parcels 6, 8, and 9 of the Link; and be it further

RESOLVED, AND ENACTED, That the Department of Administration may advance

from the Rhode Island Capital Plan Fund ("Fund") an amount not to exceed five hundred

thousand dollars ($500,000) for preliminary architectural and engineering work on the planned

garage, the sum of which shall be repaid to the Fund upon issuance of the debt by the Convention

Center Authority; and be it further

RESOLVED, AND ENACTED, That the general assembly hereby authorizes the

Convention Center Authority to develop, construct, and operate a garage on the Garrahy

Courthouse parking lot site and to issue debt in accordance with its authority under chapter 99 of

title 42 of the General Laws in an amount not to exceed forty-five million dollars ($45,000,000),

in conformity with the Financing Parameters, to finance the project; and be it further

RESOLVED, AND ENACTED, That this Jjoint Rresolution shall take effect

immediately upon passage; and be it further

RESOLVED, AND ENACTED, That this Jjoint Rresolution supersedes the

authorization contained in Section 2, Article 4 of Chapter 145 of the 2014 Public Laws; and be it

further

RESOLVED, AND ENACTED, That this Jjoint Rresolution shall apply to debt issued

within five (5) years of the date of passage of this Jjoint Rresolution.

SECTION 3. This joint resolution and act shall take effect upon passage.

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LC005920

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