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art.008/2

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ARTICLE 8 AS AMENDED

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RELATING TO LEASE AGREEMENTS FOR LEASED OFFICE AND OPERATING SPACE

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

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

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     SECTION 2. Department of Corrections.

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

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

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

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on June 30, 2013; and

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

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June 30, 2013 is $40,000; and

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

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

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in order to secure new office space in Providence; and

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

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

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

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term; and

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

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

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

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

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

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

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

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appropriations made by the General Assembly; and

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

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

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

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

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

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

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

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

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

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assembly; and be it further

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

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

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

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     SECTION 3. Judiciary.

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

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

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Main Street in the city of Pawtucket; and

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

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

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     WHEREAS, The Rhode Island Judiciary respectfully requests that this Resolution

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

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

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same rental rate; and

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

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

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

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

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

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mission of the Judiciary; and

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

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June 30, 2013 is $234,540; and

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

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

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

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

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and found this site met all relevant criteria; and

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

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

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

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

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

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

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

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

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assembly; and be it further

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

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

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

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     SECTION 4. Department of Labor and Training.

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

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

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One Reservoir Avenue in the city of Providence; and

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

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

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LLC; and

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

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

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

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or use of the facility; and

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

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

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and fulfill the mission of the Department; and

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

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30, 2013 is $609,628; and

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

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

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

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

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

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

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

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

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

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

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

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assembly; and be it further

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

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

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

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     SECTION 5. Department of Human Services.

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

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

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Commerce Street in the city of Pawtucket; and

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

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

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

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of the facility; and

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

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

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

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of office space located in the city of Pawtucket; and

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

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

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process; and

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

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

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communities and otherwise fulfill the mission of the Department; and

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

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2013 is $252,000; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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assembly; and be it further

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

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

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

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

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

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

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

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

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

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

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with disabilities; and

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     WHEREAS, The Foundation promotes and fosters collaborative relationships between its

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

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

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

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

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

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

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

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

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

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

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

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

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

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payment of $1; and

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

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

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

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

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

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those Leases; and

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

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

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

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

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

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

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

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

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Rhode Island General Laws during the 2013 Legislative Session; and

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

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

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

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scheduled to end as of December 31, 2032; and

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

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

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

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

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required Executive and Legislative authorizations; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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assembly; and be it further

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

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

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

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

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

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

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

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

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

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

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with disabilities; and

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     WHEREAS, The Foundation promotes and fosters collaborative relationships between its

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

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

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

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

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

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

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

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

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

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

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

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

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

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payment of $1; and

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

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

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

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

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facilities for the duration of that Lease; and

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

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

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

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2013; and

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

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

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

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

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

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

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

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

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2013 Legislative Session; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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years; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Assembly; and be it further

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

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

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

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     SECTION 8. This article shall take effect upon passage.