06-R 084

2006 -- H 6862

Enacted 02/16/06

J O I N T R E S O L U T I O N

RELATING TO RHODE ISLAND PUBLIC CORPORATION DEBT MANAGEMENT ACT JOINT RESOLUTIONS

Introduced By: Representatives Costantino, Shanley, Carter, Lewiss, and Lally

Date Introduced: January 19, 2006

     WHEREAS, The University of Rhode Island is proposing a project to purchase the Chi

Phi fraternity house located at 61 Upper College Road on the Kingston Campus that will enable

the University's International Engineering Program to expand its student residential facilities into

a fully renovated residential building adjacent to its present location; and

     WHEREAS, The University of Rhode Island International Engineering Program seeks to

expand its nationally recognized leadership in preparing young American engineers for careers in

the global economy, and said building at 61 Upper College Road will enhance its ability to

prepare students linguistically and culturally for professional internship experiences in Latin

America, Europe, and Asia, thereby helping the nation to remain competitive in the worldwide

marketplace; and

     WHEREAS, The proposed renovation would increase residential capacity of the Program

from 35 to 70 students, allowing it to accept and retain an additional 20 students in each of the

next two years; and

     WHEREAS, Gross tuition and mandatory fee revenue of approximately $600,000 is

anticipated over the next two years, assuming half of these additional students were from outside

of Rhode Island; and

     WHEREAS, The Program currently has 200 students enrolled, some of whom were

attracted this fall by the anticipation of expanded capacity to participate in the combined

residential/academic experience; and

     WHEREAS, The proposed project has received $850,000 from private, corporation,

foundation, and federal sources to support and enhance the facility needs of the International

Engineering Program through the renovation and acquisition of the Chi Phi Fraternity house; and

     WHEREAS, An additional $800,000 is required for the Chi Phi Holding Corporation to

renovate the facility prior to its acquisition for the International Engineering Program; and

     WHEREAS, The University will finance the $800,000 through a direct loan from the

Rhode Island Health and Educational Building Corporation with an expected term of ten years

and/or anticipated interest rate of 15 basis points above the ten year treasury rate at the time of the

loan commitment, anticipated to be 4.70 percent; and

     WHEREAS, Debt service will be supported by the University general revenues, and that

the University anticipates the rental of the expanded facility to fully cover the annual debt service

payments; and

     WHEREAS, The Rhode Island Corporation Debt Management Act (Rhode Island general

laws section 35-18-1, et seq.) requires the General Assembly to provide its consent to the

issuance or incurring by the State of Rhode Island and other public agencies of certain obligations

including financing guarantees or other agreements; now, therefore be it

     RESOLVED, That the total amount of the debt approved to be issued in the aggregate

shall be limited to not more than $800,000. Total debt service on the bonds is not expected to

exceed $104,000 annually and $1,046,000 in the aggregate based on a ten year maturity; and be it

further

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

Assembly.

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LC00742

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