| R 420 |
| 2022 -- H 8352 SUBSTITUTE A Enacted 06/30/2022 |
| J O I N T R E S O L U T I O N |
| RELATING TO PUBLIC CORPORATION DEBT MANAGEMENT |
Introduced By: Representatives Fogarty, McEntee, Carson, and Tanzi |
| Date Introduced: June 16, 2022 |
| SECTION 1. This act consists of a Joint Resolution that is submitted pursuant to Rhode |
| Island General Laws ยง 35-18-1, et seq. |
| SECTION 2. Brookside Apartments II -- University of Rhode Island |
| WHEREAS, The University of Rhode Island Board of Trustees is proposing a project |
| which involves the construction of a new residence hall on the Kingston campus; and |
| WHEREAS, The undergraduate student enrollment is critical to the fiscal health of the |
| University; and |
| WHEREAS, There is high undergraduate student demand for apartment style on campus |
| housing; and |
| WHEREAS, The University is committed to providing adequate and appropriate housing |
| opportunities for its students; and |
| WHEREAS, The University continues to undertake significant improvements to existing |
| dormitory style housing facilities and has built new units that offer both suite style and apartment |
| living options with the goal of providing over fifty percent (50%) of its undergraduate students on |
| campus housing in keeping with its peer institutions; and |
| WHEREAS, Apartment style housing units are critical for the on campus retention of |
| third and fourth year students that often seek alternative housing off campus; and |
| WHEREAS, A recent market change has necessitated this additional, apartment style |
| campus housing; and |
| WHEREAS, The Rhode Island Public Corporation Debt Management Act 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; and |
| WHEREAS, The design and construction of the project will be financed through Rhode |
| Island Health and Educational Building revenue bonds, with an expected term of thirty (30) |
| years; and |
| WHEREAS, The total project costs associated with the completion of the project and |
| proposed financing method would be supported by auxiliary fee revenues for URI Housing and |
| Residential Life for the apartment building; and |
| WHEREAS, The URI Auxiliary bond indenture stipulates that in order to issue new debt, |
| the auxiliary revenues less auxiliary enterprise expenditures, excluding capital expenditures and |
| debt service, must cover auxiliary debt service 1.2 times, thus ensuring that any new bonds will |
| be issued on a financially sound basis; and |
| WHEREAS, The project is targeting a total project financing level of one hundred sixty- |
| three million one hundred thousand dollars ($163,100,000), which includes capitalized interest |
| and the associated cost of financing, with an assumed interest rate of six percent (6%) and a thirty |
| (30) year term, which has debt service repayments that will not exceed three hundred fifty-six |
| million dollars ($356,000,000). |
| RESOLVED, That the General Assembly hereby approves financing in an amount not to |
| exceed total debt service payments of three hundred fifty-six million dollars ($356,000,000) for |
| construction of a new apartment style residence facility on the University of Rhode Island |
| Kingston Campus; and be it further |
| RESOLVED, That, this Joint Resolution shall take effect upon passage by this General |
| Assembly. |
| SECTION 3. This Joint Resolution shall take effect upon passage. |
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| LC006135/SUB A |
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