2006 Special Session I

Budget Amendments - HB5002 (Committee Approved)

Biotech Park (language only)

Item C-326.10 #1h

Item C-326.10 #1h

Central Appropriations
Central Capital Outlay

Page 472, after line 41, insert:
"1. The  Department of General Services is authorized to enter into lease agreements pursuant to customary procedures for space in a multi-tenant building to be constructed by the Virginia Biotechnology Research Partnership Authority in the Virginia Biotechnology Research Park located in the City of Richmond and leased to agencies of the Commonwealth and to tenants of the Research Park.  The building is more particularly described as a building of approximately 75,000 square feet and accompanying parking facilities referred to as “Biotech 8” and intended to be leased to a combination of private, not-for-profit and governmental entities under varying lease terms.
2. The provisions below relating to a capital reserve fund shall be operable so long as all  bond issues of the Authority for the financing of the building (a) do not exceed in the aggregate $20,000,000 in principal amount, (b) have a final maturity of no more than 25 years from the date of issuance  and (c) have no interest rate in excess of seven percent.  
3. In addition, the Virginia Biotechnology Research Partnership Authority is authorized to establish a capital reserve fund in connection with the bond issues described above  into which the Authority may deposit (i) any moneys appropriated and made available by the Commonwealth for the purpose of such a fund, (ii) any proceeds from the sale of the bonds described above as provided in the resolution authorizing the issuance of, or the trust indenture securing the bonds, and (iii) any other moneys that may be made available to the Authority for such fund.  All moneys held in such capital reserve fund, except as hereinafter provided, shall be used solely for the payment when due of the principal of and premium, if any, and interest on the bonds or obligations under credit enhancements issued by the Authority secured in whole or in part by such a fund.  If, however, moneys in any such fund are ever less than the minimum capital reserve fund requirement established for the fund, the Authority shall not use the moneys for any optional purchase or redemption of bonds.  Any income or interest earned on, or increment to, any capital reserve fund due to its investment may be transferred by the Authority to other funds or accounts of the Authority to the extent it does not reduce the amount of the capital reserve fund below its minimal requirement.  The amount of the minimum capital reserve fund requirement shall not exceed the maximum annual debt service on bonds issued by the Virginia Biotechnology Research Partnership Authority for the building.
4. The Authority shall not at any time issue bonds or credit enhancements secured in whole or in part by such capital reserve fund, if upon the issuance of bonds or credit enhancements, the amount in the capital reserve fund will be less than its minimal requirement unless the Authority, at the time of issuance of the bonds or credit enhancements, deposits in the fund an amount that, together with the amount then in the fund, will not be less than the fund’s minimal capital reserve requirement.
5. In order to assure further the maintenance of such capital reserve fund, the Chairman of the Authority shall annually, on or before December 1, make and deliver to the Governor and the Secretary of Administration a certificate stating the sum, if any, required to restore each capital reserve fund to its minimal requirement.  Within five days after the beginning of each session of the General Assembly, the Governor shall submit to the presiding officer of each House of the General Assembly printed copies of a budget including the sum, if any, required to restore each capital reserve fund to its minimal requirement.  All sums, if any, that may be appropriated by the General Assembly for any restoration and paid to the  Authority shall be deposited by the Authority in the capital reserve fund.  All amounts paid to the Authority by the Commonwealth pursuant to the provisions of this section shall constitute and be accounted for as advances by the Commonwealth to the Authority and, subject to the rights of the holders of any bonds of the Authority or the beneficiaries of credit enhancements of the Authority, shall be repaid to the Commonwealth without interest from available operating revenues of the Authority in excess of amounts required for the payment of bonds, credit enhancements or other obligations of the Authority, the maintenance and funding of reserve funds in connection with other projects, and operating expenses.
6. The state treasury may lend to the Virginia Biotechnology Research Partnership Authority an amount not to exceed $20,000,000 for costs of the building and its financing incurred prior to the issuance of the bonds and funding, with such loan to be repaid from the proceeds of bonds to be issued by the Authority.  Such a loan shall be made with the approval of the Secretary of Finance or his designee, and in according with the standards set forth in § 4-3.02 b. of this act.
7. Nothing in this section shall be construed as limiting the power of the Authority to issue bonds or credit enhancements not secured by a capital reserve fund.
8. Notwithstanding any other provision of this act, the provisions above shall remain in effect unless specifically repealed by legislative act."

"C-326.10 Office Building

(This amendment is self-explanatory.)