LPR News Podcast Press Conference
Explanation and purpose of Question 3: These bonds will allow the State to complete a new Veterans Home that is already under construction and to borrow less money than the $94 million voters previously approved for the new Veterans Home in 2012. While voters originally authorized $94 million to be spent on the new Veterans Home, the state received federal funding and only ended up needing to borrow $33.5 million for the project.
Now the State needs to authorize an additional $27 million to complete the new Veterans Home project. The additional cost is a result of inflation in materials and labor since 2012. More significantly, the change in the federal guidelines for reimbursement of state veterans home construction has added more costly requirements for building the new Veterans Home. If this $27 million is authorized and added to the previous $33.5 million borrowed, the state would borrow a total of $60.5 million for the new Veteran’s Home.
How much money will be borrowed? $27,000,000
Project time table: The construction of a new Veterans Home is well under way and is expected to be completed in or about Fall 2017.
Useful life: The Rhode Island Office of Veterans Affairs estimates that the useful life of the new Veterans Home building will be approximately 50 years.
Total cost: PROJECT COSTS COST OF ISSUANCE* Principal Interest** Principal Interest** $26,892,000 $16,216,246 $108,000 $65,125
TOTAL PROJECT AND ISSUANCE COSTS Principal Interest** Total Costs $27,000,000 $16,281,371 $43,281,371
* Cost of issuance estimated at 0.4 % of principal issued.