Bill to Help Finance Educational Ship Becomes Law

The state may help enable the construction of the SSV Oliver Hazard Perry, a replica of a three-masted 19^th century warship that will serve as an innovative ocean-going classroom for Rhode Island’s students, under legislation passed by the Assembly and signed into law.

The legislation (2011-S 0859, 2011-H 6232), sponsored by Sen. Louis P. DiPalma and Rep. J. Russell Jackson (D-Dist. 73, Newport, Middletown), amended the statutes pertaining to the Industrial Recreational Building Authority (IRBA), a state agency that guarantees the mortgages of industrial and recreational properties that have some public benefit. Rep. Peter Martin (D-Dist. 75,Newport) also submitted identical legislation (2011-H 5835).

A nonprofit organization, Oliver Hazard Perry Rhode Island, already has a contract withPromet Marine Services in Providence for the first phase of construction on the ship, and the rest is expected to take place next year and the year after in Newport in public view.  The organization has raised nearly $2.2 million in donations and has another $1.7 million in loans already committed to it. It needs to raise or borrow a total of $2.7 million to fund the $6.6 million project named after the Rhode Island-born Navy hero of the War of 1812.

Education Commissioner Deborah A. Gist has expressed her support for the project, pledging her department’s advice and guidance on development of educational programs relating to it.

“The Oliver Hazard Perry will provide the children of our state with incredible, memorable opportunities to learn about our state’s history, culture, environment and economy. All children in the Ocean State should learn about our connections with the maritime trades, and there’s no better way to do that than by getting on a seagoing vessel built right here in Rhode Island to replicate the kind of ships that helped establish our state’s place in the world economy two and three centuries ago,” said Senator DiPalma (D-Dist. 12, Middletown, Little Compton, Newport, Tiverton).

The ship’s backers previously applied to IRBA for its help in insuring the loan, but were turned down because of concerns that the laws establishing IRBA require the projects whose loans it guarantees to be land-based and in Rhode Island only. The ship, of course, would be on the water, and would occasionally travel outside state bounds. The legislation adds language to the laws establishing IRBA to allow it to guarantee mortgages to large ships such as the Oliver Hazard Perry.

Under the bill, as long as the backers do not default, the state would not pay any part of the loan. Having the state as a backer would better position the organization to obtain financing.

Besides providing valuable and unique learning opportunities for students, the ship would also help promote the local maritime industry, since it would be built by local shipbuilders and would be a very visible showcase of their work, said the sponsors.

“It would be a source of pride for Rhode Island to have its very own tall ship, built right here, where kids could learn about the importance the ocean to our state’s history, economy and identity,” said Representative Jackson (D-Dist. 73, Newport, Middletown). “I’m grateful to and impressed by the work this organization has done to raise funding. Their success shows they are serious about turning the Oliver Hazard Perry into a reality, and the state should be proud to back this worthy project.”