FOR IMMEDIATE RELEASE
November 3, 2006

Contact:
      USS Saratoga Museum Foundation, Inc.
      Frank Lennon
      (401) 831-8696

      Independence Bank
      Michael Sammartino
      (401) 471-6318

Responding to the announcement of the reservation of $6.5 million in Community Facilities program funding for 2007, US Senator Lincoln Chafee, (R-RI) said, "This is exciting news...A Saratoga Museum honoring our veterans and their sacrifices at sea is long overdue and has great potential to be not only a tourist destination, but also an outstanding educational facility."

"I was delighted to learn that the USDA has deemed the USS Saratoga Museum is a project worth funding," said Congressman Jim Langevin, (D-RI). "This funding helps to get the foundation one step closer to realizing its dream of creating an educational center, museum and memorial for Rhode Islanders and tourists alike to learn from and enjoy."

Governor Carcieri said that he was gratified about today's announcement. "With this loan, the Foundation is well on its way to reaching its fundraising goal," the Governor said. "This project will heighten awareness to the USS Saratoga's glory days and preserve an important part of our nation's military history. Without question, this will be a valuable educational tool for people of all ages and a boon to our economy and our tourism industry."

North Kingstown Town Councilmen Edward Cooney and John Patterson added: "On behalf of the North Kingstown Town Council, we wish to express how delighted we are that enough funding now apears to be in place to turn this vision into reality--a vision that four different Councils have unanimously endorsed from 1998 until today.

"The Town has never wavered in its steadfast support of the Foundation and its efforts. Saratoga will be far more than just a static ship museum; it has the potential to become a major educational resource, providing math and science programs for grades K-12, a vocational school and other programs to educate youth, train and retrain workers; and it also has great potential as a disaster relief facility."

Of the $1.2 billion in the USDA Community Programs loan portfolio nationwide, about 9% is invested in cultural and educational facilities. Proceeds of the loan are to be used for providing a safe mooring for the carrier at Davisville, along with related landside construction.

Robert Catanzaro, Sr., Chairman and CEO of Independence Bank, said: "As bankers, we believe this project would be of great benefit to Rhode Island, which makes the financial commitment eminently worthwhile. This project will create jobs, bring new money into the state, and provide a shot in the arm for the local economy."

In a morning press conference at the non-profit USS Saratoga Museum Foundation's headquarters in North Kingstown, Governor Donald Carcieri hailed the announcement of the bank's commitment as "an independent confirmation of the project's feasibility and long-term stability."

This financing commitment marks the culmination of an effort to obtain federal financing that began four years ago. In October of 2002 gubernatorial candidate Don Carcieri committed to support federal financing requests for the Saratoga project, noting that his administration was prepared to "send a clear message to Washington that [the Saratoga] project is one that Rhode Island wants and needs."

In April of 2005, Governor Carcieri recommended approval of a plan to moor Saratoga at the former Quonset/Davisville naval complex, subject to certain conditions.

"Pier space was reserved for us at Davisville until May 1, 2007, but we had to show that we could raise $10 million to get this project off the ground without a state subsidy," said Frank Lennon, President of the Saratoga Foundation.

At about this time Michael Sammartino entered the picture. Sammartino, Director of Business Development at Independence Bank, had followed the project for some time and was convinced it made economic sense.

"I called Frank Lennon and told him that we could help make this happen," Sammartino recalled. "I was convinced we could put the basic package together without state money."

Over the next 18 months Independence Bank conducted an exhaustive underwriting process and financial review. At the same time the USDA regional office in Amherst, MA did its own underwriting and review, and forwarded the guarantee application to Washington for approval. Earlier this month bank and Saratoga officials met with USDA National Administrator Russell Davis, who reserved the funding in the proposed FY 2007 USDA budget.

The USS Saratoga Museum Foundation will contribute an additional $4.5 million in equity towards the project, of which more than $3.5 million has been raised so far. With this funding in place Lennon is now confident the Saratoga project will reach its fund raising target with time to spare.

"As anyone who has ever run a capital campaign knows, it's a lot easier to raise the last million than it is to raise the first million," he said.

The Saratoga project leadership believes the value of a USDA guarantee will go well beyond the actual dollars involved. They believe this announcement will open the door to other major sponsors and donors, because now the project has a very real chance of materializing. It also means that a federal agency has taken a close look at the numbers and determined the project is feasible.

"The local business and financial communities should respond very favorably to the USDA setting aside the funding," said former Congressman Bob Weygand, Honorary Chairman of the Saratoga Board of Trustees. "This kind of investment represents the type of creative thinking and partnerships that will push this project forward. In the end, this means more jobs, more dollars spent in the community, and more vitality for our state."

"We also have no intention of slowing our fund raising efforts," Lennon pointed out. "The more we raise in corporate sponsorships and donations between now and May, the less we will have to borrow when the time comes."

Lennon also acknowledges there are still additional hurdles to overcome before Saratoga can make her "Last Cruise" across Narragansett Bay. Although no dredging is required to get the aircraft carrier over to Davisville, some dredging will be required for the actual berth itself. Permitting for this work, along with the landside construction, needs to come from the Department of Environmental Management and the Coastal Resources Management Council.

Other issues relating to access and security concerns need to be resolved, and the Navy must also finalize its donation of the ship. That donation (and the final funding) will be subject to approval (by the Navy, USDA and the state) of the project's mooring, environmental and historic preservation plans.

However, the funding was perceived by all to the biggest hurdle, and the project now seems to have major momentum as it moves to address these other issues.

One of the major donors to the Saratoga project is nationally-known philanthropist Alan Shawn Feinstein, who has pledged more than $1.5 million.

"I am intrigued by the idea of the smallest state having the largest warship in the world ever open to the public, along with a theme park that helps promote the values that re important to all of us," said Feinstein. He appreciates the natural tie-in between the "service above self" theme that he promotes in local schools and universities, and the service that members of our armed forces have provided to our country over the years.

"The Saratoga plan also dovetails nicely with my efforts to instill the importance of community service in our youngsters. I am committed to working with Saratoga leadership to help reward youth with this opportunity, and to spread this message about the value and importance of service," he concluded. Feinstein says he hopes this federal support will spur others to donate money.

"One of the reasons for my commitment was because I was impressed with the caliber of those who have already signed on to this project--people such as Bob Galkin, Congressman Bob Weygand and a number of others I respect. Hopefully, this latest commitment by a local bank, to be backed by the federal government will have a positive effect on others contemplating contributions," added Feinstein.

******

Independence Bank is a new, FDIC insured, independent community bank located and headquartered in East Greenwich, Rhode Island (http://www.independence-bank.com).

The USS Saratoga Museum Foundation, Inc., a 501 (c) (3) non-profit and an all-volunteer group, has worked for eight years to turn the vision described above into reality. Further information can be obtained at http://www.saratogamuseum.org

Last Updated:
11/03/06