PRIOR PRINTER'S NOS. 189, 800 PRINTER'S NO. 845
No. 188 Session of 1979
INTRODUCED BY ZEMPRELLI, ROSS, FUMO, JUBELIRER, MESSINGER, REIBMAN AND SCHAEFER, FEBRUARY 12, 1979
AS AMENDED ON THIRD CONSIDERATION, MAY 29, 1979
AN ACT 1 Amending the act of May 2, 1945 (P.L.382, No.164), entitled "An 2 act providing for the incorporation as bodies corporate and 3 politic of 'Authorities' for municipalities, counties and 4 townships; prescribing the rights, powers and duties of such 5 Authorities heretofore or hereafter incorporated; authorizing 6 such Authorities to acquire, construct, improve, maintain and 7 operate projects, and to borrow money and issue bonds 8 therefor; providing for the payment of such bonds, and 9 prescribing the rights of the holders thereof; conferring the 10 right of eminent domain on such Authorities; authorizing such 11 Authorities to enter into contracts with and to accept grants 12 from the Federal Government or any agency thereof; and 13 conferring exclusive jurisdiction on certain courts over 14 rates," authorizing Authorities to provide business 15 improvements and business administrative services. 16 The General Assembly of the Commonwealth of Pennsylvania 17 hereby enacts as follows: 18 Section 1. Subsection A. of section 4, act of May 2, 1945 19 (P.L.382, No.164), known as the "Municipality Authorities Act of 20 1945," amended August 1, 1975 (P.L.164, No.85),is amended and 21 the section is amended by adding a subsection to read: 22 Section 4. Purposes and Powers; General.--A. Every 23 Authority incorporated under this act shall be a body corporate 24 and politic, and shall be for the purpose of acquiring, holding,
1 constructing, improving, maintaining and operating, owning, 2 leasing, either in the capacity of lessor or lessee, projects of 3 the following kind and character, equipment to be leased by an 4 Authority to the municipality or municipalities that organized 5 it, buildings to be devoted wholly or partially for public uses, 6 including public school buildings, and facilities for the 7 conduct of judicial proceedings, and for revenue-producing 8 purposes; transportation, marketing, shopping, terminals, 9 bridges, tunnels, flood control projects, highways, parkways, 10 traffic distribution centers, parking spaces, airports, and all 11 facilities necessary or incident thereto, parks, recreation 12 grounds and facilities, sewers, sewer systems or parts thereof, 13 sewage treatment works, including works for treating and 14 disposing of industrial waste, facilities and equipment for the 15 collection, removal or disposal of ashes, garbage, rubbish and 16 other refuse materials by incineration, land fill or other 17 methods, steam heating plants and distribution systems, 18 incinerator plants, waterworks, water supply works, water 19 distribution systems, swimming pools, playgrounds, lakes, low 20 head dams, hospitals, health centers, motor buses for public 21 use, when such motor buses are to be used within any 22 municipality, subways and industrial development projects, 23 including but not limited to projects to retain or develop 24 existing industries and the development of new industries: 25 Provided, That an Authority created by a school district or 26 school districts shall have the power only to acquire, hold, 27 construct, improve, maintain, operate and lease public school 28 buildings and other school projects acquired, constructed or 29 improved for public school purposes. The purpose and intent of 30 this act being to benefit the people of the Commonwealth by, 19790S0188B0845 - 2 -
1 among other things, increasing their commerce, health, safety 2 and prosperity, and not to unnecessarily burden or interfere 3 with existing business by the establishment of competitive 4 enterprises, none of the powers granted by this act shall be 5 exercised in the construction, improvement, maintenance, 6 extension or operation of any project or projects which in whole 7 or in part shall duplicate or compete with existing enterprises 8 serving substantially the same purposes. This limitation shall 9 not apply to the exercise of the powers granted hereunder for 10 facilities and equipment for the collection, removal or disposal 11 of ashes, garbage, rubbish and other refuse materials by 12 incineration, land fill or other methods, if each municipality 13 organizing or intending to use the facilities of an Authority 14 having such powers shall declare by resolution or ordinance that 15 it is desirable for the health and safety of the people of such 16 municipality that it use the facilities of the Authority, and if 17 any contract between such municipality and any other person, 18 firm or corporation for the collection, removal or disposal of 19 ashes, garbage, rubbish and other refuse material has by its 20 terms expired or is terminable at the option of the municipality 21 or will expire within six months from the date such ordinance 22 becomes effective. This limitation shall not apply to the 23 exercise of the powers granted hereunder for industrial 24 development projects if the Authority does not develop 25 industrial projects which will compete with existing industries. 26 This limitation shall not apply to the exercise of the powers 27 granted hereunder for business improvement districts if each 28 municipality organizing an Authority for such a project shall 29 declare by resolution or ordinance that it is desirable for the 30 entire municipality to improve the business district. This 19790S0188B0845 - 3 -
1 limitation shall also not apply to hospital projects to be 2 leased to public hospitals or nonprofit hospital corporations 3 serving the public if each municipality organizing an Authority 4 for such a project shall declare by resolution or ordinance that 5 it is desirable for the health and safety of the people in the 6 area served by such hospital to have such facilities provided by 7 an Authority. The municipality or municipalities organizing such 8 an Authority may, in the resolution or ordinance signifying 9 their intention so to do, or from time to time by subsequent 10 resolution or ordinance, specify the project or projects to be 11 undertaken by the said Authority, and no other projects shall be 12 undertaken by the said Authority than those so specified. If the 13 municipal authorities organizing an Authority fail to specify 14 the project or projects to be undertaken, then the Authority 15 shall be deemed to have all the powers granted by this act. 16 * * * 17 E. In addition to the other purposes designated by this act, 18 an Authority may be established to make business improvements or 19 administrative services in districts designated by the 20 municipality or municipalities acting jointly and zoned 21 commercial or used for general commercial purposes. 22 Business improvements means those improvements needed in the 23 district to the district in general or to specific areas or 24 individual properties including but not limited to sidewalks, 25 retaining walls, street paving, street lighting, parking lots, 26 parking garages, trees and shrubbery, pedestrian walks, sewers, 27 water lines, rest areas and acquisition and remodeling or 28 demolition of blighted buildings or structures. Improvements 29 shall not be made to property not acquired. 30 Administrative service means those intangible matters which 19790S0188B0845 - 4 -
1 improve the ability of the commercial activities of the district 2 to serve the consumer including but not limited to free or 3 reduced free parking for customers, transportation repayments, 4 public relations programs, group advertising and uniforms credit 5 policies. 6 The Authority may make planning or feasibility studies to 7 determine needed improvements or administrative services. 8 Written notice of the proposed improvement or service and the 9 estimated cost thereof shall be given to each property owner in 10 the district. 11 The Authority shall be required to hold a public hearing on 12 the proposed improvement or service and the estimated costs 13 thereof. Notice of such hearing shall be advertised at least ten 14 days prior thereto in a newspaper whose circulation is within 15 the municipality where the Authority is established. At such 16 public hearing any interested party may be heard. 17 The Authority shall take no further action on any proposed 18 improvement or service if objection is made by a majority of the <-- 19 property owners in the district. PROPERTY OWNERS OF THE PROPOSED <-- 20 DISTRICT WHOSE PROPERTY VALUATION AS ASSESSED FOR TAXABLE 21 PURPOSES SHALL AMOUNT TO MORE THAN FIFTY PER CENT OF THE TOTAL 22 PROPERTY VALUATION OF THE DISTRICT. Objections shall be made 23 within twenty days after the conclusion of the public hearing on 24 the proposed improvement or service. Objections must be in 25 writing, signed and filed in the office of the prothonotary of 26 the county in which the district is located and in the 27 registered office of the Authority. 28 The Authority may impose an assessment on each benefited 29 property within a business improvement district which shall be 30 determined by the total cost of the improvements or services in 19790S0188B0845 - 5 -
1 such district stated in the planning or feasibility study. 2 The total cost of the improvements or services in such 3 district shall be assessed to all of the benefited properties in 4 the district by either of the following methods: 5 (a) By an assessment determined by multiplying the total 6 improvement or service cost by the ratio of the assessed value 7 of the benefited property to the total assessed valuation of all 8 benefited properties in the district. 9 (b) By an assessment upon the several properties in the 10 district in proportion to benefits as ascertained by viewers 11 appointed in accordance with municipal law. 12 (c) An assessment allocated according to gross sales or 13 gross or net profits or actual benefit. Before any assessments 14 are made, the Authority shall submit the plan and estimated 15 costs for the business improvements to the municipality in which 16 such project is to be undertaken and the municipality shall have 17 approved the plan and estimated cost. There shall not be charged 18 against the improved properties an aggregate amount in excess of 19 the estimated cost. 20 The Authority may by resolution authorize the payment of the 21 assessment in equal annual, or more frequent installments over 22 such time and bearing interest at such rate not in excess of six 23 percent as may be specified in the resolution. Where bonds shall 24 have been issued and sold, or notes or guarantees given or 25 issued, to provide for the cost of the improvements or services 26 the assessment in equal installments for bond repayment shall 27 not be payable beyond the term for which the bonds, notes or 28 guarantees are payable. 29 Claims to secure the assessments shall be entered in the 30 prothonotary's office of the county at the same time and in the 19790S0188B0845 - 6 -
1 form and shall be collected in the same manner as municipal 2 claims are filed and collected notwithstanding the provisions of 3 this section as to installment payments. 4 In the case of default in the payment of any installment and 5 interest for a period of sixty days after it becomes due, the 6 entire assessment and accrued interest shall be due. 7 Any owner of property, against whom an assessment has been 8 made, may pay the same in full, at any time, with accrued 9 interest and costs thereon, and such payment shall discharge the 10 lien of such assessment. 11 Section 2. This act shall take effect in 60 days. L26L6RZ/19790S0188B0845 - 7 -