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        PRIOR PRINTER'S NOS. 1167, 3427, 3497,        PRINTER'S NO. 4760



No. 994 Session of 2003


           NOVEMBER 18, 2004

                                     AN ACT

     1  Empowering municipalities, counties and public transportation
     2     agencies to work cooperatively to establish Transit
     3     Revitalization Investment Districts (TRID), including
     4     partnerships with the National Railroad Passenger Corporation
     5     requiring planning studies, comprehensive plan and zoning
     6     amendments and use of existing statutes and techniques to
     7     achieve transit-oriented development, redevelopment,
     8     community revitalization and enhanced community character
     9     through TRID creation; establishing value capture areas as a
    10     means to reserve and use future, designated incremental tax
    11     revenues for public transportation capital improvements,
    12     related site development improvements and maintenance;
    13     promoting the involvement of and partnerships with the
    14     private sector in TRID development and implementation;
    15     encouraging public involvement during TRID planning and
    16     implementation; and providing for duties of the Department of
    17     Community and Economic Development.

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20                             CHAPTER 1
    21                         GENERAL PROVISIONS

     1  Section 101.  Short title.
     2     This act shall be known and may be cited as the Transit
     3  Revitalization Investment District Act.
     4  Section 102.  Declaration of policy.
     5     The General Assembly finds and declares as follows:
     6         (1)  The overall purpose and legislative intent of this
     7     act is to authorize public transportation agencies throughout
     8     this Commonwealth to work cooperatively with counties, local
     9     governments, transportation authorities, the private sector
    10     and the National Railroad Passenger Corporation (AMTRAK) and
    11     other providers of public transportation and passenger rail
    12     services to create and designate Transit Revitalization
    13     Investment Districts (TRIDs).
    14         (2)  The specific purposes and intent of a designated
    15     TRID are to:
    16             (i)  Promote local, county and regional economic
    17         development and revitalization activities through private
    18         sector investment, reinvestment and joint development
    19         activities in conjunction with public transportation
    20         improvements.
    21             (ii)  Encourage multimunicipal, cooperative
    22         approaches to generate new investment, reinvestment and
    23         revitalization through transit-oriented development,
    24         around rail transit stations and along public
    25         transportation corridors.
    26             (iii)  Increase overall ridership on public
    27         transportation systems, including AMTRAK, while
    28         generating additional revenues for current and expanded
    29         services, capital improvements and related ongoing
    30         maintenance.
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     1             (iv)  Encourage and support municipal and
     2         multimunicipal comprehensive plan implementation,
     3         including consistency of plans at the local, county and
     4         regional levels.
     5             (v)  Stimulate public-private partnerships created by
     6         prospective development opportunities around, within or
     7         adjacent to the transit system, station areas and transit
     8         system components.
     9             (vi)  Establish appropriate mechanisms to capture the
    10         real estate taxation and other values added by joint
    11         development activities for reinvestment in the transit
    12         system and local communities.
    13             (vii)  Encourage greater community involvement in
    14         TRID location, design and implementation and resulting
    15         investment activities.
    16             (viii)  Promote flexible, cooperative, coordinated
    17         and enhanced support for innovative, intermodal solutions
    18         in TRID development and implementation activities by
    19         municipal officials, public agencies, nonprofit
    20         organizations and the private sector.
    21             (ix)  Support TRID implementation by maximizing use
    22         of existing Federal and State laws and programs that are
    23         consistent with the purposes of this act.
    24  Section 103.  Definitions.
    25     The following words and phrases when used in this act shall
    26  have the meanings given to them in this section unless the
    27  context clearly indicates otherwise:
    28     "AMTRAK."  The National Railroad Passenger Corporation.
    29     "Department."  The Department of Community and Economic
    30  Development of the Commonwealth.
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     1     "Public transportation agency."  A public transit authority
     2  or similar entity, created through the laws of this
     3  Commonwealth, charged with the provision of mass transit
     4  services to the traveling public, that owns and maintains or is
     5  authorized to own and maintain a physical plant, including
     6  rolling stock, stations, maintenance and support facilities.
     7     "Public transportation provider."  A public or private entity
     8  that operates or is authorized to operate intercity or local
     9  commuter passenger rail services within this Commonwealth that
    10  are open to the general public and that owns and maintains or is
    11  authorized to own and maintain a physical plant including
    12  rolling stock, stations, maintenance and support facilities.
    13     "Transit-oriented development."  Development concentrated
    14  around and oriented to transit stations in a manner that
    15  promotes transit riding or passenger rail use. The term does not
    16  refer to a single real estate project, but represents a
    17  collection of projects, usually mixed use, at a neighborhood
    18  scale that are oriented to a transit node.
    19     "TRID."  A Transit Revitalization Investment District created
    20  in accordance with this act.
    21     "TRID planning study."  A study required to be undertaken by
    22  one or more municipalities, with the active involvement of a
    23  public transportation agency and the pertinent county or
    24  counties, for the purpose of establishing the boundaries,
    25  existing environmental conditions, existing and proposed land
    26  use, property availability, real estate market conditions,
    27  development potential, including use of air space rights,
    28  required zoning amendments, desired infrastructure and necessary
    29  transportation-related improvements and a financial plan,
    30  including funding sources, a proposed amortization schedule,
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     1  where applicable, and estimated future maintenance requirements,
     2  to support the designation and implementation of a proposed
     3  TRID.
     4     "Value capture area."  An area coincident with the boundaries
     5  of a TRID, established simultaneously with TRID designation, in
     6  accordance with this act, in which real estate tax revenues and
     7  any other designated tax revenues shall, at a minimum, be shared
     8  by the participating local jurisdiction or jurisdictions and
     9  public transportation agency or agencies, for the purpose of
    10  implementing a TRID.
    11                             CHAPTER 3
    12                     TRID CREATION AND LOCATION
    13  Section 301.  Criteria for proposed TRID.
    14     Local municipalities, counties, transportation authorities
    15  and public transportation agencies proposing to define and
    16  develop a TRID shall use the following criteria and process:
    17         (1)  Eligible TRID locations may include any geographic
    18     area of a municipality or municipalities, including vacant,
    19     underutilized or potentially redevelopable land, within an
    20     area generally formed by a minimum radius of one-eighth mile,
    21     not to exceed a radius of one-half mile, from a railroad,
    22     transit, light rail, busway or similar transit stop or
    23     station, measured from the centerline of the track or roadway
    24     traversing the station or stop location. TRID designation may
    25     also include new station locations proposed in conjunction
    26     with a planned public transportation service, as defined on
    27     an adopted county, regional or public transportation agency
    28     plan.
    29         (2)  The specific boundaries of a TRID may be expanded or
    30     reduced based on local circumstances such as local economic
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     1     development and planning goals, community character, property
     2     boundary and scale variations, but only when:
     3             (i)  authorized by the governing body or bodies of
     4         the affected jurisdiction or jurisdictions in cooperation
     5         with the pertinent public transportation agency; and
     6             (ii)  the rationale for the boundaries is supported
     7         by the findings of the required TRID planning study.
     8         (3)  A local municipality or municipalities shall further
     9     define and support the rationale for the TRID designation
    10     through a TRID planning study, as well as appropriate
    11     amendments to the municipal comprehensive plan, zoning
    12     ordinance and other pertinent regulations.
    13         (4)  A local municipality may designate the county
    14     planning agency to undertake or assist the TRID planning
    15     study on its behalf.
    16         (5)  An existing neighborhood improvement district, tax
    17     increment district or urban renewal area may be used as the
    18     basis for the boundaries of a TRID, when justified by the
    19     TRID planning study required in section 304.
    20  Section 302.  TRID designation.
    21     (a)  Designation.--Local municipalities and counties working
    22  with public transportation agencies, transportation authorities,
    23  AMTRAK, passenger rail transportation providers, or any
    24  combination thereof, may designate TRIDs in advance of
    25  implementation of a new public transit service, or in
    26  conjunction with an existing public transportation service and
    27  in advance of or in conjunction with actual development
    28  proposals.
    29     (b)  Agreement.--To create a TRID, in addition to the
    30  planning study described in section 301(3), the municipality or
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     1  municipalities shall enter into an agreement with the transit
     2  agency that defines the activities and commitments of each party
     3  to the TRID, including any specific actions or financial
     4  participation to help implement the TRID. The agreement shall
     5  include the development agreement specified in section 504, as
     6  well as a description of the TRID management entity described in
     7  section 502(4).
     8  Section 303.  Implementing authority.
     9     A participating county, local municipality, transportation
    10  authority and public transportation agency may designate on
    11  their behalf the county redevelopment authority to assume
    12  responsibility for TRID implementation.
    13  Section 304.  TRID planning study factors.
    14     The scope and scale of transit improvements and community
    15  facility improvements, as well as any needed support facilities,
    16  shall be assessed in the TRID planning study. The TRID planning
    17  study shall also serve as the basis for a comprehensive plan
    18  amendment to establish the TRID, if the municipality has a
    19  currently adopted comprehensive plan. The following shall apply:
    20         (1)  The planning study shall consider the need for
    21     capital improvements to transit-related facilities and
    22     adjacent public infrastructure including roads, sidewalks and
    23     water, sewer and storm drainage service and public
    24     facilities, as well as opportunities for private sector real
    25     estate development and ways in which such facilities,
    26     services and development can be financed.
    27         (2)  Municipalities undertaking a TRID planning study
    28     shall receive priority consideration for planning and
    29     implementation grants and technical assistance from the
    30     department, working in partnership with the pertinent county
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     1     planning agency or agencies and other State agencies with
     2     grant or loan programs that may be applicable to TRID
     3     planning or implementations. Any funding appropriated to the
     4     Department of Community and Economic Development for the
     5     purpose of carrying out this act is intended to assist
     6     counties and local governments, on a 25% matching basis, to
     7     undertake TRID planning studies and related implementation
     8     activities. Individual grants for a TRID planning study or
     9     implementation project shall not exceed $75,000. The
    10     department in consultation with the Department of
    11     Transportation shall administer the supplemental TRID program
    12     through the existing land use planning and technical
    13     assistance program, with application guidance as necessary.
    14         (3)  Commonwealth agencies are directed to provide State
    15     resources, programs and new capital investments that will
    16     assist local governments, transportation authorities and
    17     transit agencies to implement TRIDS.
    18  Section 305.  Roles and responsibilities of public
    19                 transportation agencies and municipalities.
    20     As guidelines to implement the findings and recommendation of
    21  the TRID planning study, the following roles and
    22  responsibilities are defined:
    23         (1)  The scope and scale of needed or proposed transit
    24     capital improvements within the TRID area are the
    25     responsibility of the partnering public transportation
    26     agency. The cost, financing, phasing and schedule of all
    27     transit-related improvements shall be included in the public
    28     transportation agency's adopted capital program.
    29         (2)  The scope and scale of needed or proposed support
    30     facilities, highway accessways, and community or neighborhood
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     1     facility improvements, for example, sidewalks and recreation
     2     facilities, are the responsibility of the partnering county
     3     and local jurisdiction or jurisdictions, and may include
     4     support from the private sector.
     5         (3)  Notwithstanding these stated roles and
     6     responsibilities, the parties to a TRID shall be responsible
     7     for defining the administrative and management roles and
     8     responsibilities that will be most appropriate to achieve
     9     implementation of the TRID in their community.
    10  Section 306.  Amendments to TRID planning study.
    11     Proposed real estate development or redevelopment may trigger
    12  additional needs for transit improvements and community facility
    13  improvements or support facilities, and shall be accommodated
    14  through pertinent amendments of the TRID planning study and
    15  county, multimunicipal or local municipal comprehensive plan.
    16  Section 307.  Municipal cooperation.
    17     Nothing in this act shall preclude two or more
    18  municipalities, or a municipality and a transportation
    19  authority, from working together cooperatively with a public
    20  transportation agency to define and establish one or more TRIDs
    21  along a public transportation corridor, using the criteria
    22  established under this act.
    23                             CHAPTER 5
    25  Section 501.  Authority to acquire and improve property.
    26     Consistent with the existing authority or limitations of
    27  public transportation agencies to condemn and acquire land for
    28  public transportation purposes, such entities are hereby
    29  authorized to acquire and improve property located within a
    30  designated TRID for real estate development purposes, provided
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     1  such acquisition and improvement:
     2         (1)  Is consistent with any pertinent municipal
     3     comprehensive plan and TRID planning study.
     4         (2)  Is coordinated with pertinent county and local
     5     jurisdictions and redevelopment or other special purpose
     6     authorities.
     7         (3)  Furthers the stated purposes of this act.
     8         (4)  Does not exceed the minimum land area necessary to
     9     accomplish the needs specified in the TRID planning study and
    10     the development agreement.
    11  Section 502.  Development or redevelopment of property.
    12     Development or redevelopment of property within a TRID shall
    13  generally occur in the following manner:
    14         (1)  The public transportation agency may acquire the
    15     property, improve it for future development, such as site
    16     clearance, utility work, environmental remediation and
    17     similar improvements, and work cooperatively with the
    18     pertinent local jurisdiction or jurisdictions and
    19     implementing agencies to offer it for sale to the private
    20     sector for use or uses consistent with the adopted TRID plan.
    21     Within a designated TRID area, any future development,         <--
    22     redevelopment or similar construction activity shall not be
    23     required to comply with the provisions of the act of May 1,
    24     1913 (P.L.155, No.104), entitled, "An act regulating the
    25     letting of certain contracts for the erection, construction,
    26     and alteration of public buildings."
    27         (2)  Alternatively, the public transportation agency may
    28     advertise the presence of available development sites within
    29     a TRID, including a map of potentially developable or
    30     redevelopable properties and invite interested developers to
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     1     submit proposals in cooperation with the pertinent local
     2     jurisdiction or jurisdictions and implementing agencies.
     3         (3)  In the case of either paragraph (1) or (2), the
     4     public transportation agency may not be the primary real
     5     estate developer, and joint development activities are
     6     confined to the construction of support and access
     7     facilities, that is, vehicular access, parking, pedestrian
     8     ways, building pads, foundation columns, signage and similar
     9     items.
    10         (4)  The partnering TRID local municipality or
    11     municipalities shall designate a management entity for the
    12     TRID which may be a municipal authority or joint municipal
    13     authority, in accordance with the requirements of 53 Pa.C.S.
    14     Ch.56 (relating to municipal authorities) to manage and
    15     facilitate TRID implementation. The local municipality or
    16     municipalities involved in the TRID shall retain policy and
    17     oversight responsibilities for all budgetary and programmatic
    18     actions of the designated TRID management entity.
    19         (5)  Creative partnerships with AMTRAK, passenger rail
    20     transportation providers, transportation authorities and the
    21     private sector to accomplish TRID purposes that use the
    22     benefits of AMTRAK's and passenger rail service providers'
    23     existing real estate development powers are both desirable
    24     and encouraged.
    25         (6)  Neighborhood improvement districts, business
    26     improvement districts or similar entities may be designated
    27     to manage the TRID implementation activities.
    28  Section 503.  Coordination of development activities.
    29     The public transportation agency shall coordinate development
    30  activities with the pertinent county or local redevelopment
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     1  authority, planning commission and governing body. If such
     2  entities are able to accommodate the land acquisition or
     3  marketing needs of the TRID in a more timely fashion, an
     4  agreement may be established between the public transportation
     5  agency and such entities to implement this aspect of the overall
     6  TRID program.
     7  Section 504.  Development agreements.
     8     In furtherance of the agreement specified in section 302, the
     9  partnering municipality, transportation authority, public
    10  transportation agency and, if participating, county
    11  representatives, including the designated management entity,
    12  shall enter into a development agreement with the pertinent
    13  private sector development organization or organizations to
    14  implement the proposed TRID. The development agreement shall
    15  stipulate the final project scope, as well as the partners'
    16  roles, responsibilities, financing arrangements, schedule of
    17  improvements and the exactions or contributions to the project.
    18                             CHAPTER 7
    19                      VALUE CAPTURE APPROACHES
    20  Section 701.  Creation of value capture area.
    21     In conjunction with the formal establishment of the TRID
    22  boundaries, a coterminous value capture area shall
    23  simultaneously be created to enable local municipalities, school
    24  districts, the county and the public transportation agency to
    25  share the increased tax increment of real estate and other
    26  designated tax revenues generated by new real estate investment
    27  within the TRID. The participants in the TRID, through the
    28  designated management entity, shall develop an administrative
    29  and project schedule and budget to implement the project,
    30  including future maintenance needs, as defined in the TRID
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     1  planning study, as well as the shares and use of such tax
     2  revenues as are projected to be generated from the TRID value
     3  capture area. The participating municipality or municipalities
     4  may review and revise the TRID budget.
     5  Section 702.  Dedication of tax revenues.
     6     Tax revenues generated within a TRID shall be dedicated to
     7  completion and future maintenance of the specific and necessary
     8  improvements designated in the comprehensive plan amendment and
     9  TRID planning study as follows:
    10         (1)  Local municipalities and counties shall not use such
    11     revenues for general government purposes, and a public
    12     transportation agency shall not use such revenues for transit
    13     capital investments elsewhere on the public transportation
    14     system.
    15         (2)  Local municipalities, school districts and the
    16     county shall establish an amortization schedule for receipt,
    17     investment and expenditure of any TRID tax revenues, not to
    18     exceed 20 years, similar to the amortization schedule in the
    19     act of July 11, 1990 (P.L.465, No.113), known as the Tax
    20     Increment Financing Act. However, where a municipal or joint
    21     municipal authority has been created, it shall be responsible
    22     for fixing the amortization schedule and for defining the
    23     TRID capital improvement plan.
    24  Section 703.  Applicability of other statutes.
    25     Local municipalities, counties, transportation authorities,
    26  the public transportation agency and local property owners are
    27  encouraged and may make maximum use of existing laws and
    28  regulations to advance and further implement TRID purposes.
    29  Without limitation, application of the following acts and
    30  similar acts, as well as pertinent Federal programs and
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     1  statutes, are consistent with the intent of TRID implementation:
     2         (1)  Act of May 24, 1945 (P.L.982, No.383), known as the
     3     Redevelopment Cooperation Law.
     4         (2)  Act of May 24, 1945 (P.L.991, No.385), known as the
     5     Urban Redevelopment Law.
     6         (3)  Act of December 1, 1977 (P.L.237, No.76), known as
     7     the Local Economic Revitalization Tax Assistance Act.
     8         (4)  Act of July 9, 1985 (P.L.187, No.47), known as the
     9     Transportation Partnership Act.
    10         (5)  Act of July 11, 1990 (P.L.465, No.113), known as the
    11     Tax Increment Financing Act.
    12         (6)  Act of July 11, 1996 (P.L.677, No.116), known as the
    13     Infrastructure Development Act.
    14         (7)  Act of October 6, 1998 (P.L.705, No.92), known as
    15     the Keystone Opportunity Zone and Keystone Opportunity
    16     Expansion Zone Act.
    17         (8)  Act of December 20, 2000 (P.L.949, No.130), known as
    18     the Neighborhood Improvement District Act.
    19  Section 704.  Private sector involvement.
    20     Nothing described in this act shall preclude a private sector
    21  entity from offering to implement or finance needed public
    22  transportation or community improvements at the initiation of or
    23  concurrent with proposed TRID-related real estate development.
    24                             CHAPTER 9
    25                       COMMUNITY INVOLVEMENT
    26  Section 901.  Public meeting to explain TRID and alternative
    27                 implementation approaches.
    28     Community and public involvement in the establishment of
    29  TRIDs is required. The municipality and the public
    30  transportation agency shall jointly conduct at least one public
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     1  meeting in the proposed TRID area prior to the enactment of a
     2  TRID, TRID planning study, comprehensive plan or zoning
     3  amendment. The meeting is intended to explain the purpose and
     4  components of the TRID and the alternative implementation
     5  approaches. The public meeting or meetings shall be in addition
     6  to any required local government public hearing or hearings
     7  prior to comprehensive or multimunicipal plan amendment
     8  adoption. However, nothing in this act shall relieve the TRID
     9  management entity from conducting all public meetings required
    10  by law, where the TRID is acting or seeking to act under the:
    11         (1)  Act of May 24, 1945 (P.L.991, No.385), known as the
    12     Urban Redevelopment Law.
    13         (2)  Act of July 11, 1990 (P.L.465, No.113), known as the
    14     Tax Increment Financing Act.
    15         (3)  Act of December 20, 2000 (P.L.949, No.130), known as
    16     the Neighborhood Improvement District Act.
    17  Section 902.  Public meeting to review proposed joint
    18                 development plan and related improvements.
    19     The municipality and the public transportation agency shall
    20  jointly conduct at least one public meeting in the TRID area to
    21  review the proposed joint development plan and its related
    22  public improvements prior to implementation.
    23  Section 903.  Cooperation with neighborhood or community
    24                 representatives.
    25     The municipality and the public transportation agency shall
    26  encourage private sector real estate entities and land
    27  developers to work proactively and cooperatively with pertinent
    28  neighborhood or community representatives during the planning
    29  and implementation of TRID development proposals.
    30                             CHAPTER 21
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     1                      MISCELLANEOUS PROVISIONS
     2  Section 2101.  Repeal.
     3     All acts and parts of acts are repealed insofar as they are
     4  inconsistent with this act.
     5  Section 2102.  Effective date.
     6     This act shall take effect in 60 days.

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