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        PRIOR PRINTER'S NOS. 2074, 2980               PRINTER'S NO. 3154

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1621 Session of 2007


        INTRODUCED BY M. O'BRIEN, JUNE 25, 2007

        AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES,
           JANUARY 29, 2008

                                     AN ACT

     1  Authorizing the Department of General Services, with the
     2     concurrence of the Department of Environmental Protection, to
     3     lease to VTE Philadelphia, LP, or its nominee, land within
     4     the bed of the Delaware River in the City of Philadelphia;
     5     and affirming the authority of the General Assembly to enact
     6     certain conveyances.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9  Section 1.  Land within the Delaware River bed.
    10     (a)  Authorization.--The Commonwealth owns the lands within
    11  the bed of the Delaware River, a portion of which lands are
    12  located in the 5th Ward of the City of Philadelphia, and
    13  includes lands commonly known as Pier No. 35 1/2 North. The
    14  Department of General Services, with the concurrence of the
    15  Department of Environmental Protection, acting on behalf of the
    16  Commonwealth, is hereby authorized and directed to lease, for
    17  such consideration as shall be agreed upon by the parties, to
    18  VTE Philadelphia, LP, or its nominee (hereinafter "lessee") for
    19  an initial term of 99 years, land within the bed of the Delaware

     1  River in the City of Philadelphia, and to extend the period for
     2  all or any portion of the leased premises for an additional term
     3  of up to 99 years.
     4     (b)  Description of property.--The land to be leased is more
     5  particularly described as follows:
     6     ALL THAT CERTAIN lot or piece of ground together with the
     7  improvements thereon erected, situate in the 5th Ward of the
     8  City of Philadelphia, Pennsylvania and shown on a Boundary and
     9  Topographic Survey made for Pier 35 1/2, LLC, Penn Street &
    10  Fairmount Avenue, Pier 35 N, Lot 9, Map 5 N 4, 5th Ward, City &
    11  County of Philadelphia, Commonwealth of Pennsylvania by Control
    12  Point Associates, Inc., dated February 3, 2005 and more
    13  particularly described as follows to wit:
    14  Beginning at a point on the dividing line Between Lot 9, Map 5 N
    15  4, lands now or formerly Berman and Lot 16, Map 6 N 6, lands now
    16  or formerly Isle of Capri Associates, L.P., Said point being
    17  distant the following two (2) courses and distances from the
    18  intersection and southeasterly right-of-way line of Penn Street
    19  (60 foot wide right-of-way, legally open) and the easterly
    20  right-of-way line of Delaware Avenue (A.K.A. Christopher
    21  Columbus Boulevard, A.K.A. SR. 2001, 150 foot wide right-of-way,
    22  legally open):
    23         A.  Along the southeasterly right-of-way of Penn Street,
    24     North 43 degrees 30 minutes 00 seconds East, a distance of
    25     140.229 feet to a drill hole, THENCE;
    26         B.  Along the dividing line between Lot 9, Map 5 N 4 and
    27     Lot 16, Map 6 N 6, South 47 degrees 02 minutes 00 seconds
    28     east, a distance of 194.573 feet to the true point and place
    29     of beginning and from said point of beginning running,
    30     THENCE;
    20070H1621B3154                  - 2 -     

     1  The following two (2) courses and distances along the dividing
     2  line between Lot 9, Map 5 N 4 AND Lot 16, Map 6 N 6:
     3         1.  South 67 degrees 54 minutes 00 seconds East, a
     4     distance of 125.667 feet to a point, THENCE;
     5         2.  South 46 degrees 04 minutes 40 seconds East, a
     6     distance of 361.500 feet to a point on the northeasterly
     7     right-of-way line of Fairmount Avenue (62 foot 2 inch wide
     8     right-of-way, not open, not on the city tax registry), said
     9     point is 53.976 feet on a bearing North 71 degrees 40 minutes
    10     00 seconds West from the pierhead line of the Delaware River
    11     (established January 5, 1894, Approved by the Secretary of
    12     War September 10, 1940), THENCE;
    13         3.  Along the northeasterly right-of-way line of
    14     Fairmount Avenue, North 71 degrees 40 minutes 00 seconds
    15     West, a distance of 527.937 feet to a point on the Bulkhead
    16     line of the Delaware River, (established January 5, 1894,
    17     approved by the Secretary of War September 10, 1940), THENCE;
    18         4.  Along the Bulkhead line of the Delaware River, North
    19     43 degrees 17 minutes 06 seconds East, a distance of 181.316
    20     feet to the point and place of BEGINNING.
    21           CONTAINING 51,839 SQUARE FEET OR 1.19006 ACRES
    22     (c)  Lease agreement.--The lease and any other documents
    23  hereby contemplated shall be approved as to form and legality by
    24  the Attorney General and Office of General Counsel and shall be
    25  executed by the Department of General Services, with the
    26  concurrence of the Department of Environmental Protection, which
    27  approvals shall not be unreasonably withheld, in the name of the
    28  Commonwealth. The lease shall grant the lessee, and all
    29  successors, assigns and sublessees, the right to use the above-
    30  described premises, or to assign the lease or sublease or permit
    20070H1621B3154                  - 3 -     

     1  the sublease of the above-described premises for the purposes of
     2  the proposed development of one residential tower with accessory
     3  parking garage and restaurant, as well as marina and maritime
     4  uses all consistent with public access.
     5     (d)  Sublease.--The Department of General Services, with the
     6  concurrence of the Department of Environmental Protection,
     7  acting on behalf of the Commonwealth of Pennsylvania, is also
     8  specifically authorized to enter into one or more nondisturbance
     9  agreements with any sublessee of the premises described in this
    10  section pursuant to which the Commonwealth will agree that, if
    11  the Commonwealth succeeds to the interest of the sublessor under
    12  a sublease, it will not terminate the sublease unless the
    13  sublessee is in default.
    14     (e)  Land use restriction.--All leases authorized or referred
    15  to under this section shall be made under and subject to the
    16  condition, which shall be contained in the lease documents, that
    17  no portion of the parcels shall be used as a licensed facility
    18  as defined in 4 Pa.C.S. § 1103 (relating to definitions) or any
    19  other similar type of facility authorized under the laws of this
    20  Commonwealth. This condition shall be a covenant running with
    21  the land and shall be binding upon the lessee and sublessees and
    22  their respective successors and assigns. Should any portion of
    23  any parcel authorized to be leased under this act be used in
    24  violation of this subsection, the lease shall terminate
    25  immediately.
    26     (f)  Improvements.--
    27         (1)  The Department of General Services is hereby
    28     authorized to execute, on behalf of the Commonwealth of
    29     Pennsylvania, any declaration or other document necessary to
    30     submit these premises or any portion thereof and any
    20070H1621B3154                  - 4 -     

     1     improvements thereon to the provisions of 68 Pa.C.S. Pt. II
     2     Subpt. B (relating to condominiums) as a leasehold
     3     condominium.
     4         (2)  The lessee, all sublessees and their respective
     5     successors and assigns, shall provide and maintain at least
     6     the following free public access to the riverfront, for
     7     fishing and other recreation activities and free public
     8     parking in connection with such access:
     9             (i)  A minimum of ten free public parking spaces
    10         available at all times located proximate to the public
    11         walkway near the water edge and signage indicating the
    12         free public parking.
    13             (ii)  Public walkways on the riverfront, including
    14         water edge promenades along the entire water edge of the
    15         leasehold and adjacent to the water and providing free
    16         public access to the water and allowing for passive and
    17         active recreational activities year-round and signage
    18         indicating the walkways are open to the general public.
    19             (iii)  A free public park area along the public
    20         walkway near the water.
    21             (iv)  Public access to the Delaware River which is
    22         consistent with the Waterfront Setback requirements set
    23         forth in Section 14-216(6)(g) of the Philadelphia Code
    24         (enacted into law by an Ordinance enacting Bill No.
    25         050465, passed by the City Council on June 16, 2005, and
    26         signed by the Mayor on July 8, 2005).
    27         (3)  Should the lessee, any sublessee or any of their
    28     respective successors or assigns wish to modify the public
    29     access and parking required by this section, it must obtain
    30     the prior written approval of the Department of Environmental
    20070H1621B3154                  - 5 -     

     1     Protection and the Department of General Services, which
     2     approval shall not be unreasonably withheld. The public
     3     access and parking shall be completed and open to the public
     4     no later than the date the first tenant or resident occupies
     5     either the leasehold or the land adjacent to the leasehold.
     6         (4)  Nothing herein shall affect or otherwise limit the
     7     requirements of the provisions of the act of November 26,
     8     1978 (P.L.1375, No.325), known as the Dam Safety and
     9     Encroachments Act, which may require further measures to
    10     provide for public access and use of the land and adjacent
    11     water.
    12         (5)  These conditions shall be covenants that run with
    13     the land and shall be binding upon the lessee, any sublessee
    14     and their respective successors and assigns. Should the
    15     lessee, any sublessee or any of their respective successors
    16     or assigns permit the parcels authorized to be leased under
    17     this section, or any portion thereof, to be used in a manner
    18     inconsistent with the conditions contained in this
    19     subsection, all rights and interests in the lease authorized
    20     by this act shall terminate immediately.
    21     (g)  Consideration.--The Department of General Services shall
    22  lease the land within the bed of the Delaware River as described
    23  in subsection (b) upon such terms and conditions and for such
    24  other nonmonetary considerations as it shall, with the
    25  concurrence of the Department of Environmental Protection for no
    26  less than $5 per square foot payable in advance, established
    27  through the lease agreements, and not less than $1 per square
    28  foot based upon the development plan for any real improvements
    29  added to the site subsequent to such agreement, payable when
    30  such improvements become occupied. Fifty percent of all payments
    20070H1621B3154                  - 6 -     

     1  under this subsection shall be payable to the Commerce
     2  Department of the City of Philadelphia to implement the Central
     3  Delaware Advisory Group master plan for redevelopment along the
     4  waterfront within the boundaries of Executive Order 004-06 of
     5  October 12, 2006, providing for the process to establish the
     6  master plan. Such terms may include a requirement to commence
     7  and construct such improvements authorized and/or required in
     8  this section within certain time periods.
     9     (h)  Costs and fees.--Costs and fees incidental to the lease
    10  authorized by this section shall be borne by the lessee,
    11  including the costs incurred by the Department of General
    12  Services and the Department of Environmental Protection in the
    13  preparation, execution and review of the lease, nondisturbance
    14  agreements and related documents.
    15     (i)  Sunset provisions.--In the event that the lease
    16  authorized by this section and a community benefit agreement
    17  between the lessee and Northern Liberties Neighborhood
    18  Association is not executed within 18 months following the
    19  effective date of this section, and a building permit for the
    20  proposed residential project is not obtained within 18 months,
    21  the authority contained in this section shall be void.
    22  Section 2.  Affirmation of exclusive authority of General
    23                 Assembly.
    24     The General Assembly hereby affirms its existing, sole and
    25  exclusive authority to consider and specifically authorize the
    26  conveyance of any title, easement, right-of-way or other
    27  interest in Commonwealth-owned lands, such as those set forth
    28  herein pursuant to the act of April 9, 1929 (P.L.177, No.175),
    29  known as The Administrative Code of 1929, and the act of
    30  November 26, 1978 (P.L.1375, No.325), known as the Dam Safety
    20070H1621B3154                  - 7 -     

     1  and Encroachments Act. NOTHING IN THIS SECTION SHALL AFFECT OR    <--
     2  OTHERWISE LIMIT THE AUTHORITY OF THE DEPARTMENT OF ENVIRONMENTAL
     3  PROTECTION UNDER SECTION 15 OF THE DAM SAFETY AND ENCROACHMENTS
     4  ACT OR SECTION 514 OF THE ADMINISTRATIVE CODE OF 1929.
     5  Section 3.  Effective date.
     6     This act shall take effect immediately.
















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