PRIOR PRINTER'S NOS. 2074, 2980 PRINTER'S NO. 3154
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. F21L85JAM/20070H1621B3154 - 8 -