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                                 SENATE AMENDED
        PRIOR PRINTER'S NO. 2080                      PRINTER'S NO. 2981

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1627 Session of 2007


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

        SENATOR PICCOLA, STATE GOVERNMENT, AS AMENDED, DECEMBER 10, 2007


                                     AN ACT

     1  Authorizing the Department of General Services, with the
     2     concurrence of the Department of Environmental Protection, to
     3     lease to NCCB Associates, LP, or its nominee, land within the
     4     bed of the Delaware River in the City of Philadelphia; AND     <--
     5     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 1143-1151 North Delaware Avenue
    14  and Pier No. 53 North. The Department of General Services, with
    15  the concurrence of the Department of Environmental Protection,
    16  acting on behalf of the Commonwealth, is hereby authorized and
    17  directed to lease, for such consideration as shall be agreed
    18  upon by the parties, to NCCB Associates, LP, or its nominee


     1  (hereinafter "lessee") for an initial term of 99 years, land
     2  within the bed of the Delaware River in the City of
     3  Philadelphia, and to extend the period for all or any portion of
     4  the leased premises for an additional term of up to 99 years.
     5     (b)  Description of property.--The land to be leased is more
     6  particularly described as follows:
     7  ALL THAT CERTAIN portion of property known as 1143-1151 North
     8  Delaware Avenue and Pier 53 North lying between the Bulkhead
     9  Line and the Pierhead Line of the Delaware River as established
    10  by the Secretary of War on September 10, 1940; said portion
    11  being situate on the southwesterly side of former Marlboro
    12  Street (47 feet 6 inches wide - stricken and vacated by
    13  Ordinance of Philadelphia City Council on September 19, 1982 and
    14  confirmed by the Board of Surveyors on July 5, 1983, reserved as
    15  a right of way for drainage, water main and public utility
    16  purposes) in the Fifth (formerly the Eighteenth) Ward of the
    17  City of Philadelphia, Commonwealth of Pennsylvania, bounded and
    18  described in accordance with a Plan of Property by Allen J.
    19  Bommentre, Jr., Surveyor and Regulator of the Third Survey
    20  District, dated April 12, 2005, as follows:
    21  BEGINNING at the point of intersection of the southwesterly side
    22  of said former Marlboro Street with the said Bulkhead Line as
    23  established by the Secretary of War, said point of intersection
    24  being South 20 degrees 49 minutes 27 seconds East 280.992 feet
    25  from the intersection of the southeasterly line of Delaware
    26  Avenue (140 feet wide) with the aforesaid southwesterly line of
    27  former Marlboro Street; and running thence:
    28     (1)  Along the said southwesterly side of former Marlboro
    29  Street, South 20 degrees 49 minutes 27 seconds East 589.306 feet
    30  to its point of intersection with the aforesaid Pierhead Line of
    20070H1627B2981                  - 2 -     

     1  the Delaware River as established by the Secretary of War;
     2  thence
     3     (2)  Along with said Pierhead Line, South 54 degrees 04
     4  minutes 10 seconds West 57.397 feet to its point of intersection
     5  with the southwesterly line of the aforesaid property known as
     6  1143-1151 North Delaware Avenue; thence
     7     (3)  Along said southwesterly line of 1143-1151 North
     8  Delaware Avenue, North 23 degrees 18 minutes 27 seconds West
     9  589.344 feet to its point of intersection with the aforesaid
    10  Bulkhead Line of the Delaware River as established by the
    11  Secretary of War, said point of intersection being South 23
    12  degrees 18 minutes 27 seconds East 288.042 feet from the
    13  intersection of the said southeasterly line of Delaware Avenue
    14  with the said southwesterly line of 1143-1151 North Delaware
    15  Avenue; thence
    16     (4)  Along said Bulkhead Line of the Delaware River as
    17  established by the Secretary of War, North 58 degrees 21 minutes
    18  15 seconds East 82.417 feet to the point and place of beginning.
    19  CONTAINING 40,356 square feet (0.9264 acre), more or less.
    20     (c)  Lease agreement.--The lease and any other documents
    21  hereby contemplated shall be approved as to form and legality by
    22  the Attorney General and Office of General Counsel and shall be
    23  executed by the Department of General Services, with the
    24  concurrence of the Department of Environmental Protection, which
    25  approvals shall not be unreasonably withheld, in the name of the
    26  Commonwealth. The lease shall grant the lessee, and all
    27  successors, assigns and sublessees, the right to use the above-
    28  described premises, or to assign the lease or sublease or permit
    29  the sublease of the above-described premises for the purposes of
    30  the proposed development of one residential tower with accessory
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     1  parking garage and restaurant, as well as marina and maritime
     2  uses all consistent with public access.
     3     (d)  Sublease.--The Department of General Services, with the
     4  concurrence of the Department of Environmental Protection,
     5  acting on behalf of the Commonwealth of Pennsylvania, is also
     6  specifically authorized to enter into one or more nondisturbance
     7  agreements with any sublessee of the premises described in this
     8  section pursuant to which the Commonwealth will agree that, if
     9  the Commonwealth succeeds to the interest of the sublessor under
    10  a sublease, it will not terminate the sublease unless the
    11  sublessee is in default.
    12     (e)  Land use restriction.--All leases authorized or referred
    13  to under this section shall be made under and subject to the
    14  condition, which shall be contained in the lease documents, that
    15  no portion of the parcels shall be used as a licensed facility
    16  as defined in 4 Pa.C.S. § 1103 (relating to definitions) or any
    17  other similar type of facility authorized under the laws of this
    18  Commonwealth. This condition shall be a covenant running with
    19  the land and shall be binding upon the lessee and sublessees and
    20  their respective successors and assigns. Should any portion of
    21  any parcel authorized to be leased under this act be used in
    22  violation of this subsection, the lease shall terminate
    23  immediately.
    24     (f)  Improvements.--
    25         (1)  The Department of General Services is hereby
    26     authorized to execute, on behalf of the Commonwealth of
    27     Pennsylvania, any declaration or other document necessary to
    28     submit these premises or any portion thereof and any
    29     improvements thereon to the provisions of 68 Pa.C.S. Pt. II
    30     Subpt. B (relating to condominiums) as a leasehold
    20070H1627B2981                  - 4 -     

     1     condominium.
     2         (2)  The lessee, all sublessees and their respective
     3     successors and assigns, shall provide and maintain at least
     4     the following free public access to the riverfront, for
     5     fishing and other recreation activities and free public
     6     parking in connection with such access:
     7             (i)  A minimum of ten free public parking spaces
     8         available at all times located proximate to the public
     9         walkway near the water edge and signage indicating the
    10         free public parking.
    11             (ii)  Public walkways on the riverfront, including
    12         water edge promenades along the entire water edge of the
    13         leasehold and adjacent to the water and providing free
    14         public access to the water and allowing for passive and
    15         active recreational activities year-round and signage
    16         indicating the walkways are open to the general public.
    17             (iii)  A free public park area along the public
    18         walkway near the water.
    19             (iv)  Public access to the Delaware River which is
    20         consistent with the Waterfront Setback requirements set
    21         forth in Section 14-216(6)(g) of the Philadelphia Code
    22         (enacted into law by an Ordinance enacting Bill No.
    23         050465, passed by the City Council on June 16, 2005, and
    24         signed by the Mayor on July 8, 2005).
    25         (3)  Should the lessee, any sublessee or any of their
    26     respective successors or assigns wish to modify the public
    27     access and parking required by this section, it must obtain
    28     the prior written approval of the Department of Environmental
    29     Protection and the Department of General Services, which
    30     approval shall not be unreasonably withheld. The public
    20070H1627B2981                  - 5 -     

     1     access and parking shall be completed and open to the public
     2     no later than the date the first tenant or resident occupies
     3     either the leasehold or the land adjacent to the leasehold.
     4         (4)  Nothing herein shall affect or otherwise limit the
     5     requirements of the provisions of the act of November 26,
     6     1978 (P.L.1375, No.325), known as the Dam Safety and
     7     Encroachments Act, which may require further measures to
     8     provide for public access and use of the land and adjacent
     9     water.
    10         (5)  These conditions shall be covenants that run with
    11     the land and shall be binding upon the lessee, any sublessee
    12     and their respective successors and assigns. Should the
    13     lessee, any sublessee or any of their respective successors
    14     or assigns permit the parcels authorized to be leased under
    15     this section, or any portion thereof, to be used in a manner
    16     inconsistent with the conditions contained in this
    17     subsection, all rights and interests in the lease authorized
    18     by this act shall terminate immediately.
    19     (g)  Consideration.--The Department of General Services shall
    20  lease the land within the bed of the Delaware River as described
    21  in subsection (b) upon such terms and conditions and for such
    22  other nonmonetary considerations as it shall, with the
    23  concurrence of the Department of Environmental Protection for no
    24  less than $5 per square foot payable in advance, established
    25  through the lease agreements, AND NOT LESS THAN $1 PER SQUARE     <--
    26  FOOT BASED UPON THE DEVELOPMENT PLAN FOR ANY REAL IMPROVEMENTS
    27  ADDED TO THE SITE SUBSEQUENT TO SUCH AGREEMENT, PAYABLE WHEN
    28  SUCH IMPROVEMENTS BECOME OCCUPIED. FIFTY PERCENT OF ALL PAYMENTS
    29  UNDER THIS SUBSECTION SHALL BE PAYABLE TO THE COMMERCE
    30  DEPARTMENT OF THE CITY OF PHILADELPHIA TO IMPLEMENT THE CENTRAL
    20070H1627B2981                  - 6 -     

     1  DELAWARE ADVISORY GROUP MASTER PLAN FOR REDEVELOPMENT ALONG THE
     2  WATERFRONT WITHIN THE BOUNDARIES OF EXECUTIVE ORDER 004-06 OF
     3  OCTOBER 12, 2006, PROVIDING FOR THE PROCESS TO ESTABLISH THE
     4  MASTER PLAN. Such terms may include a requirement to commence
     5  and construct such improvements authorized and/or required in
     6  this section within certain time periods.
     7     (h)  Costs and fees.--Costs and fees incidental to the lease
     8  authorized by this section shall be borne by the lessee,
     9  including the costs incurred by the Department of General
    10  Services and the Department of Environmental Protection in the
    11  preparation, execution and review of the lease, nondisturbance
    12  agreements and related documents.
    13     (i)  Sunset provisions.--In the event that the lease
    14  authorized by this section and a community benefit agreement
    15  between the lessee and Fishtown Neighborhood Association is not
    16  executed within 18 months following the effective date of this
    17  section, and a building permit for the proposed residential
    18  project is not obtained within 18 months, the authority
    19  contained in this section shall be void.
    20  SECTION 2.  AFFIRMATION OF EXCLUSIVE AUTHORITY OF GENERAL         <--
    21                 ASSEMBLY.
    22     THE GENERAL ASSEMBLY HEREBY AFFIRMS ITS EXISTING, SOLE AND
    23  EXCLUSIVE AUTHORITY TO CONSIDER AND SPECIFICALLY AUTHORIZE THE
    24  CONVEYANCE OF ANY TITLE, EASEMENT, RIGHT-OF-WAY OR OTHER
    25  INTEREST IN COMMONWEALTH-OWNED LANDS, SUCH AS THOSE SET FORTH
    26  HEREIN PURSUANT TO THE ACT OF APRIL 9, 1929 (P.L.177, NO.175),
    27  KNOWN AS THE ADMINISTRATIVE CODE OF 1929, AND THE ACT OF
    28  NOVEMBER 26, 1978 (P.L.1375, NO.325), KNOWN AS THE DAM SAFETY
    29  AND ENCROACHMENTS ACT.
    30  Section 2 3.  Effective date.                                     <--
    20070H1627B2981                  - 7 -     

     1     This act shall take effect immediately.




















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