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PRIOR PRINTER'S NOS. 0298, 0500, 0738,
1363, 1619
PRINTER'S NO. 2081
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
385
Session of
2015
INTRODUCED BY RAFFERTY, PILEGGI, BREWSTER, COSTA, GREENLEAF,
SCHWANK, SMITH, VULAKOVICH, WARD, YUDICHAK AND BROWNE,
FEBRUARY 3, 2015
AMENDMENTS TO HOUSE AMENDMENTS, IN SENATE, SEPTEMBER 26, 2016
AN ACT
Amending the act of December 8, 2004 (P.L.1801, No.238),
entitled "An act empowering municipalities, counties and
public transportation agencies to work cooperatively to
establish Transit Revitalization Investment Districts (TRID),
including partnerships with the National Railroad Passenger
Corporation requiring planning studies, comprehensive plan
and zoning amendments and use of existing statutes and
techniques to achieve transit-oriented development,
redevelopment, community revitalization and enhanced
community character through TRID creation; establishing value
capture areas as a means to reserve and use future,
designated incremental tax revenues for public transportation
capital improvements, related site development improvements
and maintenance; promoting the involvement of and
partnerships with the private sector in TRID development and
implementation; encouraging public involvement during TRID
planning and implementation; and providing for duties of the
Department of Community and Economic Development," in general
provisions, further providing for definitions; in TRID
creation and location, further providing for criteria for
proposed TRID, for TRID designation, for implementing
authority, for TRID planning study factors, for roles and
responsibilities of public transportation agencies and
municipalities and for amendments to TRID planning study; in
land development powers of public transportation agencies,
further providing for development or redevelopment of
property and providing for additional powers of management
entities and for prohibition on management entities; in value
capture approaches, further providing for creation of value
capture area and for dedication of tax revenues; providing
for grant of TRID revenue and establishing the TRID Fund;
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and, in community involvement, further providing for public
meeting to explain TRID and alternative implementation
approaches.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 103 of the act of December 8, 2004
(P.L.1801, No.238), known as the Transit Revitalization
Investment District Act, is amended by adding definitions to
read:
Section 103. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Bond." The term includes bond, note, instrument, refunding
bond, refunding note or other evidence of indebtedness or
obligation.
* * *
"Eligible project." Development or improvement within a
TRID, including construction, infrastructure and site
preparation, reconstruction or renovation of a facility within a
TRID which will result in economic development or transit-
oriented development in accordance with the TRID and the TRID
planning study.
"Management entity." Any of the following:
(1) A participating municipality , county or public
transportation agency.
(2) A redevelopment authority, municipal authority,
neighborhood improvement district management association,
business improvement district or a similar governmental or
nonprofit organization authorized to act in a manner
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consistent with the TRID planning study and with a services
area compatible with the TRID.
"Project costs." Any expenditures made or estimated to be
made, or monetary obligations incurred or estimated to be
incurred, which are listed in a TRID plan or agreement as costs
of improvements that create economic development or
revitalization within a TRID district, plus any costs incidental
thereto. Project costs include, but are not limited to, the
capital, financing, real property assembly, professional
service, administrative, relocation, organizational and other
necessary or convenient costs delineated in the act of July 11,
1990 (P.L.465, No.113), known as the Tax Increment Financing
Act .
* * *
"Redevelopment authority." An authority created pursuant to
the act of May 24, 1945 (P.L.991, No.385), known as the Urban
Redevelopment Law.
* * *
Section 2. Sections 301, 302, 303, 304, 305, 306 and 502 of
the act are amended to read:
Section 301. Criteria for proposed TRID.
Local municipalities, counties, transportation authorities
and public transportation agencies proposing to define and
develop a TRID shall use the following criteria and process:
(1) Eligible TRID locations may include any geographic
area of a municipality or municipalities, including vacant,
underutilized or potentially redevelopable land, within an
area [generally formed by a minimum radius of one-eighth mile
and] not to exceed a radius of [one-half] three-quarters mile
from a railroad, transit, light rail, busway or similar
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transit stop or station, measured from the centerline of the
track or roadway traversing the station or stop location.
TRID designation may also include new station locations
proposed in conjunction with a planned public transportation
service, as defined on an adopted county, regional or public
transportation agency plan.
[(2) The specific boundaries of a TRID may be expanded
or reduced based on local circumstances such as local
economic development and planning goals, community character,
property boundary and scale variations but only when:
(i) authorized by the governing body or bodies of
the affected jurisdiction or jurisdictions in cooperation
with the pertinent public transportation agency; and
(ii) the rationale for the boundaries is supported
by the findings of the required TRID planning study.]
(3) A local municipality or municipalities shall
[further] define and support the rationale for the TRID
designation through a TRID planning study as well as
appropriate amendments to the municipal comprehensive plan,
zoning ordinance and other pertinent regulations.
(4) A local municipality may designate the county
planning agency to undertake or assist the TRID planning
study on its behalf.
(5) An existing neighborhood improvement district, tax
increment district or urban renewal area may be used as the
basis for the boundaries of a TRID when justified by the TRID
planning study required in section 304.
Section 302. TRID designation.
(a) Designation.--Local municipalities and counties working
with public transportation agencies, transportation authorities,
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AMTRAK, passenger rail transportation providers or any
combination thereof may designate TRIDs in advance of
implementation of a new public transit service or in conjunction
with an existing public transportation service and in advance of
or in conjunction with actual development proposals. A TRID and
its boundaries shall be established by ordinance. In a city of
the third class situate within a county of the second class A,
the designation and boundaries of the TRID shall be made
exclusively by the governing body of the county.
(b) Agreement.--To create a TRID, in addition to the
planning study described in section 301(3), the municipality or
municipalities shall enter into an agreement with the transit
agency that approves the TRID planning study under section
301(3) and defines the activities [and], commitments and
administrative and management roles of each party to the TRID,
including any specific actions or financial participation to
help implement the TRID. The agreement shall include the
development agreement specified in section 504 as well as a
description of the TRID management entity described in section
[502(4)] 303.
Section 303. [Implementing authority] Management entity.
A [participating county, local municipality, transportation
authority and public transportation agency may designate on
their behalf the county redevelopment authority to assume
responsibility for TRID implementation.] participating local
municipality or county , which made the designation under section
302, and the public transportation agency shall designate the
management entity in the TRID agreement to administer, manage
and facilitate the implementation of the TRID planning study.
Section 304. TRID planning study factors.
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The scope and scale of transit improvements and community
facility improvements, as well as any needed support facilities,
shall be assessed in the TRID planning study. The TRID planning
study shall also serve as the basis for a comprehensive plan
amendment to establish the TRID if the municipality has a
currently adopted comprehensive plan. The following shall apply:
(1) The planning study shall consider the need for
capital improvements to transit-related facilities and
adjacent public infrastructure, including roads, sidewalks
and water, sewer and storm drainage service and public
facilities, as well as opportunities for private sector real
estate development and ways in which such facilities,
services and development can be financed.
(2) Municipalities and counties undertaking a TRID
planning study shall receive priority consideration for
planning [and implementation] grants and technical assistance
from the department[, working in partnership with the
pertinent county planning agency or agencies and other State
agencies with grant or loan programs that may be applicable
to TRID planning or implementations]. Any funding
[appropriated to the Department of Community and Economic
Development for the purpose of carrying out this act is
intended to assist counties and local governments on a 25%
matching basis to undertake TRID planning studies and related
implementation activities. Individual grants for a TRID
planning study or implementation project shall not exceed
$75,000. The department in consultation with the Department
of Transportation shall administer the supplemental TRID
program through the existing land use planning and technical
assistance program, with application guidance as necessary.]
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provided by the department to assist with TRID planning
studies, except where otherwise limited by law, shall require
a match of 25% .
(3) Commonwealth agencies are directed to provide State
resources, programs and new capital investments that will
assist local governments, transportation authorities and
[transit] public transportation agencies to implement TRIDS.
Section 305. Roles and responsibilities of public
transportation agencies and municipalities.
As guidelines to implement the findings and recommendation of
the TRID planning study, the following roles and
responsibilities are defined:
(1) [The] Identifying the scope and scale of needed or
proposed transit capital improvements within the TRID area
are the responsibility of the partnering public
transportation agency. The cost, financing, phasing and
schedule of all transit-related improvements shall be
included in the public transportation agency's adopted
capital program.
(2) [The] Identifying the scope and scale of needed or
proposed support facilities, highway accessways and community
or neighborhood facility improvements, for example, sidewalks
and recreation facilities, are the responsibility of the
partnering county and local jurisdiction or jurisdictions and
may include support from the private sector.
(3) [Notwithstanding these stated roles and
responsibilities, the parties to a TRID shall be responsible
for defining the administrative and management roles and
responsibilities that will be most appropriate to achieve
implementation of the TRID in their community.]
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Administration, management and facilitation of the TRID
implementation are primarily the responsibility of the
management entity, including, but without limitation, issuing
bonds, securing grant funds and otherwise raising, expending
and administering funds for TRID projects.
Section 306. Amendments [to TRID planning study].
[Proposed real estate development or redevelopment may
trigger additional needs for transit improvements and community
facility improvements or support facilities and shall be
accommodated through pertinent amendments of the TRID planning
study and county, multimunicipal or local municipal
comprehensive plan.] If warranted by a changing economic or
community condition, planning goal, real estate development,
redevelopment opportunity or a demonstrated need for transit or
community facility improvement, a TRID or TRID planning study
may be amended. The following shall apply:
(1) The boundaries of a TRID may be expanded or reduced
by an amendment to the ordinance establishing the TRID and
shall be accompanied by justification for the boundary change
supported by findings in the original or amended TRID
planning study.
(2) A TRID planning study may be amended by approval of
the municipality , municipalities or counties and the transit
agency that are parties to the TRID designation under section
302.
Section 502. Development or redevelopment of property.
Development or redevelopment of property within a TRID shall
generally occur in the following manner:
(1) The public transportation agency, municipality or
management entity may acquire the property, improve it for
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future development, such as site clearance, utility work,
environmental remediation and similar improvements, and work
cooperatively with the pertinent local jurisdiction or
jurisdictions and implementing agencies to offer it for sale
to the private sector for use or uses consistent with the
adopted TRID plan.
(2) Alternatively, the public transportation agency,
municipality or management entity may advertise the presence
of available development sites within a TRID, including a map
of potentially developable or redevelopable properties, and
invite interested developers to submit proposals in
cooperation with the pertinent local jurisdiction or
jurisdictions and implementing agencies.
(3) In the case of either paragraph (1) or (2), the
public transportation agency may not be the primary real
estate developer, and joint development activities are
confined to the construction of support and access
facilities: that is, vehicular access, parking, pedestrian
ways, building pads, foundation columns, signage and similar
items.
(4) [The partnering TRID local municipality or
municipalities shall designate a management entity for the
TRID which may be a municipal authority or joint municipal
authority, in accordance with the requirements of 53 Pa.C.S.
Ch. 56 (relating to municipal authorities) to manage and
facilitate TRID implementation. The local municipality or
municipalities involved in the TRID shall retain policy and
oversight responsibilities for all budgetary and programmatic
actions of the designated TRID management entity.] Similar
to, but not limited by, the act of July 11, 1990 (P.L.465,
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No.113), known as the Tax Increment Financing Act, a public
transportation agency, municipality, management entity or a
designated agent may issue bonds, deposit money into the TRID
account , enter into any contracts or agreements, including
agreements with bondholders, as determined to be necessary or
convenient to implement the provisions and effectuate the
purposes of TRID project plans. The contracts or agreements
may include conditions, restrictions or covenants which
either run with the land or otherwise regulate the use of the
land.
(5) Creative partnerships with AMTRAK, passenger rail
transportation providers, transportation authorities and the
private sector to accomplish TRID purposes that use the
benefits of AMTRAK's and passenger rail service providers'
existing real estate development powers are both desirable
and encouraged.
[(6) Neighborhood improvement districts, business
improvement districts or similar entities may be designated
to manage the TRID implementation activities.]
Section 3. The act is amended by adding sections to read:
Section 505. Additional powers of management entities.
In addition to other powers and functions of management
entities granted under this act, a management entity shall have
the power to provide or borrow money for purposes of executing a
TRID, a TRID planning study or for an eligible project. A
management entity may also issue bonds, if permitted to do so
under Commonwealth statute, for the purposes of executing a
TRID, a TRID planning study or for an eligible project.
Section 506. Prohibition on management entities.
A member of the management entity may not receive money
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directly or indirectly from the TRID.
Section 4. Sections 701 and 702 of the act are amended to
read:
Section 701. Creation of value capture area.
In conjunction with the formal establishment of the TRID
boundaries, a coterminous value capture area shall
simultaneously be created to enable local municipalities, school
districts, the county and the public transportation agency to
share the increased tax increment of real estate and other
designated tax revenues generated by new real estate investment
within the TRID. The participants in the TRID, through the
designated management entity, shall develop an administrative
and project schedule and budget to implement the project,
including future maintenance needs, as defined in the TRID
planning study, as well as the shares and use of [such tax] the
incremental revenues as are projected to be generated from the
TRID value capture area. The participating municipality or
municipalities may review and revise the TRID budget.
Section 702. [Dedication of tax revenues] Financing of project
costs.
[Tax] A portion of incremental tax revenues [generated
within] transferred to a TRID shall be dedicated to completion
and future maintenance of the specific and necessary transit
capital and public infrastructure improvements designated in the
comprehensive plan amendment and TRID planning study as follows:
(1) Local [municipalities and counties shall not use
such revenues for general government purposes, and a public
transportation agency shall not use such revenues for transit
capital investments elsewhere on the public transportation
system.] taxing bodies shall approve that portion of revenues
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which shall be dedicated to support TRID implementation and
that portion which shall be dedicated for general government
purposes.
(1.1) A public transportation agency may not use the
revenue for a transit capital investment outside of a
designated TRID except if the investment is necessary and
integral to achieve an approved TRID implementation
objective.
(2) Local municipalities, school districts and the
county shall establish an amortization schedule for receipt,
investment and expenditure of any TRID tax incremental
revenues[, not to exceed 20 years,] similar to [the
amortization schedule], but not limited by, the financing of
costs provisions in the act of July 11, 1990 (P.L.465,
No.113), known as the Tax Increment Financing Act. [However,
where a municipal or joint municipal authority has been
created, it shall be responsible for fixing the amortization
schedule and for defining the TRID capital improvement plan.]
Incremental tax revenue generated by a TRID property may be
directed for use in TRID projects or eligible projects,
including for use in financing a bond the proceeds of which
are used in TRID projects or eligible projects, for up to 20
years from the date a property is designated as a parcel in a
TRID.
(3) For the purposes of this act, project costs and the
financing thereof shall be regarded as like and similar to
the provisions delineated in the Tax Increment Financing Act.
Section 5. The act is amended by adding a chapter to read:
CHAPTER 8
GRANT OF TRID REVENUE
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Section 801. Establishment.
There is established a special fund in the State Treasury to
be known as the TRID Fund. Moneys deposited into the fund and
interest which accrues from those funds shall be used for the
purposes delineated in this chapter.
Section 802. Approval.
(a) Submission.--A management entity may apply to the
department for the purposes of funding an eligible project or
for covering debt service payments related to debt incurred to
fund an eligible project.
(b) Agencies.--The department, in consultation with the
Office of the Budget , shall approve two applications within six
months of the effective date of this section and may approve
additional applications thereafter.
(c) Approval schedule.--The department shall develop a
schedule for the approval of applications.
(d) Reapplication.--If an application is not approved under
this section, the applicant may revise the application and plan
and reapply for approval.
Section 803. Additional powers of management entities.
In addition to other powers and functions of management
entities granted under this act, a management entity shall have
the power to borrow money for the purposes of executing a TRID
or TRID planning study for which an application has been
approved under section 802.
Section 804. Prohibition on management entities.
A member of the management entity may not receive money
directly or indirectly from the TRID Fund .
Section 805. Transfers.
(a) Matching funds.--The amount of money transferred from
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the TRID Fund utilized for the construction, including related
site preparation and infrastructure, reconstruction or
renovation of facilities, shall be matched by other sources of
funding at a ratio of two fund dollars to one private dollar.
(b) Report.--By April 1, following year one, and for each
year thereafter, the management entity shall file an annual
report with the department and the Office of the Budget that
contains a detailed account of the TRID Fund money expenditures
and the expenditures of funds from other sources and a
calculation of the ratio in subsection (a) for the prior
calendar year. The agencies shall determine whether sufficient
funding from other sources was utilized.
(c) Credit of matching funds.--For the purposes of meeting
the matching funding requirement, the agencies shall allow a
management entity to demonstrate that a multiyear eligible
matching funding investment was made in a particular year. In
subsequent years, the management entity shall refer to the gross
matching fund investment in the year it was established and
carry forward a credit in an amount of the original investment
minus the funds already applied as a matching fund requirement,
up to the remaining matching funds.
(d) Deduction.--If it is determined that insufficient
funding from other sources was utilized under subsection (a),
the amount of TRID Fund money utilized under subsection (a) in
the prior calendar year shall be deducted from the next transfer
of the fund.
(e) Financial approval.--Upon being satisfied that all
requirements have been met including private dollar match, the
department shall notify the State Treasurer to issue a grant in
an amount not to exceed $350,000 annually, as established by the
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Secretary of the Budget per TRID.
(f) Sales tax transfer.--On June 1, 2016, and on each June 1
for the next 20 calendar years, $700,000 from the tax imposed by
Article II of the act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, shall be transferred to the TRID
Fund for payment to the first two TRIDs approved under section
802(b).
(g) Remaining TRID Fund money.--Each year after the
transfers from the TRID Fund to the TRIDs under subsection (f),
any money remaining in the TRID Fund shall be returned to the
General Fund.
(h) Grants to other TRIDs.--For any TRID other than the
first two TRIDs approved under section 802(b), the department
may provide grants of up to $350,000 each year for the purposes
delineated in this chapter.
Section 806 . Restrictions.
(a) Utilization.--If the use was approved in an application
filed under section 802, money transferred under section 805 may
only be utilized for the following:
(1) Payment of debt service on bonds issued for the
construction, including related infrastructure and site
preparation, reconstruction or renovation of a facility in
the TRID.
(2) Construction, including related infrastructure and
site preparation, reconstruction or renovation of all or a
part of a facility.
(3) Replenishment of amounts in debt service reserve
funds established to pay debt service on bonds.
(4) Improvement or development of all or part of a TRID.
(5) Improvement projects, including fixtures and
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equipment for a facility owned by a public authority.
(b) Excess money.--
(1) If the amount of money transferred to the fund under
section 805 in any one calendar year exceeds the money
utilized under this section in that calendar year, the
management entity shall submit by January 15 following the
end of the calendar year the excess money to the State
Treasurer for deposit into the General Fund.
(2) At the time of submission to the State Treasurer,
the management entity shall submit to the State Treasurer,
the Office of the Budget and department a detailed accounting
of the calculation resulting in the excess money.
Section 807. Expiration.
The TRID Fund shall expire on December 31, 2035. Upon
expiration, money in the fund not encumbered shall lapse to the
General Fund.
Section 808 . Commonwealth pledges.
(a) Pledge.--If and to the extent the management entity
pledges amounts required to be transferred to the TRID Fund
under section 805 for payment of bonds issued by the management
entity, until all bonds secured by the pledge of the management
entity, together with interest on the bonds , are fully paid or
provided for, the Commonwealth pledges to and agrees with any
person, firm, corporation or government agency, in this
Commonwealth or elsewhere and pledges to and agrees with any
Federal agency subscribing to or acquiring the bonds of the
management entity that the Commonwealth will not, nor will it
authorize any government entity to, do any of the following:
(1) Abolish or reduce the size of the TRID .
(2) Limit or alter the rights vested in the management
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entity in a manner inconsistent with the obligations of the
management entity with respect to the bonds issued by the
management entity.
(3) Impair revenue to be paid under this chapter to the
management entity necessary to pay debt service on bonds.
(b) Limitation.--Nothing under this section shall limit the
authority of the Commonwealth to change the rate, base or
subject of a specific tax or to repeal or enact any tax.
Section 809 . Guidelines.
The department and the Office of the Budget shall develop and
publish guidelines necessary to implement this chapter.
Section 6. Section 901 of the act is amended to read:
Section 901. Public meeting to explain TRID and alternative
implementation approaches.
Community and public involvement in the establishment of
TRIDs is required. The municipality and the public
transportation agency shall jointly conduct at least one public
meeting in the proposed TRID area prior to the enactment of a
TRID[,] and TRID planning study[, comprehensive plan or zoning
amendment]. The meeting is intended to explain the purpose and
components of the TRID and the alternative implementation
approaches. The public meeting or meetings shall be in addition
to any required local government public hearing or hearings
prior to comprehensive or multimunicipal plan amendment
adoption. However, nothing in this act shall relieve the [TRID
management entity] municipality or public transportation agency
from conducting all public meetings required by law where the
TRID is acting or seeking to act under the:
(1) Act of May 24, 1945 (P.L.991, No.385), known as the
Urban Redevelopment Law.
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(2) Act of July 11, 1990 (P.L.465, No.113), known as the
Tax Increment Financing Act.
(3) Act of December 20, 2000 (P.L.949, No.130), known as
the Neighborhood Improvement District Act.
Section 7. This act shall take effect in 60 90 days.
20150SB0385PN2081 - 18 -
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