PRINTER'S NO. 644
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
606
Session of
2017
INTRODUCED BY D. COSTA, NEILSON, BARBIN, DAVIS, SACCONE,
CALTAGIRONE, MILLARD, A. HARRIS, READSHAW, DeLUCA, DEASY AND
KORTZ, FEBRUARY 24, 2017
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, FEBRUARY 24, 2017
AN ACT
Amending Title 53 (Municipalities Generally) of the Pennsylvania
Consolidated Statutes, in parking authorities, providing for
granting of interests and mixed-use projects for authorities
in cities of the second class.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 53 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
ยง 5508.4. Granting of interests and mixed-use projects for
authorities in cities of the second class.
(a) Findings and declaration.--The General Assembly finds
and declares that:
(1) T he health, safety and general welfare of the people
of this Commonwealth are directly dependent upon the
continual encouragement, development, growth and expansion of
business, industry, commerce and tourism.
(2) Unemployment, the spread of poverty and the heavy
burden of public assistance and unemployment compensation can
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be avoided by the promotion, attraction, stimulation,
development and expansion of business, industry, commerce and
tourism in this Commonwealth through the support of
commercial and residential real estate development by parking
authorities in cities of the second class.
(3) Due to the size, total population and population
density of a city of the second class, it can be inefficient
to devote property within a city of the second class solely
to parking facilities for purely public use on a first-come,
first-served basis, and that empowering the authority of a
city of the second class to grant private interests in
parking facilities to support commercial and residential real
estate development and develop, operate or participate in
mixed-use projects can be an important factor in the
continual encouragement, development, attraction,
stimulation, growth and expansion of business, industry,
commerce and tourism within the city of the second class, the
surrounding counties and this Commonwealth as a whole.
(b) Powers.--Notwithstanding any other provision of law,
including this chapter and any provision of an authority's
articles of incorporation, and without limiting the powers in
section 5505 (relating to purposes and powers), an authority in
a city of the second class shall have the power to do the
foll owing:
(1) Grant an interest, such as a lease, license or
easement, in and to all or a portion of land, buildings and
structures for dedicated parking to support commercial or
residential uses, if the following apply:
(i) In the good faith opinion of the board:
(A) The grant of the interest will not
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negatively impact the financial standing of the
authority.
(B) The consideration for the grant of the
interest is appropriate considering the overall
transaction.
(ii) The term of the interest does not extend beyond
the term of existence of the authority.
(iii) The average occupancy rate of parking spaces
for the prior six calendar months does not exceed 90% for
that particular facility.
(2) Develop, operate or participate in the development
or operation of one or more mixed-use projects.
(3) Finance mixed-use projects by incurring
indebtedness, whether by borrowing money, making and issuing
notes, bonds or other debt instruments or entering into
financing transactions, which indebtedness may be evidenced
by and secured as may be provided in agreements that may
contain provisions as determined by the authority for the
security or protection of the authority or the authority's
bondholders. An authority may pledge, hypothecate or encumber
all or a part of the authority's revenues or real or personal
property, constituting all or part of a mixed-use project for
all or any of the obligations of the authority incurred in
connection with the development or operation of, or
participation in, a mixed-use project.
(c) Definition.--As used in this section, the term "mixed-
use project" means a commercial, industrial, residential or
retail development that includes a public parking garage or
public parking lot as an appurtenance.
Section 2. This act shall take effect in 60 days.
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