PRIOR PRINTER'S NO. 1167 PRINTER'S NO. 3427
No. 994 Session of 2003
INTRODUCED BY RUBLEY, GEIST, STETLER, ARGALL, BEBKO-JONES, BROWNE, BUNT, CAPPELLI, CAWLEY, CIVERA, CLYMER, CORRIGAN, COSTA, CRAHALLA, CREIGHTON, DALEY, DERMODY, DeWEESE, FRANKEL, FREEMAN, HARPER, HENNESSEY, HERSHEY, HORSEY, JOSEPHS, KOTIK, LAUGHLIN, LEACH, LEWIS, MANDERINO, MANN, McCALL, McGEEHAN, MELIO, PETRARCA, PETRONE, READSHAW, REICHLEY, ROEBUCK, SANTONI, SCHRODER, SOLOBAY, STEIL, STURLA, TANGRETTI, E. Z. TAYLOR, THOMAS, TIGUE, VITALI, WALKO, WANSACZ, WATSON, WOJNAROSKI AND YOUNGBLOOD, MARCH 26, 2003
AS REPORTED FROM COMMITTEE ON TRANSPORTATION, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 15, 2004
AN ACT 1 Empowering municipalities, counties and public transportation 2 agencies to work cooperatively to establish Transit 3 Revitalization Investment Districts (TRID), including 4 partnerships with the National Railroad Passenger Corporation 5 requiring planning studies, comprehensive plan and zoning 6 amendments and use of existing statutes and techniques to 7 achieve transit-oriented development, redevelopment, 8 community revitalization and enhanced community character 9 through TRID creation; establishing value capture areas as a 10 means to reserve and use future, designated incremental tax 11 revenues for public transportation capital improvements, 12 related site development improvements and maintenance; 13 promoting the involvement of and partnerships with the 14 private sector in TRID development and implementation; 15 encouraging public involvement during TRID planning and 16 implementation; providing for duties of the Department of 17 Community and Economic Development; and making an 18 appropriation. 19 The General Assembly of the Commonwealth of Pennsylvania 20 hereby enacts as follows: 21 CHAPTER 1 22 GENERAL PROVISIONS
1 Section 101. Short title. 2 This act shall be known and may be cited as the Transit 3 Revitalization Investment District Act. 4 Section 102. Declaration of policy. 5 The General Assembly finds and declares as follows: 6 (1) The overall purpose and legislative intent of this 7 act is to authorize public transportation agencies throughout 8 this Commonwealth to work cooperatively with counties, local 9 governments, the private sector and the National Railroad 10 Passenger Corporation (AMTRAK) to create and designate 11 Transit Revitalization Investment Districts (TRIDs). 12 (2) The specific purposes and intent of a designated 13 TRID are to: 14 (i) Promote local, county and regional economic 15 development and revitalization activities through private 16 sector investment, reinvestment and joint development 17 activities in conjunction with public transportation 18 improvements. 19 (ii) Encourage multimunicipal, cooperative 20 approaches to generate new investment, reinvestment and 21 revitalization through transit-oriented development, 22 around rail transit stations and along public 23 transportation corridors. 24 (iii) Increase overall ridership on public 25 transportation systems, including AMTRAK, while 26 generating additional revenues for current and expanded 27 services, capital improvements and related ongoing 28 maintenance. 29 (iv) Encourage and support municipal and 30 multimunicipal comprehensive plan implementation, 20030H0994B3427 - 2 -
1 including consistency of plans at the local, county and 2 regional levels. 3 (v) Stimulate public-private partnerships created by 4 prospective development opportunities around, within or 5 adjacent to the transit system, station areas and transit 6 system components. 7 (vi) Establish appropriate mechanisms to capture the 8 real estate taxation and other values added by joint 9 development activities for reinvestment in the transit 10 system and local communities. 11 (vii) Encourage greater community involvement in 12 TRID location, design and implementation and resulting 13 investment activities. 14 (viii) Promote flexible, cooperative, coordinated 15 and enhanced support for innovative, intermodal solutions 16 in TRID development and implementation activities by 17 municipal officials, public agencies, nonprofit 18 organizations and the private sector. 19 (ix) Support TRID implementation by maximizing use 20 of existing Federal and State laws and programs that are 21 consistent with the purposes of this act. 22 Section 103. Definitions. 23 The following words and phrases when used in this act shall 24 have the meanings given to them in this section unless the 25 context clearly indicates otherwise: 26 "AMTRAK." The National Railroad Passenger Corporation. 27 "Department." The Department of Community and Economic 28 Development of the Commonwealth. 29 "Public transportation agency." A public transit authority 30 or similar entity, created through the laws of this 20030H0994B3427 - 3 -
1 Commonwealth, charged with the provision of mass transit 2 services to the traveling public, that owns and maintains a 3 physical plant, including rolling stock, stations, maintenance 4 and support facilities. 5 "Transit-oriented development." Development concentrated 6 around and oriented to transit stations in a manner that 7 promotes transit riding. The term does not refer to a single 8 real estate project, but represents a collection of projects, 9 usually mixed use, at a neighborhood scale that are oriented to 10 a transit node. 11 "TRID." A Transit Revitalization Investment District created 12 in accordance with this act. 13 "TRID planning study." A study required to be undertaken by 14 one or more municipalities, with the active involvement of a 15 public transportation agency and the pertinent county or 16 counties, for the purpose of establishing the boundaries, 17 existing environmental conditions, existing and proposed land 18 use, property availability, real estate market conditions, 19 development potential, including use of air space rights, 20 required zoning amendments, desired infrastructure and necessary 21 transportation-related improvements and a financial plan, 22 including funding sources, a proposed amortization schedule, 23 where applicable, and estimated future maintenance requirements, 24 to support the designation and implementation of a proposed 25 TRID. 26 "Value capture area." An area coincident with the boundaries 27 of a TRID, established simultaneously with TRID designation, in 28 accordance with this act, in which real estate tax revenues and 29 any other designated tax revenues shall, at a minimum, be shared 30 by the participating local jurisdiction or jurisdictions and 20030H0994B3427 - 4 -
1 public transportation agency or agencies, for the purpose of 2 implementing a TRID. 3 CHAPTER 3 4 TRID CREATION AND LOCATION 5 Section 301. Criteria for proposed TRID. 6 Local municipalities, counties and public transportation 7 agencies proposing to define and develop a TRID shall use the 8 following criteria and process: 9 (1) Eligible TRID locations may include any geographic 10 area of a municipality or municipalities, including vacant, 11 underutilized or potentially redevelopable land, within an 12 area generally formed by a minimum radius of one-eighth mile, 13 not to exceed a radius of one-half mile, from a railroad, 14 transit, light rail, busway or similar transit stop or 15 station, measured from the centerline of the track or roadway 16 traversing the station or stop location. TRID designation may 17 also include new station locations proposed in conjunction 18 with a planned public transportation service, as defined on 19 an adopted county, regional or public transportation agency 20 plan. 21 (2) The specific boundaries of a TRID may be expanded or 22 reduced based on local circumstances such as local economic 23 development and planning goals, community character, property 24 boundary and scale variations, but only when: 25 (i) authorized by the governing body or bodies of 26 the affected jurisdiction or jurisdictions in cooperation 27 with the pertinent public transportation agency; and 28 (ii) the rationale for the boundaries is supported 29 by the findings of the required TRID planning study. 30 (3) A local municipality or municipalities shall further 20030H0994B3427 - 5 -
1 define and support the rationale for the TRID designation 2 through a TRID planning study, as well as appropriate 3 amendments to the municipal comprehensive plan, zoning 4 ordinance and other pertinent regulations. 5 (4) A local municipality may designate the county 6 planning agency to undertake or assist the TRID planning 7 study on its behalf. 8 (5) An existing neighborhood improvement district, tax 9 increment district or urban renewal area may be used as the 10 basis for the boundaries of a TRID, when justified by the 11 TRID planning study required in section 304. 12 Section 302. TRID designation. 13 (a) Designation.--Local municipalities and counties working 14 with public transportation agencies or AMTRAK, or both, may 15 designate TRIDs in advance of implementation of a new public 16 transit service, or in conjunction with an existing public 17 transportation service and in advance of or in conjunction with 18 actual development proposals. 19 (b) Agreement.--To create a TRID, in addition to the 20 planning study described in section 301(3), the municipality or 21 municipalities shall enter into an agreement with the transit 22 agency that defines the activities and commitments of each party 23 to the TRID, including any specific actions or financial 24 participation to help implement the TRID. The agreement shall 25 include the development agreement specified in section 504, as 26 well as a description of the TRID management entity described in 27 section 502(4). 28 Section 303. Implementing authority. 29 A participating county, local municipality and public 30 transportation agency may designate on their behalf the county 20030H0994B3427 - 6 -
1 redevelopment authority to assume responsibility for TRID 2 implementation. 3 Section 304. TRID planning study factors. 4 The scope and scale of transit improvements and community 5 facility improvements, as well as any needed support facilities, 6 shall be assessed in the TRID planning study. The TRID planning 7 study shall also serve as the basis for a comprehensive plan 8 amendment to establish the TRID, if the municipality has a 9 currently adopted comprehensive plan. The following shall apply: 10 (1) The planning study shall consider the need for 11 capital improvements to transit-related facilities and 12 adjacent public infrastructure including roads, sidewalks and 13 water, sewer and storm drainage service and public 14 facilities, as well as opportunities for private sector real 15 estate development and ways in which such facilities, 16 services and development can be financed. 17 (2) Municipalities undertaking a TRID planning study 18 shall receive priority consideration for planning and 19 implementation grants and technical assistance from the 20 department, working in partnership with the pertinent county 21 planning agency or agencies. The additional funding available 22 as a result of the appropriation under section 2101 is 23 intended to assist counties and local governments, on a 25% 24 matching basis, to undertake TRID planning studies and 25 related implementation activities. Individual grants for a 26 TRID planning study or implementation project shall not 27 exceed $75,000. The department shall administer the 28 supplemental TRID program through the existing land use 29 planning and technical assistance program, with application 30 guidance as necessary. 20030H0994B3427 - 7 -
1 (3) Commonwealth agencies are directed to provide State 2 resources, programs and new capital investments that will 3 assist local governments and transit agencies to implement 4 TRIDS. 5 Section 305. Roles and responsibilities of public 6 transportation agencies and municipalities. 7 As guidelines to implement the findings and recommendation of 8 the TRID planning study, the following roles and 9 responsibilities are defined: 10 (1) The scope and scale of needed or proposed transit 11 capital improvements within the TRID area are the 12 responsibility of the partnering public transportation 13 agency. The cost, financing, phasing and schedule of all 14 transit-related improvements shall be included in the public 15 transportation agency's adopted capital program. 16 (2) The scope and scale of needed or proposed support 17 facilities, highway accessways, and community or neighborhood 18 facility improvements, for example, sidewalks and recreation 19 facilities, are the responsibility of the partnering county 20 and local jurisdiction or jurisdictions, and may include 21 support from the private sector. 22 (3) Notwithstanding these stated roles and 23 responsibilities, the parties to a TRID shall be responsible 24 for defining the administrative and management roles and 25 responsibilities that will be most appropriate to achieve 26 implementation of the TRID in their community. 27 Section 306. Amendments to TRID planning study. 28 Proposed real estate development or redevelopment may trigger 29 additional needs for transit improvements and community facility 30 improvements or support facilities, and shall be accommodated 20030H0994B3427 - 8 -
1 through pertinent amendments of the TRID planning study and 2 county, multimunicipal or local municipal comprehensive plan. 3 Section 307. Municipal cooperation. 4 Nothing in this act shall preclude two or more municipalities 5 from working together cooperatively with a public transportation 6 agency to define and establish one or more TRIDs along a public 7 transportation corridor, using the criteria established under 8 this act. 9 CHAPTER 5 10 LAND DEVELOPMENT POWERS OF PUBLIC TRANSPORTATION AGENCIES 11 Section 501. Authority to acquire and improve property. 12 Consistent with the existing authority or limitations of 13 public transportation agencies to condemn and acquire land for 14 public transportation purposes, such entities are hereby 15 authorized to acquire and improve property located within a 16 designated TRID for real estate development purposes, provided 17 such acquisition and improvement: 18 (1) Is consistent with any pertinent municipal 19 comprehensive plan and TRID planning study. 20 (2) Is coordinated with pertinent county and local 21 jurisdictions and redevelopment or other special purpose 22 authorities. 23 (3) Furthers the stated purposes of this act. 24 (4) Does not exceed the minimum land area necessary to 25 accomplish the needs specified in the TRID planning study and 26 the development agreement. 27 Section 502. Development or redevelopment of property. 28 Development or redevelopment of property within a TRID shall 29 generally occur in the following manner: 30 (1) The public transportation agency may acquire the 20030H0994B3427 - 9 -
1 property, improve it for future development, such as site 2 clearance, utility work, environmental remediation and 3 similar improvements, and work cooperatively with the 4 pertinent local jurisdiction or jurisdictions and 5 implementing agencies to offer it for sale to the private 6 sector for use or uses consistent with the adopted TRID plan. 7 Within a designated TRID area, any future development, 8 redevelopment or similar construction activity shall not be 9 required to comply with the provisions of the act of May 1, 10 1913 (P.L.155, No.104), entitled, "An act regulating the 11 letting of certain contracts for the erection, construction, 12 and alteration of public buildings." 13 (2) Alternatively, the public transportation agency may 14 advertise the presence of available development sites within 15 a TRID, including a map of potentially developable or 16 redevelopable properties and invite interested developers to 17 submit proposals in cooperation with the pertinent local 18 jurisdiction or jurisdictions and implementing agencies. 19 (3) In the case of either paragraph (1) or (2), the 20 public transportation agency may not be the primary real 21 estate developer, and joint development activities are 22 confined to the construction of support and access 23 facilities, that is, vehicular access, parking, pedestrian 24 ways, building pads, foundation columns, signage and similar 25 items. 26 (4) The partnering TRID local municipality or 27 municipalities shall designate a management entity for the 28 TRID which may be a municipal authority or joint municipal 29 authority, in accordance with the requirements of 53 Pa.C.S. 30 Ch.56 (relating to municipal authorities) to manage and 20030H0994B3427 - 10 -
1 facilitate TRID implementation. The local municipality or 2 municipalities involved in the TRID shall retain policy and 3 oversight responsibilities for all budgetary and programmatic 4 actions of the designated TRID management entity. 5 (5) Creative partnerships with AMTRAK and the private 6 sector to accomplish TRID purposes that use the benefits of 7 AMTRAK's existing real estate development powers are both 8 desirable and encouraged. 9 (6) Neighborhood improvement districts, business 10 improvement districts or similar entities may be designated 11 to manage the TRID implementation activities. 12 Section 503. Coordination of development activities. 13 The public transportation agency shall coordinate development 14 activities with the pertinent county or local redevelopment 15 authority, planning commission and governing body. If such 16 entities are able to accommodate the land acquisition or 17 marketing needs of the TRID in a more timely fashion, an 18 agreement may be established between the public transportation 19 agency and such entities to implement this aspect of the overall 20 TRID program. 21 Section 504. Development agreements. 22 In furtherance of the agreement specified in section 302, the 23 partnering municipal, public transportation agency and, if 24 participating, county representatives, including the designated 25 management entity, shall enter into a development agreement with 26 the pertinent private sector development organization or 27 organizations to implement the proposed TRID. The development 28 agreement shall stipulate the final project scope, as well as 29 the partners' roles, responsibilities, financing arrangements, 30 schedule of improvements and the exactions or contributions to 20030H0994B3427 - 11 -
1 the project. 2 CHAPTER 7 3 VALUE CAPTURE APPROACHES 4 Section 701. Creation of value capture area. 5 In conjunction with the formal establishment of the TRID 6 boundaries, a coterminous value capture area shall 7 simultaneously be created to enable local municipalities, school 8 districts, the county and the public transportation agency to 9 share the increased tax increment of real estate and other 10 designated tax revenues generated by new real estate investment 11 within the TRID. The participants in the TRID, through the 12 designated management entity, shall develop an administrative 13 and project schedule and budget to implement the project, 14 including future maintenance needs, as defined in the TRID 15 planning study, as well as the shares and use of such tax 16 revenues as are projected to be generated from the TRID value 17 capture area. The participating municipality or municipalities 18 may review and revise the TRID budget. 19 Section 702. Dedication of tax revenues. 20 Tax revenues generated within a TRID shall be dedicated to 21 completion and future maintenance of the specific and necessary 22 improvements designated in the comprehensive plan amendment and 23 TRID planning study as follows: 24 (1) Local municipalities and counties shall not use such 25 revenues for general government purposes, and a public 26 transportation agency shall not use such revenues for transit 27 capital investments elsewhere on the public transportation 28 system. 29 (2) Local municipalities, school districts and the 30 county shall establish an amortization schedule for receipt, 20030H0994B3427 - 12 -
1 investment and expenditure of any TRID tax revenues, not to 2 exceed 20 years, similar to the amortization schedule in the 3 act of July 11, 1990 (P.L.465, No.113), known as the Tax 4 Increment Financing Act. However, where a municipal or joint 5 municipal authority has been created, it shall be responsible 6 for fixing the amortization schedule and for defining the 7 TRID capital improvement plan. 8 Section 703. Applicability of other statutes. 9 Local municipalities, counties, the public transportation 10 agency and local property owners are encouraged and may make 11 maximum use of existing laws and regulations to advance and 12 further implement TRID purposes. Without limitation, application 13 of the following acts and similar acts, as well as pertinent 14 Federal programs and statutes, are consistent with the intent of 15 TRID implementation: 16 (1) Act of May 24, 1945 (P.L.982, No.383), known as the 17 Redevelopment Cooperation Law. 18 (2) Act of May 24, 1945 (P.L.991, No.385), known as the 19 Urban Redevelopment Law. 20 (3) Act of December 1, 1977 (P.L.237, No.76), known as 21 the Local Economic Revitalization Tax Assistance Act. 22 (4) Act of July 9, 1985 (P.L.187, No.47), known as the 23 Transportation Partnership Act. 24 (5) Act of July 11, 1990 (P.L.465, No.113), known as the 25 Tax Increment Financing Act. 26 (6) Act of July 11, 1996 (P.L.677, No.116), known as the 27 Infrastructure Development Act. 28 (7) Act of October 6, 1998 (P.L.705, No.92), known as 29 the Keystone Opportunity Zone and Keystone Opportunity 30 Expansion Zone Act. 20030H0994B3427 - 13 -
1 (8) Act of December 20, 2000 (P.L.949, No.130), known as 2 the Neighborhood Improvement District Act. 3 Section 704. Private sector involvement. 4 Nothing described in this act shall preclude a private sector 5 entity from offering to implement or finance needed public 6 transportation or community improvements at the initiation of or 7 concurrent with proposed TRID-related real estate development. 8 CHAPTER 9 9 COMMUNITY INVOLVEMENT 10 Section 901. Public meeting to explain TRID and alternative 11 implementation approaches. 12 Community and public involvement in the establishment of 13 TRIDs is required. The municipality and the public 14 transportation agency shall jointly conduct at least one public 15 meeting in the proposed TRID area prior to the enactment of a 16 TRID, TRID planning study, comprehensive plan or zoning 17 amendment. The meeting is intended to explain the purpose and 18 components of the TRID and the alternative implementation 19 approaches. The public meeting or meetings shall be in addition 20 to any required local government public hearing or hearings 21 prior to comprehensive or multimunicipal plan amendment 22 adoption. However, nothing in this act shall relieve the TRID 23 management entity from conducting all public meetings required 24 by law, where the TRID is acting or seeking to act under the: 25 (1) Act of May 24, 1945 (P.L.991, No.385), known as the 26 Urban Redevelopment Law. 27 (2) Act of July 11, 1990 (P.L.465, No.113), known as the 28 Tax Increment Financing Act. 29 (3) Act of December 20, 2000 (P.L.949, No.130), known as 30 the Neighborhood Improvement District Act. 20030H0994B3427 - 14 -
1 Section 902. Public meeting to review proposed joint 2 development plan and related improvements. 3 The municipality and the public transportation agency shall 4 jointly conduct at least one public meeting in the TRID area to 5 review the proposed joint development plan and its related 6 public improvements prior to implementation. 7 Section 903. Cooperation with neighborhood or community 8 representatives. 9 The municipality and the public transportation agency shall 10 encourage private sector real estate entities and land 11 developers to work proactively and cooperatively with pertinent 12 neighborhood or community representatives during the planning 13 and implementation of TRID development proposals. 14 CHAPTER 21 15 MISCELLANEOUS PROVISIONS 16 Section 2101. Appropriation. 17 The sum of $5,000,000, or as much thereof as may be 18 necessary, is hereby appropriated to the Department of Community 19 and Economic Development, for the fiscal year July 1, 2003 2004, <-- 20 to June 30, 2004 2005, to supplement the department's existing <-- 21 land use planning and technical assistance program. This 22 appropriation shall be a continuing appropriation and shall 23 lapse on June 30, 2008 2009. <-- 24 Section 2102. Repeal. 25 All acts and parts of acts are repealed insofar as they are 26 inconsistent with this act. 27 Section 2103. Effective date. 28 This act shall take effect in 60 days. A28L74BIL/20030H0994B3427 - 15 -