PRIOR PRINTER'S NOS. 1167, 3427 PRINTER'S NO. 3497
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 RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 22, 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; AND 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, 20030H0994B3497 - 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 20030H0994B3497 - 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 20030H0994B3497 - 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 20030H0994B3497 - 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 20030H0994B3497 - 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 ANY <-- 23 FUNDING APPROPRIATED TO THE DEPARTMENT OF COMMUNITY AND 24 ECONOMIC DEVELOPMENT FOR THE PURPOSE OF CARRYING OUT THIS ACT 25 IS intended to assist counties and local governments, on a 26 25% matching basis, to undertake TRID planning studies and 27 related implementation activities. Individual grants for a 28 TRID planning study or implementation project shall not 29 exceed $75,000. The department shall administer the 30 supplemental TRID program through the existing land use 20030H0994B3497 - 7 -
1 planning and technical assistance program, with application 2 guidance as necessary. 3 (3) Commonwealth agencies are directed to provide State 4 resources, programs and new capital investments that will 5 assist local governments and transit agencies to implement 6 TRIDS. 7 Section 305. Roles and responsibilities of public 8 transportation agencies and municipalities. 9 As guidelines to implement the findings and recommendation of 10 the TRID planning study, the following roles and 11 responsibilities are defined: 12 (1) The scope and scale of needed or proposed transit 13 capital improvements within the TRID area are the 14 responsibility of the partnering public transportation 15 agency. The cost, financing, phasing and schedule of all 16 transit-related improvements shall be included in the public 17 transportation agency's adopted capital program. 18 (2) The scope and scale of needed or proposed support 19 facilities, highway accessways, and community or neighborhood 20 facility improvements, for example, sidewalks and recreation 21 facilities, are the responsibility of the partnering county 22 and local jurisdiction or jurisdictions, and may include 23 support from the private sector. 24 (3) Notwithstanding these stated roles and 25 responsibilities, the parties to a TRID shall be responsible 26 for defining the administrative and management roles and 27 responsibilities that will be most appropriate to achieve 28 implementation of the TRID in their community. 29 Section 306. Amendments to TRID planning study. 30 Proposed real estate development or redevelopment may trigger 20030H0994B3497 - 8 -
1 additional needs for transit improvements and community facility 2 improvements or support facilities, and shall be accommodated 3 through pertinent amendments of the TRID planning study and 4 county, multimunicipal or local municipal comprehensive plan. 5 Section 307. Municipal cooperation. 6 Nothing in this act shall preclude two or more municipalities 7 from working together cooperatively with a public transportation 8 agency to define and establish one or more TRIDs along a public 9 transportation corridor, using the criteria established under 10 this act. 11 CHAPTER 5 12 LAND DEVELOPMENT POWERS OF PUBLIC TRANSPORTATION AGENCIES 13 Section 501. Authority to acquire and improve property. 14 Consistent with the existing authority or limitations of 15 public transportation agencies to condemn and acquire land for 16 public transportation purposes, such entities are hereby 17 authorized to acquire and improve property located within a 18 designated TRID for real estate development purposes, provided 19 such acquisition and improvement: 20 (1) Is consistent with any pertinent municipal 21 comprehensive plan and TRID planning study. 22 (2) Is coordinated with pertinent county and local 23 jurisdictions and redevelopment or other special purpose 24 authorities. 25 (3) Furthers the stated purposes of this act. 26 (4) Does not exceed the minimum land area necessary to 27 accomplish the needs specified in the TRID planning study and 28 the development agreement. 29 Section 502. Development or redevelopment of property. 30 Development or redevelopment of property within a TRID shall 20030H0994B3497 - 9 -
1 generally occur in the following manner: 2 (1) The public transportation agency may acquire the 3 property, improve it for future development, such as site 4 clearance, utility work, environmental remediation and 5 similar improvements, and work cooperatively with the 6 pertinent local jurisdiction or jurisdictions and 7 implementing agencies to offer it for sale to the private 8 sector for use or uses consistent with the adopted TRID plan. 9 Within a designated TRID area, any future development, 10 redevelopment or similar construction activity shall not be 11 required to comply with the provisions of the act of May 1, 12 1913 (P.L.155, No.104), entitled, "An act regulating the 13 letting of certain contracts for the erection, construction, 14 and alteration of public buildings." 15 (2) Alternatively, the public transportation agency may 16 advertise the presence of available development sites within 17 a TRID, including a map of potentially developable or 18 redevelopable properties and invite interested developers to 19 submit proposals in cooperation with the pertinent local 20 jurisdiction or jurisdictions and implementing agencies. 21 (3) In the case of either paragraph (1) or (2), the 22 public transportation agency may not be the primary real 23 estate developer, and joint development activities are 24 confined to the construction of support and access 25 facilities, that is, vehicular access, parking, pedestrian 26 ways, building pads, foundation columns, signage and similar 27 items. 28 (4) The partnering TRID local municipality or 29 municipalities shall designate a management entity for the 30 TRID which may be a municipal authority or joint municipal 20030H0994B3497 - 10 -
1 authority, in accordance with the requirements of 53 Pa.C.S. 2 Ch.56 (relating to municipal authorities) to manage and 3 facilitate TRID implementation. The local municipality or 4 municipalities involved in the TRID shall retain policy and 5 oversight responsibilities for all budgetary and programmatic 6 actions of the designated TRID management entity. 7 (5) Creative partnerships with AMTRAK and the private 8 sector to accomplish TRID purposes that use the benefits of 9 AMTRAK's existing real estate development powers are both 10 desirable and encouraged. 11 (6) Neighborhood improvement districts, business 12 improvement districts or similar entities may be designated 13 to manage the TRID implementation activities. 14 Section 503. Coordination of development activities. 15 The public transportation agency shall coordinate development 16 activities with the pertinent county or local redevelopment 17 authority, planning commission and governing body. If such 18 entities are able to accommodate the land acquisition or 19 marketing needs of the TRID in a more timely fashion, an 20 agreement may be established between the public transportation 21 agency and such entities to implement this aspect of the overall 22 TRID program. 23 Section 504. Development agreements. 24 In furtherance of the agreement specified in section 302, the 25 partnering municipal, public transportation agency and, if 26 participating, county representatives, including the designated 27 management entity, shall enter into a development agreement with 28 the pertinent private sector development organization or 29 organizations to implement the proposed TRID. The development 30 agreement shall stipulate the final project scope, as well as 20030H0994B3497 - 11 -
1 the partners' roles, responsibilities, financing arrangements, 2 schedule of improvements and the exactions or contributions to 3 the project. 4 CHAPTER 7 5 VALUE CAPTURE APPROACHES 6 Section 701. Creation of value capture area. 7 In conjunction with the formal establishment of the TRID 8 boundaries, a coterminous value capture area shall 9 simultaneously be created to enable local municipalities, school 10 districts, the county and the public transportation agency to 11 share the increased tax increment of real estate and other 12 designated tax revenues generated by new real estate investment 13 within the TRID. The participants in the TRID, through the 14 designated management entity, shall develop an administrative 15 and project schedule and budget to implement the project, 16 including future maintenance needs, as defined in the TRID 17 planning study, as well as the shares and use of such tax 18 revenues as are projected to be generated from the TRID value 19 capture area. The participating municipality or municipalities 20 may review and revise the TRID budget. 21 Section 702. Dedication of tax revenues. 22 Tax revenues generated within a TRID shall be dedicated to 23 completion and future maintenance of the specific and necessary 24 improvements designated in the comprehensive plan amendment and 25 TRID planning study as follows: 26 (1) Local municipalities and counties shall not use such 27 revenues for general government purposes, and a public 28 transportation agency shall not use such revenues for transit 29 capital investments elsewhere on the public transportation 30 system. 20030H0994B3497 - 12 -
1 (2) Local municipalities, school districts and the 2 county shall establish an amortization schedule for receipt, 3 investment and expenditure of any TRID tax revenues, not to 4 exceed 20 years, similar to the amortization schedule in the 5 act of July 11, 1990 (P.L.465, No.113), known as the Tax 6 Increment Financing Act. However, where a municipal or joint 7 municipal authority has been created, it shall be responsible 8 for fixing the amortization schedule and for defining the 9 TRID capital improvement plan. 10 Section 703. Applicability of other statutes. 11 Local municipalities, counties, the public transportation 12 agency and local property owners are encouraged and may make 13 maximum use of existing laws and regulations to advance and 14 further implement TRID purposes. Without limitation, application 15 of the following acts and similar acts, as well as pertinent 16 Federal programs and statutes, are consistent with the intent of 17 TRID implementation: 18 (1) Act of May 24, 1945 (P.L.982, No.383), known as the 19 Redevelopment Cooperation Law. 20 (2) Act of May 24, 1945 (P.L.991, No.385), known as the 21 Urban Redevelopment Law. 22 (3) Act of December 1, 1977 (P.L.237, No.76), known as 23 the Local Economic Revitalization Tax Assistance Act. 24 (4) Act of July 9, 1985 (P.L.187, No.47), known as the 25 Transportation Partnership Act. 26 (5) Act of July 11, 1990 (P.L.465, No.113), known as the 27 Tax Increment Financing Act. 28 (6) Act of July 11, 1996 (P.L.677, No.116), known as the 29 Infrastructure Development Act. 30 (7) Act of October 6, 1998 (P.L.705, No.92), known as 20030H0994B3497 - 13 -
1 the Keystone Opportunity Zone and Keystone Opportunity 2 Expansion Zone Act. 3 (8) Act of December 20, 2000 (P.L.949, No.130), known as 4 the Neighborhood Improvement District Act. 5 Section 704. Private sector involvement. 6 Nothing described in this act shall preclude a private sector 7 entity from offering to implement or finance needed public 8 transportation or community improvements at the initiation of or 9 concurrent with proposed TRID-related real estate development. 10 CHAPTER 9 11 COMMUNITY INVOLVEMENT 12 Section 901. Public meeting to explain TRID and alternative 13 implementation approaches. 14 Community and public involvement in the establishment of 15 TRIDs is required. The municipality and the public 16 transportation agency shall jointly conduct at least one public 17 meeting in the proposed TRID area prior to the enactment of a 18 TRID, TRID planning study, comprehensive plan or zoning 19 amendment. The meeting is intended to explain the purpose and 20 components of the TRID and the alternative implementation 21 approaches. The public meeting or meetings shall be in addition 22 to any required local government public hearing or hearings 23 prior to comprehensive or multimunicipal plan amendment 24 adoption. However, nothing in this act shall relieve the TRID 25 management entity from conducting all public meetings required 26 by law, where the TRID is acting or seeking to act under the: 27 (1) Act of May 24, 1945 (P.L.991, No.385), known as the 28 Urban Redevelopment Law. 29 (2) Act of July 11, 1990 (P.L.465, No.113), known as the 30 Tax Increment Financing Act. 20030H0994B3497 - 14 -
1 (3) Act of December 20, 2000 (P.L.949, No.130), known as 2 the Neighborhood Improvement District Act. 3 Section 902. Public meeting to review proposed joint 4 development plan and related improvements. 5 The municipality and the public transportation agency shall 6 jointly conduct at least one public meeting in the TRID area to 7 review the proposed joint development plan and its related 8 public improvements prior to implementation. 9 Section 903. Cooperation with neighborhood or community 10 representatives. 11 The municipality and the public transportation agency shall 12 encourage private sector real estate entities and land 13 developers to work proactively and cooperatively with pertinent 14 neighborhood or community representatives during the planning 15 and implementation of TRID development proposals. 16 CHAPTER 21 17 MISCELLANEOUS PROVISIONS 18 Section 2101. Appropriation. <-- 19 The sum of $5,000,000, or as much thereof as may be 20 necessary, is hereby appropriated to the Department of Community 21 and Economic Development, for the fiscal year July 1, 2004, to 22 June 30, 2005, to supplement the department's existing land use 23 planning and technical assistance program. This appropriation 24 shall be a continuing appropriation and shall lapse on June 30, 25 2009. 26 Section 2102 2101. Repeal. <-- 27 All acts and parts of acts are repealed insofar as they are 28 inconsistent with this act. 29 Section 2103 2102. Effective date. <-- 30 This act shall take effect in 60 days. A28L74BIL/20030H0994B3497 - 15 -