SENATE AMENDED PRIOR PRINTER'S NOS. 1167, 3427, 3497 PRINTER'S NO. 4666
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 AMENDED ON SECOND CONSIDERATION, IN SENATE, NOVEMBER 9, 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. 18 The General Assembly of the Commonwealth of Pennsylvania 19 hereby enacts as follows: 20 CHAPTER 1 21 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, TRANSPORTATION AUTHORITIES, the private sector <-- 10 and the National Railroad Passenger Corporation (AMTRAK) AND <-- 11 OTHER PROVIDERS OF PUBLIC TRANSPORTATION AND PASSENGER RAIL 12 SERVICES to create and designate Transit Revitalization 13 Investment Districts (TRIDs). 14 (2) The specific purposes and intent of a designated 15 TRID are to: 16 (i) Promote local, county and regional economic 17 development and revitalization activities through private 18 sector investment, reinvestment and joint development 19 activities in conjunction with public transportation 20 improvements. 21 (ii) Encourage multimunicipal, cooperative 22 approaches to generate new investment, reinvestment and 23 revitalization through transit-oriented development, 24 around rail transit stations and along public 25 transportation corridors. 26 (iii) Increase overall ridership on public 27 transportation systems, including AMTRAK, while 28 generating additional revenues for current and expanded 29 services, capital improvements and related ongoing 30 maintenance. 20030H0994B4666 - 2 -
1 (iv) Encourage and support municipal and 2 multimunicipal comprehensive plan implementation, 3 including consistency of plans at the local, county and 4 regional levels. 5 (v) Stimulate public-private partnerships created by 6 prospective development opportunities around, within or 7 adjacent to the transit system, station areas and transit 8 system components. 9 (vi) Establish appropriate mechanisms to capture the 10 real estate taxation and other values added by joint 11 development activities for reinvestment in the transit 12 system and local communities. 13 (vii) Encourage greater community involvement in 14 TRID location, design and implementation and resulting 15 investment activities. 16 (viii) Promote flexible, cooperative, coordinated 17 and enhanced support for innovative, intermodal solutions 18 in TRID development and implementation activities by 19 municipal officials, public agencies, nonprofit 20 organizations and the private sector. 21 (ix) Support TRID implementation by maximizing use 22 of existing Federal and State laws and programs that are 23 consistent with the purposes of this act. 24 Section 103. Definitions. 25 The following words and phrases when used in this act shall 26 have the meanings given to them in this section unless the 27 context clearly indicates otherwise: 28 "AMTRAK." The National Railroad Passenger Corporation. 29 "Department." The Department of Community and Economic 30 Development of the Commonwealth. 20030H0994B4666 - 3 -
1 "Public transportation agency." A public transit authority 2 or similar entity, created through the laws of this 3 Commonwealth, charged with the provision of mass transit 4 services to the traveling public, that owns and maintains OR IS <-- 5 AUTHORIZED TO OWN AND MAINTAIN a physical plant, including 6 rolling stock, stations, maintenance and support facilities. 7 "PUBLIC TRANSPORTATION PROVIDER." A PUBLIC OR PRIVATE ENTITY <-- 8 THAT OPERATES OR IS AUTHORIZED TO OPERATE INTERCITY OR LOCAL 9 COMMUTER PASSENGER RAIL SERVICES WITHIN THIS COMMONWEALTH THAT 10 ARE OPEN TO THE GENERAL PUBLIC AND THAT OWNS AND MAINTAINS OR IS 11 AUTHORIZED TO OWN AND MAINTAIN A PHYSICAL PLANT INCLUDING 12 ROLLING STOCK, STATIONS, MAINTENANCE AND SUPPORT FACILITIES. 13 "Transit-oriented development." Development concentrated 14 around and oriented to transit stations in a manner that 15 promotes transit riding OR PASSENGER RAIL USE. The term does not <-- 16 refer to a single real estate project, but represents a 17 collection of projects, usually mixed use, at a neighborhood 18 scale that are oriented to a transit node. 19 "TRID." A Transit Revitalization Investment District created 20 in accordance with this act. 21 "TRID planning study." A study required to be undertaken by 22 one or more municipalities, with the active involvement of a 23 public transportation agency and the pertinent county or 24 counties, for the purpose of establishing the boundaries, 25 existing environmental conditions, existing and proposed land 26 use, property availability, real estate market conditions, 27 development potential, including use of air space rights, 28 required zoning amendments, desired infrastructure and necessary 29 transportation-related improvements and a financial plan, 30 including funding sources, a proposed amortization schedule, 20030H0994B4666 - 4 -
1 where applicable, and estimated future maintenance requirements, 2 to support the designation and implementation of a proposed 3 TRID. 4 "Value capture area." An area coincident with the boundaries 5 of a TRID, established simultaneously with TRID designation, in 6 accordance with this act, in which real estate tax revenues and 7 any other designated tax revenues shall, at a minimum, be shared 8 by the participating local jurisdiction or jurisdictions and 9 public transportation agency or agencies, for the purpose of 10 implementing a TRID. 11 CHAPTER 3 12 TRID CREATION AND LOCATION 13 Section 301. Criteria for proposed TRID. 14 Local municipalities, counties, TRANSPORTATION AUTHORITIES <-- 15 and public transportation agencies proposing to define and 16 develop a TRID shall use the following criteria and process: 17 (1) Eligible TRID locations may include any geographic 18 area of a municipality or municipalities, including vacant, 19 underutilized or potentially redevelopable land, within an 20 area generally formed by a minimum radius of one-eighth mile, 21 not to exceed a radius of one-half mile, from a railroad, 22 transit, light rail, busway or similar transit stop or 23 station, measured from the centerline of the track or roadway 24 traversing the station or stop location. TRID designation may 25 also include new station locations proposed in conjunction 26 with a planned public transportation service, as defined on 27 an adopted county, regional or public transportation agency 28 plan. 29 (2) The specific boundaries of a TRID may be expanded or 30 reduced based on local circumstances such as local economic 20030H0994B4666 - 5 -
1 development and planning goals, community character, property
2 boundary and scale variations, but only when:
3 (i) authorized by the governing body or bodies of
4 the affected jurisdiction or jurisdictions in cooperation
5 with the pertinent public transportation agency; and
6 (ii) the rationale for the boundaries is supported
7 by the findings of the required TRID planning study.
8 (3) A local municipality or municipalities shall further
9 define and support the rationale for the TRID designation
10 through a TRID planning study, as well as appropriate
11 amendments to the municipal comprehensive plan, zoning
12 ordinance and other pertinent regulations.
13 (4) A local municipality may designate the county
14 planning agency to undertake or assist the TRID planning
15 study on its behalf.
16 (5) An existing neighborhood improvement district, tax
17 increment district or urban renewal area may be used as the
18 basis for the boundaries of a TRID, when justified by the
19 TRID planning study required in section 304.
20 Section 302. TRID designation.
21 (a) Designation.--Local municipalities and counties working
22 with public transportation agencies or AMTRAK, or both, <--
23 TRANSPORTATION AUTHORITIES, AMTRAK, PASSENGER RAIL
24 TRANSPORTATION PROVIDERS, OR ANY COMBINATION THEREOF, may
25 designate TRIDs in advance of implementation of a new public
26 transit service, or in conjunction with an existing public
27 transportation service and in advance of or in conjunction with
28 actual development proposals.
29 (b) Agreement.--To create a TRID, in addition to the
30 planning study described in section 301(3), the municipality or
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1 municipalities shall enter into an agreement with the transit 2 agency that defines the activities and commitments of each party 3 to the TRID, including any specific actions or financial 4 participation to help implement the TRID. The agreement shall 5 include the development agreement specified in section 504, as 6 well as a description of the TRID management entity described in 7 section 502(4). 8 Section 303. Implementing authority. 9 A participating county, local municipality, TRANSPORTATION <-- 10 AUTHORITY and public transportation agency may designate on 11 their behalf the county redevelopment authority to assume 12 responsibility for TRID implementation. 13 Section 304. TRID planning study factors. 14 The scope and scale of transit improvements and community 15 facility improvements, as well as any needed support facilities, 16 shall be assessed in the TRID planning study. The TRID planning 17 study shall also serve as the basis for a comprehensive plan 18 amendment to establish the TRID, if the municipality has a 19 currently adopted comprehensive plan. The following shall apply: 20 (1) The planning study shall consider the need for 21 capital improvements to transit-related facilities and 22 adjacent public infrastructure including roads, sidewalks and 23 water, sewer and storm drainage service and public 24 facilities, as well as opportunities for private sector real 25 estate development and ways in which such facilities, 26 services and development can be financed. 27 (2) Municipalities undertaking a TRID planning study 28 shall receive priority consideration for planning and 29 implementation grants and technical assistance from the 30 department, working in partnership with the pertinent county 20030H0994B4666 - 7 -
1 planning agency or agencies AND OTHER STATE AGENCIES WITH <-- 2 GRANT OR LOAN PROGRAMS THAT MAY BE APPLICABLE TO TRID 3 PLANNING OR IMPLEMENTATIONS. Any funding appropriated to the 4 Department of Community and Economic Development for the 5 purpose of carrying out this act is intended to assist 6 counties and local governments, on a 25% matching basis, to 7 undertake TRID planning studies and related implementation 8 activities. Individual grants for a TRID planning study or 9 implementation project shall not exceed $75,000. The 10 department IN CONSULTATION WITH THE DEPARTMENT OF <-- 11 TRANSPORTATION shall administer the supplemental TRID program 12 through the existing land use planning and technical 13 assistance program, with application guidance as necessary. 14 (3) Commonwealth agencies are directed to provide State 15 resources, programs and new capital investments that will 16 assist local governments, TRANSPORTATION AUTHORITIES and <-- 17 transit agencies to implement TRIDS. 18 Section 305. Roles and responsibilities of public 19 transportation agencies and municipalities. 20 As guidelines to implement the findings and recommendation of 21 the TRID planning study, the following roles and 22 responsibilities are defined: 23 (1) The scope and scale of needed or proposed transit 24 capital improvements within the TRID area are the 25 responsibility of the partnering public transportation 26 agency. The cost, financing, phasing and schedule of all 27 transit-related improvements shall be included in the public 28 transportation agency's adopted capital program. 29 (2) The scope and scale of needed or proposed support 30 facilities, highway accessways, and community or neighborhood 20030H0994B4666 - 8 -
1 facility improvements, for example, sidewalks and recreation 2 facilities, are the responsibility of the partnering county 3 and local jurisdiction or jurisdictions, and may include 4 support from the private sector. 5 (3) Notwithstanding these stated roles and 6 responsibilities, the parties to a TRID shall be responsible 7 for defining the administrative and management roles and 8 responsibilities that will be most appropriate to achieve 9 implementation of the TRID in their community. 10 Section 306. Amendments to TRID planning study. 11 Proposed real estate development or redevelopment may trigger 12 additional needs for transit improvements and community facility 13 improvements or support facilities, and shall be accommodated 14 through pertinent amendments of the TRID planning study and 15 county, multimunicipal or local municipal comprehensive plan. 16 Section 307. Municipal cooperation. 17 Nothing in this act shall preclude two or more 18 municipalities, OR A MUNICIPALITY AND A TRANSPORTATION <-- 19 AUTHORITY, from working together cooperatively with a public 20 transportation agency to define and establish one or more TRIDs 21 along a public transportation corridor, using the criteria 22 established under this act. 23 CHAPTER 5 24 LAND DEVELOPMENT POWERS OF PUBLIC TRANSPORTATION AGENCIES 25 Section 501. Authority to acquire and improve property. 26 Consistent with the existing authority or limitations of 27 public transportation agencies to condemn and acquire land for 28 public transportation purposes, such entities are hereby 29 authorized to acquire and improve property located within a 30 designated TRID for real estate development purposes, provided 20030H0994B4666 - 9 -
1 such acquisition and improvement: 2 (1) Is consistent with any pertinent municipal 3 comprehensive plan and TRID planning study. 4 (2) Is coordinated with pertinent county and local 5 jurisdictions and redevelopment or other special purpose 6 authorities. 7 (3) Furthers the stated purposes of this act. 8 (4) Does not exceed the minimum land area necessary to 9 accomplish the needs specified in the TRID planning study and 10 the development agreement. 11 Section 502. Development or redevelopment of property. 12 Development or redevelopment of property within a TRID shall 13 generally occur in the following manner: 14 (1) The public transportation agency may acquire the 15 property, improve it for future development, such as site 16 clearance, utility work, environmental remediation and 17 similar improvements, and work cooperatively with the 18 pertinent local jurisdiction or jurisdictions and 19 implementing agencies to offer it for sale to the private 20 sector for use or uses consistent with the adopted TRID plan. 21 Within a designated TRID area, any future development, 22 redevelopment or similar construction activity shall not be 23 required to comply with the provisions of the act of May 1, 24 1913 (P.L.155, No.104), entitled, "An act regulating the 25 letting of certain contracts for the erection, construction, 26 and alteration of public buildings." 27 (2) Alternatively, the public transportation agency may 28 advertise the presence of available development sites within 29 a TRID, including a map of potentially developable or 30 redevelopable properties and invite interested developers to 20030H0994B4666 - 10 -
1 submit proposals in cooperation with the pertinent local 2 jurisdiction or jurisdictions and implementing agencies. 3 (3) In the case of either paragraph (1) or (2), the 4 public transportation agency may not be the primary real 5 estate developer, and joint development activities are 6 confined to the construction of support and access 7 facilities, that is, vehicular access, parking, pedestrian 8 ways, building pads, foundation columns, signage and similar 9 items. 10 (4) The partnering TRID local municipality or 11 municipalities shall designate a management entity for the 12 TRID which may be a municipal authority or joint municipal 13 authority, in accordance with the requirements of 53 Pa.C.S. 14 Ch.56 (relating to municipal authorities) to manage and 15 facilitate TRID implementation. The local municipality or 16 municipalities involved in the TRID shall retain policy and 17 oversight responsibilities for all budgetary and programmatic 18 actions of the designated TRID management entity. 19 (5) Creative partnerships with AMTRAK, PASSENGER RAIL <-- 20 TRANSPORTATION PROVIDERS, TRANSPORTATION AUTHORITIES and the 21 private sector to accomplish TRID purposes that use the 22 benefits of AMTRAK's AND PASSENGER RAIL SERVICE PROVIDERS' <-- 23 existing real estate development powers are both desirable 24 and encouraged. 25 (6) Neighborhood improvement districts, business 26 improvement districts or similar entities may be designated 27 to manage the TRID implementation activities. 28 Section 503. Coordination of development activities. 29 The public transportation agency shall coordinate development 30 activities with the pertinent county or local redevelopment 20030H0994B4666 - 11 -
1 authority, planning commission and governing body. If such
2 entities are able to accommodate the land acquisition or
3 marketing needs of the TRID in a more timely fashion, an
4 agreement may be established between the public transportation
5 agency and such entities to implement this aspect of the overall
6 TRID program.
7 Section 504. Development agreements.
8 In furtherance of the agreement specified in section 302, the
9 partnering municipal MUNICIPALITY, TRANSPORTATION AUTHORITY, <--
10 public transportation agency and, if participating, county
11 representatives, including the designated management entity,
12 shall enter into a development agreement with the pertinent
13 private sector development organization or organizations to
14 implement the proposed TRID. The development agreement shall
15 stipulate the final project scope, as well as the partners'
16 roles, responsibilities, financing arrangements, schedule of
17 improvements and the exactions or contributions to the project.
18 CHAPTER 7
19 VALUE CAPTURE APPROACHES
20 Section 701. Creation of value capture area.
21 In conjunction with the formal establishment of the TRID
22 boundaries, a coterminous value capture area shall
23 simultaneously be created to enable local municipalities, school
24 districts, the county and the public transportation agency to
25 share the increased tax increment of real estate and other
26 designated tax revenues generated by new real estate investment
27 within the TRID. The participants in the TRID, through the
28 designated management entity, shall develop an administrative
29 and project schedule and budget to implement the project,
30 including future maintenance needs, as defined in the TRID
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1 planning study, as well as the shares and use of such tax 2 revenues as are projected to be generated from the TRID value 3 capture area. The participating municipality or municipalities 4 may review and revise the TRID budget. 5 Section 702. Dedication of tax revenues. 6 Tax revenues generated within a TRID shall be dedicated to 7 completion and future maintenance of the specific and necessary 8 improvements designated in the comprehensive plan amendment and 9 TRID planning study as follows: 10 (1) Local municipalities and counties shall not use such 11 revenues for general government purposes, and a public 12 transportation agency shall not use such revenues for transit 13 capital investments elsewhere on the public transportation 14 system. 15 (2) Local municipalities, school districts and the 16 county shall establish an amortization schedule for receipt, 17 investment and expenditure of any TRID tax revenues, not to 18 exceed 20 years, similar to the amortization schedule in the 19 act of July 11, 1990 (P.L.465, No.113), known as the Tax 20 Increment Financing Act. However, where a municipal or joint 21 municipal authority has been created, it shall be responsible 22 for fixing the amortization schedule and for defining the 23 TRID capital improvement plan. 24 Section 703. Applicability of other statutes. 25 Local municipalities, counties, TRANSPORTATION AUTHORITIES, <-- 26 the public transportation agency and local property owners are 27 encouraged and may make maximum use of existing laws and 28 regulations to advance and further implement TRID purposes. 29 Without limitation, application of the following acts and 30 similar acts, as well as pertinent Federal programs and 20030H0994B4666 - 13 -
1 statutes, are consistent with the intent of TRID implementation: 2 (1) Act of May 24, 1945 (P.L.982, No.383), known as the 3 Redevelopment Cooperation Law. 4 (2) Act of May 24, 1945 (P.L.991, No.385), known as the 5 Urban Redevelopment Law. 6 (3) Act of December 1, 1977 (P.L.237, No.76), known as 7 the Local Economic Revitalization Tax Assistance Act. 8 (4) Act of July 9, 1985 (P.L.187, No.47), known as the 9 Transportation Partnership Act. 10 (5) Act of July 11, 1990 (P.L.465, No.113), known as the 11 Tax Increment Financing Act. 12 (6) Act of July 11, 1996 (P.L.677, No.116), known as the 13 Infrastructure Development Act. 14 (7) Act of October 6, 1998 (P.L.705, No.92), known as 15 the Keystone Opportunity Zone and Keystone Opportunity 16 Expansion Zone Act. 17 (8) Act of December 20, 2000 (P.L.949, No.130), known as 18 the Neighborhood Improvement District Act. 19 Section 704. Private sector involvement. 20 Nothing described in this act shall preclude a private sector 21 entity from offering to implement or finance needed public 22 transportation or community improvements at the initiation of or 23 concurrent with proposed TRID-related real estate development. 24 CHAPTER 9 25 COMMUNITY INVOLVEMENT 26 Section 901. Public meeting to explain TRID and alternative 27 implementation approaches. 28 Community and public involvement in the establishment of 29 TRIDs is required. The municipality and the public 30 transportation agency shall jointly conduct at least one public 20030H0994B4666 - 14 -
1 meeting in the proposed TRID area prior to the enactment of a 2 TRID, TRID planning study, comprehensive plan or zoning 3 amendment. The meeting is intended to explain the purpose and 4 components of the TRID and the alternative implementation 5 approaches. The public meeting or meetings shall be in addition 6 to any required local government public hearing or hearings 7 prior to comprehensive or multimunicipal plan amendment 8 adoption. However, nothing in this act shall relieve the TRID 9 management entity from conducting all public meetings required 10 by law, where the TRID is acting or seeking to act under the: 11 (1) Act of May 24, 1945 (P.L.991, No.385), known as the 12 Urban Redevelopment Law. 13 (2) Act of July 11, 1990 (P.L.465, No.113), known as the 14 Tax Increment Financing Act. 15 (3) Act of December 20, 2000 (P.L.949, No.130), known as 16 the Neighborhood Improvement District Act. 17 Section 902. Public meeting to review proposed joint 18 development plan and related improvements. 19 The municipality and the public transportation agency shall 20 jointly conduct at least one public meeting in the TRID area to 21 review the proposed joint development plan and its related 22 public improvements prior to implementation. 23 Section 903. Cooperation with neighborhood or community 24 representatives. 25 The municipality and the public transportation agency shall 26 encourage private sector real estate entities and land 27 developers to work proactively and cooperatively with pertinent 28 neighborhood or community representatives during the planning 29 and implementation of TRID development proposals. 30 CHAPTER 21 20030H0994B4666 - 15 -
1 MISCELLANEOUS PROVISIONS 2 Section 2101. Repeal. 3 All acts and parts of acts are repealed insofar as they are 4 inconsistent with this act. 5 Section 2102. Effective date. 6 This act shall take effect in 60 days. A28L74BIL/20030H0994B4666 - 16 -