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                                                      PRINTER'S NO. 2074

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1621 Session of 2007


        INTRODUCED BY M. O'BRIEN, JUNE 25, 2007

        REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 25, 2007

                                     AN ACT

     1  Authorizing the Department of General Services, with the
     2     concurrence of the Department of Environmental Protection, to
     3     lease to VTE Philadelphia, LP, or its nominee, land within
     4     the bed of the Delaware River in the City of Philadelphia.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Land within the Delaware River bed.
     8     (a)  Authorization.--The Commonwealth owns the lands within
     9  the bed of the Delaware River, a portion of which lands are
    10  located in the 5th Ward of the City of Philadelphia, and
    11  includes lands commonly known as Pier No. 35 1/2 North. The
    12  Department of General Services, with the concurrence of the
    13  Department of Environmental Protection, acting on behalf of the
    14  Commonwealth, is hereby authorized and directed to lease, for
    15  such consideration as shall be agreed upon by the parties, to
    16  VTE Philadelphia, LP, or its nominee (hereinafter "lessee") for
    17  an initial term of 99 years, land within the bed of the Delaware
    18  River in the City of Philadelphia, and to extend the period for


     1  all or any portion of the leased premises for an additional term
     2  of up to 99 years.
     3     (b)  Description of property.--The land to be leased is more
     4  particularly described as follows:
     5     ALL THAT CERTAIN lot or piece of ground together with the
     6  improvements thereon erected, situate in the 5th Ward of the
     7  City of Philadelphia, Pennsylvania and shown on a Boundary and
     8  Topographic Survey made for Pier 35 1/2, LLC, Penn Street &
     9  Fairmount Avenue, Pier 35 N, Lot 9, Map 5 N 4, 5th Ward, City &
    10  County of Philadelphia, Commonwealth of Pennsylvania by Control
    11  Point Associates, Inc., dated February 3, 2005 and more
    12  particularly described as follows to wit:
    13  Beginning at a point on the dividing line Between Lot 9, Map 5 N
    14  4, lands now or formerly Berman and Lot 16, Map 6 N 6, lands now
    15  or formerly Isle of Capri Associates, L.P., Said point being
    16  distant the following two (2) courses and distances from the
    17  intersection and southeasterly right-of-way line of Penn Street
    18  (60 foot wide right-of-way, legally open) and the easterly
    19  right-of-way line of Delaware Avenue (A.K.A. Christopher
    20  Columbus Boulevard, A.K.A. SR. 2001, 150 foot wide right-of-way,
    21  legally open):
    22         A.  Along the southeasterly right-of-way of Penn Street,
    23     North 43 degrees 30 minutes 00 seconds East, a distance of
    24     140.229 feet to a drill hole, THENCE;
    25         B.  Along the dividing line between Lot 9, Map 5 N 4 and
    26     Lot 16, Map 6 N 6, South 47 degrees 02 minutes 00 seconds
    27     east, a distance of 194.573 feet to the true point and place
    28     of beginning and from said point of beginning running,
    29     THENCE;
    30  The following two (2) courses and distances along the dividing
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     1  line between Lot 9, Map 5 N 4 AND Lot 16, Map 6 N 6:
     2         1.  South 67 degrees 54 minutes 00 seconds East, a
     3     distance of 125.667 feet to a point, THENCE;
     4         2.  South 46 degrees 04 minutes 40 seconds East, a
     5     distance of 361.500 feet to a point on the northeasterly
     6     right-of-way line of Fairmount Avenue (62 foot 2 inch wide
     7     right-of-way, not open, not on the city tax registry), said
     8     point is 53.976 feet on a bearing North 71 degrees 40 minutes
     9     00 seconds West from the pierhead line of the Delaware River
    10     (established January 5, 1894, Approved by the Secretary of
    11     War September 10, 1940), THENCE;
    12         3.  Along the northeasterly right-of-way line of
    13     Fairmount Avenue, North 71 degrees 40 minutes 00 seconds
    14     West, a distance of 527.937 feet to a point on the Bulkhead
    15     line of the Delaware River, (established January 5, 1894,
    16     approved by the Secretary of War September 10, 1940), THENCE;
    17         4.  Along the Bulkhead line of the Delaware River, North
    18     43 degrees 17 minutes 06 seconds East, a distance of 181.316
    19     feet to the point and place of BEGINNING.
    20           CONTAINING 51,839 SQUARE FEET OR 1.19006 ACRES
    21     (c)  Lease agreement.--The lease and any other documents
    22  hereby contemplated shall be approved as to form and legality by
    23  the Attorney General and Office of General Counsel and shall be
    24  executed by the Department of General Services, with the
    25  concurrence of the Department of Environmental Protection, which
    26  approvals shall not be unreasonably withheld, in the name of the
    27  Commonwealth. The lease shall grant the lessee, and all
    28  successors, assigns and sublessees, the right to use the above-
    29  described premises, or to assign the lease or sublease or permit
    30  the sublease of the above-described premises for the purposes of
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     1  the proposed development of one residential tower with accessory
     2  parking garage and restaurant, as well as marina and maritime
     3  uses all consistent with public access.
     4     (d)  Sublease.--The Department of General Services, with the
     5  concurrence of the Department of Environmental Protection,
     6  acting on behalf of the Commonwealth of Pennsylvania, is also
     7  specifically authorized to enter into one or more nondisturbance
     8  agreements with any sublessee of the premises described in this
     9  section pursuant to which the Commonwealth will agree that, if
    10  the Commonwealth succeeds to the interest of the sublessor under
    11  a sublease, it will not terminate the sublease unless the
    12  sublessee is in default.
    13     (e)  Land use restriction.--All leases authorized or referred
    14  to under this section shall be made under and subject to the
    15  condition, which shall be contained in the lease documents, that
    16  no portion of the parcels shall be used as a licensed facility
    17  as defined in 4 Pa.C.S. § 1103 (relating to definitions) or any
    18  other similar type of facility authorized under the laws of this
    19  Commonwealth. This condition shall be a covenant running with
    20  the land and shall be binding upon the lessee and sublessees and
    21  their respective successors and assigns. Should any portion of
    22  any parcel authorized to be leased under this act be used in
    23  violation of this subsection, the lease shall terminate
    24  immediately.
    25     (f)  Improvements.--
    26         (1)  The Department of General Services is hereby
    27     authorized to execute, on behalf of the Commonwealth of
    28     Pennsylvania, any declaration or other document necessary to
    29     submit these premises or any portion thereof and any
    30     improvements thereon to the provisions of 68 Pa.C.S. Pt. II
    20070H1621B2074                  - 4 -     

     1     Subpt. B (relating to condominiums) as a leasehold
     2     condominium.
     3         (2)  The lessee, all sublessees and their respective
     4     successors and assigns, shall provide and maintain at least
     5     the following free public access to the riverfront, for
     6     fishing and other recreation activities and free public
     7     parking in connection with such access:
     8             (i)  A minimum of ten free public parking spaces
     9         available at all times located proximate to the public
    10         walkway near the water edge and signage indicating the
    11         free public parking.
    12             (ii)  Public walkways on the riverfront, including
    13         water edge promenades along the entire water edge of the
    14         leasehold and adjacent to the water and providing free
    15         public access to the water and allowing for passive and
    16         active recreational activities year-round and signage
    17         indicating the walkways are open to the general public.
    18             (iii)  A free public park area along the public
    19         walkway near the water.
    20             (iv)  Public access to the Delaware River which is
    21         consistent with the Waterfront Setback requirements set
    22         forth in Section 14-216(6)(g) of the Philadelphia Code
    23         (enacted into law by an Ordinance enacting Bill No.
    24         050465, passed by the City Council on June 16, 2005, and
    25         signed by the Mayor on July 8, 2005).
    26         (3)  Should the lessee, any sublessee or any of their
    27     respective successors or assigns wish to modify the public
    28     access and parking required by this section, it must obtain
    29     the prior written approval of the Department of Environmental
    30     Protection and the Department of General Services, which
    20070H1621B2074                  - 5 -     

     1     approval shall not be unreasonably withheld. The public
     2     access and parking shall be completed and open to the public
     3     no later than the date the first tenant or resident occupies
     4     either the leasehold or the land adjacent to the leasehold.
     5         (4)  Nothing herein shall affect or otherwise limit the
     6     requirements of the provisions of the act of November 26,
     7     1978 (P.L.1375, No.325), known as the Dam Safety and
     8     Encroachments Act, which may require further measures to
     9     provide for public access and use of the land and adjacent
    10     water.
    11         (5)  These conditions shall be covenants that run with
    12     the land and shall be binding upon the lessee, any sublessee
    13     and their respective successors and assigns. Should the
    14     lessee, any sublessee or any of their respective successors
    15     or assigns permit the parcels authorized to be leased under
    16     this section, or any portion thereof, to be used in a manner
    17     inconsistent with the conditions contained in this
    18     subsection, all rights and interests in the lease authorized
    19     by this act shall terminate immediately.
    20     (g)  Consideration.--The Department of General Services shall
    21  lease the land within the bed of the Delaware River as described
    22  in subsection (b) upon such terms and conditions and for such
    23  other nonmonetary considerations as it shall, with the
    24  concurrence of the Department of Environmental Protection for no
    25  less than $5 per square foot payable in advance, established
    26  through the lease agreements. Such terms may include a
    27  requirement to commence and construct such improvements
    28  authorized and/or required in this section within certain time
    29  periods.
    30     (h)  Costs and fees.--Costs and fees incidential to the lease
    20070H1621B2074                  - 6 -     

     1  authorized by this section shall be borne by the lessee,
     2  including the costs incurred by the Department of General
     3  Services and the Department of Environmental Protection in the
     4  preparation, execution and review of the lease, nondisturbance
     5  agreements and related documents.
     6     (i)  Sunset provisions.--In the event that the lease
     7  authorized by this section and a community benefit agreement
     8  between the lessee and Northern Liberties Neighborhood
     9  Association is not executed within 18 months following the
    10  effective date of this section, and a building permit for the
    11  proposed residential project is not obtained within 18 months,
    12  the authority contained in this section shall be void.
    13  Section 2.  Effective date.
    14     This act shall take effect immediately.











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