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                                 SENATE AMENDED
        PRIOR PRINTER'S NO. 2074                      PRINTER'S NO. 2980

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1621 Session of 2007


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

        SENATOR PICCOLA, STATE GOVERNMENT, AS AMENDED, DECEMBER 10, 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     AND AFFIRMING THE AUTHORITY OF THE GENERAL ASSEMBLY TO ENACT
     6     CERTAIN CONVEYANCES.

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


     1  an initial term of 99 years, land within the bed of the Delaware
     2  River in the City of Philadelphia, and to extend the period for
     3  all or any portion of the leased premises for an additional term
     4  of up to 99 years.
     5     (b)  Description of property.--The land to be leased is more
     6  particularly described as follows:
     7     ALL THAT CERTAIN lot or piece of ground together with the
     8  improvements thereon erected, situate in the 5th Ward of the
     9  City of Philadelphia, Pennsylvania and shown on a Boundary and
    10  Topographic Survey made for Pier 35 1/2, LLC, Penn Street &
    11  Fairmount Avenue, Pier 35 N, Lot 9, Map 5 N 4, 5th Ward, City &
    12  County of Philadelphia, Commonwealth of Pennsylvania by Control
    13  Point Associates, Inc., dated February 3, 2005 and more
    14  particularly described as follows to wit:
    15  Beginning at a point on the dividing line Between Lot 9, Map 5 N
    16  4, lands now or formerly Berman and Lot 16, Map 6 N 6, lands now
    17  or formerly Isle of Capri Associates, L.P., Said point being
    18  distant the following two (2) courses and distances from the
    19  intersection and southeasterly right-of-way line of Penn Street
    20  (60 foot wide right-of-way, legally open) and the easterly
    21  right-of-way line of Delaware Avenue (A.K.A. Christopher
    22  Columbus Boulevard, A.K.A. SR. 2001, 150 foot wide right-of-way,
    23  legally open):
    24         A.  Along the southeasterly right-of-way of Penn Street,
    25     North 43 degrees 30 minutes 00 seconds East, a distance of
    26     140.229 feet to a drill hole, THENCE;
    27         B.  Along the dividing line between Lot 9, Map 5 N 4 and
    28     Lot 16, Map 6 N 6, South 47 degrees 02 minutes 00 seconds
    29     east, a distance of 194.573 feet to the true point and place
    30     of beginning and from said point of beginning running,
    20070H1621B2980                  - 2 -     

     1     THENCE;
     2  The following two (2) courses and distances along the dividing
     3  line between Lot 9, Map 5 N 4 AND Lot 16, Map 6 N 6:
     4         1.  South 67 degrees 54 minutes 00 seconds East, a
     5     distance of 125.667 feet to a point, THENCE;
     6         2.  South 46 degrees 04 minutes 40 seconds East, a
     7     distance of 361.500 feet to a point on the northeasterly
     8     right-of-way line of Fairmount Avenue (62 foot 2 inch wide
     9     right-of-way, not open, not on the city tax registry), said
    10     point is 53.976 feet on a bearing North 71 degrees 40 minutes
    11     00 seconds West from the pierhead line of the Delaware River
    12     (established January 5, 1894, Approved by the Secretary of
    13     War September 10, 1940), THENCE;
    14         3.  Along the northeasterly right-of-way line of
    15     Fairmount Avenue, North 71 degrees 40 minutes 00 seconds
    16     West, a distance of 527.937 feet to a point on the Bulkhead
    17     line of the Delaware River, (established January 5, 1894,
    18     approved by the Secretary of War September 10, 1940), THENCE;
    19         4.  Along the Bulkhead line of the Delaware River, North
    20     43 degrees 17 minutes 06 seconds East, a distance of 181.316
    21     feet to the point and place of BEGINNING.
    22           CONTAINING 51,839 SQUARE FEET OR 1.19006 ACRES
    23     (c)  Lease agreement.--The lease and any other documents
    24  hereby contemplated shall be approved as to form and legality by
    25  the Attorney General and Office of General Counsel and shall be
    26  executed by the Department of General Services, with the
    27  concurrence of the Department of Environmental Protection, which
    28  approvals shall not be unreasonably withheld, in the name of the
    29  Commonwealth. The lease shall grant the lessee, and all
    30  successors, assigns and sublessees, the right to use the above-
    20070H1621B2980                  - 3 -     

     1  described premises, or to assign the lease or sublease or permit
     2  the sublease of the above-described premises for the purposes of
     3  the proposed development of one residential tower with accessory
     4  parking garage and restaurant, as well as marina and maritime
     5  uses all consistent with public access.
     6     (d)  Sublease.--The Department of General Services, with the
     7  concurrence of the Department of Environmental Protection,
     8  acting on behalf of the Commonwealth of Pennsylvania, is also
     9  specifically authorized to enter into one or more nondisturbance
    10  agreements with any sublessee of the premises described in this
    11  section pursuant to which the Commonwealth will agree that, if
    12  the Commonwealth succeeds to the interest of the sublessor under
    13  a sublease, it will not terminate the sublease unless the
    14  sublessee is in default.
    15     (e)  Land use restriction.--All leases authorized or referred
    16  to under this section shall be made under and subject to the
    17  condition, which shall be contained in the lease documents, that
    18  no portion of the parcels shall be used as a licensed facility
    19  as defined in 4 Pa.C.S. § 1103 (relating to definitions) or any
    20  other similar type of facility authorized under the laws of this
    21  Commonwealth. This condition shall be a covenant running with
    22  the land and shall be binding upon the lessee and sublessees and
    23  their respective successors and assigns. Should any portion of
    24  any parcel authorized to be leased under this act be used in
    25  violation of this subsection, the lease shall terminate
    26  immediately.
    27     (f)  Improvements.--
    28         (1)  The Department of General Services is hereby
    29     authorized to execute, on behalf of the Commonwealth of
    30     Pennsylvania, any declaration or other document necessary to
    20070H1621B2980                  - 4 -     

     1     submit these premises or any portion thereof and any
     2     improvements thereon to the provisions of 68 Pa.C.S. Pt. II
     3     Subpt. B (relating to condominiums) as a leasehold
     4     condominium.
     5         (2)  The lessee, all sublessees and their respective
     6     successors and assigns, shall provide and maintain at least
     7     the following free public access to the riverfront, for
     8     fishing and other recreation activities and free public
     9     parking in connection with such access:
    10             (i)  A minimum of ten free public parking spaces
    11         available at all times located proximate to the public
    12         walkway near the water edge and signage indicating the
    13         free public parking.
    14             (ii)  Public walkways on the riverfront, including
    15         water edge promenades along the entire water edge of the
    16         leasehold and adjacent to the water and providing free
    17         public access to the water and allowing for passive and
    18         active recreational activities year-round and signage
    19         indicating the walkways are open to the general public.
    20             (iii)  A free public park area along the public
    21         walkway near the water.
    22             (iv)  Public access to the Delaware River which is
    23         consistent with the Waterfront Setback requirements set
    24         forth in Section 14-216(6)(g) of the Philadelphia Code
    25         (enacted into law by an Ordinance enacting Bill No.
    26         050465, passed by the City Council on June 16, 2005, and
    27         signed by the Mayor on July 8, 2005).
    28         (3)  Should the lessee, any sublessee or any of their
    29     respective successors or assigns wish to modify the public
    30     access and parking required by this section, it must obtain
    20070H1621B2980                  - 5 -     

     1     the prior written approval of the Department of Environmental
     2     Protection and the Department of General Services, which
     3     approval shall not be unreasonably withheld. The public
     4     access and parking shall be completed and open to the public
     5     no later than the date the first tenant or resident occupies
     6     either the leasehold or the land adjacent to the leasehold.
     7         (4)  Nothing herein shall affect or otherwise limit the
     8     requirements of the provisions of the act of November 26,
     9     1978 (P.L.1375, No.325), known as the Dam Safety and
    10     Encroachments Act, which may require further measures to
    11     provide for public access and use of the land and adjacent
    12     water.
    13         (5)  These conditions shall be covenants that run with
    14     the land and shall be binding upon the lessee, any sublessee
    15     and their respective successors and assigns. Should the
    16     lessee, any sublessee or any of their respective successors
    17     or assigns permit the parcels authorized to be leased under
    18     this section, or any portion thereof, to be used in a manner
    19     inconsistent with the conditions contained in this
    20     subsection, all rights and interests in the lease authorized
    21     by this act shall terminate immediately.
    22     (g)  Consideration.--The Department of General Services shall
    23  lease the land within the bed of the Delaware River as described
    24  in subsection (b) upon such terms and conditions and for such
    25  other nonmonetary considerations as it shall, with the
    26  concurrence of the Department of Environmental Protection for no
    27  less than $5 per square foot payable in advance, established
    28  through the lease agreements, AND NOT LESS THAN $1 PER SQUARE     <--
    29  FOOT BASED UPON THE DEVELOPMENT PLAN FOR ANY REAL IMPROVEMENTS
    30  ADDED TO THE SITE SUBSEQUENT TO SUCH AGREEMENT, PAYABLE WHEN
    20070H1621B2980                  - 6 -     

     1  SUCH IMPROVEMENTS BECOME OCCUPIED. FIFTY PERCENT OF ALL PAYMENTS
     2  UNDER THIS SUBSECTION SHALL BE PAYABLE TO THE COMMERCE
     3  DEPARTMENT OF THE CITY OF PHILADELPHIA TO IMPLEMENT THE CENTRAL
     4  DELAWARE ADVISORY GROUP MASTER PLAN FOR REDEVELOPMENT ALONG THE
     5  WATERFRONT WITHIN THE BOUNDARIES OF EXECUTIVE ORDER 004-06 OF
     6  OCTOBER 12, 2006, PROVIDING FOR THE PROCESS TO ESTABLISH THE
     7  MASTER PLAN. Such terms may include a requirement to commence
     8  and construct such improvements authorized and/or required in
     9  this section within certain time periods.
    10     (h)  Costs and fees.--Costs and fees incidential INCIDENTAL    <--
    11  to the lease authorized by this section shall be borne by the
    12  lessee, including the costs incurred by the Department of
    13  General Services and the Department of Environmental Protection
    14  in the preparation, execution and review of the lease,
    15  nondisturbance agreements and related documents.
    16     (i)  Sunset provisions.--In the event that the lease
    17  authorized by this section and a community benefit agreement
    18  between the lessee and Northern Liberties Neighborhood
    19  Association is not executed within 18 months following the
    20  effective date of this section, and a building permit for the
    21  proposed residential project is not obtained within 18 months,
    22  the authority contained in this section shall be void.
    23  SECTION 2.  AFFIRMATION OF EXCLUSIVE AUTHORITY OF GENERAL         <--
    24                 ASSEMBLY.
    25     THE GENERAL ASSEMBLY HEREBY AFFIRMS ITS EXISTING, SOLE AND
    26  EXCLUSIVE AUTHORITY TO CONSIDER AND SPECIFICALLY AUTHORIZE THE
    27  CONVEYANCE OF ANY TITLE, EASEMENT, RIGHT-OF-WAY OR OTHER
    28  INTEREST IN COMMONWEALTH-OWNED LANDS, SUCH AS THOSE SET FORTH
    29  HEREIN PURSUANT TO THE ACT OF APRIL 9, 1929 (P.L.177, NO.175),
    30  KNOWN AS THE ADMINISTRATIVE CODE OF 1929, AND THE ACT OF
    20070H1621B2980                  - 7 -     

     1  NOVEMBER 26, 1978 (P.L.1375, NO.325), KNOWN AS THE DAM SAFETY
     2  AND ENCROACHMENTS ACT.
     3  Section 2 3.  Effective date.                                     <--
     4     This act shall take effect immediately.


















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