Section 3. Lands in Delaware River.
(a) Purpose.--The Commonwealth of Pennsylvania owns the lands within the bed of the Delaware River, a portion of which lands are located in the 2nd Ward of the City of Philadelphia, commonly known as Piers #36, #35, #34, #30 and #28 South. The City of Philadelphia desires to eliminate the blight and deterioration which now exist in this area and undertake the redevelopment of various sites within this area for the substantial benefit of the people of the City of Philadelphia and the surrounding regions. The Commonwealth has agreed to assist the City of Philadelphia in the renewal of this area by leasing a portion of the bed of the Delaware River to the City of Philadelphia as hereinafter provided.
(b) Lease.--The Department of General Services, with the concurrence of the Department of Environmental Resources, acting on behalf of the Commonwealth of Pennsylvania, for a consideration of $1, is hereby authorized to lease to the City of Philadelphia, for an initial term of 99 years (the "Initial Term"), lands within the bed of the Delaware River in the City of Philadelphia, and granting to the City of Philadelphia the right to extend the period for all or any portion of the leased premises for an additional 99 years (the "Renewal Term") upon notice given no less than ten years prior to the expiration of the initial term. These lands are more particularly described as follows:
Parcel No. 1.
Beginning at a point on the easterly side of Delaware Avenue, variable width, which is also the Bulkhead Line established by the Secretary of War, September 10, 1940, at the distance of 76 feet 7/8 inches from a point formed by the intersection of the northerly side of Catharine Street, 50 feet wide, produced eastwardly and the easterly side of said Delaware Avenue; thence extending along said Delaware Avenue and Bulkhead Line, north 01 degree 05 minutes 56 seconds east, the distance of 307 feet 2 1/8 inches to a point; thence extending south 83 degrees 31 minutes 49 seconds east, the distance of 538 feet 11 5/8 inches to a point on the Pierhead Line established by the Secretary of War, September 10, 1940; thence extending along said Pierhead Line south 00 degrees 46 minutes 33 seconds west, the distance of 357 feet 1 1/2 inches to a point; thence extending north 78 degrees 20 minutes 34 seconds west, the distance of 547 feet 10 3/4 inches to a point on the said easterly side of Delaware Avenue and Bulkhead Line and place of beginning. Being known as Pier #36 South.
Parcel No. 2.
Beginning at a point on the easterly side of Delaware Avenue, variable width, which is also the Bulkhead Line established by the Secretary of War, September 10, 1940, at the distance of 383 feet 3 inches from a point formed by the intersection of the northerly side of Catharine Street, 50 feet wide, produced eastwardly and the easterly side of said Delaware Avenue; thence extending along said Delaware Avenue and Bulkhead Line north 01 degree 05 minutes 56 seconds east, the distance of 345 feet 4 7/8 inches to a point; thence extending south 74 degrees 39 minutes 44 seconds east, the distance of 552 feet 1 1/4 inches to a point on the Pierhead Line established by the Secretary of War, September 10, 1940; thence extending along said Pierhead Line south 00 degrees 46 minutes 33 seconds west, the distance of 260 feet 3/4 inches to a point; thence extending north 83 degrees 31 minutes 49 seconds west, the distance of 538 feet 11 5/8 inches to a point on the said easterly side of Delaware Avenue and Bulkhead Line and place of beginning. Being known as Pier #34 South and Pier #35 South.
Parcel No. 3.
Beginning at a point on the easterly side of Delaware Avenue, variable width, which is also the Bulkhead Line established by the Secretary of War, September 10, 1940, at the distance of 728 feet 7 7/8 inches from a point formed by the intersection of the northerly side of Catharine Street, 50 feet wide, produced eastwardly and the easterly side of said Delaware Avenue; thence extending along said Delaware Avenue and Bulkhead Line north 01 degree 05 minutes 56 seconds east, the distance of 263 feet 3 7/8 inches to a point; thence extending south 77 degrees 48 minutes 10 seconds east, the distance of 543 feet 7 3/4 inches to a point on the Pierhead Line established by the Secretary of War, September 10, 1940; thence extending along said Pierhead Line south 00 degrees 46 minutes 33 seconds west, the distance of 294 feet 5 3/4 inches to a point; thence extending north 74 degrees 39 minutes 44 seconds west, the distance of 552 feet 1 1/4 inches to a point on the said easterly side of Delaware Avenue and Bulkhead Line and place of beginning. Being known as Pier #30 South.
Parcel No. 4.
Beginning at a point on the easterly side of Delaware Avenue, variable width, which is also the Bulkhead Line established by the Secretary of War, September 10, 1940, at the distance of 991 feet 11 3/4 inches from a point formed by the intersection of the northerly side of Catharine Street, 50 feet wide, produced eastwardly and the easterly side of said Delaware Avenue; thence extending along said Delaware Avenue and Bulkhead Line, north 01 degree 05 minutes 56 seconds east, the distance of 434 feet 3 1/2 inches and crossing the head of a 50-foot wide proposed easement to a point on the north house line of South Street, 50 feet wide, produced eastward; thence extending along the said produced house line of South Street and along the northerly side of said easement, south 78 degrees 57 minutes 59 seconds east, the distance of 539 feet 5/8 inches to a point on the Pierhead Line established by the Secretary of War, September 10, 1940; thence extending along said Pierhead Line south 00 degrees 46 minutes 33 seconds west, the distance of 445 feet 11 3/8 inches to a point; thence extending north 77 degrees 48 minutes 10 seconds west, the distance of 543 feet 7 3/4 inches to a point on the said easterly side of Delaware Avenue and Bulkhead Line and place of beginning. Being known as Pier #28 South.
(c) Approval.--The lease and any other documents hereby contemplated shall be approved by the Attorney General and shall be executed by the Department of General Services, with the approval of the Department of Environmental Resources, in the name of the Commonwealth of Pennsylvania. The lease shall grant the lessee, City of Philadelphia, the right to sublease or permit the sublease of the above-described premises for the purposes of development for residential, office, commercial, condominium, hotel, marina or other uses, and the lease shall specifically include the following conditions:
UNDER AND SUBJECT, nevertheless, to the condition that if
the said Lessee, City of Philadelphia, should sublease or
permit the sublease of or otherwise transfer the above-
described premises during said Initial Term other than to
a department or agency or political subdivision of the
City or to the Commonwealth of Pennsylvania or a
department or agency or political subdivision of the
Commonwealth, the net rentals received by the said
Lessee, City of Philadelphia, upon such sublease or
transfer shall be received, held, and applied as follows:
First, to reimburse said Lessee, City of Philadelphia,
for the costs and expenses of said sublease or transfer,
including, without limitation, appraisal fees, title
insurance charges, marketing costs, attorneys' fees, and
other costs and expenses, similar and dissimilar;
Second, to reimburse said Lessee, City of Philadelphia,
or any department or agency or political subdivision
thereof, for the cost of any improvements now or
hereafter erected on the above-described premises,
including, without limitation, the cost of any piers,
wharves, bulkheading, water and sewer lines and
connections, and other improvements, similar or
dissimilar, and the fair market value of any rights to
develop space over the above-described premises; and
Third, the balance of said net rentals shall be paid
fifty percent (50%) to the said Lessor, Commonwealth of
Pennsylvania, or its designee or assignee, and fifty
percent (50%) to the said Lessee, City of Philadelphia,
or its designee or assignee, in consideration of their
respective interests in the above-described premises
pursuant to said Lease.
AND FURTHER PROVIDED, that if the said Lessee, City of
Philadelphia, should sublease or permit the sublease of
or otherwise transfer the above-described premises during
the said Renewal Term other than to a department or
agency or political subdivision of the City or to the
Commonwealth of Pennsylvania or a department or agency or
political subdivision of the Commonwealth, the City of
Philadelphia shall require payment of quarter-annual or
other more frequent periodic payments of rent
representing the Fair Market Value Rent for that portion
of the said lands subleased or otherwise transferred as
of the date of the commencement of the Renewal Term, and
such Fair Market Value Rent shall be received, held and
applied in accordance with subparagraphs First, Second
and Third above.
The "Fair Market Value Rent" shall be the rent which a
willing tenant would pay to a willing landlord pursuant
to an arm's-length transaction for the Lease of that
portion of the premises as if it were a parcel improved
with roads and utilities, but exclusive of the other
improvements constructed thereon, as determined by one
Appraiser selected jointly by the City and the
Commonwealth, or, if the City and the Commonwealth do not
agree on the selection, by three (3) Appraisers selected
as follows: one Appraiser shall be selected by the
Commonwealth, one Appraiser shall be selected by the
City, and one Appraiser shall be selected by the
Appraisers selected by the City and the Commonwealth;
provided, however, that, if the Appraisers selected by
the City and the Commonwealth are unable to agree upon
the third Appraiser, then the third Appraiser shall be
selected by the President Judge of the Philadelphia Court
of Common Pleas, or his or her successor. The term
"Appraiser" shall mean a person who has been engaged in
the business of appraising multifamily residential and
commercial real estate within the area of the City of
Philadelphia for a period of at least five (5) years
prior to the date of his or her designation, and shall be
then a member of the American Institute of Real Estate
Appraisers, or any successor thereto then in existence,
or any other body or organization similar in nature to
the American Institute of Real Estate Appraisers if the
American Institute of Real Estate Appraisers is not then
in existence. Each Appraiser shall designate the Fair
Market Value Rent, and the rent payable during the
Renewal Term shall be the sum determined by adding the
total of the Fair Market Value Rent designated by each
Appraiser and dividing such total by the number of
Appraisers. The cost of the services of said Appraisers
shall be divided equally between the City and the
Commonwealth.
(d) Nondisturbance agreements.--The Department of General Services, with the concurrence of the Department of Environmental Resources, acting on behalf of the Commonwealth of Pennsylvania, is also specifically authorized to enter into one or more nondisturbance agreements with any sublessee of the premises described in this section pursuant to which the Commonwealth will agree that, if the Commonwealth succeeds to the interest of the City of Philadelphia under said sublease, it will not terminate said sublease unless said sublessee is in default thereunder.
(e) Leasehold condominium.--The Department of General Services, with the approval of the Attorney General, is hereby authorized to execute, on behalf of the Commonwealth of Pennsylvania, any declaration or other document necessary to submit these premises or any portion thereof and any improvements thereon to the provisions of 68 Pa.C.S. Part II Subpt. B (relating to condominiums) as a leasehold condominium.
(f) Use of lease revenues.--All lease revenues generated by the properties described in this section shall, less the costs described in subsection (c), be split evenly between the City of Philadelphia and the Commonwealth. The city's share shall be for the exclusive use, for maritime purposes, of the Philadelphia Port Corporation and subsidiaries thereof, or any successor entity, or in the event that such entities cease to exist following any unification or consolidation of port operations, the appropriate managing entity for operations at the Port of Philadelphia as recognized and designated by the Commonwealth.
(g) Definition.--As used in this section, the term "maritime purposes" means activities directly related to the handling of cargo or passengers for import or export through the Port of Philadelphia.
Compiler's Note: The Department of Environmental Resources,
referred to in this section, was abolished by Act 18 of
1995. Its functions were transferred to the Department of
Conservation and Natural Resources and the Department of
Environmental Protection.