PRINTER'S NO. 1772
No. 1426 Session of 2003
INTRODUCED BY KELLER, TIGUE, LEDERER, CAPPELLI, COSTA, HENNESSEY, HORSEY, JOSEPHS, LAUGHLIN, LEACH, McGEEHAN, McNAUGHTON, PRESTON, RUFFING, SOLOBAY, THOMAS, WATSON, YOUNGBLOOD AND YUDICHAK, MAY 12, 2003
REFERRED TO COMMITTEE ON URBAN AFFAIRS, MAY 12, 2003
AN ACT 1 Amending the act of May 24, 1945 (P.L.991, No.385), entitled "An 2 act to promote elimination of blighted areas and supply 3 sanitary housing in areas throughout the Commonwealth; by 4 declaring acquisition, sound replanning and redevelopment of 5 such areas to be for the promotion of health, safety, 6 convenience and welfare; creating public bodies corporate and 7 politic to be known as Redevelopment Authorities; authorizing 8 them to engage in the elimination of blighted areas and to 9 plan and contract with private, corporate or governmental 10 redevelopers for their redevelopment; providing for the 11 organization of such authorities; defining and providing for 12 the exercise of their powers and duties, including the 13 acquisition of property by purchase, gift or eminent domain; 14 the leasing and selling of property, including borrowing 15 money, issuing bonds and other obligations, and giving 16 security therefor; restricting the interest of members and 17 employes of authorities; providing for notice and hearing; 18 supplying certain mandatory provisions to be inserted in 19 contracts with redevelopers; prescribing the remedies of 20 obligees of redevelopment authorities; conferring certain 21 duties upon local planning commissions, the governing bodies 22 of cities and counties, and on certain State officers, boards 23 and departments," further providing for provisions of the 24 redevelopment contract; and making repeals. 25 The General Assembly of the Commonwealth of Pennsylvania 26 hereby enacts as follows: 27 Section 1. Section 11 of the act of May 24, 1945 (P.L.991, 28 No.385), known as the Urban Redevelopment Law, amended October
1 2, 2002 (P.L.796, No.113), is amended to read: 2 Section 11. Provisions of the Redevelopment Contract.-- 3 (a) The contract between the Authority and a redeveloper 4 shall contain, without being limited to, the following 5 provisions: 6 (1) A legal description of the redevelopment area covered by 7 the contract, and a covenant running with land to the effect 8 that no person shall be deprived of the right to live in the 9 redevelopment project, or to use any of the facilities therein 10 by reason of race, creed, color or national origin, and such 11 other easements, or other rights as are to be reserved therein 12 by the Authority; 13 (2) Plans and such other documents as may be required to 14 show the type, material, structure and general character of the 15 redevelopment project; 16 (3) A statement of the use intended for each part of the 17 project; 18 (4) A guaranty of completion of the redevelopment project 19 within specified time limits which guaranty shall include 20 provisions for the forfeiture of title, in such form and manner 21 as the Authority may prescribe, in the event that the project is 22 not completed timely; 23 (4-1) A requirement that every prime contract for 24 construction, installation, alteration, repair of, or addition 25 to, the redevelopment project, where the estimated cost shall 26 exceed $10,000.00, shall contain a provision obligating the 27 prime contractor to the prompt payment of all material 28 furnished, labor supplied or performed, rental for equipment 29 employed, and services rendered by public utilities in or in 30 connection with the prosecution of the work, whether or not, the 20030H1426B1772 - 2 -
1 said material, labor, equipment and services enter into and 2 become component parts of the work or improvement contemplated. 3 Such provision shall be deemed to be included for the benefit of 4 every person, co-partnership, association or corporation, who as 5 subcontractor, or otherwise, has furnished material, supplied or 6 performed labor, rented equipment, or supplied services in or in 7 connection with the prosecution of the work as aforesaid, and 8 the inclusion thereof in any contract shall preclude the filing 9 by any such person, co-partnership, association or corporation 10 of any mechanics' lien claim for such material, labor or rental 11 of equipment, and further requiring that the [contractor shall 12 give to the redeveloper an appropriate bond] redeveloper shall 13 provide to the Authority evidence of financial security for the 14 prompt payment by the prime contractor for materials, supplies, 15 labor, services and equipment. Such financial security shall 16 equal 100% of the contract amount and may include, but not be 17 limited to, an appropriate bond from a surety company authorized 18 to do business in this Commonwealth, an irrevocable letter of 19 credit from a Federal or Commonwealth Chartered Lending 20 Institution and/or a restrictive or escrow account, and shall be 21 in such form as the Authority may prescribe; 22 (5) A provision that the redeveloper shall be without power 23 to sell, lease or otherwise transfer the redevelopment area, or 24 project, or any part thereof, without the prior written consent 25 of the Authority, until the Authority shall have certified in 26 writing that the redevelopment project has been completed; 27 (5-1) For all projects in which the estimated construction 28 costs exceed $1,000,000.00, a requirement that the redeveloper 29 shall provide to the Authority, and shall cause each prime 30 contractor to provide or submit to, a project cost certification 20030H1426B1772 - 3 -
1 performed by one or more independent, third-party certified 2 public accountants establishing the actual total construction 3 costs incurred and paid by the redeveloper and each prime 4 contractor in connection with the redevelopment project. The 5 receipt of the construction cost certification shall be a 6 condition for receiving a certificate of completion; 7 (6) The amount of the consideration to be paid by the 8 redeveloper to the Authority; 9 (7) Adequate safeguards for proper maintenance of all parts 10 of the project; 11 (8) Prohibition against discrimination in the use, sale or 12 lease of any part of the project against any person because of 13 race, color, religion or national origin; 14 (9) Such other continuing controls as may be deemed 15 necessary to effectuate the purposes of this act; 16 (b) Any deed or lease to a redeveloper in furtherance of a 17 redevelopment contract shall be executed in the name of the 18 Authority, by its proper officers, and shall contain in addition 19 to all other provisions, such provisions as the Authority may 20 deem desirable to run with the land in order to effectuate the 21 purposes of this act; 22 (c) Any lease to a redeveloper may provide that all 23 improvements shall become the property of the Authority. The 24 execution of such a lease shall not in itself impose upon the 25 Authority any liability for or by reason of the financing, 26 construction, management or operation of any redevelopment 27 project. 28 Section 2. All rights, duties and obligations arising under 29 any redevelopment contract awarded by an Authority prior to the 30 effective date of this act shall continue to be governed by the 20030H1426B1772 - 4 -
1 provisions of the law in effect at the time of such award. 2 Section 3. (a) The following acts and parts of acts are 3 repealed: 4 Section 8(1) of the act of December 30, 2002 (P.L.2001, 5 No.230), entitled "An act amending Title 53 (Municipalities 6 Generally) of the Pennsylvania Consolidated Statutes, providing 7 for acceptance of gifts or donations; further providing for 8 powers and duties of the Municipal Police Officers' Education 9 and Training Commission; prohibiting political activity by 10 municipal police officers; further providing, in parking 11 authorities, for definitions, for purposes and powers and for 12 special provisions for authorities in first class cities; 13 providing, in parking authorities in first class cities, for 14 additional special provisions, for management of authority 15 funds, for special funds, for bonds, for contracts with 16 authority obligees, for Commonwealth pledges, for bond and trust 17 indentures, for funds collected, for bonds as legal investments, 18 for pledge validity, for security interests in funds and 19 accounts and for bankruptcy limitations; further providing for 20 municipal authority governing bodies and money; providing for 21 regulation of taxicabs and limousines in first class cities; 22 further providing for governing body of municipal authorities 23 and for certain fiscal reporting; codifying the act of June 27, 24 1986 (P.L.267, No.70), known as the Pennsylvania Convention 25 Center Authority Act; defining "expansion or substantial 26 renovation"; further providing for purposes and powers and for 27 capital and operating budgets; providing for expansion funding; 28 further providing for governing board, for moneys of the 29 authority, for award of contracts, for interests of public 30 officers and for rental tax; making an appropriation; and making 20030H1426B1772 - 5 -
1 repeals." 2 53 Pa.C.S. Ch. 58. 3 (b) The act of December 20, 1967 (P.L.869, No.385), known as 4 the Public Works Contractors' Bond Law of 1967, is repealed 5 insofar as it is inconsistent with this act. 6 Section 4. This act shall take effect immediately. C10L14MRD/20030H1426B1772 - 6 -