Pennsylvania Code
Title 67 - TRANSPORTATION
Part I - Department of Transportation
Subpart B - Nonvehicle Code Provisions
Article V - General Procedures
Chapter 495 - LEASING OF REAL PROPERTY
Section 495.6 - Terms

Universal Citation: 67 PA Code ยง 495.6

Current through Register Vol. 54, No. 44, November 2, 2024

(a) Rental. In determining the annual rental to be paid by the lessee, the Department will take into account all relevant factors, including the character and nature of the lessee and proposed sublessees, the rental customarily charged for other rental properties in the vicinity used for similar purposes, and any public purpose to be served or advanced by the intended use of the real property.

(b) Federal, State, and local statutes and regulations. Leases will be subject to applicable Federal, State and local statutes, ordinances, regulations, comprehensive planning, and zoning; and the lessee and sublessees shall be responsible for compliance therewith and for payment of costs of compliance including but not limited to, preparation of required environmental statements and providing notice of opportunity for and holding of public hearings.

(c) Exempt from claims. The lessee and a sublessee will be required to hold the Department and its employes harmless from claims which may accrue on account of the use of the real property by the lessee or sublessee and shall be required to purchase insurance against injury to persons and damage to property in an amount as the Department deems reasonably necessary.

(d) Improvements to property. Upon termination of the lease, the lessee and sublessees shall, at the option of the Department, abandon improvements they may have made to the real property or restore the premises to their previous condition. The Department may require the posting of a bond, in an amount as the Department deems necessary, to insure compliance with this and other terms of the lease.

(e) Termination. Leases and subleases shall be subject to the Secretary's right of termination upon prior written notice to the lessee and sublessees when, in the opinion of the Secretary, the real property subject to the lease is required to improve safety or flow of traffic.

(1) Upon such termination the Department will pay damages to the lessee and sublessees as may be provided in the lease; or, absent a damages provision in the lease, the Department will pay damages as the Secretary determines to be reasonable under the circumstances, taking into account relevant factors, including the initial cost of the improvements located on the real property and repairs and replacements thereof, the age of improvements, the replacement cost thereof, and the cost of removal of improvements by the lessee or sublessees. Neither the lessee nor sublessees shall be entitled to damages on account of termination other than those provided in this paragraph.

(2) Upon termination by the Secretary under this subsection, the Department will use its best efforts to provide the lessee and sublessees with other leased premises on real property held by the Department in which they may relocate their improvements and upon which they may continue to conduct the activities or businesses which were carried on at the former site prior to termination.

(f) Use of premises. Use of premises shall be subject to the following conditions:

(1) If the Department has only an aerial easement, no lease may be entered into under this chapter.

(2) If the Department has an easement for highway purposes, only highway-related uses may be made of the leased premises, for example, public parking with or without charge, unless the lessee or sublessee is the owner of the underlying fee, in which case paragraph (3) applies.

(3) If the Department holds title in fee simple, any use may be made of the leased premises which the Department determines to be consistent with the public interest and not inconsistent with the Department's use of its facilities.

(g) Repossession. The Department will be entitled to repossess the premises upon violation by the lessee or sublessee of a term of the lease.

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