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Adding a new Chapter 9-5700, entitled "Leasing of Commercial Property," to require commercial lessors to provide certain disclosures before entering lease agreements and to provide related protections to tenants, all under certain terms and conditions.

View file history View official file on Legistar →

File details

Status
Enacted
Type
Bill
Introduced
November 18, 2021
Sponsors
CPCouncilmember ParkerCindy BassJamie GauthierMark SquillaCurtis Jones, Jr.Isaiah ThomasCQCouncilmember Quiñones SánchezKatherine Gilmore RichardsonBrian J. O'NeillKendra BrooksCDCouncilmember DombCGCouncilmember Gym

Full Bill

THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Title 9 of The Philadelphia Code is hereby amended to read as follows:

TITLE 9. REGULATION OF BUSINESSES, TRADES AND PROFESSIONS

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CHAPTER 9-5700. LEASING OF COMMERCIAL PROPERTY.

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§ 9-5701. Definitions.

In this Chapter, the following definitions shall apply:

(1)

Lease Terms. The terms and conditions of occupancy of a Commercial Property, which may include, but not be limited to, the proposed date for the Lessee to begin making payment to lease the Commercial Property, date for the Lessor to deliver the Commercial Property to the Lessee, and term of months or years for the Lessee to occupy the Commercial Property after delivery by the Lessor.

(2)

Commercial Property. Real property, including any part, portion, or unit thereof, for use primarily to conduct activities of business, industry or trade, which activities shall exclude any principal residential use, as set forth in subsection 14-601(2).

(3)

Lessee. Any person or entity that seeks to rent, lease, or obtain the use of a Commercial Property from a Lessor under the terms of an oral or written agreement.

(4)

Lessor. An owner of a Commercial Property or any person or entity that is engaged in the business of renting or leasing Commercial Property under rental or leasing agreements on behalf of a Commercial Property owner.

§ 9-5702. Disclosure Required.

(1)

Except as provided for in Section 9-5702(1)(b), no Lessor shall enter into an agreement to rent a Commercial Property with a Lessee who is not party to an existing lease agreement for such property,

until the Lessee has been afforded an opportunity to determine the zoning and approved uses of the Commercial Property after receiving the commercial leasing disclosures required by this Section.

(a) Upon presenting the Lease Terms for a Commercial Property, Lessor shall provide the Lessee, and retain a copy of, the following commercial leasing disclosures, as set forth in a form made available online by the Office of the Managing Director or its designee:

(i) A commercial leasing notice explaining how to determine the zoning and approved uses of the Commercial Property available for lease.

(ii) An acknowledgement form, signed by the Lessor and the Lessee, indicating that:

(.a) the Lessee was provided the commercial leasing notice set forth in Section 9-5702(1)(a)(i);

(.b) the Lessee was informed of their right, before becoming obligated under contract to lease, to no less than a seven (7) day opportunity to determine the zoning and approved uses of the Commercial Property after receiving the commercial leasing notice; and

(iii) both Lessor and Lessee have been provided signed copies of the acknowledgement form.

(b) The requirements of subsection (a) shall be followed unless (i) at the time the Lease Terms for the Commercial Property are presented,

Lessee is represented by an attorney or licensed Pennsylvania real estate agent who is neither subject to the control or influence of, nor also representing, the Lessor; or (ii) the Lessor and Lessee

mutually agree upon a different review period after provision of the required disclosures by a separate writing signed and provided to both parties. Nothing in this Section shall prevent a Lessor from granting, or a Lessee from requesting, a review opportunity of more than seven (7) days.

(2)

Once the City makes the disclosures required by this Section publicly available, neither failure to possess the disclosures required by this Section nor inability to obtain such disclosures from a City website shall excuse a Lessor from compliance with this Section.

(3)

A Lessee shall have a private right of action against any Lessor who falls to comply with the requirements of this Section and may recover, for each such violation, actual damages, punitive damages not to exceed $2,000 per violation, reasonable attorneys’ fees and court costs to the extent allowed by law, and such other relief, including injunctive relief, as the court may deem appropriate. This subsection 9-5702(3) in no way limits the rights of a Lessee to pursue any legal rights and claims they may possess under a written agreement or any other applicable law.

SECTION 2. Effective Date. This Ordinance shall become effective sixty (60) days after it is enacted into law.

End

Timeline

File history

A file can move through several public steps, including introduction, hearings, amendments, votes and final action. This timeline puts those events in date order, groups routine entries from the same day, and attaches published member votes to the action they record.

  1. Council ActionMAYOR

    SIGNED

    Other recorded action without a published tally.

    Official action detail

    This Bill was SIGNED.

    Source: LegislationDetail.aspx · gridLegislation

  2. Member voteCITY COUNCIL

    READ AND PASSED

    Member-by-member vote published for this action.

    Pass17 Yes · 0 No · 0 AbsentView member votes →
    Official action detail

    A motion was made that this Bill be READ AND PASSED. The motion carried by the following vote:

    Member votes

    MemberVote
    Allan DombYes
    Bobby HenonYes
    Brian J. O'NeillYes
    Cherelle ParkerYes
    Cindy BassYes
    Curtis Jones, Jr.Yes
    Darrell L. ClarkeYes
    David OhYes
    Derek S. GreenYes
    Helen GymYes
    Isaiah ThomasYes
    Jamie GauthierYes
    Katherine Gilmore RichardsonYes
    Kendra BrooksYes
    Kenyatta JohnsonYes
    Maria D. Quiñones-SánchezYes
    Mark SquillaYes

    Source: LegislationDetail.aspx · gridLegislation

  3. Council ActionCITY COUNCIL

    READ

    Other recorded action without a published tally.

    Official action detail

    This Bill was READ.

    Source: LegislationDetail.aspx · gridLegislation

    2 procedural actionsCITY COUNCIL
    ProceduralCITY COUNCIL

    ORDERED PLACED ON FINAL PASSAGE CALENDAR FOR NEXT MEETING.

    Official action detail

    This Bill was ORDERED PLACED ON FINAL PASSAGE CALENDAR FOR NEXT MEETING..

    Source: LegislationDetail.aspx · gridLegislation

  4. 3 published history entriesAction details not yet available
  5. 4 procedural actionsCommittee on Commerce & Economic Development
    ProceduralCommittee on Commerce & Economic Development

    REPORTED FAVORABLY, RULE SUSPENSION REQUESTED

    Official action detail

    This Bill was REPORTED FAVORABLY, RULE SUSPENSION REQUESTED.

    Source: LegislationDetail.aspx · gridLegislation

    ProceduralCommittee on Commerce & Economic Development

    AMENDED

    Official action detail

    This Bill was AMENDED.

    Source: LegislationDetail.aspx · gridLegislation

    ProceduralCommittee on Commerce & Economic Development

    HEARING HELD

    Official action detail

    This Bill was HEARING HELD.

    Source: LegislationDetail.aspx · gridLegislation

    ProceduralCommittee on Commerce & Economic Development

    HEARING NOTICES SENT

    Official action detail

    This Bill was HEARING NOTICES SENT.

    Source: LegislationDetail.aspx · gridLegislation

  6. ProceduralCITY COUNCIL

    Introduced and Referred

    Official action detail

    This Bill was Introduced and Referred.to the Committee on Commerce & Economic Development

    Source: LegislationDetail.aspx · gridLegislation