Section 73.311. Subleasing

(a) Industrial development projects:

(1) No portion of the project may be leased to unrelated third parties without the prior written consent of PIDA and the following apply:

(i) When subleasing to an eligible activity, such as manufacturing and industrial, the leased space may not exceed 49% of the total square footage.

(ii) When subleasing to an ineligible activity, such as commercial, the leased space may not exceed 15% of the total square footage.

(2) The total square footage to be subleased may not exceed 49%.

(3) If PIDA consents to the lease, the lessor may be required to pay or cause to be paid to PIDA as a prepayment on the loan a portion of the gross rentals.

(b) Multiple-tenancy building projects and industrial park projects:

(1) No portion of the project may be used for an ineligible activity, such as commercial, service or retail, without the prior written consent of PIDA. If the industrial development agency or investor-developer is leasing to a private firm that is providing support services, such as accounting, legal and general office services to most of the eligible tenants or occupants, a lease of up to 20% of the total square footage may be approved by PIDA. If the industrial development agency or investor-developer is leasing to a nonrelated ineligible activity, a lease of no more than 15% of the total square footage may be approved by PIDA.

(2) Leases for eligible activities including, without limitation, manufacturing, industrial, and the like shall continue to be at the discretion of the industrial development agency or investor-developer.

The provisions of this § 73.311 adopted and renumbered from § 303.81, March 20, 1992, effective March 21, 1992, 22 Pa.B. 1270; amended October 19, 2007, effective October 20, 2007, 37 Pa.B. 5601. Immediately preceding text appears at serial pages (230924) to (230925).