Opinion ID: 1993667
Heading Depth: 1
Heading Rank: 1

Heading: The transaction resulted from negotiated agreements rather than from competitive bidding

Text: We have already considered whether and to what extent competitive bidding is required in this kind of transaction. In that part of this Opinion relating to the Rittenhouse Square Project, I have pointed out that in the Parking Authority Law of 1947, as amended, the only requirement of competitive bidding refers to construction done by the Authority where the entire cost exceeds $1000. As the learned chancellor stated in his adjudication, the chairman of the Authority testified without contradiction that the Authority intends to follow this procedure in contracting for the construction of the garage. Therefore, the plaintiffs can have and should have no complaint in this respect. So far as the lease of the air rights for the construction of the superstructure is concerned, competitive bidding is not required. As in the case of Rittenhouse Square Project, the transaction did not lend itself to competitive bidding because of its uniqueness. To make the Project a sound economically feasible development, the site occupied by the John Bartram Hotel was required. It would have been futile and useless to demand competitive bidding for lease of air space, a substantial part of which includes space above the ground on which the old John Bartram Hotel now rests. Once it is concluded (as it must be) under the Parking Authority Law that the Parking Authority has the power to build a garage and lease the space above it, it must inevitably follow that to require competitive bidding under the peculiar circumstances here involved would be to demand the performance of a vain act. Accordingly, it was legal and proper to negotiate the contract. Silsby Mfg. Co. v. Allentown, supra. Again, as I also pointed out in that part of this Opinion relating to the Rittenhouse Square Project, there was no requirement for following competitive bidding procedures in so far as the lease of the first floor of the garage was concerned. In holding to the contrary, the Majority completely confuses the difference between contracting on a fair competitive basis and contracting as a result of competitive bidding. Under the circumstances of this case, the entire project was leased on a fair competitive basis. There is no showing to the contrary.