New School As a Result of Joint Development Agreement Between a School District and a Private Developer

In Lobolito, Inc. v. North Pocono School Dist., 722 A.2d 249 (Pa. Cmwlth. 1998) the Supreme Court identified the construction of a new school as the "crux" of a joint development agreement between a school district and a private developer who proposed to construct a sewage treatment facility to service the new school when constructed. The Authority contends that the "crux" of the School Pool program is to enable construction of school capital projects across the state. Regarding State Street Bank & Trust Co. v. Commonwealth, Treasury Department, 712 A.2d 811 (Pa. Cmwlth. 1998) the Authority proffers that funds held in the School Pools for school construction are no less public than funds held by the Treasurer. As well, the Authority acts as the school districts' alter ego by providing financing. The Authority notes that authorities may be organized for a wide variety of purposes under Section 5607(a)(1) - (17) of the Act, 53 Pa. C.S. 5607(a)(1) - (17). There is a general ban on competition with private enterprise, Section 5607(b)(2), 53 Pa. C.S. 5607(b)(2), but the ban does not extend to enumerated purposes under Section 5607(b)(2)(iv). The Section 5607(b)(2)(iv) exception applies in pertinent part to "school building projects and facilities to be leased to or financed with loans to private, nonprofit, nonsectarian secondary schools, colleges and universities, State-related universities and community colleges...."