(a) Establishment of districts.--The governing body of any municipality or municipal authority, acting singly or in cooperation with one or more other municipalities or municipal authorities, may establish within the boundaries of the municipality or municipalities, or in the case of a municipal authority within the boundaries of the municipality or municipalities that organized the municipal authority, a specific area or areas designated as a transportation development district for the purpose of planning, financing, acquiring, developing, constructing and operating transportation facilities or transportation services within the district, provided that the proposed projects expand or improve existing transportation facilities or services. However, a municipal authority may not designate or join in the designation of an area or areas as a transportation development district without the express approval of the governing body or bodies of the municipality or municipalities that organized that municipal authority. An area shall not be designated as a transportation development district for the purpose of maintaining or repairing an existing facility. All properties having a substantial relationship to the proposed transportation facility or service shall be considered benefited by the facility or service and shall be included in the transportation development district.

(b) Facility projects.--Transportation facility projects which may be undertaken within a district shall include any system of public highway or passenger transportation, including, but not limited to, local streets, roads, sidewalks, alleys, passageways, traffic-control systems, structures, roadbeds, railroads, buses, trolleys, subways and other equipment for public passenger transportation; guideways, elevated structures, buildings, stations, terminals, docks, shelters, waterways, ferryboats, airports and parking areas for use in connection with any of the foregoing; tunnels, systems for connecting transportation routes or corridors, and rights-of-way therefor; communication systems, equipment, furnishings, paving or any other materials required for any of the foregoing; or any fractional or undivided coownership interest in any one or combination of any of the foregoing that may be deemed by the municipality or municipal authority to be necessary and desirable, provided that a facility project may not include the maintenance or repair of existing facilities.

(c) Service projects.--Transportation service projects which may be undertaken within a district shall include any system of public passenger transportation by any mode and the salaries and costs associated therewith, the provision of any system of public highway transportation and the salaries and costs associated therewith, and any method by which a municipality or municipal authority provides, plans for, implements, undertakes or otherwise makes available to the public transportation facilities and any method by which a municipality or municipal authority operates, provides, maintains or holds out for the public transportation benefits under the provisions of this act.

(d) Governing body.--The governing body of a municipality or municipal authority designating a transportation development district may exercise all powers otherwise granted by law to such municipality or municipal authority in order to plan, finance, develop, improve or operate any transportation facilities or services, including, but not limited to, the appropriation and expenditure of funds, and the acquisition, by gift, purchase or eminent domain, of land, real property or rights-of-way needed for the purpose of transportation facilities or services within the district.