36 Pa. Stat. § 961-15
The Secretary of Highways, with the approval of the Governor, and any such city of the first class are hereby authorized to enter into agreements for the taking, opening, relocation, widening or change of grade by the Commonwealth of any State highway or section thereof within the limits of such city. Such agreements may provide, inter alia, for the payment by the city of all or part of the property damages resulting by reason of the taking, opening, relocation, widening or change of grade by the Commonwealth of such highway or section thereof.
The amount of damages payable for such taking, opening, relocation, widening or change of grade by the Commonwealth shall be ascertained in accordance with existing laws relating to the payment of damages for the taking, opening, relocation, widening or change of grade of State highway routes. Each city of the first class is hereby appointed and constituted the agent of the Commonwealth in the taking, opening, relocation, widening or change of grade of any such highway or section thereof within its limits and in the determination of property damages payable therefor under the provisions of this act. The city as agent for, and on behalf of, the Commonwealth shall determine by amicable settlement, legal proceedings or otherwise all claims for damages in accordance with the procedure established by law for the determination of damages resulting from the exercise of eminent domain by cities of the first class: Provided, however, That no agreement for the settlement of any claim for damages shall become effective until approved by the Secretary of Highways, and the Secretary of Highways shall at the expense of the Commonwealth have the right to be represented by counsel and witnesses in any judicial proceedings to ascertain the damages payable, but all other expenses of such judicial proceedings, exclusive of damages, shall be paid by the city. The damages resulting from such taking, opening, relocation, widening or change of grade of any such street or section thereof, when finally ascertained, whether by settlement, award, judgment or otherwise, shall be paid out of moneys in the Motor License Fund, and all sums, if any due by such city as its share thereof under any such an agreement with the Commonwealth, shall be paid by such city to the Commonwealth and shall be credited in the Motor License Fund.
36 P.S. § 961-15