CHAPTER 11. GARY BUILDING AUTHORITY
IC 36-10-11
Chapter 11. Gary Building Authority
IC 36-10-11-1
Application of chapter
Sec. 1. This chapter applies to a city having a population of morethan ninety thousand (90,000) but less than one hundred fivethousand (105,000).
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.12-1992,SEC.197; P.L.170-2002, SEC.177.
IC 36-10-11-2
Definitions
Sec. 2. As used in this chapter:
"Authority" refers to a building authority created under thischapter.
"Building" means a structure or a part of a structure used for acivic center or a facility that is owned by the city and used by aprofessional sports franchise, including the site, landscaping,parking, heating facilities, sewage disposal facilities, and otherrelated appurtenances and supplies necessary to make the buildingsuitable for use and occupancy.
"Governmental entity" means a state agency, state university, orpolitical subdivision.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.178-2002,SEC.136.
IC 36-10-11-3
Creation; procedure; issuance of general obligation bonds by cityfor construction of civic center prohibited
Sec. 3. (a) The city legislative body may adopt an ordinance tocreate a separate municipal corporation under this chapter known asthe "_________ Building Authority" (inserting the name of the city)to finance, construct, equip, operate, and lease land and buildings tothe governmental entities within the county in which the authority iscreated.
(b) The clerk of the city shall certify a copy of the ordinance andfile the copy with the county recorder of the county in which theauthority is created. When certified and filed, the ordinance isevidence in a civil action of the creation of the authority.
(c) The city may not issue general obligation bonds of the city tofinance the cost, in whole or in part, of the construction oracquisition of any building for use as a civic center. For purposes ofthis section, the city includes any governmental entity that containsany territory of the city.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.2-1995,SEC.139.
IC 36-10-11-4
Trustees; appointment; terms; vacancies; oath Sec. 4. (a) Within fifty (50) days after the adoption of theordinance, the city executive shall appoint three (3) trustees and thecity legislative body shall appoint two (2) trustees of the authority.All of the trustees must be at least twenty-one (21) years of age andresidents of the city for at least five (5) years before appointment.
(b) Initial terms of the trustees are as follows:
(1) The legislative body's appointees for terms of two (2) years.
(2) One (1) of the executive's appointees for a term of three (3)years.
(3) Two (2) of the executive's appointees for terms of four (4)years.
At the expiration of a term, the appointing authority shall appoint asuccessor for a four (4) year term. Each trustee serves until hissuccessor is appointed and qualified.
(c) If a trustee dies, resigns, ceases to be a resident of the city,fails to qualify for office within ten (10) days after he receives noticeof his appointment, or is removed for cause, the appointing authorityshall appoint another person as trustee for the remainder of that term.
(d) Each trustee, before entering upon his duties, shall take andsubscribe an oath of office to be endorsed upon his certificate ofappointment. The certificate shall be filed with the city clerk.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-5
Trustees; removal; procedure
Sec. 5. A trustee may be removed from office for good cause byan order of the judge of the circuit or superior court of the county inwhich the authority is located, subject to the procedure of thissection. A complaint stating the preferred charges may be filed byany person against a trustee. The cause shall be placed on theadvanced calendar and be tried as other civil causes are tried by thecourt without the intervention of a jury.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-6
Trustees; meetings; selection of directors and officers
Sec. 6. The trustees originally appointed shall meet within thirty(30) days after their appointment. At this meeting the trustees shallappoint the directors of the authority and shall elect the followingofficers from among their number:
(1) President.
(2) Vice president.
(3) Secretary.
The officers serve until the first Monday in January following theirelection. The trustees shall meet annually on the first Monday inJanuary to reorganize, to appoint directors, and to transact business.Additional meetings may be called by the president or set at regularintervals by the trustees.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-7
Trustees; rules; reimbursement of expenses
Sec. 7. The trustees may adopt the rules that they considernecessary for the proper conduct of their proceedings. Trustees servewithout pay but are entitled to reimbursement for any expensesnecessarily incurred in the performance of their duties.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-8
Trustees; conflicts of interest
Sec. 8. A trustee may not have any pecuniary interest in anycontract, employment, purchase, or sale made under this chapter. Atransaction in which any trustee has a pecuniary interest is void.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-9
Trustees; appointment of board of directors; qualifications;tenure; conflicts of interest
Sec. 9. The trustees shall appoint by majority vote a board of five(5) directors. The directors must meet the same qualifications,subscribe to the same oath, and receive the same reimbursements astrustees. The directors serve for one (1) year following theirappointment and until their successors are appointed and qualified.A director may not have any pecuniary interest in any contract,employment, purchase, or sale made under this chapter. Anytransaction in which any director has a pecuniary interest is void.Vacancies shall be filled by the trustees. The trustees may remove adirector for cause at any time.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-10
Board of directors; meetings; officers; bylaws; quorum; approvalof actions
Sec. 10. (a) Not later than thirty (30) days after the directors areappointed, and on the first Monday of each following February theyshall hold a meeting for the purpose of organization. They shall electthe following officers from among their members:
(1) President.
(2) Vice president.
(3) Secretary.
(4) Treasurer.
The officers shall perform the duties usually pertaining to thoseoffices. The officers serve from the date of their election until theirsuccessors are elected and qualified.
(b) The directors may adopt bylaws and rules necessary for theproper conduct of their proceedings, the carrying out of their duties,and the safeguarding of the funds and property of the authority. Inaddition to the annual meeting, other regular and special meetingsshall be held at the times that they determine and upon public noticethat they fix, either by resolution or in accordance with the
provisions of the bylaws. A majority of the directors constitutes aquorum. A majority is necessary to authorize any action.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-11
Preliminary expenses; payment; reimbursement
Sec. 11. (a) All necessary preliminary expenses actually incurredin the:
(1) making of surveys;
(2) estimates of cost and receipts;
(3) employment of engineers or other employees;
(4) giving of notices;
(5) taking of options; and
(6) all other expenses necessary to be paid before the issue anddelivery of bonds or the negotiation of the loan under thischapter;
may be met and paid out of funds provided by the city from funds onhand or derived from taxes levied for that purpose.
(b) The funds of the city from which payments are made shall befully reimbursed and repaid by the board out of the first proceeds ofthe sale of bonds or the loan negotiated by the authority before anyother disbursements are made. The amount advanced shall be a firstcharge against the proceeds resulting from the sale of the bonds orthe negotiation of the loan until the loan has been repaid.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-12
Board of directors; powers
Sec. 12. The board of directors may finance, construct, and leasebuildings for the joint or separate use of one (1) or more of thegovernmental entities within the county in which the authority hasbeen created. The board of directors also may:
(1) sue and be sued;
(2) appropriate, purchase, lease, rent, and hold any land,materials, and personal property in connection with buildingsconstructed or to be constructed under this chapter;
(3) acquire by gift, devise, or bequest real and personal propertyand hold, use, expend, or dispose of that property for thepurposes authorized by this chapter;
(4) enter upon any lots or lands for the purpose of surveying orexamining them for the purposes of this chapter;
(5) collect rentals payable as provided for in a lease; and
(6) make and enter into all contracts and agreements necessaryor incidental for the performance of its duties and the executionof its powers under this chapter.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-13
Lease to governmental entity of property controlled by authority;sublease; term; renewal Sec. 13. (a) A governmental entity within the county and theauthority may enter into a lease for all or part of a building under thecontrol of the authority. A governmental entity may also sublease theleased premises to other governmental entities within the county.
(b) A lease may be entered into before the actual acquisition of asite and the construction of the building. A lease may not provide forthe payment of any lease rental by the lessee until the building isready for occupancy.
(c) A lease or sublease may not be for a period longer than forty(40) years, but may be renewed for a maximum of forty (40) years.An option to renew may be included in the original lease.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-14
Lease; option to purchase
Sec. 14. (a) An option to purchase on the dates of each year fixedin the lease, before the expiration of the lease, may also be includedin the original lease. The price must be computed by a method set outin the lease. The option may be given to one (1) or more lesseesacting jointly or severally.
(b) A lease may not obligate a governmental entity to purchase theleased building or pay creditors or bondholders of the authority.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-15
Lease; notice and hearing; authorization of execution
Sec. 15. (a) When the authority and a governmental entity haveagreed upon the lease, and before the final execution of the lease, anotice shall be published under IC 5-3-1 of a hearing to be held bythe fiscal body of the governmental entity. The hearing shall be heldon a day at least ten (10) days after the publication of notice. Theproposed lease and any plans and specifications must be open toinspection by the public during the ten (10) day period and at thehearing.
(b) The notice must state:
(1) the date, place, and time of the hearing;
(2) a brief summary of the principal terms of the lease,including the character and location of the property to beleased;
(3) the estimated lease rental to be paid; and
(4) the period of the lease.
(c) All interested persons are entitled to be heard at the hearingconcerning the necessity for the execution of the lease and whetherthe lease rental is fair and reasonable. The hearing may be adjournedto a later date fixed before adjournment. Following the hearing thefiscal body may either:
(1) authorize the execution of the original lease; or
(2) authorize the execution of the lease with modifications thatare agreed to by the authority.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-16
Lease; execution; notice; limitation on annual rental; approval bydepartment of local government finance; transfer of net revenue
Sec. 16. (a) The lease shall be executed on behalf of thegovernmental entity by an officer authorized by law to executecontracts for the entity and on behalf of the authority by both thepresident or vice president of the board and the secretary of the boardof directors.
(b) Notice of the execution of the lease shall be given by thegovernmental entity by publication as provided in IC 5-3-1.
(c) A lease may not be executed with annual lease rentalexceeding an aggregate of two hundred seventy-five thousand dollars($275,000) unless the fiscal body of the lessee governmental entityfinds that the estimated annual net income to the lessee governmentalentity from the civic center, plus any other nonproperty tax fundsmade available annually for the payment of the lease rental, will notbe less than the amount of the excess.
(d) The lease is subject to approval by the department of localgovernment finance under IC 6-3.5. The lease may be executedbefore approval; however, if the department of local governmentfinance does not approve the lease, it is void. The department of localgovernment finance may not approve the lease under IC 6-3.5-1.1-8unless it finds that the condition prescribed in subsection (c) issatisfied.
(e) All net revenues of the leased building, together with any otherfunds made available for the payment of lease rental, shall betransferred at least annually by the lessee to a fund for payment oflease rental.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.73-1983,SEC.23; P.L.90-2002, SEC.525.
IC 36-10-11-17
Lease; objections; petition; certification to department of localgovernment finance; hearing; determination
Sec. 17. (a) Ten (10) or more taxpayers whose tax rate will beaffected by the lease may file a petition in the office of the countyauditor within thirty (30) days after publication of notice of theexecution of the lease. The petition must set forth their objectionsand the facts showing:
(1) that the lease is unnecessary or unwise; or
(2) that the lease rental is not fair and reasonable.
(b) Upon the filing of a petition, the county auditor shall certifya copy, together with other data that is necessary in order to presentthe questions involved, to the department of local governmentfinance. Upon receipt of a certified petition and information, thedepartment of local government finance shall set a time and place forthe hearing of the matter. The hearing shall be held at least five (5)but not more than fifteen (15) days after receipt of the petition by thedepartment of local government finance. Notice of the hearing shallbe given by the department of local government finance to the
governmental entity and to the first ten (10) petitioners at least five(5) days before the date of the hearing. The hearing shall determinethe necessity of the lease and whether the lease rental is fair andreasonable.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.90-2002,SEC.526.
IC 36-10-11-18
Lease; actions to contest validity or enjoin performance; limitation
Sec. 18. An action to contest the validity of the lease or to enjointhe performance of the lease may not be brought later than thirty (30)days after publication of notice of the execution of the lease or thirty(30) days after the decision of the department of local governmentfinance, whichever is later.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.90-2002,SEC.527.
IC 36-10-11-19
Sale or lease of land by governmental entity to authority
Sec. 19. (a) A governmental entity or entities desiring to havebuildings erected on land owned or to be acquired by it may sell orlease the land to the authority. The land may be leased at a nominallease rental, but the term of the lease may not be less than the termof the lease of the building to the governmental entity.
(b) The governmental entity may also grant an option to theauthority to purchase the land within six (6) months after theexpiration of the lease on the building if the governmental entity orentities has not exercised an option to purchase the building withinthe terms of the contract of lease. If the option price on the land isnot fixed in the original contract of lease, then the price to be paid forthe land under that option shall be determined by appraisal to bemade by three (3) appraisers residing in the county appointed by thejudge of the circuit court of the county. A sale or lease of land by agovernmental entity to the authority shall be authorized by the fiscalbody of the entity by ordinance or resolution, which shall be enteredin the official records of the fiscal body. The authorization shall begiven concurrently with the authorization by the governmental entityof a lease by it of the particular building, or part of it, to beconstructed wholly or in part on the land. The deed or lease shall beexecuted on behalf of the entity by the officer or officers authorizedby law to enter into contracts on behalf of the entity and on behalf ofthe authority by the president or vice president and secretary of theboard of directors.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-20
Revenue bonds; issuance; resolution
Sec. 20. (a) In order to procure funds to pay the cost of a buildingto be built or improved under this chapter, and to repay advances forpreliminary expenses made to the authority by the governmental
entity, the board of directors may issue revenue bonds of theauthority. The bonds are payable solely from the income andrevenues of the particular building financed from the proceeds of thebonds.
(b) The revenue bonds shall be authorized by resolution of theboard, bear interest payable semiannually, and mature serially, eitherannually or semiannually, at the times that are determined by theresolution of the board authorizing the bonds. The maturities of thebonds may not extend over a period longer than the period of thelease of the building for which the bonds are issued. The bonds mayand all bonds maturing after ten (10) years from the date of issuanceshall be made redeemable before maturity at the option of theauthority, to be exercised by the board, at par value together with thepremiums and under the terms and conditions that are fixed by theresolution authorizing the issuance of the bonds. The principal andinterest of the bonds may be made payable in any lawful medium.
(c) The resolution must determine the form of the bonds,including the interest coupons to be attached, and must fix thedenomination or denominations of the bonds and the place or placesof payment of the principal and interest, which must be at a state ornational bank or trust company within Indiana or may be at one (1)or more state or national banks or trust companies outside Indiana.All bonds must have all the qualities and incidents of negotiableinstruments under statute. Provision may be made for the registrationof the bonds in the name of the owner as to principal alone.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-21
Bonds; execution and sale
Sec. 21. (a) The bonds shall be executed by the president of theboard, and the corporate seal of the authority shall be affixed andattested by the secretary of the board. The interest coupons attachedto the bonds shall be executed by placing the facsimile signature ofthe treasurer on them. The bonds shall be sold by the board at publicsale and for not less than the par value. Notice of sale shall bepublished in accordance with IC 5-3-1.
(b) The board shall award the bonds to the highest bidder asdetermined by computing the total interest on the bonds from thedate of issue to the dates of maturity and deducting the premium bid,if any. If the bonds are not sold on the date fixed for the sale, the salemay be continued from day to day until a satisfactory bid has beenreceived.
(c) Any premium received from the sale of the bonds shall be usedsolely for the payment of principal and interest on the bonds.
(d) Before the preparation of definitive bonds, temporary bondsmay under like restrictions be issued with or without coupons,exchangeable for definitive bonds upon the issuance of the latter.The total amount of bonds issued by the authority under this section,when added to any loan or loans negotiated under section 22 of thischapter, may not exceed three million dollars ($3,000,000).As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-22
Loans; procedure
Sec. 22. (a) In lieu of authorizing and selling bonds as providedin this section, the board may adopt a resolution authorizing thenegotiation of a loan or loans for the purpose of procuring therequired funds. The resolution must set out the total amount of theloan desired and the approximate dates on which funds will berequired and the amounts of them. The resolution must also set outthe terms, conditions, and restrictions relative to the proposed loanor to the submission of proposals that the board considers advisable.Before the consideration of proposals for the making of a loan, anotice shall be published once each week for two (2) weeks in anewspaper published in the county and a newspaper published in thecity of Indianapolis setting out the amount and purpose of theproposed loan and a brief summary of other provisions of theresolution, including the time and place where proposals will beconsidered. The board may accept the proposal that in its judgmentis the most advantageous to the authority.
(b) The total amount of loans negotiated by the authority underthis section, when added to the amount of bonds issued under section21 of this chapter, may not exceed three million dollars ($3,000,000).
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-23
Application of bond and loan proceeds; lien
Sec. 23. All money received from the sale of bonds or loansnegotiated under this chapter, after reimbursement to the city of allamounts advanced for preliminary expenses as provided in section11 of this chapter, shall be applied to the payment of the costs ofbuildings and improvements for which the bonds were issued or theloan was negotiated, including incidental expenses and interestduring construction. A lien exists on all monies until so applied infavor of the holders of the bonds, the lenders, or the trustees.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-24
Bonds or loans; trust indenture
Sec. 24. (a) In the discretion of the board of directors, the bondsor loan may be secured by a trust indenture between the authorityand a corporate trustee, which may be any trust company or nationalor state bank within Indiana having trust powers. The trust indenturemay mortgage all or part of the land, buildings, or both for which thebonds are issued or the loan negotiated. The trust indenture maycontain the provisions for protecting and enforcing the rights andremedies of the bondholders or lenders that are reasonable andproper, including covenants setting forth the duties of the authorityand board of directors in relation to the construction of the buildingsand improvement, operation, repair, maintenance, and insurance of
them, and the custody, safeguarding, and application of all moneyreceived or to be received by the authority due to the buildingfinanced by the issuance of the bonds or the negotiation of the loan.The indenture may set forth the rights and remedies of thebondholders or lenders and trustee and provisions restricting theindividual right of action of bondholders or lenders.
(b) Within the limits of this chapter, the board of directors mayprovide by resolution or in the trust indenture for the payment of theproceeds of the sale of the bonds or the negotiation of the loan to anofficer, board, or depository that it determines for the custody ofthem and for the method of disbursement, with safeguards andrestrictions that it determines.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-25
Refunding revenue bonds; issuance
Sec. 25. (a) To procure money to refund bonds issued undersection 20 of this chapter, the board of directors may issue refundingrevenue bonds. The refunding bonds may not be issued unless:
(1) the issuance will result in a savings of interest cost to theauthority; or
(2) the issuance will permit a reduction in the lease rentalpayable by the lessee of the building financed from the bondproceeds being refunded.
(b) The refunding bonds are subject to the following:
(1) The issuance may not exceed the sum of:
(A) the principal of the bonds being refunded;
(B) any premium required to be paid upon their redemption;
(C) any interest accrued or to accrue to the date of theirredemption; and
(D) any expenses that the board estimates will be incurred in theissuance of the refunding bonds.
(2) The bonds may be issued at any time not more than six (6)years prior to the redemption date of the bonds being refunded.
(3) Principal is not payable on the refunding bonds until afterthe redemption date.
(4) Until the redemption of the bonds being refunded, theinterest on the refunding bonds is payable solely from themoney placed in escrow in accordance with section 26 of thischapter. Interest or other income earned on the investment ofthe funds and the principal and interest on the refunding bondsconstitute a lien only against the escrowed money.
(5) Upon redemption of all the bonds being refunded, theprincipal and interest on the refunding bonds is payable solelyfrom and constitute a lien only against the income and revenuesof the buildings financed from the proceeds of the bonds beingrefunded and any other money deposited in the sinking fund forthe payment of the refunding bonds.
(c) The refunding bonds shall be issued in the same manner asbonds are issued under section 20 of this chapter and may be secured
by a trust indenture as provided in section 24 of this chapter.
(d) An action to contest the validity of the refunding bonds maynot be brought after the fifth day following the receipt of bids for thebonds.
(e) The trust indenture securing the refunding bonds may providefor the transfer by the authority to the sinking fund established by thetrust indenture of all or any part of the balance in the sinking fundestablished in the trust indenture securing, or resolution providing forthe issuance of, the bonds being refunded, the transfer to be madeconcurrently with the redemption of all the bonds being refunded.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-26
Refunding bonds; application of proceeds
Sec. 26. (a) The proceeds of the refunding bonds issued undersection 25 of this chapter shall be placed in escrow and applied withany other available money to the payment on the date selected forredemption of the principal, accrued interest, and any redemptionpremiums of the bonds being refunded. In addition, if provided orpermitted in the resolution authorizing the issuance of the refundingbonds or in the trust indenture securing them, the proceeds may alsobe applied to the payment of any interest on the refunding bonds andany costs of refunding. Pending application, the escrowed proceedsmay be invested in direct obligations of, or obligations the principalof and the interest on which are unconditionally guaranteed by, theUnited States, which must mature, or which must be subject toredemption by the holder of them at the option of the holder, not laterthan the respective dates when the proceeds, together with theaccruing interest, will be required for the purposes intended.
(b) In lieu of those investments, all or part of the proceeds may beplaced in interest bearing time certificates of deposit with the bankthat the board designates. Other similar arrangements may be madewith the bank that will assure that the proceeds, together with theaccruing interest, will be available when required for the purposesintended, but time certificates of deposit or other similararrangements must be secured to their full amount by directobligations of, or obligations the principal of and the interest onwhich are unconditionally guaranteed by, the United States of thetype permitted for direct investment of the escrow fund.
(c) All interest or other income earned on these investments mustfirst be used to pay the interest on the refunding bonds as it becomesdue. Any excess becomes a part of and shall be held in the escrowfund. Any balance remaining in the escrow fund after redemption ofall the bonds being refunded shall be deposited in the sinking fundestablished for the payment of the principal and interest on therefunding bonds.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-27
Refunding bonds; authority to amend lease Sec. 27. (a) In connection with the issuance of refunding bonds,the authority and the lessee, or lessees, of the building, or buildings,financed from the proceeds of the bonds being refunded may enterinto an amendment to the lease modifying the lease:
(1) to provide for a reduction in the amount of lease rentalpayable by the lessee, or lessees, to be effective upon theredemption of the bonds being refunded;
(2) to provide for an extension of the time set forth in the leasebefore the option of the lessee, or lessees, to purchase may beexercised to the time that is agreed upon between the authorityand the lessee or lessees; or
(3) to provide that the lease rental payable by the lessee, orlessees, after the redemption of all the bonds being refunded ispayable to the trustee under the trust indenture securing therefunding bonds.
(b) Proceedings or actions by the lessee and approval by anyboard, commission, or agency are not required for refunding. Therefunding authorized in this chapter does not affect the obligation ofthe lessee, or lessees, to pay the lease rental under the lease of thebuilding or buildings, except to the extent the lease rental may bereduced by any amendment as authorized by this section.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-28
Refunding bonds; redemption
Sec. 28. For the purposes of sections 25, 26, and 27 of thischapter, bonds are redeemed on the date selected for redemption if:
(1) the full amount necessary to effect complete redemption hasbeen deposited in accordance with the trust indenture securingor resolution providing for the issuance of the bonds; and
(2) all action necessary to redeem the bonds has been taken sothat the bonds are no longer considered outstanding under thetrust indenture or resolution and are no longer payable from theincome and revenues of the particular building, or buildings,financed from the proceeds of the bonds.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-29
Governmental entity; tax levy to pay lease rental
Sec. 29. (a) The fiscal body of a governmental entity that hasentered into an approved lease under this chapter shall annually levya tax sufficient to produce each year the necessary revenues that,with other available money, are sufficient to pay the lease rentalpayable under the lease.
(b) In fixing and determining the amount of the necessary levy topay the lease rental, the fiscal body may take into considerationamounts that have been transferred to the fund for payment of thelease rental under section 16(e) of this chapter. This chapter does notrelieve the governmental entity from the obligation to pay from taxesthe lease rental or part of it if other funds are not available for that
purpose. The tax levies are reviewable by other bodies vested bystatute with authority to ascertain that the levies are sufficient toraise the amount that, with other money available, will be sufficientto meet the rental payable under the lease.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-30
Tax exemption
Sec. 30. All:
(1) property owned by the authority;
(2) revenues received by the authority; and
(3) bonds or other securities issued by the authority, includingthe interest on them;
are exempt from taxation in Indiana.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-31
Handling of funds; audit; contract requirements; surety bonds ofemployees
Sec. 31. (a) Authority funds shall be handled in the same manneras other public funds and shall be audited by the state board ofaccounts. Contracts let by the authority shall be let in accordancewith the general statutes relating to public contracts.
(b) Any employee of the authority authorized to receive ordisburse funds or negotiable securities of the authority shall executea bond payable to the state conditioned upon the faithful performanceof his duties and the accounting for all money and property that maycome under his control. The cost of the bonds shall be paid out offunds of the authority.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-32
Civil actions against authority; venue
Sec. 32. A civil action against the authority must be brought in thecircuit or superior court of the county in which the authority islocated.
As added by Acts 1982, P.L.218, SEC.5.
IC 36-10-11-33
Civic center board of managers; creation; organization
Sec. 33. (a) The fiscal body of the lessee shall adopt an ordinancecreating a board of five (5) members to be known as the "CivicCenter Board of Managers". The board of managers shall supervise,manage, operate, and maintain a building and its programs.
(b) A person appointed to the board of managers must be at leasttwenty-one (21) years of age and a resident of the lesseegovernmental entity for at least five (5) years. If the lessee is a city,three (3) of the managers shall be appointed by the city executive,and two (2) of the managers shall be appointed by the city legislativebody. If the lessee is not a city, all five (5) managers shall be
appointed by the fiscal body of the lessee. An officer or employee ofa political subdivision may not serve as a manager. The managersserve for terms of three (3) years.
(c) Notwithstanding subsection (b), if the lessee is a city, initialterms of the managers appointed by the executive are as follows:
(1) One (1) manager for a term of one (1) year.
(2) One (1) manager for a term of two (2) years.
(3) One (1) manager for a term of three (3) years.
The initial term of one (1) of the managers appointed by thelegislative body is two (2) years, and the other is three (3) years.
(d) Notwithstanding subsection (b), if the lessee is not a city,initial terms of the managers are as follows:
(1) One (1) manager for a term of one (1) year.
(2) Two (2) managers for terms of two (2) years.
(3) Two (2) managers for terms of three (3) years.
(e) A manager may be removed for cause by the appointingauthority. Vacancies shall be filled by the appointing authority, andany person appointed to fill a vacancy serves for the remainder of thevacated term. The managers shall be reimbursed for any expensesnecessarily incurred in the performance of their duties. The fiscalbody of the lessee may adopt an ordinance providing for the paymentof a salary or a per diem to a manager who does not hold anotherlucrative elective or appointive office.
(f) The board of managers shall annually elect officers to serveduring the calendar year. The board of managers may adoptresolutions and bylaws governing its operations and procedure andmay hold meetings as often as necessary to transact business and toperform its duties. A majority of the managers constitutes a quorum.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.178-2002,SEC.137; P.L.7-2006, SEC.1.
IC 36-10-11-34
Board of managers; powers
Sec. 34. The board of managers may do the following:
(1) Receive and collect money due to or otherwise related to abuilding; employ an executive manager, an associate manager,and other agents and employees that are considered necessaryfor the fulfillment of its duties, and fix the compensation of allemployees. However, a contract of employment or otherarrangement must be terminable at the will of the board ofmanagers, except that a contract may be entered into with anexecutive manager for a period not exceeding four (4) years andsubject to extension or renewal for similar or shorter periods.
(2) Let concessions for the operation of restaurants, cafeterias,public telephones, news and cigar stands, vending machines,caterers, and all other services considered necessary ordesirable for the operation of the a building.
(3) Lease a part of a building from time to time to anyassociation, corporation, or individual, with or without the rightto sublet. (4) Fix charges and establish rules governing the use andoperation of a building.
(5) Accept gifts or contributions from individuals, corporations,limited liability companies, partnerships, associations, trusts, orfoundations; accept funds, loans, or advances on the terms andconditions that the board of managers considers necessary ordesirable from the federal government, the state, or any of theiragencies or political subdivisions.
(6) Receive and collect all money due to the use or leasing of abuilding or any part of it and from concessions or othercontracts and expend that money for proper purposes.
(7) Provide coverage for its employees under IC 22-3 andIC 22-4.
(8) Purchase public liability and other insurance that itconsiders necessary.
(9) Make and enter into all contracts and agreements necessaryor incidental to the performance of its duties and the executionof its powers under this chapter, including enforcement of them.
(10) Maintain and repair a building and employ a buildingsuperintendent and other employees that are necessary toproperly maintain a building.
(11) Prepare and publish descriptive materials and literaturerelating to a building and specifying the advantages of abuilding; do all other acts and things that the board of managersconsiders necessary to promote and publicize a building andserve the commercial, industrial, and cultural interests ofIndiana and all its citizens by the use of a building; and assistand cooperate with the state and other public, governmental,and private agencies and groups of citizens for those purposes.
(12) Supervise, manage, operate, and maintain any other publicfacility owned or leased by the lessee governmental entity or byan agency of it when so directed by a resolution adopted by thefiscal body of the entity.
(13) Exercise other powers and perform other duties not inconflict with this chapter that are specified by ordinance orresolution of the fiscal body of the lessee governmental entity.
(14) Perform all other acts necessarily incidental to its dutiesand the powers listed in this section.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.8-1993,SEC.522; P.L.178-2002, SEC.138.
IC 36-10-11-35
Board of managers; preparation and review of annual budget;approval of expenditures
Sec. 35. (a) The board of managers shall prepare a budget for eachcalendar year governing the projected operating expenses, theestimated income, and reasonable reserves. It shall submit thatbudget for review, approval, or addition to the fiscal body of thelessee governmental entity.
(b) The board of managers may not make expenditures except as
provided in the approved budget, and all additional expenditures aresubject to approval by the fiscal body of the entity.
(c) Payments to the users of a building or a part of it thatconstitute a contractual share of box office receipts are notconsidered an operating expense or an expenditure within themeaning of this section, and the board of managers may make thosepayments without approval.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.178-2002,SEC.139.
IC 36-10-11-36
Board of managers; controller and assistant controller; duties
Sec. 36. (a) The fiscal officer of the lessee governmental entityshall act as controller of the board of managers and is responsible forproper safeguarding and accounting. The controller shall, with theapproval of the board of managers, appoint an assistant to act asauditor for the board of managers.
(b) The assistant is the official custodian of all books of accountand other financial records of the board of managers and has theother powers and duties that are delegated by the controller and thelesser powers and duties that the board of managers prescribes. Theassistant, and any other employee or member of the board ofmanagers authorized to receive, collect, or expend money, shall givebond for the faithful performance and discharge of all duties requiredof him in an amount and with surety and other conditions that areprescribed and approved by the board of managers.
(c) The assistant shall keep an accurate account of:
(1) all money due a building and the board of managers; and
(2) all money received, invested, and disbursed;
in accordance with generally recognized governmental accountingprinciples and procedures. All accounting forms and records shall beprescribed or approved by the state board of accounts. The assistantshall issue all warrants for the payment of money from the funds ofthe board of managers in accordance with procedures prescribed bythe board of managers, but a warrant may not be issued for thepayment of any claim until an itemized and verified statement of theclaim has been filed with the controller, who may require evidencethat all amounts claimed are justly due. All warrants shall becountersigned by the controller or financial officer or by theexecutive manager. Payroll and similar warrants may be executedwith facsimile signatures.
(d) If the board of managers or the lessee governmental entity hasentered into any agreement to lease building facilities from theauthority, the controller shall pay the lease rental to the authoritywithin a reasonable period before the date on which principal orinterest on any bonds outstanding issued under this chapter becomesdue. The assistant shall submit to the board of managers at leastannually a report of his accounts exhibiting the revenues, receipts,and disbursements and the sources from which the revenues andreceipts were derived and the purpose and manner in which the
disbursements were made. The board of managers may require thatthe report be prepared by a designated, independent certified publicaccountant. Handling and expenditure of funds is subject to audit andsupervision by the state board of accounts.
As added by Acts 1982, P.L.218, SEC.5. Amended by P.L.178-2002,SEC.140.
IC 36-10-11-37
Board of managers; conflicts of interest
Sec. 37. Persons serving on the board of managers shall discloseany pecuniary interest, direct or indirect, in any employment,financing agreement, or other contract made under this chapterbefore any action is taken on it by the board of managers. Anymanager having a pecuniary interest may not vote on the matter. Realproperty acquired under this chapter in which a manager has apecuniary interest may be acquired by the board of managers only bygift or condemnation.
As added by Acts 1982, P.L.218, SEC.5.