CHAPTER 15.3. REDEVELOPMENT AUTHORITY IN MARION COUNTY
IC 36-7-15.3
Chapter 15.3. Redevelopment Authority in Marion County
IC 36-7-15.3-1
Application of chapter
Sec. 1. This chapter applies to each unit having an authority.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-2
"Authority" defined
Sec. 2. As used in this chapter, "authority" refers to the countyconvention and recreational facilities authority established byIC 36-10-9.1.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-3
"Board" defined
Sec. 3. As used in this chapter, "board" refers to the board ofdirectors of the authority.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-4
"Bonds" defined
Sec. 4. As used in this chapter, "bonds" means bonds, notes, orother evidence of indebtedness issued by the authority.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-5
"Commission" defined
Sec. 5. As used in this chapter, "commission" refers to aredevelopment commission established under IC 36-7-15.1 or amilitary base reuse authority established under IC 36-7-30 andlocated in a county with a consolidated city.
As added by P.L.84-1987, SEC.14. Amended by P.L.2-1989, SEC.41;P.L.26-1995, SEC.9.
IC 36-7-15.3-6
"Local public improvement" defined
Sec. 6. As used in this chapter, "local public improvement" meansany redevelopment project or purpose of a commission or a unitunder IC 36-7-15.1 or IC 36-7-30.
As added by P.L.84-1987, SEC.14. Amended by P.L.2-1989, SEC.42;P.L.26-1995, SEC.10.
IC 36-7-15.3-7
Additional purposes
Sec. 7. In addition to its purposes specified in IC 36-10-9.1-10, theauthority is also organized for the following purposes:
(1) Financing, constructing, and leasing local publicimprovements to the commission. (2) Financing and constructing additional improvements to localpublic improvements owned by the authority and leasing themto the commission.
(3) Acquiring all or a portion of one (1) or more local publicimprovements from the commission by purchase or lease andleasing these local public improvements back to thecommission, with any additional improvements that may bemade to them.
(4) Acquiring all or a portion of one (1) or more local publicimprovements from the commission by purchase or lease tofund or refund indebtedness incurred on account of those localpublic improvements to enable the commission to make asavings in debt service obligations or lease rental obligations orto obtain relief from covenants that the commission considersto be unduly burdensome.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-8
Additional powers
Sec. 8. (a) In addition to its powers under IC 36-10-9.1-11, theauthority may also:
(1) finance, improve, construct, reconstruct, renovate, purchase,lease, acquire, and equip local public improvements;
(2) lease those local public improvements to the commission;
(3) sue, be sued, plead, and be impleaded, but all actions againstthe authority must be brought in the circuit or superior court ofthe county in which the authority is located;
(4) condemn, appropriate, lease, rent, purchase, and hold anyreal or personal property needed or considered useful inconnection with local public improvements;
(5) acquire real or personal property by gift, devise, or bequestand hold, use, or dispose of that property for the purposesauthorized by this chapter;
(6) enter upon any lots or lands for the purpose of surveying orexamining them to determine the location of a local publicimprovement;
(7) design, order, contract for, and contract, reconstruct, andrenovate any local public improvements or improvementsthereto;
(8) employ managers, superintendents, architects, engineers,attorneys, auditors, clerks, construction managers, and otheremployees necessary for construction of local publicimprovements or improvements to them;
(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; and
(10) take any other action necessary to implement its purposesas set forth in section 7 of this chapter.
(b) Whenever the board determines that the purposes for whichthe authority was formed have been substantially fulfilled and that all
bonds issued and all other obligations incurred by the authority havebeen fully paid or satisfied or provision for the payment of the bondsand obligations has been made in accordance with the terms of theresolution or trust indenture securing them, the board may declare theauthority dissolved. On the effective date of the resolution ofdissolution, the title to all funds and other property owned by theauthority at the time of the dissolution vests in the commission onbehalf of the unit creating the commission. However, if thecommission is not in existence, the title vests in the unit.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-9
Refunding of bonds
Sec. 9. (a) Bonds issued under IC 36-7-15.1 may be refunded asprovided in this section.
(b) The commission may:
(1) lease all or a portion of a local public improvement orimprovements to the authority, which may be at a nominal leaserental with a lease back to the commission, conditioned uponthe authority assuming bonds issued under IC 36-7-15.1 andissuing its bonds to refund those bonds; and
(2) sell all or a portion of a local public improvement orimprovements to the authority for a price sufficient to providefor the refunding of those bonds and lease back the local publicimprovement or improvements from the authority.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-10
Requirements for lease of local improvements to commission
Sec. 10. (a) Before a lease may be entered into, the commissionmust find that the lease rental provided for is fair and reasonable.
(b) A lease of local public improvements from the authority to thecommission:
(1) must comply with IC 36-7-15.1-17.1, IC 36-7-15.1-46, orIC 36-7-30-20;
(2) may not require payment of lease rental for a newlyconstructed local public improvement or for improvements toan existing local public improvement except to the extent thatthe local public improvement or improvements thereto havebeen completed and are ready for occupancy;
(3) may contain provisions:
(A) allowing the commission to continue to operate anexisting local public improvement until completion of theimprovements, reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing localpublic improvement being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same orshorter term on the conditions provided in the lease;
(5) must contain an option for the commission to purchase thelocal public improvement upon the terms stated in the lease
during the term of the lease for a price equal to the amountrequired to pay all indebtedness incurred on account of the localpublic improvement, including indebtedness incurred for therefunding of that indebtedness;
(6) may be entered into before acquisition or construction of alocal public improvement;
(7) may provide that the commission shall agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of theauthority; and
(C) assume responsibility for utilities, repairs, alterations,and any costs of operation; and
(8) may provide that the lease rental payments by thecommission shall be made from any one (1) or more of thesources set forth in IC 36-7-14-25.2, IC 36-7-15.1-17.1,IC 36-7-15.1-46, or IC 36-7-30-20.
As added by P.L.84-1987, SEC.14. Amended by P.L.26-1995,SEC.11; P.L.102-1999, SEC.26.
IC 36-7-15.3-11
Authorization for leases between the authority and commission;exception
Sec. 11. This chapter and IC 36-7-15.1-17.1, IC 36-7-15.1-46, orIC 36-7-30-20 contain full and complete authority for leases betweenthe authority and the commission. No law, procedure, proceedings,publications, notices, consents, approvals, orders, or acts by theboard or the commission or any other officer, department, agency, orinstrumentality of the state or any political subdivision is required toenter into any lease, except as prescribed in this chapter andIC 36-7-15.1-17.1 or IC 36-7-30-20.
As added by P.L.84-1987, SEC.14. Amended by P.L.26-1995,SEC.12; P.L.102-1999, SEC.27.
IC 36-7-15.3-12
Local public improvements; plans and specifications
Sec. 12. If the lease provides for a local public improvement orimprovements thereto to be constructed by the authority, the plansand specifications shall be submitted to and approved by thecommission.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-13
Common wall or other agreements
Sec. 13. The authority and the commission may enter intocommon wall (party wall) agreements or other agreementsconcerning easements or licenses. These agreements shall berecorded with the recorder of the county.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-14 Local public improvement; sale or nominal rental to authority
Sec. 14. (a) The commission may lease for a nominal lease rental,or sell to the authority, one (1) or more local public improvements orportions thereof or land upon which a local public improvement islocated or is to be constructed.
(b) Any lease of all or a portion of a local public improvement bythe commission to the authority must be for a term equal to the termof the lease of that local public improvement back to theredevelopment commission.
(c) The commission may sell property to the authority for suchamount as it determines to be in the best interest of the commission,which amount may be paid from the proceeds of bonds of theauthority.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-15
Issuance of bonds; purpose; conditions
Sec. 15. (a) The authority may issue bonds for the purpose ofobtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one(1) or more local public improvements; or
(3) funding or refunding bonds issued under this chapter orIC 36-7-15.1.
(b) The bonds are payable solely from the lease rentals from thelease of the local public improvement for which the bonds wereissued, insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the board.
(d) The terms and form of the bonds shall either be set out in theresolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within:
(1) fifty (50) years, for bonds issued before July 1, 2008; or
(2) twenty-five (25) years, for bonds issued after June 30, 2008.
(f) The board shall sell the bonds at public or private sale uponsuch terms as determined by the board.
(g) All money received from any bonds issued under this chaptershall be applied solely to the payment of the cost of the acquisitionor construction, or both, of local public improvements, or the cost ofrefunding or refinancing outstanding bonds, for which the bonds areissued. The cost may include:
(1) planning and development of the facility and all buildings,facilities, structures, and improvements related to it;
(2) acquisition of a site and clearing and preparing the site forconstruction;
(3) equipment, facilities, structures, and improvements that arenecessary or desirable to make the local public improvementssuitable for use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and saleof bonds; (6) reserves for principal and interest;
(7) interest during construction and for a period thereafterdetermined by the board, but in no event to exceed five (5)years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of theprincipal of, redemption premiums, if any, and interest on, thebonds being refunded or refinanced.
As added by P.L.84-1987, SEC.14. Amended by P.L.146-2008,SEC.768.
IC 36-7-15.3-16
Issuance of bonds; full and complete authority; status
Sec. 16. (a) This chapter contains full and complete authority forthe issuance of bonds. No law, procedure, proceeding, publication,notice, consent, approval, order, or act by the board of any otherofficer, department, agency, or instrumentality of the state or of anypolitical subdivision is required to issue any bonds, except asprescribed by this chapter.
(b) Bonds issued under this chapter are legal investments forprivate trust funds and the funds of banks, trust companies, insurancecompanies, building and loan associations, credit unions, banks ofdiscount and deposit, savings banks, loan and trust and safe depositcompanies, rural loan and savings associations, guaranty loan andsavings associations, mortgage guaranty companies, small loancompanies, industrial loan and investment companies, and otherfinancial institutions organized under Indiana law.
As added by P.L.84-1987, SEC.14. Amended by P.L.42-1993,SEC.98.
IC 36-7-15.3-17
Trust indenture; provisions
Sec. 17. (a) The authority may secure bonds issued under thischapter by a trust indenture between the authority and a corporatetrustee, which may be any trust company or national or state bankwithin Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income fromleased local public improvements, but may not mortgage landor local public improvements;
(2) contain reasonable and proper provisions for protecting andenforcing the rights and remedies of the bondholders, includingcovenants setting forth the duties of the authority and board;
(3) set forth the rights and remedies of bondholders and trustee;and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding in accordance with IC 5-1-14-4 from thetime that the pledge or assignment is made, against all personswhether they have notice of the lien or not. Any trust indenture bywhich a pledge is created or an assignment need not be filed orrecorded. The lien is perfected against third parties in accordancewith IC 5-1-14-4.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-18
Option to purchase leased property; bonds
Sec. 18. If the commission exercises its option to purchase leasedproperty, it may issue its bonds as authorized by statute.
As added by P.L.84-1987, SEC.14.
IC 36-7-15.3-19
Exemption from taxation; exception
Sec. 19. All:
(1) property owned by the authority;
(2) revenues of the authority; and
(3) bonds issued by the authority, the interest on the bonds, theproceeds received by a holder from the sale of bonds to theextent of the holder's cost of acquisition, proceeds receivedupon redemption before maturity, proceeds received at maturity,and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except thefinancial institutions tax imposed under IC 6-5.5 or a stateinheritance tax imposed under IC 6-4.1.
As added by P.L.84-1987, SEC.14. Amended by P.L.21-1990,SEC.54; P.L.254-1997(ss), SEC.31.
IC 36-7-15.3-20
Validity of bonds; contest; limitations
Sec. 20. Any action to contest the validity of bonds to be issuedunder this chapter may not be brought after the fifteenth dayfollowing:
(1) the receipt of bids for the bonds, if the bonds are sold atpublic sale; or
(2) the publication one (1) time in a newspaper of generalcirculation published in the county of notice of the executionand delivery of the contract for the sale of bonds;
whichever occurs first.
As added by P.L.84-1987, SEC.14.