CHAPTER 30.5. DEVELOPMENT OF MULTICOUNTY FEDERAL MILITARY BASES
IC 36-7-30.5
Chapter 30.5. Development of Multicounty Federal MilitaryBases
IC 36-7-30.5-1
Application
Sec. 1. This chapter applies only to a military base that is locatedin more than two (2) counties.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-2
"Bonds"
Sec. 2. As used in sections 23 and 29 of this chapter, "bonds"means bonds, notes, evidences of indebtedness, or other obligationsissued by the development authority in the name of a unit.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-3
"Council"
Sec. 3. As used in this chapter, "council" refers to the militarybase planning council established under IC 4-3-21-3.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-4
"Development authority"
Sec. 4. As used in this chapter, "development authority" means amilitary base development authority established under section 8 ofthis chapter.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-5
"Military base"
Sec. 5. As used in this chapter, "military base" means a UnitedStates government military base or other military installation that is:
(1) scheduled for closing or realignment; or
(2) completely or partially inactive or closed.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-6
"Military base property"
Sec. 6. As used in this chapter, "military base property" meansreal and personal property that is currently or was formerly part of amilitary base and is subject to development or reuse.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-7
Preparation for reuse of military bases
Sec. 7. (a) The planning, replanning, rehabilitation, development,redevelopment, and other preparation for development or reuse ofmilitary bases and military base property are public and
governmental functions that cannot be accomplished through theordinary operations of private enterprise because of the following:
(1) The provisions of federal law that provide for theexpeditious and affordable transfer of military base property toan entity established by local government for these purposes.
(2) The necessity for requiring the proper use of the land to bestserve the interests of the unit and its citizens.
(3) The costs of the projects.
(b) The planning, replanning, rehabilitation, development,redevelopment, and other preparation for development or reuse willdo the following:
(1) Benefit the public health, safety, morals, and welfare.
(2) Increase the economic well-being of counties represented onthe development authority and the state.
(3) Serve to protect and increase property values in the countiesrepresented on the development authority and the state.
(c) The planning, replanning, rehabilitation, development,redevelopment, and other preparation for development or reuse ofmilitary bases and military base property under this chapter arepublic uses and purposes for which public money may be spent andprivate property may be acquired.
(d) A development authority and all appropriate units shall, to theextent feasible under this chapter and consistent with the needs of thedevelopment authority and the units, provide a maximum opportunityfor development or reuse of federal military bases by privateenterprise or state and local government.
(e) This section shall be liberally construed to carry out thepurposes of this section.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-8
Council action to establish development authority
Sec. 8. (a) If the council, by the affirmative votes of a majority ofthe voting members of the council, votes to require that adevelopment authority should be established under this chapter, thedevelopment authority shall be established.
(b) A unit may not create a reuse authority under IC 36-7-30 forall or part of a military base that is:
(1) governed by this chapter; and
(2) located within the boundaries of the unit.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-9
Development authority governed by board
Sec. 9. A development authority established under this chaptershall be governed by a board of nine (9) members to be known as the"Crane Development Authority".
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-10 Appointment of members to development authority
Sec. 10. (a) The nine (9) members of a development authorityshall be appointed as follows:
(1) Two (2) members shall be appointed by the countyexecutive of Greene County.
(2) Two (2) members shall be appointed by the countyexecutive of Lawrence County.
(3) Two (2) members shall be appointed by the countyexecutive of Martin County.
(4) One (1) member shall be appointed by the county executiveof Daviess County.
(5) One (1) member shall be appointed by the county executiveof Monroe County.
(6) One (1) member shall be appointed by the county executiveof Orange County.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-11
Terms of members; oath; bond; qualifications; reimbursement forexpenses
Sec. 11. (a) Each member of a military base developmentauthority shall serve the longer of:
(1) three (3) years beginning with the first day of January afterthe member's appointment; or
(2) until the member's successor has been appointed andqualified.
If a vacancy occurs, a successor shall be appointed in the samemanner as the original member. The successor shall serve for theremainder of the vacated term.
(b) Each member of a development authority, before beginningthe member's duties, shall take and subscribe an oath of office in theusual form, to be endorsed on the certificate of the member'sappointment. The endorsed certificate must be promptly filed withthe clerk for the unit that the member serves.
(c) Each member of a development authority, before beginning themember's duties, shall execute a bond payable to the state, withsurety to be approved by the executive of the unit. The bond must be:
(1) in the penal sum of fifteen thousand dollars ($15,000); and
(2) conditioned on the faithful performance of the duties of themember's office and the accounting for all money and propertythat may come into the member's hands or under the member'scontrol.
(d) A member of a development authority must be:
(1) at least eighteen (18) years of age; and
(2) a resident of the county responsible for the member'sappointment.
(e) If a member ceases to be qualified under this section, themember forfeits the member's office.
(f) Members of a development authority are not entitled to salariesbut are entitled to reimbursement for expenses necessarily incurred
in the performance of their duties.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-12
Meetings; officers; rules; quorum
Sec. 12. (a) The development authority members shall hold ameeting for the purpose of organization not later than thirty (30) daysafter they are appointed and, after that, each year on the first day inJanuary that is not a Saturday, Sunday, or legal holiday. Themembers shall choose one (1) of their members as president, anotheras vice president, and another as secretary-treasurer. These officersshall perform the duties usually concerning their offices and shallserve from the date of their election until their successors are electedand qualified.
(b) Except as otherwise provided in this chapter, thesecretary-treasurer shall be responsible for the funds and accounts ofthe development authority. The development authority may:
(1) employ personnel for compensation to assist thesecretary-treasurer; or
(2) designate or appoint a fiscal officer of a county responsiblefor appointing one (1) or more development authority membersto perform the duties that are delegated by the developmentauthority and accepted by the fiscal officer.
(c) The members of a development authority may adopt rules andbylaws the members consider necessary for:
(1) the proper conduct of proceedings;
(2) carrying out of the members' duties; and
(3) safeguarding the money and property placed in the members'custody by this chapter.
In addition to the annual meeting, the members may by resolution orin accordance with the rules and bylaws prescribe the date andmanner of notice of other regular or special meetings.
(d) Five (5) members of the development authority constitute aquorum. The concurrence of five (5) members is necessary toauthorize an action.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-13
Removal from office
Sec. 13. A member of a military base development authority maybe summarily removed from office at any time by the countyexecutive that appointed the member.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-14
Duties of development authority
Sec. 14. The development authority shall do the following:
(1) Investigate, study, and survey the area surrounding and thereal property and structures that are part of the military base.
(2) Investigate, study, and determine the means by which
military base property may be developed or reused by privateenterprise to promote economic development within countiesrepresented on the development authority or by state and localgovernment to otherwise benefit the welfare of the citizens ofthe counties represented on the development authority.
(3) Promote the development of military base property in themanner that best serves the interests of the state and itsinhabitants.
(4) Cooperate with the departments and agencies of units and ofother governmental entities, including the state and the federalgovernment, in the manner that best serves the purposes of thischapter.
(5) Make findings and reports on their activities under thissection, and keep the reports available for inspection by thepublic.
(6) Select and acquire military base property to be developed orreused by private enterprise or state or local government underthis chapter.
(7) Transfer acquired military base property and other real andpersonal property to private enterprise or state or localgovernment in the manner that best serves the social andeconomic interests of the state and the state's inhabitants.
(8) Consider recommendations made by the council concerningthe operations of the development authority.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-15
Powers of development authority
Sec. 15. The development authority may do the following:
(1) Acquire by purchase, exchange, gift, grant, condemnation,or lease, or any combination of methods, any personal militarybase property or interest in real military base property or otherreal or personal property located within the corporateboundaries of a unit that contains all or part of the military base.
(2) Hold, use, sell (by conveyance by deed, land sale contract,or other instrument), exchange, lease, rent, or otherwise disposeof real or personal military base property or other real andpersonal property to private enterprise or state or localgovernment, on the terms and conditions that the developmentauthority considers best for the state and the state's inhabitants.
(3) Sell, lease, or grant interests in all or part of the realproperty acquired from a military base to a department of a unitor to any other governmental agency for public ways, levees,sewerage, parks, playgrounds, schools, and other publicpurposes on any terms that may be agreed on.
(4) Clear real property acquired for the purposes of this chapter.
(5) Repair and maintain structures acquired for the purposes ofthis chapter.
(6) Remodel, rebuild, enlarge, or make major structuralimprovements on structures acquired from a military base. (7) Survey or examine any land to determine whether it shouldbe acquired for the purpose of this chapter and to determine thevalue of the land.
(8) Appear before any other department or agency of a unit orany other governmental agency in respect to any matteraffecting:
(A) real property acquired or being acquired for the purposesof this chapter; or
(B) any development area within the jurisdiction of thedevelopment authority.
(9) Institute or defend in the name of the development authorityany civil action.
(10) Use any legal or equitable remedy that is necessary orconsidered proper to protect and enforce the rights of andperform the duties of the development authority.
(11) Exercise the power of eminent domain within military baseproperty in the manner prescribed by section 21 of this chapter.
(12) Appoint an executive director, appraisers, real estateexperts, engineers, architects, surveyors, attorneys, accountants,and other consultants that are necessary or desired by theauthority in exercising its powers or carrying out itsresponsibilities under this chapter.
(13) Appoint clerks, guards, laborers, and other employees thedevelopment authority considers advisable.
(14) Prescribe the duties and regulate the compensation ofemployees of the development authority.
(15) Provide a pension and retirement system for employees ofthe development authority.
(16) Discharge and appoint successors to employees of thedevelopment authority.
(17) Rent offices for use of the development authority or acceptthe use of offices furnished by a unit.
(18) Equip the offices of the development authority with thenecessary furniture, furnishings, equipment, records, andsupplies.
(19) Expend on behalf of the counties represented on thedevelopment authority all or any part of the money of thedevelopment authority.
(20) Design, order, contract for, construct, reconstruct, improve,or renovate the following:
(A) Local public improvements or structures that arenecessary for the development of military base property.
(B) Any structure that enhances the development, economicdevelopment, or reuse of military base property.
(21) Accept loans, grants, and other forms of financialassistance from the federal government, the state government,a municipal corporation, a special taxing district, a foundation,or any other source.
(22) Provide financial assistance, in the manner that best servesthe purposes of this chapter, including grants and loans, to
enable private enterprise to develop, redevelop, and reusemilitary base property or otherwise enable private enterprise toprovide social and economic benefits to the citizens of the state.
(23) Enter into contracts for providing police, fire protection,and utility services to the military base development area.
(24) Make and enter into all contracts and agreements necessaryor incidental to the performance of the duties of thedevelopment authority and the execution of the power of thedevelopment authority under this chapter.
(25) Adopt a seal.
(26) Take any action necessary to implement the purposes ofthe development authority.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-16
Plan and declaration of military base development area
Sec. 16. (a) The development authority shall adopt a plan for the:
(1) rehabilitation;
(2) development;
(3) redevelopment; and
(4) reuse;
of military base property to be acquired from the federal governmentupon the closure or scheduled closure of the military base.
(b) In conjunction with the plan adopted under subsection (a), thedevelopment authority may adopt a resolution declaring that ageographic area is a military base development area and approvingthe plan if it makes the following findings:
(1) All or part of a military base is located in the military basedevelopment area.
(2) The plan for the military base development area willaccomplish the public purposes of this chapter, supported byspecific findings of fact to be adopted by the developmentauthority.
(3) The public health and welfare will be benefitted byaccomplishment of the plan for the military base developmentarea.
(4) The plan for the military base development area conformsto other development and redevelopment plans for the countiesrepresented on the development authority.
(c) A military base development area may include territory withinmilitary base property. However, a military base development areamay not include any area of land that constitutes part of an economicdevelopment area, a blighted area, or an urban renewal area underIC 36-7-14.
(d) The resolution must state:
(1) the general boundaries of the area; and
(2) that the development authority proposes to acquire all theinterests in the land within the boundaries, with certaindesignated exceptions, if any.
(e) For the purpose of adopting a resolution under subsection (b),
it is sufficient to describe the boundaries of the area by its locationin relation to public ways or streams, or otherwise, as determined bythe development authority. Property excepted from the acquisitionmay be described by street numbers or location.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-17
Adoption of resolution
Sec. 17. (a) After adoption of a resolution under section 16 of thischapter, the development authority shall submit the resolution andsupporting data to the plan commission of an affected unit or otherbody charged with the duty of developing a general plan for the unit,if there is such a body. The plan commission may determine whetherthe resolution and the development plan conform to the plan ofdevelopment for the unit and approve or disapprove the resolutionand plan proposed. The development authority may amend or modifythe resolution and proposed plan to conform to the requirements ofa plan commission. A plan commission shall issue a written orderapproving or disapproving the resolution and military basedevelopment plan, and may with the consent of the developmentauthority rescind or modify the order.
(b) The determination that a geographic area is a military basedevelopment area must be approved by an affected unit's legislativebody.
(c) After receipt of all orders and approvals required undersubsections (a) and (b), the development authority shall publishnotice of the adoption and the substance of the resolution inaccordance with IC 5-3-1. The notice must name a date when thedevelopment authority will receive and hear remonstrances andobjections from persons interested in or affected by the proceedingsconcerning the proposed project and will determine the public utilityand benefit of the proposed project. All persons affected in anymanner by the hearing shall be considered notified of the pendencyof the hearing and of subsequent acts, hearings, adjournments, andorders of the development authority by the notice given under thissection.
(d) At the hearing under subsection (c), which may be adjournedfrom time to time, the development authority shall:
(1) hear all persons interested in the proceedings; and
(2) consider all written remonstrances and objections that havebeen filed.
After considering the evidence presented, the development authorityshall take final action determining the public utility and benefit of theproposed project, and confirming, modifying and confirming, orrescinding the resolution. The final action taken by the developmentauthority is final and conclusive, except that an appeal may be takenin the manner prescribed by section 19 of this chapter.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-18 Notice and hearing on adoption of resolution
Sec. 18. (a) The development authority must conduct a publichearing before amending a resolution or plan for a military basedevelopment area. The development authority shall give notice of thehearing in accordance with IC 5-3-1. The notice must do thefollowing:
(1) Set forth the substance of the proposed amendment.
(2) State the time and place where written remonstrancesagainst the proposed amendment may be filed.
(3) Set forth the date, time, and place of the hearing.
(4) State that the development authority will hear any personwho has filed a written remonstrance during the filing period setforth in subdivision (2).
(b) For the purposes of this section, the consolidation of areas isnot considered the enlargement of the boundaries of an area.
(c) If the development authority proposes to amend a resolutionor plan, the development authority is not required to have evidenceor make findings that were required for the establishment of theoriginal military base development area. However, the developmentauthority must make the following findings before approving theamendment:
(1) The amendment is reasonable and appropriate whenconsidered in relation to the original resolution or plan and thepurposes of this chapter.
(2) The resolution or plan, with the proposed amendment,conforms to the comprehensive plan for an affected unit.
(d) Notwithstanding subsections (a) and (c), if the resolution orplan is proposed to be amended in a way that enlarges the originalboundaries of the area by more than twenty percent (20%), thedevelopment authority must use the procedure provided for theoriginal establishment of areas and must comply with sections 16through 17 of this chapter.
(e) At the hearing on the amendments, the development authorityshall consider written remonstrances that are filed. The action of thedevelopment authority on the amendment is final and conclusive,except that an appeal of the development authority's action may betaken under section 19 of this chapter.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-19
Appeal from final action of development authority
Sec. 19. (a) A person who filed a written remonstrance with thedevelopment authority under section 17 or 18 of this chapter and isaggrieved by the final action taken may, not more than ten (10) daysafter that final action, file in the office of the clerk of an appropriatecircuit or superior court a copy of the order of the developmentauthority and person's remonstrances against that order, together withthe person's bond conditioned to pay the costs of the person's appealif the appeal is determined against the person. The only ground ofremonstrance that the court may hear is whether the proposed project
will be of public utility and benefit. The burden of proof is on theremonstrator.
(b) An appeal under this section shall be promptly heard by thecourt without a jury. All remonstrances upon which an appeal hasbeen taken shall be consolidated and heard and determined not morethan thirty (30) days after the time of the filing of the appeal. Thecourt shall hear evidence on the remonstrances and may confirm thefinal action of the development authority or sustain theremonstrances. The judgment of the court is final and conclusive,unless an appeal is taken as in other civil actions.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-20
Purchase of property
Sec. 20. (a) If:
(1) an appeal is not taken; or
(2) an appeal is taken but is unsuccessful;
the development authority shall proceed with the plan to the extentthat money is available for that purpose.
(b) Negotiations for the purchase of property may be carried ondirectly by the development authority, by its employees, or by expertnegotiators. However, an option, a contract, or an understandingrelative to the purchase of real property is not binding on thedevelopment authority until approved and accepted by thedevelopment authority in writing. Payment for the propertypurchased shall be made when and as directed by the developmentauthority but only on delivery of proper instruments conveying thetitle or interest of the owner to the development authority or itsdesignee.
(c) The acquisition of real and personal property by thedevelopment authority under this chapter is not subject to theprovisions of IC 5-22, IC 36-1-10.5, or any other statutes governingthe purchase of property by public bodies or their agencies.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-21
Acquisition of property by eminent domain
Sec. 21. (a) If the development authority considers it necessary toacquire real property in or serving a development area by theexercise of the power of eminent domain, the development authorityshall adopt a resolution setting out its determination to exercise thatpower and directing its attorney to file a petition on behalf of thedevelopment authority in the circuit or superior court of the countyin which the property is situated. The resolution must be approved bythe legislative body of the affected unit before the petition is filed.
(b) Eminent domain proceedings under this section are governedby IC 32-24 and other applicable statutory provisions for the exerciseof the power of eminent domain. Property already devoted to a publicuse may be acquired under this section. However, property belongingto the state or a political subdivision may not be acquired without the
consent of the state or the political subdivision.
(c) The court having jurisdiction shall direct the clerk of thecircuit court to execute a deed conveying the title of real propertyacquired under this section to the development authority for the useand benefit of the development authority.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-22
Clearing, maintenance, and replanning of development area
Sec. 22. (a) The development authority may proceed with theclearing and replanning of the area described in the resolution beforethe acquisition of all of the area. The development authority may alsoproceed with the repair and maintenance of buildings that have beenacquired and are not to be cleared. This clearance, repair, andmaintenance may be carried out by labor employed directly by thedevelopment authority or by contract. Contracts for clearance mayprovide that the contractor is entitled to retain and dispose ofsalvaged material, as a part of the contract price or on the basis ofstated prices for the amounts of the various materials actuallysalvaged.
(b) All contracts for material or labor under this section shall belet under IC 36-1.
(c) To the extent the development authority undertakes to engagein the planning and rezoning of the real property acquired, in theopening, closing, relocation, and improvement of public ways, andin the construction, relocation, and improvement of levees, sewers,parking facilities, and utility services, the development authorityshall proceed in the same manner as private owners of the property.The development authority may negotiate with the proper officersand agencies of the unit to secure the proper orders, approvals, andconsents.
(d) Construction work required in connection with improvementsin the area described in the resolution may be carried out by thefollowing:
(1) The appropriate municipal or county department or agency.
(2) The development authority, if:
(A) all plans, specifications, and drawings are approved bythe appropriate department or agency; and
(B) the statutory procedures for the letting of contracts bythe appropriate department or agency are followed by thedevelopment authority.
(e) The development authority may pay any charges orassessments made on account of orders, approvals, consents, andconstruction work under this section, or may agree to pay theassessments in installments as provided by statute in the case ofprivate owners. The development authority may do the following:
(1) By special waiver filed with the appropriate municipalworks board or county executive, waive the statutory procedureand notices required by law in order to create valid liens onprivate property. (2) Cause any assessments to be spread on a different basis thanthat provided by statute.
(f) The real property acquired under this chapter may not be setaside and dedicated for public ways, parking facilities, sewers,levees, parks, or other public purposes until the developmentauthority has obtained the consent and approval of the department oragency under whose jurisdiction the property will be placed.
(g) The development authority may negotiate for the sale, lease,or other disposition of real and personal property without complyingwith the provisions of IC 36-1-11 or any other statute governing thedisposition of public property. A conveyance under this section maynot be made until the agreed consideration has been paid, unless thedevelopment authority passes a resolution expressly providing thatthe consideration does not have to be paid before the conveyance ismade. The resolution may provide for a mortgage or other security.All deeds, leases, land sale contracts, or other conveyances shall be:
(1) executed in the name of the development authority; and
(2) signed by the president or vice president of the developmentauthority and attested by the secretary-treasurer.
A seal is not required on these instruments or any other instrumentsexecuted in the name of the development authority. Proceeds fromthe sale, lease, or other disposition of property may be deposited inany fund and used for any purpose allowed under this chapter, asdirected by the development authority.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-23
Issuance of bonds
Sec. 23. (a) In addition to other methods of raising money forproperty acquisition, redevelopment, reuse, or economicdevelopment activities in or directly serving or benefitting a militarybase development area, and in anticipation of the taxes allocatedunder section 30 of this chapter, other revenues of the district, or anycombination of these sources, the development authority may byresolution issue the bonds of the development authority.
(b) The secretary-treasurer of the development authority shallprepare the bonds. The seal of the development authority must beimpressed on the bonds or a facsimile of the seal must be printed onthe bonds.
(c) The bonds must be executed by the president of thedevelopment authority and attested by the secretary-treasurer.
(d) The bonds are exempt from taxation for all purposes.
(e) Bonds issued under this section may be sold at public sale inaccordance with IC 5-1-11 or at a negotiated sale.
(f) The bonds are not a corporate obligation of a unit but are anindebtedness of only the development authority. The bonds andinterest are payable, as set forth in the bond resolution of thedevelopment authority, from any of the following:
(1) The tax proceeds allocated under section 30 of this chapter.
(2) Other revenues available to the development authority. (3) A combination of the methods stated in subdivisions (1)through (2).
The bonds issued under this section may be issued in any amountwithout limitation.
(g) Proceeds from the sale of bonds may be used to pay the costof interest on the bonds for a period not to exceed five (5) years afterthe date of issuance.
(h) All laws relating to the filing of petitions requesting theissuance of bonds and the right of taxpayers and voters toremonstrate against the issuance of bonds do not apply to bondsissued under this chapter.
(i) If a debt service reserve is created from the proceeds of bonds,the debt service reserve may be used to pay principal and interest onthe bonds as provided in the bond resolution.
(j) If bonds are issued under this chapter that are payable solelyor in part from revenues of the development authority, thedevelopment authority may adopt a resolution or trust indenture orenter into covenants as is customary in the issuance of revenuebonds. The resolution or trust indenture may pledge or assignrevenues of the development authority and properties becomingavailable to the development authority under this chapter. Theresolution or trust indenture may also contain provisions forprotecting and enforcing the rights and remedies of the bond ownersas may be reasonable and proper and not in violation of law,including a covenant setting forth the duties of the developmentauthority. The development authority may establish fees and chargesfor the use of any project and covenant with the owners of any bondsto set the fees and charges at a rate sufficient to protect the interestof the owners of the bonds. Revenue bonds issued by thedevelopment authority that are payable solely from revenues of thedevelopment authority shall contain a statement to that effect in theform of the bond.
As added by P.L.203-2005, SEC.11. Amended by P.L.219-2007,SEC.137.
IC 36-7-30.5-24
Lease of property
Sec. 24. (a) A development authority may enter into a lease of anyproperty that could be financed with the proceeds of bonds issuedunder this chapter with a lessor for a term of not more than fifty (50)years. The lease may provide for payments to be made by thedevelopment authority from taxes allocated under section 30 of thischapter, any other revenues available to the development authority,or any combination of these sources.
(b) A lease may provide that payments by the developmentauthority to the lessor are required only to the extent and only for theperiod that the lessor is able to provide the leased facilities inaccordance with the lease. The terms of each lease must be basedupon the value of the facilities leased and may not create a debt ofthe unit or the district for purposes of the Constitution of the State of
Indiana.
(c) A lease may be entered into by the development authority onlyafter a public hearing by the development authority at which allinterested parties are provided the opportunity to be heard. After thepublic hearing, the development authority may adopt a resolutionauthorizing the execution of the lease on behalf of the unit if thedevelopment authority finds that the service to be providedthroughout the term of the lease will serve the public purpose of theunit and is in the best interests of its residents. Any lease approvedby a resolution of the development authority must be approved by thefiscal body of the appropriate unit.
(d) A development authority entering into a lease payable fromallocated taxes under section 30 of this chapter or other availablefunds of the development authority may do the following:
(1) Pledge the revenue to make payments under the lease underIC 5-1-14-4.
(2) Establish a special fund to make the payments.
(e) Lease payments may be limited to money in the special fundso that the obligations of the development authority to make the leaserental payments are not considered a debt of a unit or the district forpurposes of the Constitution of the State of Indiana.
(f) Except as provided in this section, approvals of anygovernmental body or agency are not required before thedevelopment authority may enter into a lease under this section.
(g) If a development authority exercises an option to buy a leasedfacility from a lessor, the development authority may subsequentlysell the leased facility, without regard to any other statute, to thelessor at the end of the lease term at a price set forth in the lease orat fair market value established at the time of the sale by thedevelopment authority through auction, appraisal, or negotiation. Ifthe facility is sold at auction, after appraisal or through negotiation,the development authority shall conduct a hearing after public noticein accordance with IC 5-3-1 before the sale. Any action to contest thesale must be brought not more than fifteen (15) days after thehearing.
(h) Notwithstanding this section, a development authority maynegotiate and enter into leases of property from the United States orany department or agency of the United States without complyingwith the requirements of this section.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-25
Lessor of property
Sec. 25. (a) Any of the following persons may lease facilitiesreferred to in section 24 of this chapter to a development authorityunder this chapter:
(1) A for-profit or nonprofit corporation organized underIndiana law or admitted to do business in Indiana.
(2) A partnership, an association, a limited liability company,or a firm. (3) An individual.
(4) A redevelopment authority established under IC 36-7-14.5.
(b) Notwithstanding any other law, a lessor under this section andsection 24 of this chapter is a qualified entity for purposes ofIC 5-1.4.
(c) Notwithstanding any other law, a military base developmentfacility leased by the development authority under this chapter froma lessor borrowing bond proceeds from a unit under IC 36-7-12 is aneconomic development facility for purposes of IC 36-7-11.9-3 andIC 36-7-12.
(d) Notwithstanding IC 36-7-12-25 and IC 36-7-12-26, paymentsby a development authority to a lessor described in subsection (c)may be made from sources set forth in section 24 of this chapter ifthe payments and the lease are structured to prevent the leaseobligation from constituting a debt of a unit or the district forpurposes of the Constitution of the State of Indiana.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-26
Pledge of revenues and covenant
Sec. 26. (a) Notwithstanding any other law, the legislative bodyof a unit may pledge revenues received or to be received by the unitfrom:
(1) the unit's distributive share of the county adjusted grossincome tax under IC 6-3.5-1.1;
(2) the unit's distributive share of the county option income taxunder IC 6-3.5-6;
(3) the unit's distributive share of the county economicdevelopment income tax under IC 6-3.5-7;
(4) any other source legally available to the unit for thepurposes of this chapter; or
(5) any combination of revenues under subdivisions (1) through(4);
in any amount to pay amounts payable under section 23 or 24 of thischapter.
(b) The legislative body may covenant to adopt an ordinance toincrease its tax rate under the county adjusted gross income tax,county option income tax, county economic development income tax,or any other revenues at the time it is necessary to raise funds to payany amounts payable under section 23 or 24 of this chapter.
(c) The development authority may pledge revenues received orto be received from any source legally available to the developmentauthority for the purposes of this chapter in any amount to payamounts payable under section 23 or 24 of this chapter.
(d) The pledge or covenant under this section may be for:
(1) the term of the bonds issued under section 23 of thischapter;
(2) the term of a lease entered into under section 24 of thischapter; or
(3) for a shorter period as determined by the legislative body.Money pledged by the legislative body under this section shall beconsidered revenues or other money available to the developmentauthority under sections 23 through 24 of this chapter.
(e) The general assembly covenants not to impair this pledge orcovenant as long as any bonds issued under section 23 of this chapterare outstanding or as long as any lease entered into under section 24of this chapter is still in effect. The pledge or covenant shall beenforced as provided in IC 5-1-14-4.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-27
Proceeds of bonds; capital and general funds
Sec. 27. (a) All proceeds from the sale of bonds under section 23of this chapter shall be kept as a separate and specific fund to pay theexpenses incurred in connection with the property acquisition,redevelopment, reuse, and economic development of the militarybase development area. The fund shall be known as the military basedevelopment district capital fund.
(b) All gifts or donations that are given or paid to the developmentauthority or to a unit for military base development purposes shall bepromptly deposited to the credit of the military base developmentdistrict general fund unless otherwise directed by the grantor. Thedevelopment authority may use these gifts and donations for thepurposes of this chapter.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-28
Payment from funds
Sec. 28. (a) All payments from any of the funds established bythis chapter shall be made by warrants drawn by thesecretary-treasurer or the secretary-treasurer's agent under section 12of this chapter on vouchers of the development authority signed bythe president or vice president and the secretary-treasurer orexecutive director. An appropriation is not necessary, but all moneyraised under this chapter is considered appropriated to the respectivepurposes stated and is under the control of the developmentauthority. The development authority has complete and exclusiveauthority to expend the money for the purposes provided.
(b) Each fund established by this chapter is a continuing fund.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-29
Activities financed by bonds, notes, or warrants
Sec. 29. (a) To finance activities authorized under this chapter, thedevelopment authority may apply for and accept advances, short termand long term loans, grants, contributions, and any other form offinancial assistance from the federal government, or from any of itsagencies. The development authority may also enter into and carryout contracts and agreements in connection with that financialassistance upon the terms and conditions that the development
authority considers reasonable and appropriate, if those terms andconditions are not inconsistent with the purposes of this chapter. Theprovisions of a contract or an agreement in regard to the handling,deposit, and application of project funds, as well as all otherprovisions, are valid and binding on the development authority,notwithstanding any other provision of this chapter.
(b) The development authority may issue and sell bonds, notes, orwarrants to the federal government to evidence short term or longterm loans made under this section, without notice of sale beinggiven or a public offering being made.
(c) Notwithstanding the provisions of this chapter or any otherlaw, the bonds, notes, or warrants issued by the developmentauthority under this section may:
(1) be in the amounts, form, or denomination;
(2) be either coupon or registered;
(3) carry conversion or other privileges;
(4) have a rank or priority;
(5) be of such description;
(6) be secured, subject to other provisions of this section, insuch manner;
(7) bear interest at a rate or rates;
(8) be payable as to both principal and interest in a medium ofpayment, at time or times, which may be upon demand, and ata place or places;
(9) be subject to terms of redemption, with or without premium;
(10) contain or be subject to any covenants, conditions, andprovisions; and
(11) have any other characteristics;
that the development authority considers reasonable and appropriate.
(d) Bonds, notes, or warrants issued under this section are not anindebtedness of a unit or taxing district within the meaning of anyconstitutional or statutory limitation of indebtedness. The bonds,notes, or warrants are not payable from or secured by a levy of taxes,but are payable only from and secured only by any combination of:
(1) income;
(2) funds;
(3) properties of the project becoming available to thedevelopment authority under this chapter; or
(4) any other legally available revenues of the developmentauthority;
as the development authority specifies in the resolution authorizingtheir issuance.
(e) Bonds, notes, or warrants issued under this section are exemptfrom taxation for all purposes.
(f) Bonds, notes, or warrants issued under this section must beexecuted by the appropriate officers of a development authority andmust be attested by the appropriate officers of a developmentauthority.
(g) Following the adoption of the resolution authorizing theissuance of bonds, notes, or warrants under this section, the
development authority shall certify a copy of that resolution to theofficers who have duties with respect to bonds, notes, or warrants ofthe development authority. At the proper time, the developmentauthority shall deliver to the officers the unexecuted bonds, notes, orwarrants prepared for execution in accordance with the resolution.
(h) All bonds, notes, or warrants issued under this section shall besold by the officers of a development authority who have duties withrespect to the sale of bonds, notes, or warrants of the developmentauthority. If an officer whose signature appears on any bonds, notes,or warrants issued under this section leaves office before theirdelivery, the signature remains valid and sufficient for all purposesas if the officer had remained in office until the delivery.
(i) If at any time during the life of a loan contract or agreementunder this section the development authority may obtain loans for thepurposes of this section from sources other than the federalgovernment at interest rates not less favorable than provided in theloan contract or agreement, and if the loan contract or agreementallows, the development authority may do so and may pledge theloan contract and any rights under the contract as security for therepayment of the loans obtained from other sources. A loan underthis subsection may be evidenced by bonds, notes, or warrants issuedand secured in the same manner as provided in this section for loansfrom the federal government. The bonds, notes, or warrants may besold at either public or private sale, as the development authorityconsiders appropriate.
(j) Money obtained from the federal government or from othersources under this section, and money that is required by a contractor an agreement under this section to be used for project expenditurepurposes, repayment of survey and planning advances, or repaymentof temporary or definitive loans, may be expended by thedevelopment authority without regard to any law concerning themaking and approval of budgets, appropriations, and expenditures.
(k) Bonds, notes, or warrants issued under this section aredeclared to be issued for an essential public and governmentalpurpose.
As added by P.L.203-2005, SEC.11.
IC 36-7-30.5-30
Allocation areas; allocation and distribution of property taxes
Sec. 30. (a) The following definitions apply throughout thissection:
(1) "Allocation area" means that part of a military basedevelopment area to which an allocation provision of adeclaratory resolution adopted under section 16 of this chapterrefers for purposes of distribution and allocation of propertytaxes.
(2) "Base assessed value" means:
(A) the net assessed value of all the property as finallydetermined for the assessment date immediately precedingthe adoption date of the allocation provision of the
declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A) or (C),the net assessed value of any and all parcels or classes ofparcels identified as part of the base assessed value in thedeclaratory resolution or an amendment to the declaratoryresolution, as finally determined for any subsequentassessment date; plus
(C) to the extent that it is not included in clause (A) or (B),the net assessed value of property that is assessed asresidential property under the rules of the department oflocal government finance, as finally determined for anyassessment date after the effective date of the allocationprovision.
(3) "Property taxes" means taxes imposed under IC 6-1.1 onreal property.
(b) A declaratory resolution adopted under section 16 of thischapter before the date set forth in IC 36-7-14-39(b) pertaining todeclaratory resolutions adopted under IC 36-7-14-15 may include aprovision with respect to the allocation and distribution of propertytaxes for the purposes and in the manner provided in this section. Adeclaratory resolution previously adopted may include an allocationprovision by the amendment of that declaratory resolution inaccordance with the procedures set forth in section 18 of this chapter.The allocation provision may apply to all or part of the military basedevelopment area. The allocation provision must require that anyproperty taxes subsequently levied by or for the benefit of any publicbody entitled to a distribution of property taxes on taxable propertyin the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceedsof the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessmentdate with respect to which the allocation and distribution ismade; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds ofthe respective taxing units.
(2) Except as otherwise provided in this section, property taxproceeds in excess of those described in subdivision (1) shall beallocated to the development authority and, when collected,paid into an allocation fund for that allocation area that may beused by the development authority and only to do one (1) ormore of the following:
(A) Pay the principal of and interest and redemptionpremium on any obligations incurred by the developmentauthority or any other entity for the purpose of financing orrefinancing military base development or reuse activities inor directly serving or benefitting that allocation area.
(B) Establish, augment, or restore the debt service reservefor bonds payable solely or in part from allocated taxproceeds in that allocation area or from other revenues of the
development authority, including lease rental revenues.
(C) Make payments on leases payable solely or in part fromallocated tax proceeds in that allocation area.
(D) Reimburse any other governmental body forexpenditures made for local public improvements (orstructures) in or directly serving or benefitting that allocationarea.
(E) For property taxes first due and payable before 2009, payall or a part of a property tax replacement credit to taxpayersin an allocation area as determined by the developmentauthority. This credit equals the amount determined underthe following STEPS for each taxpayer in a taxing district(as defined in IC 6-1.1-1-20) that contains all or part of theallocation area:
STEP ONE: Determine that part of the sum of the amountsunder IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), andIC 6-1.1-21-2(g)(5) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property taxreplacement amount (as defined in IC 6-1.1-21-2) for thatyear as determined under IC 6-1.1-21-4 that is attributableto the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; by
(ii) the total amount of the taxpayer's taxes (as defined inIC 6-1.1-21-2) levied in the taxing district that have beenallocated during that year to an allocation fund under thissection.
If not all the taxpayers in an allocation area receive the creditin full, each taxpayer in the allocation area is entitled toreceive the same proportion of the credit. A taxpayer maynot receive a credit under this section and a credit undersection 32 of this chapter (before its repeal) in the same year.
(F) Pay expenses incurred by the development authority forlocal public improvements or structures that were in theallocation area or directly serving or benefitting theallocation area.
(G) Reimburse public and private entities for expensesincurred in training employees of industrial facilities that arelocated:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified asindustrial property under the rules of the department oflocal government finance.
However, the total amount of money spent for this purposein any year may not exceed the total amount of money in theallocation fund that is attributable to property taxes paid bythe industrial facilities described in this clause. The
reimbursements under this clause must be made not morethan three (3) years after the date on which the investmentsthat are the basis for the increment financing are made.
The allocation fund may not be used for operating expenses ofthe development authority.
(3) Except as provided in subsection (g), before July 15 of eachyear the development authority shall do the following:
(A) Determine the amount, if any, by which property taxespayable to the allocation fund in the following year willexceed the amount of property taxes necessary to ma