CHAPTER 11. MUNICIPAL PARKING FACILITIES
IC 36-9-11
Chapter 11. Municipal Parking Facilities
IC 36-9-11-1
Application of chapter
Sec. 1. This chapter applies to all municipalities exceptconsolidated cities.
As added by Acts 1981, P.L.309, SEC.84. Amended by Acts 1981,P.L.317, SEC.10.
IC 36-9-11-2
Declaration of public purpose
Sec. 2. The construction, operation, and acquisition of land forparking facilities by a municipality are public uses and purposes forwhich public money may be spent and private property may beacquired by the exercise of the power of eminent domain.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-3
Powers of municipality
Sec. 3. A municipality may acquire, establish, construct, maintain,operate, lease to others for operation, and regulate parking facilitiesfor vehicles under this chapter. In exercising these powers, themunicipality may:
(1) clear, grade, surface, and pave land;
(2) erect and equip structures; and
(3) remodel, extend, repair, and improve structures.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-4
Surveys and studies; submission of recommendations to safety boardand legislative body
Sec. 4. (a) From time to time the municipality shall make or causeto be made surveys and studies necessary to determine the need forand proper location of parking facilities, giving due consideration to:
(1) the free and safe movement of traffic;
(2) the terminal points and concentration of traffic; and
(3) the adequacy of privately owned parking lots or structures.
(b) This subsection applies only to cities. On the basis of thesurveys and studies, recommendations shall be made to the safetyboard and the legislative body concerning the general location, size,and character of, and probable cost of acquiring and developing,needed parking facilities. The safety board shall consider therecommendations and, if it rejects them, shall state its objections inwriting and refer the recommendations back to the persons makingthem. If the safety board approves the recommendations, it shalladopt a resolution to that effect and submit the recommendations tothe legislative body for acceptance or rejection. If the legislativebody rejects the recommendations, it shall adopt a resolution statingits objections and refer the recommendations back to the persons
making them. If the legislative body approves the recommendations,it shall adopt a resolution to that effect. Upon approval of therecommendations by the legislative body, the city works board mayproceed as provided by this chapter, and shall proceed in accordancewith the legislative body's direction.
(c) This subsection applies only to towns. If, on the basis of thesurveys and studies, the legislative body finds that there is a need forparking facilities of any kind, it shall adopt a resolution to that effect.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-5
Preparation and approval of plans; notice and hearing; appeals
Sec. 5. (a) Before the municipal works board proceeds with theacquisition and construction of any parking facilities approved undersection 4 of this chapter, it must cause to be prepared:
(1) plats and descriptions of the land proposed to be acquired orused;
(2) general plans or drawings for the proposed project; and
(3) a general estimate of the cost of acquisition, construction,and installation of the project.
(b) The works board shall then adopt a resolution:
(1) approving the plats, descriptions, plans or drawings, andestimate;
(2) declaring that upon investigation it has been foundnecessary for the proper protection of the public safety andwelfare, and will be of public utility and benefit to themunicipality and its citizens, to:
(A) construct and maintain the parking facilities described inthe resolution; and
(B) acquire for that purpose the property described in theresolution, by purchase or by appropriation; and
(3) setting out the probable cost and the proposed method offinancing the project.
The resolution, plats, descriptions, plans or drawings, and estimateshall be kept open to inspection by all persons interested in oraffected by the acquisition of the property proposed to be acquiredor the construction or operation of the project.
(c) Notice of the adoption of the resolution and its purport, and ofthe fact that the plats, descriptions, plans or drawings, and estimatehave been prepared and can be inspected, shall be published inaccordance with IC 5-3-1. The notice must name a date on which theboard will hear all persons interested in or affected by theproceedings, consider any remonstrances or objections filed, andfinally determine the public utility and benefit of the project to themunicipality and its citizens. All persons affected in any manner bythe proceedings are considered to be notified of the pendency of theproceedings and of subsequent acts, hearings, adjournments, andorders of the board by the publication of the notice.
(d) At the hearing, which may be adjourned from time to time, theworks board shall: (1) hear all persons interested in or affected by the proceedings;
(2) consider all remonstrances and objections filed; and
(3) take final action:
(A) determining the public utility and benefit of the proposedproject to the municipality and its citizens; and
(B) confirming, modifying and confirming, or rescinding thedeclaratory resolution.
(e) Appeals from the determination of the works board may betaken only by persons who have filed written remonstrances orobjections before the hearing date fixed in the notice.
As added by Acts 1981, P.L.309, SEC.84. Amended by Acts 1981,P.L.45, SEC.43.
IC 36-9-11-6
Powers of works board; payment of expenses; contracts
Sec. 6. (a) The municipal works board may take all steps and enterinto all contracts or agreements necessary or incidental to theperformance of its duties and the exercise of its powers under thischapter.
(b) The works board may employ engineers, architects, financialconsultants, attorneys, inspectors, superintendents, managers,accountants, and other employees that it considers necessary for theexecution of its powers and duties, fix their compensation, andestablish their duties. However, the powers of a city works boardunder this subsection are subject to the statutes relating to theexecutive departments of cities.
(c) All compensation for services and expenses incurred underthis chapter shall be paid solely from money provided under thischapter. The works board may not bind itself or the municipalitybeyond the extent to which money has been or may be madeavailable to the board under this chapter.
(d) All contracts or agreements with any contractor or contractorsfor labor, supplies, or equipment shall be let and entered into inaccordance with IC 5-22 and IC 36-1-12.
As added by Acts 1981, P.L.309, SEC.84. Amended by Acts 1981,P.L.57, SEC.41; P.L.49-1997, SEC.83.
IC 36-9-11-7
Rates and charges; adoption of operating rules; employees' bonds
Sec. 7. (a) In connection with the operation of any parkingfacility, the municipal works board may fix the rates and charges tobe collected for the parking of vehicles, or for any other use of thefacility, and adopt rules governing the use and operation of thefacility so as to promote the maximum use of the facility by thepublic in a safe, orderly, and efficient manner. In a city, however,these rates, charges, and rules do not become effective until they areapproved by ordinance or resolution of the legislative body.
(b) All rates and charges for parking and other services must bereasonable and designed to bring in revenues sufficient to cover thecost of providing and operating necessary parking facilities. (c) A person handling monies of one (1) or more parking facilitiesmust be properly bonded to insure a faithful accounting for themoney coming into his hands.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-8
Acquisition and use of property
Sec. 8. (a) A municipality may acquire the property required forparking facilities by gift, lease, purchase, the exercise of the powerof eminent domain, or any combination of these methods. Amunicipality may also acquire air rights above real property, forfacilities above that property, without also acquiring that property.
(b) The municipal works board may, at any time, obtain an optionfor the purchase of the land required for parking facilities, or mayenter into a contract for the purchase of that land upon the terms andconditions it considers best. However, the options or contracts aresubject to the final action of the works board under section 5 of thischapter, and to the condition that the land may be paid for only outof money made available to the board for that purpose under thischapter.
(c) In acquiring property for parking facilities by the exercise ofthe power of eminent domain, a municipality shall proceed under thestatutes governing the exercise of the power of eminent domain bythe works board of a municipality of its class, or under anyapplicable general statute. However, property may not be acquiredby a city under this subsection until it is approved as a suitablelocation for a parking facility by the legislative body.
(d) The works board may use for parking facilities any land thatwas previously acquired by the municipality and is not needed forother purposes. In a city, however, such an action must be approvedby the legislative body.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-9
Insurance
Sec. 9. (a) A municipality that operates one (1) or more parkingfacilities financed in whole or in part by the issuance of revenuebonds shall maintain insurance of the kinds and in the amountsordinarily carried by persons operating similar facilities.
(b) All insurance proceeds received due to damage to a parkingfacility must be:
(1) used in replacing the property damaged; or
(2) deposited in the fund or account for the payment of theprincipal of and interest on the revenue bonds.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-10
Tax liability and exemptions
Sec. 10. (a) The property acquired by a municipality under thischapter, and the revenues derived from that property, are exempt
from taxation for all purposes.
(b) A leasehold improvement made by a lessee under this chapterfor private or commercial purposes, or both, is subject to taxation.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-11
Mortgage, pledge, or disposal of property while revenue bonds areoutstanding; deposit of sale proceeds
Sec. 11. (a) As long as any of the revenue bonds issued undersection 16 of this chapter are outstanding, the municipality may notmortgage, pledge, otherwise encumber, sell, or dispose of any part ofthe property of a parking facility, except that it may sell or disposeof:
(1) equipment that is worn out and is to be replaced; or
(2) property that is no longer useful or profitable in theoperation of the facility.
(b) The proceeds of a sale under subsection (a) shall be depositedin the fund or account for the payment of the principal of and intereston the revenue bonds.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-12
Leases; authorization
Sec. 12. A municipality may lease all or part of the property of aparking facility to others on any terms and conditions that do notadversely affect the rights of bondholders. However, a lease of realproperty under this section must be made in the manner prescribedby section 13 of this chapter.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-13
Leases; procedure; approval by legislative body
Sec. 13. (a) A rental or lease contract under this section iseffective only if it is approved by ordinance or resolution of themunicipal legislative body.
(b) The municipal works board may lease or rent to others foroperation any parking facility or property acquired for parkingpurposes, after first adopting a resolution setting out its intention todo so. The resolution must specify the term of the lease, permissibleparking charges, manner of operation, and other requirements havinga bearing on the value of the proposed lease.
(c) A lease under this section may also require the lessee to:
(1) clear, grade, and pave land;
(2) erect and equip structures; and
(3) remodel, extend, repair, and improve structures;
for parking purposes. Work to be performed by the lessee under thissection must be described in the resolution under subsection (b).
(d) Notice of the resolution must be given by publication inaccordance with IC 5-3-1. The notice must set forth:
(1) the time and place at which offers will be received and
considered;
(2) the location, size, and capacity of the real property;
(3) a description of any work to be performed by the lesseeunder subsection (c);
(4) the specifications adopted governing the leasing; and
(5) the other information required to secure free and opencompetition in the offers.
(e) The lease shall be awarded to the bidder offering the mostadvantageous terms in the judgment of the works board, giving dueconsideration to the experience and financial responsibility of thebidder. The works board may reject any offers.
As added by Acts 1981, P.L.309, SEC.84. Amended by Acts 1981,P.L.45, SEC.44.
IC 36-9-11-14
Lease of space and air rights; deposit of rentals
Sec. 14. (a) Space and air rights over a parking facility may beleased to others for a period not to exceed ninety-nine (99) years,subject to the following conditions:
(1) The lease must be authorized by an ordinance of themunicipal legislative body, but the municipal works board maynegotiate with interested parties concerning the terms andconditions of the lease before introduction of the ordinance.After introduction of the ordinance and before final adoption,a notice of public hearing must be published in accordance withIC 5-3-1. The notice must specify a date when a public hearingwill be held on the question of whether the lease is in the bestpublic interest.
(2) The lease must specify the initial purpose for which theleased space may be used. If the purpose is to erect in the spacea structure attached to the real property constituting the site ofthe parking facility, the lease must:
(A) require approval by the works board of the plans andspecifications for any structure to be erected and of themanner in which it shall be imposed upon or around the realproperty;
(B) provide for use by the lessee of the areas of the surfaceof the site that are essential for the support of the structureto be erected, as well as for the connection of essentialpublic or private utilities to the structure and for ingress andegress for the structure; and
(C) provide that if the construction of the initial structure isnot completed within five (5) years after the date ofexecution of the lease, the lease is cancellable at the optionof the municipality.
(3) A structure erected in the space leased must be financed,operated, maintained, and repaired by the lessee separate fromthe parking facility financed, operated, maintained, and repairedby the municipality, and the municipality has no obligation orliability to the lessee or creditors of the lessee other than to
provide the air space leased and to permit the use of the site forthe necessary supports for the structure erected in the leasedspace, ingress and egress for the structure, and the constructionof essential utilities.
(4) The lease must require the lessee to carry sufficient publicliability and property damage insurance to indemnify themunicipality and protect it from all loss and damage from thehazards and perils normally insured against by such insurancethat arise out of the existence and operation of a structure in theleased space.
(5) A structure erected above the parking facility is subject toall property taxes levied on private property unless the structureis acquired by the municipality and wholly used forgovernmental purposes.
(b) The lease rental received by the municipality is consideredrevenue of the parking facility and shall be deposited, handled, anddisbursed in the same manner as other revenues of the parkingfacility. However, if the treatment of lease rental as revenues wouldcause the revenue bonds to be industrial development bonds underthe Internal Revenue Code as it existed on January 1, 1986, andapplicable regulations under that Code, then the lease rental shall bedeposited in the general fund of the municipality and disbursed in thesame manner as other money in that fund.
As added by Acts 1981, P.L.309, SEC.84. Amended by Acts 1981,P.L.45, SEC.45; P.L.2-1987, SEC.51.
IC 36-9-11-15
Funding
Sec. 15. Money to pay the cost of construction and operation ofparking facilities may be:
(1) accepted as a donation;
(2) appropriated from the general fund or from any fund derivedfrom parking revenues;
(3) provided by the issuance and sale of general obligationbonds of the municipality;
(4) provided by the issuance and sale of bonds payable solelyfrom revenues derived from parking facilities, parking meters,or parking mechanisms, as provided by section 16 of thischapter; or
(5) provided by any combination of these methods.
The issuance of general obligation bonds and the appropriation offunds raised by taxation must comply with the applicable generalstatutes.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-16
Revenue bonds
Sec. 16. (a) If a municipality wants to obtain all or part of themoney necessary to pay the cost of parking facilities by the issuanceof revenue bonds, the bonds must be authorized by ordinance of the
municipal legislative body.
(b) The ordinance authorizing the revenue bonds:
(1) must set out the amount, date, denominations, terms,conditions, and form of the bonds and their interest coupons;
(2) must set out any covenants relative to safeguarding theinterest of the bondholders;
(3) must specify in detail the revenues pledged to the paymentof the interest on and the principal of the bonds; and
(4) may contain provisions for the issuance of additional bondsof equal priority, or of junior and subordinate priority, fromtime to time after issuance of the original bonds, under therestrictions set forth in the ordinance.
(c) The revenue bonds may:
(1) bear interest, payable semiannually, at any rate;
(2) be payable in the amounts, at times not exceeding fifty (50)years from the date of issuance, and at the place or places,either within or outside of Indiana; and
(3) be redeemable before maturity on the terms and conditions;
specified by the municipal legislative body in the authorizingordinance.
(d) The bonds shall be executed in the name of the municipalityas other bonds of the municipality are executed. If any of the officerswhose signatures or countersignatures appear on the bonds or thecoupons cease to be officers before the delivery of the bonds to thepurchaser, his signature or countersignature remains valid andsufficient for all purposes as if he had remained in office until thedelivery of the bonds.
(e) Upon the sale and delivery of the bonds authorized, theordinance constitutes a contract between the municipality and thebondholders, and may not subsequently be amended or modified soas to adversely affect the rights of the bondholders.
(f) The bonds of a city and the interest on them are payable onlyout of the special fund or account created by the ordinanceauthorizing the issuance of the bonds and the revenues pledged to thefund or account. The bonds of a town and the interest on them arepayable only out of the parking sinking fund established by section19 of this chapter and the revenues pledged to that fund.
(g) The bonds are not an indebtedness of the municipality forpurposes of any constitutional provision or limitation. A statementto that effect must appear on the face of each bond.
(h) The bonds are payable to bearer, and the interest on them shallbe evidenced by coupons attached to them.
(i) The bonds may be registrable as to the principal only in theholder's name on the books of the municipality, with the registrationto be noted on the bond by the municipal clerk or other designatedofficer. After registration, the transfer of a bond is valid only if madeon the books of the municipality by the registered holder andsimilarly noted on the bond. Registered bonds may be dischargedfrom registration by being transferred to bearer, after which they aretransferable by delivery but may again be registered as to principal.
The registration of the bonds as to principal does not affect thenegotiability of the interest coupons by delivery only.
(j) Bonds issued under this section are negotiable instruments.The bonds and the interest on them are exempt from taxation for allpurposes.
(k) The proceeds of each issue of bonds shall be used solely forthe payment of the cost of the parking facilities for which the bondswere issued, and shall be disbursed in the manner and under therestrictions, if any, that the legislative body specifies in the ordinanceauthorizing the issuance of the bonds.
(l) If the proceeds of any issue of bonds are less than the cost ofthe parking facilities, additional bonds may be issued in a similarmanner to provide the amount of the deficit. Unless otherwiseprovided in the ordinance authorizing their issuance, the additionalbonds are considered to be of the same issue and are entitled topayment from the same fund without preference or priority of thebonds first issued.
(m) If the proceeds of any issue of bonds exceed the cost of theparking facilities for which the bonds were issued, the surplus shallbe deposited in the fund or account from which the bonds arepayable.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-17
Actions by bondholders; appointment of receivers
Sec. 17. (a) A holder of revenue bonds or interest coupons issuedunder section 16 of this chapter may, by civil action:
(1) protect and enforce all rights granted by statute or by theordinance authorizing the issuance of the bonds; and
(2) enforce and compel performance of all the duties requiredby this chapter or the ordinance, including the fixing andcollecting of parking charges or charges for other servicerendered by the parking facilities.
(b) Upon a failure to pay the interest on or the principal of therevenue bonds in accordance with their terms, a court may appointa receiver to administer the parking facilities on behalf of themunicipality and the bondholders. The receiver may:
(1) fix and collect parking charges and other charges sufficientto provide for the payment of:
(A) the expenses of operation, repair, and maintenance; and
(B) the interest on and principal of the bonds; and
(2) apply the revenues in the manner prescribed by this chapterand the ordinance authorizing the issuance of the revenuebonds.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-18
Parking facilities; records and accounts when revenue bonds are issued
Sec. 18. If revenue bonds are issued to finance the cost of parkingfacilities, the municipality shall keep proper books of records and
accounts for the parking facilities, separate from all of its otherrecords and accounts. These records and accounts must containcomplete and correct entries showing:
(1) the application of the proceeds of the bonds;
(2) the source and disposition of:
(A) all revenues collected from or on account of the facilities;or
(B) all money supplied by the municipality on account of thefacilities; and
(3) all transactions relating to the facilities.
Within ninety (90) days after the close of each calendar year, themunicipal fiscal officer shall prepare an operating and incomestatement of the facilities. The fiscal officer shall keep the statementon file in his office, and make it available for examination by anyholder of the revenue bonds. A copy of the statement shall befurnished to the original purchaser of the bonds upon request.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-19
Deposit of revenues from parking facilities
Sec. 19. (a) This subsection applies only to cities. The grossrevenues of parking facilities shall be kept in a fund or funds separatefrom all other funds of the city, and shall be deposited in the fund orfunds daily, as received. As long as any revenue bonds areoutstanding, revenues deposited in the fund or funds may be usedonly to:
(1) pay the cost of operation, maintenance, and repair of theparking facilities of the city;
(2) pay the principal of and interest on revenue bonds issued orto be issued for the facilities;
(3) provide a reserve for the revenue bonds as a margin ofsafety and protection against default and retirement beforematurity;
(4) pay the cost of repairs, replacements, and additions to, orremodeling of, the parking facilities; or
(5) finance the construction of additional parking facilities;
in the manner and with the priorities and restrictions as to applicationof the revenues provided in the ordinance or ordinances authorizingthe issuance of the revenue bonds.
(b) This subsection and subsection (c) apply only to towns. Thegross revenues of each:
(1) parking facility financed by the issuance of revenue bonds;and
(2) extension, addition, or improvement to, or replacement of,such a facility;
shall be deposited in a special fund designated as "parkingfund.project __________". The revenues derived from the facilityshall be deposited in the special fund daily, as received.
(c) The revenues deposited under subsection (b) shall be used inthe following manner: (1) The cost of operation, maintenance, and repair of theparking facility shall be paid first, and a sufficient amount topay that cost in the next month shall then be reserved.
(2) The money remaining in the parking fund after compliancewith subdivision (1) comprises the net revenues of the facility.On the first day of each month, the net revenues shall betransferred into a special fund designated as "parking sinkingfund.project ______" until this fund contains an amountsufficient to pay the interest on and principal of the outstandingrevenue bonds payable from the fund for the next twelve (12)months. The money in the parking sinking fund may be usedonly for the interest on and principal of the revenue bondspayable from the fund.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-20
Pledge of revenues; authorization
Sec. 20. (a) This subsection applies only to cities. All or part ofthe gross revenues, or of the net revenues remaining after thepayment of the cost of operation, maintenance, and repair, may bepledged to the payment of the principal of and interest on the revenuebonds and the accumulation and maintenance of the reserve for thebonds, in the manner and to the extent provided in the ordinance orordinances authorizing the issuance of the revenue bonds. Theordinance or ordinances authorizing the issuance of revenue bondsalso may provide for a pledge of all or a designated part of the grossor net revenues derived from:
(1) other parking facilities;
(2) onstreet parking meters;
(3) parking mechanisms;
(4) parking and traffic violation fines and fees;
(5) lease rentals in connection with any parking facilities,private pledges, and contributions; and
(6) any federal and state grants and distributions not dedicatedor restricted by law to other purposes;
to the payment of principal of and interest on revenue bonds issuedor to be issued under this chapter, and to the accumulation andmaintenance of the reserve for the bonds. The extent and the mannerof making the pledge may be provided in the ordinance or ordinancesauthorizing the issuance of bonds.
(b) This subsection applies only to towns. An ordinanceauthorizing the issuance of revenue bonds for parking facilities mayprovide for a pledge of all or a designated part of the unobligated netrevenues derived from other parking facilities, parking meters, orparking mechanisms, to the extent required to maintain the parkingsinking fund established under section 19 of this chapter at theminimum level.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-21 Pledge of revenues; deposits; irrevocability
Sec. 21. If a pledge of revenues is made under section 20 of thischapter, then the revenues pledged shall be deposited monthly in thefund or account for the payment of the bonds. The pledge isirrevocable as long as any of the bonds for which the pledge is madeare outstanding, but the municipality may not make any covenantrelative to the number or location of the parking meters to bemaintained by it in and along its streets.
As added by Acts 1981, P.L.309, SEC.84.
IC 36-9-11-22
Bond revenues and revenues pledged to pay bonds considered trustfunds
Sec. 22. The money provided by the issuance of revenue bondsunder this chapter, the revenues of parking facilities, and all otherrevenues pledged to the payment of the interest on and principal ofthe revenue bonds are considered trust funds, and shall be held andapplied only as provided in this chapter or in the ordinanceauthorizing the issuance of revenue bonds. This money shall bedeposited in depositories selected by the municipality in the mannerprovided by IC 5-13-6, but may be invested in the manner providedby IC 5-13-9.
As added by Acts 1981, P.L.309, SEC.84. Amended by P.L.19-1987,SEC.54.