CHAPTER 13. COUNTY BUILDING AUTHORITY
IC 36-9-13
Chapter 13. County Building Authority
IC 36-9-13-1
Application of chapter; "eligible entities" defined
Sec. 1. This chapter applies to all counties and to the followingmunicipal corporations in each county:
(1) Municipalities.
(2) Townships.
(3) School Corporations.
(4) Health and hospital corporations.
The municipal corporations to which this chapter applies are referredto as "eligible entities" in this chapter.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-2
Governing bodies
Sec. 2. For purposes of this chapter, the following are consideredthe governing bodies of their respective eligible entities:
(1) Board of commissioners, for a county not subject toIC 36-2-3.5 or IC 36-3-1.
(2) County council, for a county subject to IC 36-2-3.5.
(3) City-county council, for a consolidated city or countyhaving a consolidated city.
(4) Common council, for a city other than a consolidated city.
(5) Town council, for a town.
(6) Trustee and township board, for a civil or school township.
(7) Board of school trustees, board of school commissioners, orschool board, for a school corporation.
(8) Board of trustees, for a health and hospital corporation.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1982,P.L.33, SEC.47; P.L.8-1987, SEC.84; P.L.8-1989, SEC.99.
IC 36-9-13-3
"Government building" defined
Sec. 3. (a) As used in this chapter, "government building" meansall or part of any structure used for:
(1) governmental and public activities;
(2) the detention of prisoners;
(3) hospitals; or
(4) city markets.
(b) For purposes of this chapter, "government building" includes:
(1) the land used in conjunction with such a structure; and
(2) the equipment, facilities, appurtenances, materials, andsupplies that the board of directors of the building authorityconsiders necessary or convenient to make such a structure andland suitable for use under this chapter, including:
(A) heating and air conditioning facilities;
(B) sewage disposal facilities;
(C) landscaping; (D) walks;
(E) drives; and
(F) parking facilities.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.28.
IC 36-9-13-3.5
"System" defined
Sec. 3.5. As used in this chapter, "system" means any of thefollowing:
(1) A computer (as defined in IC 36-8-15-4).
(2) A communications system (as defined in IC 36-8-15-3(1)).
(3) Mobile or remote equipment that is coordinated by or linkedwith a computer or communication system.
(4) Upon the request of:
(A) the fiscal body of an eligible entity having a fiscal body;or
(B) the governing body of an eligible entity not having afiscal body;
security services provided by human or nonhuman means.
As added by P.L.37-1988, SEC.29. Amended by P.L.270-1993,SEC.1.
IC 36-9-13-4
Building authorities; authorization; purposes
Sec. 4. A county may establish a separate municipal corporationto be known as the "__________ building authority" (including thename of the county seat and county) for the purpose of:
(1) acquiring land; and
(2) financing, acquiring, improving, constructing,reconstructing, renovating, equipping, and operatinggovernment buildings and systems;
and leasing them to eligible entities.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.188, SEC.5; P.L.37-1988, SEC.30.
IC 36-9-13-5
Procedure for establishment of authority; notice and hearing
Sec. 5. (a) Whenever the county auditor receives a notice that:
(1) is signed by the presiding officers of the county executive,the county fiscal body, and the municipal fiscal body of thecounty seat;
(2) states that those bodies have agreed to hold a public hearingon and consider the creation of a county building authority; and
(3) fixes a time and place for that hearing;
he shall give notice by publication of the hearing. The notice shall bepublished in accordance with IC 5-3-1, and must set out the time,place, and purpose of the hearing.
(b) The members of the executive of the county and the fiscalbodies of the county and county seat shall meet at the time and place
fixed in the notice. The presiding officers of each of the three (3)bodies shall elect one (1) of their number to preside as chairman atthe hearing, another as vice chairman, and another as secretary.
(c) All interested citizens and taxpayers of the county may appearand are entitled to be heard at the hearing.
(d) The authority shall be established if, within sixty (60) daysafter the hearing, a concurrent resolution declaring a need for theauthority is agreed upon and separately adopted by the countyexecutive and county and municipal fiscal bodies.
(e) A copy of the concurrent resolution that is certified byaffidavits of the county auditor and municipal clerk showing the dateof adoption of the resolution by the three (3) bodies must be filed inthe office of the recorder of the county for recording in themiscellaneous records. The certified and recorded copy of theresolution is admissible in evidence in any action or proceeding asproof of the establishment of the authority.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.45, SEC.46.
IC 36-9-13-6
Trustees; appointment; terms of office; oaths
Sec. 6. (a) Within sixty (60) days after the adoption of theconcurrent resolution under section 5 of this chapter, a board ofbuilding authority trustees shall be appointed. The board consists offive (5) trustees who are appointed in the following manner and forthe following initial terms:
(1) One (1) appointed by the municipal fiscal body of thecounty seat, for a term of one (1) year.
(2) One (1) appointed by the county fiscal body, for a term oftwo (2) years.
(3) One (1) appointed by the county executive, for a term ofthree (3) years.
(4) One (1) appointed by the municipal executive of the countyseat, for a term of four (4) years.
(5) One (1) appointed by the county executive, for a term offour (4) years.
(b) A person may be appointed as a trustee only if he:
(1) is at least thirty (30) years of age;
(2) has been a resident of the county for five (5) yearsimmediately preceding his appointment; and
(3) is not an officer or employee of an eligible entity.
(c) The names of all persons appointed under subsection (a) shallbe transmitted in writing to the circuit court for the county at leastten (10) days before the end of the sixty (60) day period. The courtshall mail a notice of appointment to each trustee immediately afterthe sixty (60) day period.
(d) Before entering upon his duties, each trustee shall take andsubscribe an oath of office (in the usual form), which shall beendorsed upon his certificate of appointment. The certificate shall bepromptly filed with the county clerk.As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.7-1983,SEC.39.
IC 36-9-13-7
Trustees; appointment of successors
Sec. 7. (a) As the term of a trustee expires, his successor shall beappointed by the same appointing authority, for a term of four (4)years.
(b) A trustee holds over after the expiration of his term until hissuccessor is appointed and qualified.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-8
Trustees; failure to qualify; vacancies
Sec. 8. If a person appointed as a trustee:
(1) fails to qualify within ten (10) days after notice of hisappointment is mailed to him; or
(2) qualifies but then dies, resigns, vacates his office because heis no longer a resident of the county, or is removed from officeunder section 18 of this chapter;
a new trustee shall be appointed by the same appointing authority forthe remainder of the vacated term.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-9
Trustees; meetings to elect officers and appoint board of directors
Sec. 9. (a) The first trustees of the building authority shall, withinthirty (30) days after their appointment, meet at a time and placedesignated by the circuit court for the county for the purpose ofelecting officers. The trustees shall elect from among themselves apresident, a vice president, and a secretary. Each of these officersshall serve from the day of his election until the first Monday inJanuary after his election, and holds over until his successor iselected and qualified.
(b) At the meeting under this section, the trustees shall alsoappoint the first board of directors of the building authority, in themanner prescribed by section 11 of this chapter.
(c) After appointing the first board of directors of the buildingauthority, the trustees shall meet on the first Monday in January ofeach year for the purpose of:
(1) electing officers;
(2) appointing the directors of the building authority; and
(3) performing any other duties under this chapter.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-10
Trustees; adoption of rules; records; additional meetings
Sec. 10. (a) The trustees may adopt rules and bylaws governingtheir procedure.
(b) The proceedings of the trustees shall be recorded in a book
provided for that purpose.
(c) In addition to their meetings under section 9 of this chapter,the trustees may hold regular and special meetings as often as isnecessary to perform their duties under this chapter.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-11
Board of directors; appointment; terms of office; qualifications;oaths
Sec. 11. (a) A county building authority is under the control of aboard of directors. This board consists of five (5) directors, who shallbe appointed by a majority vote of the building authority trustees.Each of the original directors shall serve from the date of hisappointment until the first day of February in the second year afterhis appointment, and until his successor is appointed and hasqualified.
(b) A person may be appointed as a director only if he:
(1) is at least thirty (30) years of age;
(2) has been a resident of the county five (5) years immediatelypreceding his appointment; and
(3) is not an officer or employee of an eligible entity.
(c) Before entering upon his duties, each director shall take andsubscribe an oath of office (in the usual form), which shall beendorsed upon his certificate of appointment. The certificate shall bepromptly filed with the county clerk.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-12
Directors; appointment of successors
Sec. 12. As the term of a director expires, his successor shall beappointed by a majority vote of the trustees. The new director shallserve for one (1) year from the first day of February after hisappointment, and until his successor is appointed and qualified.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-13
Directors; vacancies
Sec. 13. If a vacancy occurs on the board of directors, the trusteesshall, by a majority vote, appoint a new director to serve theremainder of the term.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-14
Directors; meetings to elect officers
Sec. 14. (a) The first directors of a building authority shall, withinthirty (30) days after their appointment, meet for the purpose ofelecting officers. They shall elect from among themselves apresident, a vice president, a secretary, and a treasurer. Each of theseofficers shall perform the duties usually pertaining to his office, andshall serve from the date of his election until his successor is elected
and qualified.
(b) After the meeting under subsection (a), the directors shall meeton the first Monday in February of each year for the purpose ofelecting officers.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-15
Directors; additional meetings
Sec. 15. In addition to their meetings under section 14 of thischapter, the directors may hold the regular and special meetings theyconsider necessary. The directors may fix the times of these meetingsand the notices required for meetings by resolution or under theirrules and bylaws.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-16
Directors; adoption of rules; quorum; approval of actions
Sec. 16. (a) The directors may adopt the rules and bylaws theyconsider necessary for the proper conduct of their proceedings, theperformance of their duties, and the safeguarding of the funds andproperty of the building authority.
(b) A majority of the directors constitutes a quorum, and theconcurrence of a majority of the directors is necessary to authorizeany action by the directors.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-17
Trustees and directors; actions resulting in vacation of office
Sec. 17. A trustee or director who:
(1) ceases to be a resident of the county; or
(2) becomes an officer or employee of an eligible entity;
vacates his office.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-18
Removal of trustees
Sec. 18. (a) A person seeking the removal of a trustee for:
(1) neglect of duty;
(2) incompetence;
(3) inability to perform his duties; or
(4) any other good cause;
may file a complaint in the circuit or superior court for the county inwhich the building authority is located. The complaint must set forththe charges preferred. The action shall be placed on the court'sadvanced calendar, and the court shall try the action in the samemanner as other civil cases, without a jury. If the charges aresustained, the court shall declare the trustee's office vacant.
(b) The trustees may summarily remove a director from office atany time.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-19
Compensation of trustees and directors
Sec. 19. A trustee or director is not entitled to a salary but isentitled to reimbursement for expenses necessarily incurred in theperformance of his duties.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-20
Trustees and directors; conflicts of interest
Sec. 20. A trustee or director may not have any pecuniary interestin any contract, employment, purchase, or sale made under thischapter. Any such transaction in which a trustee or director has apecuniary interest is void.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-21
Preliminary expenses
Sec. 21. All necessary preliminary expenses that must be paid bythe board of directors of a building authority before the issuance anddelivery of bonds or the negotiation of a loan under this chapter,including expenses incurred in:
(1) making surveys;
(2) estimating costs and receipts;
(3) employing engineers, architects, or consultants;
(4) giving notices; and
(5) taking options;
may be paid out of money provided by the county and county seat,or either of them, from money on hand or derived from taxes leviedfor that purpose. The fund or funds from which the payments aremade shall be fully reimbursed by the board out of the first proceedsof the sale of bonds or the loan negotiated by the authority before anyother disbursements are made from those proceeds. The amountadvanced to pay preliminary expenses under this section is a firstcharge against the proceeds resulting from the sale of the bonds orthe negotiation of the loan until that amount has been repaid.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.31.
IC 36-9-13-22
Powers and duties of board of directors
Sec. 22. (a) Except as provided in subsection (b), the board ofdirectors of a building authority, acting in the name of the authority,may:
(1) finance, improve, construct, reconstruct, renovate, purchase,lease, acquire, equip, operate, maintain, and manage land,government buildings, or systems for the joint or separate useof one (1) or more eligible entities;
(2) lease all or part of land, government buildings, or systemsto eligible entities;
(3) govern, manage, regulate, operate, improve, reconstruct,
renovate, repair, and maintain any land, government building,or system acquired or financed under this chapter;
(4) sue, be sued, plead, and be impleaded, but all actions againstthe authority must be brought in the circuit court for the countyin which the authority is located;
(5) condemn, appropriate, lease, rent, purchase, and hold anyreal or personal property needed or considered useful inconnection with government buildings or systems regardless ofwhether that property is then held for a governmental or publicuse;
(6) acquire real or personal property by gift, devise, or bequestand hold, use, or dispose of that property for the purposesauthorized by this chapter;
(7) enter upon any lots or lands for the purpose of surveying orexamining them to determine the location of a governmentbuilding;
(8) design, order, contract for, and construct, reconstruct,renovate, and maintain land, government buildings, or systemsand perform any work that is necessary or desirable to improvethe grounds, premises, and systems under its control;
(9) determine, allocate, and adjust space in governmentbuildings to be used by any eligible entity;
(10) construct, reconstruct, renovate, maintain, and operateauditoriums, public meeting places, and parking facilities inconjunction with or as a part of government buildings;
(11) collect all money that is due on account of the operation,maintenance, or management of, or otherwise related to, land,government buildings, or systems, and expend that money forproper purposes;
(12) let concessions for the operation of restaurants, cafeterias,public telephones, news and cigar stands, and vendingmachines;
(13) employ the managers, superintendents, architects,engineers, consultants, attorneys, auditors, clerks, foremen,custodians, and other employees or independent contractorsnecessary for the proper operation of land, governmentbuildings, or systems and fix the compensation of thoseemployees or independent contractors, but a contract ofemployment may not be made for a period of more than four (4)years although it may be extended or renewed from time totime;
(14) make and enter into all contracts and agreements necessaryor incidental to the performance of its duties and the executionof its powers under this chapter;
(15) provide coverage for its employees under IC 22-3 andIC 22-4; and
(16) accept grants and contributions for any purpose specifiedin this subsection.
(b) The building authority in a county having a consolidated citymay not purchase, construct, acquire, finance, or lease any land,
government building, or system for use by an eligible entity otherthan the consolidated city or county, unless that action is firstapproved by:
(1) the city-county legislative body; and
(2) the governing body of the eligible entity involved.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.188, SEC.6; P.L.37-1988, SEC.32.
IC 36-9-13-22.5
Management contract; terms; annual budget; tax levy
Sec. 22.5. The authority may operate, maintain, and manage all orany part of a government building or system for the benefit of aneligible entity under a management contract entered into for a periodof not more than forty (40) years. The management contract maycontain any terms agreed to by the authority and the eligible entity,including a covenant of the eligible entity to pay the authority amonthly fee for costs of operation and maintenance of thegovernment building or system pursuant to the annual budgetsubmitted to the governing body by the authority in accordance withthe management contract. The annual budget may contain funds fora working balance and funds for a reserve account for nonrecurringgeneral maintenance, improvement, or replacement costs as providedin the management contract. The eligible entity may enter into thecontract through adoption of an ordinance, an order, or a resolutionof the entity's governing body or, in the case of a city, a resolution ofthe board that is responsible for the government building or system.No other approvals of the management contract are required. To theextent provision for payment from other available revenues has notbeen made and subject to the provisions of the management contractfor cancellation or termination, the governing body of the eligibleentity that executes a management contract shall annually levy a taxsufficient to produce each year the necessary money with which topay the management fee required by the budget submitted by theauthority. These levies may be reviewed by other bodies vested bylaw with that power to determine that the annual levies are sufficientto raise the amount required to meet the management fee under thecontract.
As added by P.L.35-1990, SEC.64.
IC 36-9-13-23
Lease of land, government buildings, or systems to eligible entityby authority; authorization
Sec. 23. (a) An eligible entity may lease land or any part of agovernment building or system from a building authority, and theauthority may lease land or any part of a government building orsystem to an eligible entity. An eligible entity that enters into such alease may sublease part of the leased premises to other eligibleentities. Such a lease or sublease may not be entered into for a periodof more than forty (40) years.
(b) An eligible entity may, in anticipation of: (1) the construction or purchase of government buildings,including the necessary equipment and appurtenances; or
(2) the purchase of land;
enter into a lease with a building authority before the construction orpurchase. Such a lease must require the payment of lease rental bythe lessee or lessees to begin when the building or land has beenacquired or completed and is ready for occupancy, but not before thattime.
(c) Whenever property is to be acquired and reconstructed orrenovated under this chapter, an eligible entity may, in anticipationof the acquisition, enter into a lease with a building authority, uponsuch terms and conditions as may be agreed upon, including:
(1) provisions for the lessee to continue to operate the propertyuntil completion of the reconstruction or renovation; and
(2) provisions for the payment of a lease rental by the lessee forthe use of the property while it is being reconstructed orrenovated.
(d) An eligible entity may, in anticipation of the acquisition of asystem, enter into a lease with the building authority before thecompletion of the acquisition. Such a lease must require the paymentof lease rental by the lessee or lessees to begin when acquisition ofthe system, or a discrete, functional part of the system, has beencompleted and is ready for use, but not before that time. An opinionor report of an independent expert that the system, or a discrete,functional part of the system, is complete and ready for use isconclusive and binding on all parties and on all taxpayers of aneligible entity.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.188, SEC.7; P.L.37-1988, SEC.33.
IC 36-9-13-24
Leases; options to renew
Sec. 24. A lease under section 23 of this chapter may provide theeligible entity that is the lessee with an option to renew the lease forthe same term or a shorter term, on the conditions provided in thelease.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-25
Leases; options to purchase; authorization of bond issue to paypurchase price
Sec. 25. (a) A lease under section 23 of this chapter may give one(1) or more of the lessees acting jointly or severally an option topurchase before the expiration of the term of the lease:
(1) on the date or dates in each year that are fixed by the lease;and
(2) at a price to be computed by a method set forth in the lease.
However, such a lease may not provide, or be construed to provide,that an eligible entity is under an obligation to purchase the leasedgovernment building or system or is under an obligation respecting
any creditors or bondholders of the authority.
(b) An eligible entity that exercises an option to purchase mayissue general obligation bonds for the purpose of obtaining enoughmoney to pay the purchase price or its proportionate share of thepurchase price. The bonds shall be authorized, issued, and sold in themanner prescribed by law for the authorization, issuance, and sale ofbonds of the eligible entity for other purposes.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.34.
IC 36-9-13-26
Construction or purchase of building or acquisition of system to beleased; submission of plans and specifications
Sec. 26. (a) A building authority proposing to build or purchaseand remodel a government building for lease to an eligible entitymust submit the plans, specifications, and estimates for the buildingor remodeling to the lessee or lessees before the execution of thelease. The plans and specifications must also be submitted to thestate department of health, state fire marshal, and any other stateagencies designated by law to pass on plans and specifications forpublic buildings.
(b) A building authority proposing to acquire a system may enterinto a lease without submitting plans, designs, or specifications toany eligible entity, government body, or agency. However, before theexecution of the lease, the building authority must submit to thelessee or lessees an estimate of the cost and a detailed description ofthe system.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.35; P.L.2-1992, SEC.893.
IC 36-9-13-27
Leases; notice and hearing; execution
Sec. 27. (a) When a building authority and an eligible entity haveagreed upon the terms and conditions of a proposed lease undersection 23 of this chapter, a notice of a public hearing to be held inthe county by the governing body of the eligible entity shall be givenby publication to all interested persons. The notice of the hearingshall be published in accordance with IC 5-3-1. The notice mustname the day, place, and hour of the hearing, and set forth a briefsummary of the principal terms of the lease agreed upon, includingthe character of the property to be leased, the location of the propertyto be leased if the property is a government building, the estimatedlease rental to be paid, and the number of years the lease is to be ineffect.
(b) The proposed lease, a detailed description of the governmentbuilding or system, and any drawings, plans, specifications, andestimates that are available for the government building or systemshall be kept open for inspection by the public after the notice ispublished and at the hearing.
(c) At the hearing, all interested persons are entitled to be heard
upon the necessity for the execution of the lease and whether thebasis for the determination of the lease rental is fair and reasonable.The hearing may be adjourned to a later date or dates, with the placeand date of the continued hearing to be fixed before adjournment.
(d) Following the hearing, the governing body may approve theproposed lease in substantially final form and authorize the executionof the lease within parameters established by the authority at the timethe proposed lease is approved, as originally agreed upon or with anymodifications that the authority agrees to. The governing body mayrely on the testimony of independent experts as to the fairness andreasonableness of the lease. Such an authorization must be byresolution or ordinance entered in the official records of thegoverning body. The lease must be executed on behalf of the eligibleentity by the officer or officers authorized by law to executecontracts on behalf of that entity, and on behalf of the authority bythe president or vice president and the secretary of its board ofdirectors.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.45, SEC.47; P.L.37-1988, SEC.36; P.L.35-1990, SEC.65.
IC 36-9-13-28
Leases; notice of approval; objections by taxpayers; petitions;notice and hearing; limitations on actions and appeals
Sec. 28. (a) If the terms and conditions of a proposed lease areapproved under section 27 of this chapter, notice of the approval ofthe lease shall be given on behalf of the eligible entity by publicationin accordance with IC 5-3-1. Ten (10) or more taxpayers in theeligible entity:
(1) whose tax rate will be affected by the proposed lease; and
(2) who are of the opinion that there is no necessity for thelease, or that the method of determining the lease rental is notfair and reasonable;
may file a petition in the office of the county auditor within thirty(30) days after publication of notice of the approval of the lease. Thepetition must set forth their objections to the lease and facts showingthat the lease is unnecessary or unwise, or that the method ofdetermining the lease rental is not fair and reasonable.
(b) Upon the filing of a petition under subsection (a), the countyauditor shall immediately certify a copy of it, together with any otherdata necessary to present the questions involved, to the departmentof local government finance. Not less than five (5) nor more thanfifteen (15) days after receipt of the certified petition and data, thedepartment of local government finance shall fix a time and place inthe county for the hearing of the matter. The department of localgovernment finance shall give notice of the hearing to the eligibleentity and to the first ten (10) petitioners on the petition by registeredmail, at least five (5) days before the date of the hearing.
(c) The decision of the department of local government finance ona petition under this section is final.
(d) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be institutedwithin thirty (30) days after publication of notice of the approval ofthe lease, or if an appeal has been taken to the department of localgovernment finance, within thirty (30) days after the decision of thedepartment.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.45, SEC.48; P.L.35-1990, SEC.66; P.L.90-2002, SEC.510.
IC 36-9-13-29
Sale or lease of land or government building by eligible entity toauthority; authorization; procedure
Sec. 29. (a) An eligible entity that wants to have all or part of agovernment building constructed, reconstructed, or renovated on landowned or to be acquired by it may:
(1) sell that land or building to a building authority; or
(2) lease the land or building to the authority for the sameperiod of years that the eligible entity proposes to lease all orpart of the building, and may grant an option to the authority topurchase the land or building within six (6) months after theexpiration of the lease on the building if the eligible entity doesnot exercise an option to purchase the land or building withinthe terms of the lease.
If the option price of the land or building is not fixed in the lease,then the price to be paid for the land or building under the optionshall be determined by an appraisal by one (1) disinterestedfreeholder residing in the county and two (2) disinterested appraiserslicensed under IC 25-34.1, who must be residents of Indiana, andwho shall be appointed by the circuit court for the county. One (1) ofthe appraisers appointed under this subsection must reside not morethan fifty (50) miles from the land.
(b) A sale or lease of land or a building under this section must beauthorized by resolution or ordinance of the governing body of theeligible entity, which shall be entered in the official records of thegoverning body. This authorization must be given concurrently withthe authorization by the eligible entity of a lease of the building, orpart of it, to be constructed, reconstructed, or renovated wholly or inpart on the land.
(c) The deed, in the case of a sale of the land, or the lease, mustbe executed on behalf of the eligible entity by the officer or officersauthorized by law to execute contracts on behalf of the entity, and onbehalf of the authority by the president or vice president andsecretary of its board of directors.
(d) Before the sale of any land or building under this section, apetition must be filed with the circuit court of the county requestingthe appointment of:
(1) one (1) appraiser who must be a resident of the eligibleentity selling the land or building and a disinterested freeholder;and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana. One (1) of the appraisers described
under subdivision (2) must reside not more than fifty (50) miles fromthe land or building. The appraisers shall fix the fair market value ofthe land or building and report their decision within three (3) weeksafter their appointment. The eligible entity may then sell the land orbuilding to the authority for an amount not less than the fair marketvalue fixed by the appraisers, which amount may be paid fromproceeds of bonds of the authority.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.188, SEC.8; P.L.113-2006, SEC.21.
IC 36-9-13-30
Revenue bonds
Sec. 30. (a) For the purpose of obtaining money to pay the cost of:
(1) acquiring or constructing government buildings;
(2) acquiring land;
(3) acquiring systems;
(4) improving, reconstructing, or renovating governmentbuildings, systems, or land;
(5) repaying any advances for preliminary expenses made to thebuilding authority by an eligible entity;
(6) purchasing plans, designs, programs, and devices forgovernmental buildings or systems; or
(7) refinancing any loan made under section 31 of this chapter;
the board of directors of a building authority may issue revenuebonds of the authority.
(b) The bonds are payable solely from the income and revenuesof the particular government buildings, systems, or land for whichthe bonds were issued.
(c) The bonds must be authorized by resolution of the board. Thebonds:
(1) bear interest payable semiannually; and
(2) mature serially, either annually or semiannually, at timesdetermined by the resolution authorizing the bonds.
However, the maturities of the bonds may not extend over a periodlonger than the period of the lease of the government buildings,systems, or land for which the bonds are issued.
(d) The bonds may, and all bonds maturing after five (5) yearsfrom date of issuance shall, be made redeemable before maturity atthe option of the board of directors of the building authority. Such aredemption must be at the par value of the bonds, together with thepremiums, and under the terms and conditions fixed by the resolutionauthorizing the issuance of the bonds.
(e) The principal and interest of the bonds may be made payablein any lawful medium.
(f) The resolution authorizing the issuance of the bonds must:
(1) determine the form of the bonds, including the interestcoupons (if any) to be attached to them;
(2) fix the denomination or denominations of the bonds; and
(3) fix the place or places of payment of the principal andinterest of the bonds, which must be at a state or national bank
or trust company within Indiana and may also be at one (1) ormore state or national banks or trust companies outside Indiana.
(g) The bonds are negotiable instruments under IC 26-1.
(h) The resolution authorizing the issuance of the bonds mayprovide for the registration of any of the bonds in the name of theowner as to principal alone.
(i) The bonds shall be executed by the president of the board ofdirectors, the corporate seal of the authority shall be affixed to thebonds and attested by the secretary of the board, and the interestcoupons (if any) attached to the bonds shall be executed by placingthe facsimile signature of the treasurer of the board on them.
(j) The bonds may be sold at a private sale, a negotiated sale, ora public sale.
(k) If the bonds are sold at a public sale, notice of the sale of thebonds shall be published in accordance with IC 5-3-1.
(l) The board of directors shall sell the bonds at public sale, fornot less than their par value. The board shall award the bonds to thehighest bidder, as determined by computing the total interest on thebonds from the date of sale to the dates of maturity and deductingfrom that amount the premium bid, if any. Any premium receivedfrom the sale of the bonds shall be used solely for the payment ofprincipal and interest on the bonds. If the bonds are not sold on thedate fixed for the sale, then the sale may be continued from day today until a satisfactory bid has been received.
(m) The board of directors may issue temporary bonds, with orwithout coupons. These bonds, which must be issued in the mannerprescribed by this section, may be exchanged for the bonds that aresubsequently issued.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.45, SEC.49; Acts 1981, P.L.188, SEC.9; P.L.37-1988, SEC.37;P.L.173-2003, SEC.39.
IC 36-9-13-31
Loans
Sec. 31. (a) In lieu of authorizing and selling bonds under section30 of this chapter, the board of directors of a building authority mayadopt a resolution authorizing the negotiation of a loan or loans forthe purpose of obtaining the required money.
(b) The resolution authorizing the loan must set out:
(1) the total amount of the loan desired;
(2) the approximate dates on which money will be required, andthe amounts of the money that will be required on those dates;and
(3) any terms, conditions, and restrictions concerning theproposed loan or the submission of proposals that the boardconsiders advisable.
(c) Before the consideration of proposals for such a loan, a noticeshall be published in accordance with IC 5-3-1. The notice must setout:
(1) the amount and purpose of the proposed loan; (2) a brief summary of other provisions of the resolution; and
(3) the time and place where proposals will be considered.
(d) The board of directors may accept the proposal it considersmost advantageous to the authority.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,P.L.45, SEC.50.
IC 36-9-13-32
Trust indentures securing bonds or loans
Sec. 32. (a) The board of directors of a building authority maysecure bonds issued under section 30 of this chapter or loans madeunder section 31 of this chapter by a trust indenture between theauthority and a corporate trustee, which may be any trust companyor national or state bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) mortgage or grant a security interest in all or part of theland, systems, or government buildings for which the bonds areissued or loan is made;
(2) contain reasonable and proper provisions for protecting andenforcing the rights and remedies of the bondholders or lenders,including covenants setting forth the duties of the authority andboard concerning:
(A) the construction, operation, extension, remodeling,repair, maintenance, and insurance of the governmentbuildings or systems; and
(B) the custody, safeguarding, and application of all moneyreceived or to be received by the authority on account of thegovernment buildings or systems financed by the bonds orloan;
(3) set forth the rights and remedies of the bondholders orlenders and trustee; and
(4) restrict the individual right of action of bondholders orlenders.
(c) Except as otherwise provided by this chapter, the board ofdirectors may, by resolution or in the trust indenture, specify:
(1) the officer, board, or depository to which the proceeds of thebonds or loan shall be paid; and
(2) the method of disbursing those proceeds.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.38.
IC 36-9-13-33
Proceeds; application; liens
Sec. 33. (a) The proceeds of any bonds issued under section 30 ofthis chapter or of any loans made under section 31 of this chaptershall first be applied to the reimbursement of all amounts advancedfor preliminary expenses under section 21 of this chapter. Theproceeds shall then be applied solely to the payment of the costs forwhich the bonds are issued or the loan is negotiated, includingincidental expenses and interest during construction or acquisition. (b) The bondholders under section 30 of this chapter, lendersunder section 31 of this chapter, or trustees under section 32 of thischapter have a lien upon the proceeds of the bonds or the loan untilthose proceeds are applied in the manner prescribed by this section.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.39.
IC 36-9-13-34
Tax levy to pay lease rentals
Sec. 34. (a) Except as provided by subsection (d), an eligibleentity that executes a lease under this chapter shall annually levy atax sufficient to produce each year the necessary money with whichto pay the lease rental required by the lease. These levies may bereviewed by other bodies vested by law with that authority, in orderto determine that the levies are sufficient to raise the amount requiredto meet the rental under the lease.
(b) The first tax levy shall be made at the first annual tax levyperiod following the date of the execution of the lease. However, ifthe lease was entered into in anticipation of the purchase of land,construction or purchase of a government building, or acquisition ofa system, the first tax levy shall be made at the first annual tax levyperiod immediately before the date fixed in the lease for thebeginning of the lease rental. The first annual levy shall be made inan amount sufficient to pay the estimated amount of the first annuallease rental to be made under the lease.
(c) The annual lease rental shall be paid to the authoritysemiannally, following settlements for tax collections.
(d) If a consolidated city executes a lease agreement for all or partof any land, government building, or system, and its use and benefitis for a certain special service district within the consolidated city,the authority may determine that the annual tax required undersubsection (a) shall be levied by the special service district benefitedby the lease agreement.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.40.
IC 36-9-13-35
Review of annual budget
Sec. 35. The annual operating budget of a building authority issubject to review by the county board of tax adjustment and then bythe department of local government finance as in the case of otherpolitical subdivisions.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.90-2002,SEC.511; P.L.224-2007, SEC.134; P.L.146-2008, SEC.790.
IC 36-9-13-36
Property and revenues; tax exemption
Sec. 36. All the property and revenues of a building authority areexempt from taxation for all purposes.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-37
Bonds and other securities; tax exemption
Sec. 37. All the bonds and other securities issued by a buildingauthority, including the interest on them, are exempt from taxationfor all purposes.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-38
Handling of funds; employees' bonds
Sec. 38. (a) Except as otherwise provided in this chapter, allmoney coming into possession of the building authority shall bedeposited, held, and secured in accordance with the general statutesconcerning the handling of public funds. The handling andexpenditure of money coming into possession of the authority issubject to audit and supervision by the state board of accounts.
(b) Any employee of the building authority authorized to receive,disburse, or in any other way handle money or negotiable securitiesof the authority shall execute a bond payable to the state, with suretyto consist of a surety or guaranty corporation qualified to do businessin Indiana. The bond must be in an amount determined by the boardof directors of the authority and must be conditioned upon thefaithful performance of the employee's duties and the accounting forall money and property that may come into his hands or under hiscontrol. The cost of the bond shall be paid by the authority.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-39
Procedure for awarding contracts
Sec. 39. (a) All contracts let by a building authority for theconstruction and equipment of a government building must be let inaccordance with the general statutes concerning public contracts.
(b) All contracts let by a building authority for the acquisition ofa system may be entered into in accordance with the general statutesconcerning similar contracts.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,SEC.41.
IC 36-9-13-40
Public records
Sec. 40. The records of a building authority are public records.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-41
Dissolution of authority
Sec. 41. (a) This section does not apply to a county having aconsolidated city.
(b) The county fiscal body and the municipal fiscal body of thecounty seat may by concurrent resolution dissolve a buildingauthority. They may consider dissolving the building authority at anytime, but they shall consider dissolving the building authority when
they are presented with a petition signed by twenty percent (20%) ofthe registered voters residing in the county or thirty-five percent(35%) of the registered voters residing in the county seat.
(c) The concurrent resolution must provide a plan for paying anyobligations, including bonds, of the building authority and for thedisposition of the funds and property of the building authority.
As added by Acts 1981, P.L.309, SEC.86.