CHAPTER 39. ECONOMIC DEVELOPMENT DISTRICTS
IC 6-1.1-39
Chapter 39. Economic Development Districts
IC 6-1.1-39-1
Application of chapter
Sec. 1. (a) This chapter applies to all counties, cities, and towns(referred to in this chapter as units).
(b) Notwithstanding any other law, for economic developmentdistricts established after January 1, 1992, this chapter does not applyto fire protection districts established under IC 36-8-11.
As added by P.L.19-1985, SEC.5. Amended by P.L.1-1993, SEC.35.
IC 6-1.1-39-1.1
"Additional area" defined
Sec. 1.1. As used in this chapter, "additional area" means an areaadded to an economic development district under section 6 of thischapter.
As added by P.L.63-1991, SEC.1 and P.L.42-1992, SEC.6. Amendedby P.L.1-1993, SEC.36.
IC 6-1.1-39-1.2
"Local public improvement" defined
Sec. 1.2. As used in this chapter, "local public improvement"means sewerlines, waterlines, streets, sidewalks, bridges, roads,highways, public ways, and any related public improvements.
As added by P.L.19-1988, SEC.5.
IC 6-1.1-39-1.5
"Industrial development program" defined
Sec. 1.5. As used in this chapter, "industrial developmentprogram" has the meaning set forth in IC 5-28-9-3.
As added by P.L.24-1987, SEC.11. Amended by P.L.4-2005, SEC.43.
IC 6-1.1-39-1.6
"Qualified industrial development project" defined
Sec. 1.6. As used in this chapter, "qualified industrialdevelopment project" means an industrial development project (asdefined in IC 4-4-10.9-11(a)) that has a cost of the project (as definedin IC 4-4-10.9-5) greater than one hundred million dollars($100,000,000).
As added by P.L.24-1987, SEC.12.
IC 6-1.1-39-2
Designation of unit area as district; adoption of declaratoryordinance
Sec. 2. (a) If the fiscal body of a unit finds that:
(1) in order to promote opportunities for the gainfulemployment of its citizens, the attraction of a new businessenterprise to the unit, the retention or expansion of a businessenterprise existing within the boundaries of the unit, or the
preservation or enhancement of the tax base of the unit, an areaunder the fiscal body's jurisdiction should be declared aneconomic development district;
(2) the public health and welfare of the unit will be benefited bydesignating the area as an economic development district; and
(3) there has been proposed a qualified industrial developmentproject to be located in the economic development district, withthe proposal supported by:
(A) financial and economic data; and
(B) preliminary commitments by business enterprises,associations, state or federal governmental units, or similarentities that evidence a reasonable likelihood that theproposed qualified industrial development project will beinitiated and accomplished;
the fiscal body may on or before the adoption deadline determinedunder subsection (c), adopt an ordinance declaring the area to be aneconomic development district and declaring that the public healthand welfare of the unit will be benefited by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),it is sufficient to describe the boundaries of the area by its locationin relation to public ways or streams or otherwise as determined bythe fiscal body.
(c) The adoption deadline referred to in subsection (a) isdetermined in the following manner:
(1) The initial adoption deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial adoption deadline andsubsequent adoption deadlines are automatically extended inincrements of five (5) years, so that adoption deadlinessubsequent to the initial adoption deadline fall on December 31,2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an adoption deadlinedetermined under subdivision (2), the general assembly mayenact a law that:
(A) terminates the automatic extension of adoption deadlinesunder subdivision (2); and
(B) specifically designates a particular date as the finaladoption deadline.
As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.13;P.L.18-1992, SEC.23; P.L.25-1995, SEC.55; P.L.216-2005, SEC.5.
IC 6-1.1-39-2.5
Review of proposed project; preliminary certification
Sec. 2.5. (a) Within thirty (30) days after the adoption of theordinance under section 2 of this chapter, the fiscal body shall filewith the Indiana economic development corporation:
(1) a copy of the ordinance;
(2) a description of the proposed industrial developmentprogram and qualified industrial development project; and
(3) other additional data and information that will enable thecorporation to determine preliminarily whether the unit may
qualify for a loan from the industrial development fundestablished under IC 5-28-9.
(b) The Indiana economic development corporation shall reviewthe data and related information submitted under subsection (a) todetermine preliminarily whether:
(1) the proposed project will qualify as a qualified industrialdevelopment project;
(2) there is a reasonable likelihood that the proposed qualifiedindustrial development project will be initiated andaccomplished; and
(3) there is a reasonable likelihood that an application by theunit under IC 5-28-9-12 for a loan from the industrialdevelopment fund to institute and administer the proposedindustrial development program will be approved by thecorporation and the state board of finance.
(c) If the Indiana economic development corporation preliminarilydetermines under subsection (b) that the proposed project does notor will not qualify as a qualified industrial development project orthat there is not a reasonable likelihood that a loan from theindustrial development fund will be approved under IC 5-28-9-12,the corporation shall certify this determination in writing to the fiscalbody adopting the ordinance. Upon this certification, the ordinanceproposing to establish the economic development district is void.
(d) If the Indiana economic development corporation preliminarilydetermines under subsection (b) that the proposed project qualifiesor will qualify as a qualified industrial development project and thatthere is a reasonable likelihood that a loan from the industrialdevelopment fund will be approved under IC 5-28-9-12, thecorporation shall certify this determination to the fiscal bodyadopting the ordinance proposing to establish the economicdevelopment district. Upon receipt of this certification, the fiscalbody shall proceed to take final action with respect to the ordinancein accordance with section 3 of this chapter.
(e) A favorable preliminary certification under subsection (d) doesnot, however, represent or constitute a final determination by theIndiana economic development corporation and state board offinance as to whether the unit will obtain a loan from the industrialdevelopment fund in accordance with IC 5-28-9.
As added by P.L.24-1987, SEC.14. Amended by P.L.4-2005, SEC.44.
IC 6-1.1-39-3
Notice of adoption of ordinance; hearing; requisites; final action;appeal
Sec. 3. (a) The fiscal body shall publish notice of the adoption andsubstance of the ordinance in accordance with IC 5-3-1 after:
(1) the adoption of the ordinance under section 2 of thischapter; and
(2) the fiscal body receives preliminary certification from theIndiana economic development corporation under section 2.5 ofthis chapter that the proposed industrial development project
qualifies as a qualified industrial development project and thatthere is a reasonable likelihood that a loan from the industrialdevelopment fund will be approved under IC 5-28-9-12.
The notice must state the general boundaries of the area designatedas an economic development district and must state that writtenremonstrances may be filed with the fiscal body until the timedesignated for the hearing. The notice must also name the place,date, and time when the fiscal body will receive and hearremonstrances and objections from persons interested in or affectedby the proceedings pertaining to the proposed economic developmentdistrict designation and will determine the public utility and benefitof the proposed economic development district designation. Allpersons affected in any manner by the hearing, including alltaxpayers of the economic development district, shall be considerednotified of the pendency of the hearing and of subsequent acts,hearings, adjournments, and orders of the fiscal body affecting theeconomic development district if the fiscal body gives the noticerequired by this section.
(b) A copy of the notice of the hearing shall be filed with theoffice of the unit's plan commission, board of zoning appeals, worksboard, park board, building commissioner, and any otherdepartments, bodies, or officers of the unit having to do with unitplanning, variances from zoning ordinances, land use, or the issuanceof building permits.
(c) At the hearing, which may be recessed and reconvened fromtime to time, the fiscal body shall hear all persons interested in theproceedings and shall consider all written remonstrances andobjections that have been filed. After considering the evidencepresented, the fiscal body shall take final action determining thepublic utility and benefit of the proposed economic developmentdistrict designation and confirming, modifying and confirming, orrescinding the ordinance. The final action taken by the fiscal bodyshall be recorded and is final and conclusive, except that an appealmay be taken in the manner prescribed by section 4 of this chapter.
As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.15;P.L.4-2005, SEC.45.
IC 6-1.1-39-4
Appellate procedure; grounds; burden of proof
Sec. 4. (a) A person who filed a written remonstrance with thefiscal body under section 3 of this chapter and is aggrieved by thefinal action taken, may, within ten (10) days after that final action,file in the office of the clerk of the circuit or superior court of thecounty in which the action is taken a copy of the ordinance of thefiscal body and the person's remonstrance against that ordinance,together with the person's bond as provided by IC 34-13-5-7, if theappeal is determined against the person. The only ground ofremonstrance that the court may hear is whether the proposedeconomic development district designation will be of public utilityand benefit. The burden of proof is on the remonstrator. (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 withinthirty (30) days after the time of the filing of the appeal. The courtshall decide the appeal based on the record and evidence before thefiscal body, not by trial de novo, and may confirm the final action ofthe fiscal body or sustain the remonstrances. The judgment of thecourt is final and conclusive, unless an appeal is taken as in othercivil actions.
As added by P.L.19-1985, SEC.5. Amended by P.L.1-1998, SEC.77.
IC 6-1.1-39-5
Allocation and distribution of property taxes; assessed value oftaxable property; rules; forms
Sec. 5. (a) A declaratory ordinance adopted under section 2 of thischapter and confirmed under section 3 of this chapter must includea provision with respect to the allocation and distribution of propertytaxes for the purposes and in the manner provided in this section.The allocation provision must apply to the entire economicdevelopment district. The allocation provisions 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 economic development district be allocated and distributed asfollows:
(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. However, if the effective date of theallocation provision of a declaratory ordinance is after March1, 1985, and before January 1, 1986, and if an improvement toproperty was partially completed on March 1, 1985, the unitmay provide in the declaratory ordinance that the taxesattributable to the assessed value of the property as finallydetermined for March 1, 1984, shall be allocated to and, whencollected, paid into the funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all ofthe property tax proceeds in excess of those described insubdivision (1), as specified in the declaratory ordinance, shallbe allocated to the unit for the economic development districtand, when collected, paid into a special fund established by theunit for that economic development district that may be usedonly to pay the principal of and interest on obligations owed bythe unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for thefinancing of industrial development programs in, or serving,that economic development district. The amount not paid intothe special fund shall be paid to the respective units in the
manner prescribed by subdivision (1).
(3) When the money in the fund is sufficient to pay alloutstanding principal of and interest (to the earliest date onwhich the obligations can be redeemed) on obligations owed bythe unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for thefinancing of industrial development programs in, or serving,that economic development district, money in the special fundin excess of that amount shall be paid to the respective taxingunits in the manner prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic developmentdistrict under subsection (a)(2) must, subject to subsection (a)(3), beirrevocably pledged by the unit for payment as set forth in subsection(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxingunit or units, the assessed value of taxable property in a territory inthe economic development district that is annexed by any taxing unitafter the effective date of the allocation provision of the declaratoryordinance is the lesser of:
(1) the assessed value of the property for the assessment datewith respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, uponpetition of the fiscal body, reassess the taxable property situatedupon or in, or added to, the economic development district effectiveon the next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of alltaxable property in the economic development district, for purposesof tax limitation, property tax replacement, and formulation of thebudget, tax rate, and tax levy for each political subdivision in whichthe property is located, is the lesser of:
(1) the assessed value of the property as valued without regardto this section; or
(2) the base assessed value.
(f) The state board of accounts and department of localgovernment finance shall make the rules and prescribe the forms andprocedures that they consider expedient for the implementation ofthis chapter. After each general reassessment under IC 6-1.1-4, thedepartment of local government finance shall adjust the baseassessed value one (1) time to neutralize any effect of the generalreassessment on the property tax proceeds allocated to the districtunder this section. After each annual adjustment underIC 6-1.1-4-4.5, the department of local government finance shalladjust the base assessed value to neutralize any effect of the annualadjustment on the property tax proceeds allocated to the districtunder this section. However, the adjustments under this subsectionmay not include the effect of property tax abatements underIC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on
depreciable personal property that the unit has by ordinanceallocated to the economic development district. However, theordinance may not limit the allocation to taxes on depreciablepersonal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated toan economic development district property taxes imposed underIC 6-1.1 on depreciable personal property that has a useful life inexcess of eight (8) years, the ordinance continues in effect until anordinance is adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finallydetermined for the assessment date immediately preceding theeffective date of the allocation provision of the declaratoryresolution, as adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), the netassessed value of property that is assessed as residentialproperty under the rules of the department of local governmentfinance, as finally determined for any assessment date after theeffective date of the allocation provision.
Subdivision (2) applies only to economic development districtsestablished after June 30, 1997, and to additional areas establishedafter June 30, 1997.
As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.16;P.L.86-1987, SEC.5; P.L.255-1997(ss), SEC.6; P.L.90-2002,SEC.272; P.L.4-2005, SEC.46; P.L.154-2006, SEC.56;P.L.146-2008, SEC.296.
IC 6-1.1-39-6
Enlargement of districts
Sec. 6. An economic development district may be enlarged by thefiscal body by following the same procedure for the creation of aneconomic development district specified in this chapter.
As added by P.L.19-1985, SEC.5. Amended by P.L.42-1992, SEC.7;P.L.192-2002(ss), SEC.46; P.L.1-2004, SEC.48 and P.L.23-2004,SEC.51; P.L.219-2007, SEC.83; P.L.146-2008, SEC.297.
IC 6-1.1-39-7
Allocation areas; declaration as part of district prohibited
Sec. 7. No area shall be declared part of an economicdevelopment district if it has already been declared an allocation areaunder IC 36-7-14 or IC 36-7-15.1.
As added by P.L.19-1985, SEC.5.
IC 6-1.1-39-8
Expiration of district designation
Sec. 8. If no loans have been made to a unit under IC 4-4-8(before its repeal) or IC 5-28-9 for the financing of industrialdevelopment programs in an economic development district withintwo (2) years from the date of the ordinance confirming theestablishment of that district, or if money in the special fund
established by the unit for that district is sufficient to pay allprincipal of and interest on and the performance of all otherobligations by a unit on all loans made under IC 4-4-8 (before itsrepeal) or IC 5-28-9 for the financing of industrial developmentprograms in, or serving, an economic development district, then theeconomic development district designation expires.
As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.17;P.L.19-1988, SEC.6; P.L.4-2005, SEC.47.
IC 6-1.1-39-9
Industrial development program obligations; ordinance; proceedsof obligation
Sec. 9. (a) The fiscal body of a unit may by ordinance authorizethe issuance of obligations to the department of commerce underIC 4-4-8 (before its repeal) or to the Indiana economic developmentcorporation under IC 5-28-9 payable solely from taxes allocatedunder section 5 of this chapter. Any obligations issued and payablefrom taxes allocated under section 5 of this chapter are not generalobligations of the unit that established the economic developmentdistrict under this chapter.
(b) The economic development district created by a unit underthis chapter is a special taxing district authorized by the generalassembly to enable the unit to provide special benefits to taxpayersin the economic development district by providing local publicimprovements that are of public use and benefit.
(c) The ordinance of a unit authorizing the issuance of obligationsmust contain a finding of the fiscal body that the proposed industrialdevelopment program:
(1) constitutes a local public improvement;
(2) provides special benefits to property owners in the district;and
(3) will be of public use and benefit.
(d) Proceeds of obligations issued under this section, IC 4-4-8(before its repeal), and IC 5-28-9 may be used to pay for thefollowing:
(1) The cost of local public improvements.
(2) Interest on the obligations for the period of construction ofthe local public improvements plus one (1) year aftercompletion of construction.
(3) Reasonable debt service reserves.
(4) Costs of issuance of the obligations.
(5) Any other reasonable and necessary expenses related toissuance of the obligations.
As added by P.L.19-1988, SEC.7. Amended by P.L.4-2005, SEC.48;P.L.146-2008, SEC.298.