IC 8-22-3.6
    Chapter 3.6. Leases of Qualified Airport Development Projects

IC 8-22-3.6-1
Definitions applicable to chapter
    Sec. 1. The definitions in IC 8-22-3.5 apply throughout thischapter.
As added by P.L.108-1993, SEC.10.

IC 8-22-3.6-2
"Airport project" defined
    Sec. 2. As used in this chapter, "airport project" means:
        (1) any property or project that could be financed with theproceeds of bonds issued under IC 8-22-3; or
        (2) any qualified airport development project.
As added by P.L.108-1993, SEC.10.

IC 8-22-3.6-3
Authority to enter lease; terms; public hearing and proceedings;funds for payment; actions to contest lease; options to buy
    Sec. 3. (a) An authority that is located in a:
        (1) city having a population of more than ninety thousand(90,000) but less than one hundred five thousand (105,000);
        (2) county having a population of more than one hundred fivethousand (105,000) but less than one hundred ten thousand(110,000); or
        (3) county having a population of more than three hundredthousand (300,000) but less than four hundred thousand(400,000);
may enter into a lease of an airport project with a lessor for a termnot to exceed fifty (50) years and the lease may provide for paymentsto be made by the airport authority from property taxes levied underIC 8-22-3-17, taxes allocated under IC 8-22-3.5-9, any other revenuesavailable to the airport authority, or any combination of thesesources.
    (b) A lease may provide that payments by the authority to thelessor are required only to the extent and only for the period that thelessor is able to provide the leased facilities in accordance with thelease. The terms of each lease must be based upon the value of thefacilities leased and may not create a debt of the authority or theeligible entity for purposes of the Constitution of the State ofIndiana.
    (c) A lease may be entered into by the authority only after a publichearing by the board at which all interested parties are provided theopportunity to be heard. After the public hearing, the board mayadopt an ordinance authorizing the execution of the lease if it findsthat the service to be provided throughout the term of the lease willserve the public purpose of the authority and is in the best interest ofthe residents of the authority district.
    (d) Upon execution of a lease providing for payments by the

authority in whole or in part from the levy of property taxes underIC 8-22-3-17, the board shall publish notice of the execution of thelease and its approval in accordance with IC 5-3-1. Fifty (50) or moretaxpayers residing in the authority district who will be affected bythe lease and who may be of the opinion that no necessity exists forthe execution of the lease or that the payments provided for in thelease are not fair and reasonable may file a petition in the office ofthe county auditor within thirty (30) days after the publication of thenotice of execution and approval. The petition must set forth thepetitioners' names, addresses, and objections to the lease and thefacts showing that the execution of the lease is unnecessary orunwise or that the payments provided for in the lease are not fair andreasonable, as the case may be.
    (e) Upon the filing of a petition under subsection (d), the countyauditor shall immediately certify a copy of the petition, together withany other data necessary to present the questions involved, to thedepartment of local government finance. Upon receipt of the certifiedpetition and information, the department of local government financeshall fix a time and place for a hearing in the authority district, whichmust be not less than five (5) or more than thirty (30) days after thetime is fixed. Notice of the hearing shall be given by the departmentof local government finance to the members of the board, and to thefirst fifty (50) petitioners on the petition, by a letter signed by thecommissioner of the department of local government finance andenclosed with fully prepaid postage sent to those persons at theirusual place of residence, at least five (5) days before the date of thehearing. The decision of the department of local government financeor on the appeal, upon the necessity for the execution of the lease,and as to whether the payments under it are fair and reasonable, isfinal.
    (f) An authority entering into a lease payable from any sourcespermitted under this chapter may:
        (1) pledge the revenue to make payments under the leasepursuant to IC 5-1-14-4; or
        (2) establish a special fund to make the payments.
    (g) Lease rentals may be limited to money in the special fund sothat the obligations of the airport authority to make the lease rentalpayments are not considered debt of the unit or the district forpurposes of the Constitution of the State of Indiana.
    (h) Except as provided in this section, no approvals of anygovernmental body or agency are required before the authority entersinto a lease under this section.
    (i) An action to contest the validity of the lease or to enjoin theperformance of any of its terms and conditions must be broughtwithin thirty (30) days after the later of:
        (1) the public hearing described in subsection (c); or
        (2) the publication of the notice of the execution and approvalof the lease described in subsection (d), if the lease is payablein whole or in part from tax levies.
However, if the lease is payable in whole or in part from tax levies

and an appeal has been taken to the department of local governmentfinance, an action to contest the validity or enjoin the performancemust be brought within thirty (30) days after the decision of thedepartment of local government finance.
    (j) If an authority exercises an option to buy an airport projectfrom a lessor, the authority may subsequently sell the airport project,without regard to any other statute, to the lessor at the end of thelease term at a price set forth in the lease or at fair market valueestablished at the time of the sale by the authority through auction,appraisal, or arms length negotiation. If the airport project is sold atauction, after appraisal, or through negotiation, the board shallconduct a hearing after public notice in accordance with IC 5-3-1before the sale. Any action to contest the sale must be brought withinfifteen (15) days of the hearing.
As added by P.L.108-1993, SEC.10. Amended by P.L.115-1995,SEC.11; P.L.85-1996, SEC.7; P.L.90-2002, SEC.336; P.L.170-2002,SEC.72; P.L.224-2007, SEC.97; P.L.146-2008, SEC.367.

IC 8-22-3.6-4
Qualified lessors
    Sec. 4. Any of the following persons may lease a project to anauthority under this chapter:
        (1) A not-for-profit corporation organized under Indiana law oradmitted to do business in Indiana.
        (2) An airport development authority established underIC 8-22-3.7.
As added by P.L.108-1993, SEC.10.