IC 36-7-14.5
Chapter 14.5. Redevelopment Authority
IC 36-7-14.5-1 Application of chapter
Sec. 1. This chapter applies to each unit having a commission. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-2 "Authority" defined
Sec. 2. As used in this chapter, "authority" refers to a
redevelopment authority created by this chapter. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-3 "Board" defined
Sec. 3. As used in this chapter, "board" refers to the board of
directors of the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-4 "Bonds" defined
Sec. 4. As used in this chapter, "bonds" means bonds, notes, or
other evidence of indebtedness issued by the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-5 "Commission" defined
Sec. 5. As used in this chapter, "commission" refers to a
redevelopment commission established under IC 36-7-14 or a
military base reuse authority established under IC 36-7-30 and
located outside the boundaries of a county with a consolidated city. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,
SEC.29; P.L.26-1995, SEC.3.
IC 36-7-14.5-6 "Local public improvement" defined
Sec. 6. As used in this chapter, "local public improvement" means
any of the following:
(1) A redevelopment project.
(2) A purpose of a commission under IC 36-7-14 or IC 36-7-30.
(3) A purpose of an authority under this chapter. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,
SEC.30; P.L.26-1993, SEC.2; P.L.26-1995, SEC.4.
IC 36-7-14.5-7 Creation of redevelopment authority
Sec. 7. (a) A ____________ Redevelopment Authority (the blank
to be filled in with a name designated by the legislative body of the
unit) may be created in the unit as a separate body corporate and
politic and as an instrumentality of the unit to exercise any power
granted to the authority under this chapter.
(b) An authority may be created by ordinance of the legislative
body of the unit. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.3.
IC 36-7-14.5-8 Composition of board; term of office; vacancy; removal for cause;
oath of office; compensation
Sec. 8. (a) The board is composed of three (3) members, who must
be residents of the unit appointed by the executive of the unit.
(b) A member is entitled to serve a three (3) year term. A member
may be reappointed to subsequent terms.
(c) If a vacancy occurs on the board, the executive of the unit shall
fill the vacancy by appointing a new member for the remainder of the
vacated term.
(d) A board member may be removed for cause by the executive
of the unit.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the board.
(f) A member may not receive a salary, and no profit or money of
the authority inures to the benefit of a member. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-9 Annual organizational meeting; election of officers; special
meetings; quorum
Sec. 9. (a) Immediately after January 15 of each year, the board
shall hold an organizational meeting. It shall elect one (1) of the
members president, another vice president, and another
secretary-treasurer to perform the duties of those offices. These
officers serve from the date of their election and until their
successors are elected and qualified. The board may elect an assistant
secretary-treasurer.
(b) Special meetings may be called by the president of the board
or any two (2) members of the board.
(c) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-10 Bylaws; rules
Sec. 10. The board may adopt such bylaws and rules as it
considers necessary for the proper conduct of its duties and the
safeguarding of the funds and property entrusted to its care. As added by P.L.380-1987(ss), SEC.18. IC 36-7-14.5-11 Purposes of authority
Sec. 11. The authority is organized for the following purposes:
(1) Financing, constructing, and leasing local public
improvements to the commission.
(2) Financing and constructing additional improvements to local
public improvements owned by the authority and leasing them
to the commission.
(3) Acquiring all or a portion of one (1) or more local public
improvements from the commission by purchase or lease and
leasing these local public improvements back to the
commission, with any additional improvements that may be
made to them.
(4) Acquiring all or a portion of one (1) or more local public
improvements from the commission by purchase or lease to
fund or refund indebtedness incurred on account of those local
public improvements to enable the commission to make a
savings in debt services obligations or lease rental obligations
or to obtain relief from covenants that the commission considers
to be unduly burdensome.
(5) In a county having a United States government military base
that is scheduled for closing or is completely or partially
inactive or closed and if specified in the ordinance creating the
authority or in another ordinance adopted by the executive body
of the unit, an authority may exercise any of the powers of a
redevelopment commission established under IC 36-7-14,
including the establishment, in accordance with IC 36-7-14, of
one (1) or more economic development areas in the county in
addition to an economic development area established under
section 12.5 of this chapter. However, an economic
development area that includes any part of a military base
described in section 12.5(a) of this chapter is subject to the
requirements of section 12.5 of this chapter. An action taken by
an authority under this subdivision shall be treated as if the
action were taken under the law granting the power to the
redevelopment commission. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.4; P.L.190-2005, SEC.10; P.L.1-2006, SEC.566.
IC 36-7-14.5-12 Powers and duties of authority; dissolution of authority
Sec. 12. (a) In order to accomplish the purposes set forth in
section 11(a) of this chapter, the authority may do the following:
(1) Finance, improve, construct, reconstruct, renovate,
purchase, lease, acquire, or equip local public improvements.
(2) Lease those local public improvements to the commission.
(3) Sue, be sued, plead, or be impleaded, but all actions against
the authority must be brought in the circuit or superior court of
the county in which the authority is located.
(4) Condemn, appropriate, lease, rent, purchase, or hold any
real or personal property needed or considered useful in
connection with local public improvements.
(5) Acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter.
(6) Enter upon any lots or lands for the purpose of surveying or
examining them to determine the location of a local public
improvement.
(7) Design, order, contract for, or construct, reconstruct, or
renovate any local public improvements or improvements
thereto.
(8) Employ managers, superintendents, architects, engineers,
attorneys, auditors, clerks, construction managers, or other
employees necessary for construction of local public
improvements or improvements to them.
(9) Make and enter into all contracts or agreements necessary
or incidental to the performance of its duties or the execution of
its powers under this chapter.
(10) Take any other action necessary to implement the
authority's purposes as set forth in section 11(a) of this chapter.
(b) Whenever the board determines that:
(1) the purposes for which the authority was formed have been
substantially fulfilled; and
(2) all bonds issued and all other obligations incurred by the
authority have been fully paid or satisfied or provision for the
payment of the bonds and obligations has been made in
accordance with the terms of the resolution or trust indenture
securing them;
the board may declare the authority dissolved. On the effective date
of the resolution of dissolution, the title to all funds and other
property owned by the authority at the time of the dissolution vests
in the commission on behalf of the unit creating the commission.
However, if the commission is not in existence, the title vests in the
unit. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.5.
IC 36-7-14.5-12.3 Powers that may be exercised by county executive
Sec. 12.3. (a) This section applies to a redevelopment commission
in a county having a United States government military base that is
scheduled for closing or is completely or partially inactive or closed.
(b) The county executive body may adopt an ordinance to elect to
allow the authority for the county to exercise the powers described
in section 11(5) of this chapter. An ordinance adopted under this
section may also do any of the following:
(1) Establish or change the:
(A) number of members on the board of the authority; or
(B) name of the authority;
that would otherwise apply under this chapter.
(2) Provide for any other matter that is necessary or appropriate
to carry out the powers described in section 11(5) or 12.5 of this
chapter.
The county executive may amend or rescind an ordinance adopted
under this section if the rights of holders of bonded indebtedness,
leases, or other obligations (as defined under 5-1-3-1) of the
authority are not adversely affected. As added by P.L.190-2005, SEC.11.
IC 36-7-14.5-12.5 Economic development area in counties with military base
closings; powers; allocation areas; distribution of taxes
Sec. 12.5. (a) This section applies only to an authority in a county
having a United States government military base that is scheduled for
closing or is completely or partially inactive or closed.
(b) In order to accomplish the purposes set forth in section 11 of
this chapter, an authority may create an economic development area:
(1) by following the procedures set forth in IC 36-7-14-41 for
the establishment of an economic development area by a
redevelopment commission; and
(2) with the same effect as if the economic development area
was created by a redevelopment commission.
The area established under this section shall be established only in
the area where a United States government military base that is
scheduled for closing or is completely or partially inactive or closed
is or was located.
(c) In order to accomplish the purposes set forth in section 11 of
this chapter, an authority may do the following in a manner that
serves an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation,
or lease, or any combination of methods, any personal property
or interest in real property needed for the redevelopment of
economic development areas located within the corporate
boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract,
or other instrument), exchange, lease, rent, or otherwise dispose
of property acquired for use in the redevelopment of economic
development areas on the terms and conditions that the
authority considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the real
property acquired for redevelopment purposes to any other
department of the unit or to any other governmental agency for
public ways, levees, sewerage, parks, playgrounds, schools, and
other public purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopment
purposes.
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment
purposes.
(7) Survey or examine any land to determine whether the land
should be included within an economic development area to be
acquired for redevelopment purposes and to determine the value
of that land.
(8) Appear before any other department or agency of the unit,
or before any other governmental agency in respect to any
matter affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any economic development area within the jurisdiction
of the authority.
(9) Institute or defend in the name of the unit any civil action,
but all actions against the authority must be brought in the
circuit or superior court of the county where the authority is
located.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and
perform the duties of the authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit subject to the same
conditions and procedures that apply to the exercise of the
power of eminent domain by a redevelopment commission
under IC 36-7-14.
(12) Appoint an executive director, appraisers, real estate
experts, engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees the
authority considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(14) Prescribe the duties and regulate the compensation of
employees of the authority.
(15) Provide a pension and retirement system for employees of
the authority by using the public employees' retirement fund or
a retirement plan approved by the United States Department of
Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
authority subject to subdivision (13).
(17) Rent offices for use of the department or authority, or
accept the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Any local public improvement or structure that is
necessary for redevelopment purposes or economic
development within the corporate boundaries of the unit.
(B) Any structure that enhances development or economic
development.
(20) Contract for the construction, extension, or improvement
of pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
(21) Accept loans, grants, and other forms of financial
assistance from, or contract with, the federal government, the
state government, a municipal corporation, a special taxing
district, a foundation, or any other source.
(22) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the authority
and the execution of the powers of the authority under this
chapter.
(23) Take any action necessary to implement the purpose of the
authority.
(24) Provide financial assistance, in the manner that best serves
the purposes set forth in section 11 of this chapter, including
grants and loans, to enable private enterprise to develop,
redevelop, and reuse military base property or otherwise enable
private enterprise to provide social and economic benefits to the
citizens of the unit.
(d) An authority may designate all or a portion of an economic
development area created under this section as an allocation area by
following the procedures set forth in IC 36-7-14-39 for the
establishment of an allocation area by a redevelopment commission.
The allocation provision may modify the definition of "property
taxes" under IC 36-7-14-39(a) to include taxes imposed under
IC 6-1.1 on the depreciable personal property located and taxable on
the site of operations of designated taxpayers in accordance with the
procedures applicable to a commission under IC 36-7-14-39.3.
IC 36-7-14-39.3 applies to such a modification. An allocation area
established by an authority under this section is a special taxing
district authorized by the general assembly to enable the unit to
provide special benefits to taxpayers in the allocation area by
promoting economic development that is of public use and benefit.
For allocation areas established for an economic development area
created under this section after June 30, 1997, and to the expanded
portion of an allocation area for an economic development area that
was established before June 30, 1997, and that is expanded under this
section after June 30, 1997, the net assessed value of property that is
assessed as residential property under the rules of the department of
local government finance, as finally determined for any assessment
date, must be allocated. All of the provisions of IC 36-7-14-39 apply
to an allocation area created under this section, except that the
authority shall be vested with the rights and duties of a commission
as referenced in those sections, and except that, notwithstanding
IC 36-7-14-39(b)(2), property tax proceeds paid into the allocation
fund may be used by the authority only to do one (1) or more of the
following:
(1) Pay the principal of and interest and redemption premium on
any obligations incurred by the special taxing district or any
other entity for the purpose of financing or refinancing military
base reuse activities in or serving or benefiting that allocation
area.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceeds
in that allocation area or from other revenues of the authority
(including lease rental revenues).
(3) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expenditures
made by it that benefits or provides for local public
improvements or structures in or serving or benefiting that
allocation area.
(5) Pay expenses incurred by the authority that benefit or
provide for local public improvements or structures that are in
the allocation area or serving or benefiting the allocation area.
(6) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in clause (B). The reimbursements
under this subdivision must be made within three (3) years after
the date on which the investments that are the basis for the
increment financing are made.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in
or directly serving or benefitting an economic development area
created by an authority under this section, and in anticipation of the
taxes allocated under subsection (d), other revenues of the authority,
or any combination of these sources, the authority may, by
resolution, issue the bonds of the special taxing district in the name
of the unit. Bonds issued under this section may be issued in any
amount without limitation. The following apply if such a resolution
is adopted:
(1) The authority shall certify a copy of the resolution
authorizing the bonds to the municipal or county fiscal officer,
who shall then prepare the bonds. The seal of the unit must be
impressed on the bonds, or a facsimile of the seal must be
printed on the bonds.
(2) The bonds must be executed by the appropriate officer of
the unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public sale
in accordance with IC 5-1-11 or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but are
an indebtedness of the taxing district. The bonds and interest
are payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
(B) from other revenues available to the authority; or
(C) from a combination of the methods stated in clauses (A)
and (B).
(6) Proceeds from the sale of bonds may be used to pay the cost
of interest on the bonds for a period not to exceed five (5) years
from the date of issuance.
(7) Laws relating to the filing of petitions requesting the
issuance of bonds and the right of taxpayers and voters to
remonstrate against the issuance of bonds do not apply to bonds
issued under this section.
(8) If a debt service reserve is created from the proceeds of
bonds, the debt service reserve may be used to pay principal and
interest on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solely
or in part from revenues to the authority from a project or
projects, the authority may adopt a resolution or trust indenture
or enter into covenants as is customary in the issuance of
revenue bonds. The resolution or trust indenture may pledge or
assign the revenues from the project or projects. The resolution
or trust indenture may also contain any provisions for protecting
and enforcing the rights and remedies of the bond owners as
may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority. The
authority may establish fees and charges for the use of any
project and covenant with the owners of any bonds to set those
fees and charges at a rate sufficient to protect the interest of the
owners of the bonds. Any revenue bonds issued by the authority
that are payable solely from revenues of the authority shall
contain a statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinance
adopted under section 11 of this chapter may provide, or be amended
to provide, that the board of directors of the authority shall be
composed of not fewer than three (3) nor more than eleven (11)
members, who must be residents of or be employed at a place of
employment located within the unit. The members shall be appointed
by the executive of the unit.
(g) The acquisition of real and personal property by an authority
under this section is not subject to the provisions of IC 5-22,
IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
purchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or other
disposition of real and personal property without complying with the
provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
statute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided within
an economic development area established under this section are
subject to regulation by the appropriate regulatory agencies unless
the utility service is provided by a utility that provides utility service
solely within the geographic boundaries of an existing or a closed
military installation, in which case the utility service is not subject
to regulation for purposes of rate making, regulation, service
delivery, or issuance of bonds or other forms of indebtedness.
However, this exemption from regulation does not apply to utility
service if the service is generated, treated, or produced outside the
boundaries of the existing or closed military installation. As added by P.L.26-1993, SEC.6. Amended by P.L.26-1995, SEC.5;
P.L.255-1997(ss), SEC.16; P.L.49-1997, SEC.78; P.L.2-1998,
SEC.85; P.L.90-2002, SEC.477; P.L.192-2002(ss), SEC.179;
P.L.190-2005, SEC.12; P.L.185-2005, SEC.25; P.L.1-2006,
SEC.567; P.L.219-2007, SEC.127; P.L.146-2008, SEC.742;
P.L.182-2009(ss), SEC.405; P.L.104-2010, SEC.1.
IC 36-7-14.5-13 Refunding bonds
Sec. 13. (a) Bonds issued under IC 36-7-14 may be refunded as
provided in this section.
(b) The commission may:
(1) lease all or a portion of a local public improvement or
improvements to the authority, which may be at a nominal lease
rental with a lease back to the commission, conditioned upon
the authority assuming bonds issued under IC 36-7-14 and
issuing its bonds to refund those bonds; and
(2) sell all or a portion of a local public improvement or
improvements to the authority for a price sufficient to provide
for the refunding of those bonds and lease back the local public
improvement or improvements from the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-14 Lease of local public improvements to commission; provisions
Sec. 14. (a) Before a lease may be entered into, the commission
must find that the lease rental provided for is fair and reasonable.
(b) A lease of local public improvements from the authority to the
commission:
(1) must comply with IC 36-7-14-25.2 or IC 36-7-30-20;
(2) may not require payment of lease rental for a newly
constructed local public improvement or for improvements to
an existing local public improvement except to the extent that
the local public improvement or improvements thereto have
been completed and are ready for occupancy or use;
(3) may contain provisions:
(A) allowing the commission to continue to operate an
existing local public improvement until completion of the
improvements, reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing local
public improvement being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the commission to purchase the
local public improvement upon the terms stated in the lease
during the term of the lease for a price equal to the amount
required to pay all indebtedness incurred on account of the local
public improvement, including indebtedness incurred for the
refunding of that indebtedness;
(6) may be entered into before acquisition or construction of a
local public improvement;
(7) may provide that the commission shall agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of the
authority; and
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(8) may provide that the lease rental payments by the
commission shall be made from any one (1) or more of the
sources set forth in IC 36-7-14-25.2 or IC 36-7-30-20. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,
SEC.60; P.L.26-1995, SEC.6.
IC 36-7-14.5-15 Legal authority for lease agreements
Sec. 15. This chapter and IC 36-7-14-25.2 or IC 36-7-30-20,
contain full and complete authority for leases between the authority
and the commission. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board or the
commission or any other officer, department, agency, or
instrumentality of the state or any political subdivision is required to
enter into any lease, except as prescribed in this chapter and
IC 36-7-14-25.2 or IC 36-7-30-20. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1995,
SEC.7.
IC 36-7-14.5-16 Plans and specifications for local public improvements to be
constructed; approval by commission
Sec. 16. If the lease provides for a local public improvement or
improvements thereto to be constructed by the authority, the plans
and specifications shall be submitted to and approved by the
commission. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-17 Easement or license agreements between authority and
commission; recordation
Sec. 17. The authority and the commission may enter into
common wall (party wall) agreements or other agreements
concerning easements or licenses. These agreements shall be
recorded with the recorder of the county. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-18 Lease or sale of property from commission to authority
Sec. 18. (a) The commission may lease for a nominal lease rental,
or sell to the authority, one (1) or more local public improvements or
portions thereof or land upon which a local public improvement is
located or is to be constructed.
(b) Any lease of all or a portion of a local public improvement by
the commission to the authority must be for a term equal to the term
of the lease of that local public improvement back to the
redevelopment commission.
(c) The commission may sell property to the authority for such
amount as it determines to be in the best interest of the commission,
which amount may be paid from the proceeds of bonds of the
authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-19 Bonds; procedures; use of revenue
Sec. 19. (a) The authority may issue bonds for the purpose of
obtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one
(1) or more local public improvements; or
(3) funding or refunding bonds issued under this chapter or
IC 36-7-14.
(b) The bonds are payable solely from the lease rentals from the
lease of the local public improvement for which the bonds were
issued, insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The board shall sell the bonds at public or private sale upon
such terms as determined by the board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of local public improvements, or the cost of
refunding or refinancing outstanding bonds, for which the bonds are
issued. The cost may include:
(1) planning and development of the local public improvements
and all related buildings, facilities, structures, and
improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the local public improvements
that are necessary or desirable to make the local public
improvements suitable for use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5)
years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,
SEC.61.
IC 36-7-14.5-20 Authority for issuance of bonds; legal investment status of bonds
Sec. 20. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board of any other
officer, department, agency, or instrumentality of the state or of any
political subdivision is required to issue any bonds, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associations, credit unions, banks of
discount and deposit, savings banks, loan and trust and safe deposit
companies, rural loan and savings associations, guaranty loan and
savings associations, mortgage guaranty companies, small loan
companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.42-1993,
SEC.97.
IC 36-7-14.5-21 Trust indenture securing bonds
Sec. 21. (a) The authority may secure bonds issued under this
chapter by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank
within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased local public improvements, but may not mortgage land
or local public improvements;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding in accordance with IC 5-1-14-4 from the
time that the pledge or assignment is made, against all persons
whether they have notice of the lien or not. Any trust indenture by
which a pledge is created or an assignment need not be filed or
recorded. The lien is perfected against third parties in accordance
with IC 5-1-14-4. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-22 Issuance of bonds by commission upon exercise of option to
purchase leased property
Sec. 22. If the commission exercises its option to purchase leased
property, it may issue its bonds as authorized by statute. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-23 Tax-exempt status of authority property and bonds
Sec. 23. All:
(1) property owned by the authority;
(2) revenues of the authority; and
(3) bonds issued by the authority, the interest on the bonds, the
proceeds received by a holder from the sale of bonds to the
extent of the holder's cost of acquisition, proceeds received
upon redemption before maturity, proceeds received at maturity,
and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.21-1990,
SEC.53; P.L.254-1997(ss), SEC.30.
IC 36-7-14.5-24 Action contesting validity of bonds
Sec. 24. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after the fifteenth day
following:
(1) the receipt of bids for the bonds, if the bonds are sold at
public sale; or
(2) the publication one (1) time in a newspaper of general
circulation published in the county of notice of the execution
and delivery of the contract for the sale of bonds;
whichever occurs first. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5
Chapter 14.5. Redevelopment Authority
IC 36-7-14.5-1 Application of chapter
Sec. 1. This chapter applies to each unit having a commission. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-2 "Authority" defined
Sec. 2. As used in this chapter, "authority" refers to a
redevelopment authority created by this chapter. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-3 "Board" defined
Sec. 3. As used in this chapter, "board" refers to the board of
directors of the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-4 "Bonds" defined
Sec. 4. As used in this chapter, "bonds" means bonds, notes, or
other evidence of indebtedness issued by the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-5 "Commission" defined
Sec. 5. As used in this chapter, "commission" refers to a
redevelopment commission established under IC 36-7-14 or a
military base reuse authority established under IC 36-7-30 and
located outside the boundaries of a county with a consolidated city. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,
SEC.29; P.L.26-1995, SEC.3.
IC 36-7-14.5-6 "Local public improvement" defined
Sec. 6. As used in this chapter, "local public improvement" means
any of the following:
(1) A redevelopment project.
(2) A purpose of a commission under IC 36-7-14 or IC 36-7-30.
(3) A purpose of an authority under this chapter. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,
SEC.30; P.L.26-1993, SEC.2; P.L.26-1995, SEC.4.
IC 36-7-14.5-7 Creation of redevelopment authority
Sec. 7. (a) A ____________ Redevelopment Authority (the blank
to be filled in with a name designated by the legislative body of the
unit) may be created in the unit as a separate body corporate and
politic and as an instrumentality of the unit to exercise any power
granted to the authority under this chapter.
(b) An authority may be created by ordinance of the legislative
body of the unit. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.3.
IC 36-7-14.5-8 Composition of board; term of office; vacancy; removal for cause;
oath of office; compensation
Sec. 8. (a) The board is composed of three (3) members, who must
be residents of the unit appointed by the executive of the unit.
(b) A member is entitled to serve a three (3) year term. A member
may be reappointed to subsequent terms.
(c) If a vacancy occurs on the board, the executive of the unit shall
fill the vacancy by appointing a new member for the remainder of the
vacated term.
(d) A board member may be removed for cause by the executive
of the unit.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the board.
(f) A member may not receive a salary, and no profit or money of
the authority inures to the benefit of a member. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-9 Annual organizational meeting; election of officers; special
meetings; quorum
Sec. 9. (a) Immediately after January 15 of each year, the board
shall hold an organizational meeting. It shall elect one (1) of the
members president, another vice president, and another
secretary-treasurer to perform the duties of those offices. These
officers serve from the date of their election and until their
successors are elected and qualified. The board may elect an assistant
secretary-treasurer.
(b) Special meetings may be called by the president of the board
or any two (2) members of the board.
(c) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-10 Bylaws; rules
Sec. 10. The board may adopt such bylaws and rules as it
considers necessary for the proper conduct of its duties and the
safeguarding of the funds and property entrusted to its care. As added by P.L.380-1987(ss), SEC.18. IC 36-7-14.5-11 Purposes of authority
Sec. 11. The authority is organized for the following purposes:
(1) Financing, constructing, and leasing local public
improvements to the commission.
(2) Financing and constructing additional improvements to local
public improvements owned by the authority and leasing them
to the commission.
(3) Acquiring all or a portion of one (1) or more local public
improvements from the commission by purchase or lease and
leasing these local public improvements back to the
commission, with any additional improvements that may be
made to them.
(4) Acquiring all or a portion of one (1) or more local public
improvements from the commission by purchase or lease to
fund or refund indebtedness incurred on account of those local
public improvements to enable the commission to make a
savings in debt services obligations or lease rental obligations
or to obtain relief from covenants that the commission considers
to be unduly burdensome.
(5) In a county having a United States government military base
that is scheduled for closing or is completely or partially
inactive or closed and if specified in the ordinance creating the
authority or in another ordinance adopted by the executive body
of the unit, an authority may exercise any of the powers of a
redevelopment commission established under IC 36-7-14,
including the establishment, in accordance with IC 36-7-14, of
one (1) or more economic development areas in the county in
addition to an economic development area established under
section 12.5 of this chapter. However, an economic
development area that includes any part of a military base
described in section 12.5(a) of this chapter is subject to the
requirements of section 12.5 of this chapter. An action taken by
an authority under this subdivision shall be treated as if the
action were taken under the law granting the power to the
redevelopment commission. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.4; P.L.190-2005, SEC.10; P.L.1-2006, SEC.566.
IC 36-7-14.5-12 Powers and duties of authority; dissolution of authority
Sec. 12. (a) In order to accomplish the purposes set forth in
section 11(a) of this chapter, the authority may do the following:
(1) Finance, improve, construct, reconstruct, renovate,
purchase, lease, acquire, or equip local public improvements.
(2) Lease those local public improvements to the commission.
(3) Sue, be sued, plead, or be impleaded, but all actions against
the authority must be brought in the circuit or superior court of
the county in which the authority is located.
(4) Condemn, appropriate, lease, rent, purchase, or hold any
real or personal property needed or considered useful in
connection with local public improvements.
(5) Acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter.
(6) Enter upon any lots or lands for the purpose of surveying or
examining them to determine the location of a local public
improvement.
(7) Design, order, contract for, or construct, reconstruct, or
renovate any local public improvements or improvements
thereto.
(8) Employ managers, superintendents, architects, engineers,
attorneys, auditors, clerks, construction managers, or other
employees necessary for construction of local public
improvements or improvements to them.
(9) Make and enter into all contracts or agreements necessary
or incidental to the performance of its duties or the execution of
its powers under this chapter.
(10) Take any other action necessary to implement the
authority's purposes as set forth in section 11(a) of this chapter.
(b) Whenever the board determines that:
(1) the purposes for which the authority was formed have been
substantially fulfilled; and
(2) all bonds issued and all other obligations incurred by the
authority have been fully paid or satisfied or provision for the
payment of the bonds and obligations has been made in
accordance with the terms of the resolution or trust indenture
securing them;
the board may declare the authority dissolved. On the effective date
of the resolution of dissolution, the title to all funds and other
property owned by the authority at the time of the dissolution vests
in the commission on behalf of the unit creating the commission.
However, if the commission is not in existence, the title vests in the
unit. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.5.
IC 36-7-14.5-12.3 Powers that may be exercised by county executive
Sec. 12.3. (a) This section applies to a redevelopment commission
in a county having a United States government military base that is
scheduled for closing or is completely or partially inactive or closed.
(b) The county executive body may adopt an ordinance to elect to
allow the authority for the county to exercise the powers described
in section 11(5) of this chapter. An ordinance adopted under this
section may also do any of the following:
(1) Establish or change the:
(A) number of members on the board of the authority; or
(B) name of the authority;
that would otherwise apply under this chapter.
(2) Provide for any other matter that is necessary or appropriate
to carry out the powers described in section 11(5) or 12.5 of this
chapter.
The county executive may amend or rescind an ordinance adopted
under this section if the rights of holders of bonded indebtedness,
leases, or other obligations (as defined under 5-1-3-1) of the
authority are not adversely affected. As added by P.L.190-2005, SEC.11.
IC 36-7-14.5-12.5 Economic development area in counties with military base
closings; powers; allocation areas; distribution of taxes
Sec. 12.5. (a) This section applies only to an authority in a county
having a United States government military base that is scheduled for
closing or is completely or partially inactive or closed.
(b) In order to accomplish the purposes set forth in section 11 of
this chapter, an authority may create an economic development area:
(1) by following the procedures set forth in IC 36-7-14-41 for
the establishment of an economic development area by a
redevelopment commission; and
(2) with the same effect as if the economic development area
was created by a redevelopment commission.
The area established under this section shall be established only in
the area where a United States government military base that is
scheduled for closing or is completely or partially inactive or closed
is or was located.
(c) In order to accomplish the purposes set forth in section 11 of
this chapter, an authority may do the following in a manner that
serves an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation,
or lease, or any combination of methods, any personal property
or interest in real property needed for the redevelopment of
economic development areas located within the corporate
boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract,
or other instrument), exchange, lease, rent, or otherwise dispose
of property acquired for use in the redevelopment of economic
development areas on the terms and conditions that the
authority considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the real
property acquired for redevelopment purposes to any other
department of the unit or to any other governmental agency for
public ways, levees, sewerage, parks, playgrounds, schools, and
other public purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopment
purposes.
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment
purposes.
(7) Survey or examine any land to determine whether the land
should be included within an economic development area to be
acquired for redevelopment purposes and to determine the value
of that land.
(8) Appear before any other department or agency of the unit,
or before any other governmental agency in respect to any
matter affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any economic development area within the jurisdiction
of the authority.
(9) Institute or defend in the name of the unit any civil action,
but all actions against the authority must be brought in the
circuit or superior court of the county where the authority is
located.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and
perform the duties of the authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit subject to the same
conditions and procedures that apply to the exercise of the
power of eminent domain by a redevelopment commission
under IC 36-7-14.
(12) Appoint an executive director, appraisers, real estate
experts, engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees the
authority considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(14) Prescribe the duties and regulate the compensation of
employees of the authority.
(15) Provide a pension and retirement system for employees of
the authority by using the public employees' retirement fund or
a retirement plan approved by the United States Department of
Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
authority subject to subdivision (13).
(17) Rent offices for use of the department or authority, or
accept the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Any local public improvement or structure that is
necessary for redevelopment purposes or economic
development within the corporate boundaries of the unit.
(B) Any structure that enhances development or economic
development.
(20) Contract for the construction, extension, or improvement
of pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
(21) Accept loans, grants, and other forms of financial
assistance from, or contract with, the federal government, the
state government, a municipal corporation, a special taxing
district, a foundation, or any other source.
(22) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the authority
and the execution of the powers of the authority under this
chapter.
(23) Take any action necessary to implement the purpose of the
authority.
(24) Provide financial assistance, in the manner that best serves
the purposes set forth in section 11 of this chapter, including
grants and loans, to enable private enterprise to develop,
redevelop, and reuse military base property or otherwise enable
private enterprise to provide social and economic benefits to the
citizens of the unit.
(d) An authority may designate all or a portion of an economic
development area created under this section as an allocation area by
following the procedures set forth in IC 36-7-14-39 for the
establishment of an allocation area by a redevelopment commission.
The allocation provision may modify the definition of "property
taxes" under IC 36-7-14-39(a) to include taxes imposed under
IC 6-1.1 on the depreciable personal property located and taxable on
the site of operations of designated taxpayers in accordance with the
procedures applicable to a commission under IC 36-7-14-39.3.
IC 36-7-14-39.3 applies to such a modification. An allocation area
established by an authority under this section is a special taxing
district authorized by the general assembly to enable the unit to
provide special benefits to taxpayers in the allocation area by
promoting economic development that is of public use and benefit.
For allocation areas established for an economic development area
created under this section after June 30, 1997, and to the expanded
portion of an allocation area for an economic development area that
was established before June 30, 1997, and that is expanded under this
section after June 30, 1997, the net assessed value of property that is
assessed as residential property under the rules of the department of
local government finance, as finally determined for any assessment
date, must be allocated. All of the provisions of IC 36-7-14-39 apply
to an allocation area created under this section, except that the
authority shall be vested with the rights and duties of a commission
as referenced in those sections, and except that, notwithstanding
IC 36-7-14-39(b)(2), property tax proceeds paid into the allocation
fund may be used by the authority only to do one (1) or more of the
following:
(1) Pay the principal of and interest and redemption premium on
any obligations incurred by the special taxing district or any
other entity for the purpose of financing or refinancing military
base reuse activities in or serving or benefiting that allocation
area.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceeds
in that allocation area or from other revenues of the authority
(including lease rental revenues).
(3) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expenditures
made by it that benefits or provides for local public
improvements or structures in or serving or benefiting that
allocation area.
(5) Pay expenses incurred by the authority that benefit or
provide for local public improvements or structures that are in
the allocation area or serving or benefiting the allocation area.
(6) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in clause (B). The reimbursements
under this subdivision must be made within three (3) years after
the date on which the investments that are the basis for the
increment financing are made.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in
or directly serving or benefitting an economic development area
created by an authority under this section, and in anticipation of the
taxes allocated under subsection (d), other revenues of the authority,
or any combination of these sources, the authority may, by
resolution, issue the bonds of the special taxing district in the name
of the unit. Bonds issued under this section may be issued in any
amount without limitation. The following apply if such a resolution
is adopted:
(1) The authority shall certify a copy of the resolution
authorizing the bonds to the municipal or county fiscal officer,
who shall then prepare the bonds. The seal of the unit must be
impressed on the bonds, or a facsimile of the seal must be
printed on the bonds.
(2) The bonds must be executed by the appropriate officer of
the unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public sale
in accordance with IC 5-1-11 or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but are
an indebtedness of the taxing district. The bonds and interest
are payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
(B) from other revenues available to the authority; or
(C) from a combination of the methods stated in clauses (A)
and (B).
(6) Proceeds from the sale of bonds may be used to pay the cost
of interest on the bonds for a period not to exceed five (5) years
from the date of issuance.
(7) Laws relating to the filing of petitions requesting the
issuance of bonds and the right of taxpayers and voters to
remonstrate against the issuance of bonds do not apply to bonds
issued under this section.
(8) If a debt service reserve is created from the proceeds of
bonds, the debt service reserve may be used to pay principal and
interest on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solely
or in part from revenues to the authority from a project or
projects, the authority may adopt a resolution or trust indenture
or enter into covenants as is customary in the issuance of
revenue bonds. The resolution or trust indenture may pledge or
assign the revenues from the project or projects. The resolution
or trust indenture may also contain any provisions for protecting
and enforcing the rights and remedies of the bond owners as
may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority. The
authority may establish fees and charges for the use of any
project and covenant with the owners of any bonds to set those
fees and charges at a rate sufficient to protect the interest of the
owners of the bonds. Any revenue bonds issued by the authority
that are payable solely from revenues of the authority shall
contain a statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinance
adopted under section 11 of this chapter may provide, or be amended
to provide, that the board of directors of the authority shall be
composed of not fewer than three (3) nor more than eleven (11)
members, who must be residents of or be employed at a place of
employment located within the unit. The members shall be appointed
by the executive of the unit.
(g) The acquisition of real and personal property by an authority
under this section is not subject to the provisions of IC 5-22,
IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
purchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or other
disposition of real and personal property without complying with the
provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
statute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided within
an economic development area established under this section are
subject to regulation by the appropriate regulatory agencies unless
the utility service is provided by a utility that provides utility service
solely within the geographic boundaries of an existing or a closed
military installation, in which case the utility service is not subject
to regulation for purposes of rate making, regulation, service
delivery, or issuance of bonds or other forms of indebtedness.
However, this exemption from regulation does not apply to utility
service if the service is generated, treated, or produced outside the
boundaries of the existing or closed military installation. As added by P.L.26-1993, SEC.6. Amended by P.L.26-1995, SEC.5;
P.L.255-1997(ss), SEC.16; P.L.49-1997, SEC.78; P.L.2-1998,
SEC.85; P.L.90-2002, SEC.477; P.L.192-2002(ss), SEC.179;
P.L.190-2005, SEC.12; P.L.185-2005, SEC.25; P.L.1-2006,
SEC.567; P.L.219-2007, SEC.127; P.L.146-2008, SEC.742;
P.L.182-2009(ss), SEC.405; P.L.104-2010, SEC.1.
IC 36-7-14.5-13 Refunding bonds
Sec. 13. (a) Bonds issued under IC 36-7-14 may be refunded as
provided in this section.
(b) The commission may:
(1) lease all or a portion of a local public improvement or
improvements to the authority, which may be at a nominal lease
rental with a lease back to the commission, conditioned upon
the authority assuming bonds issued under IC 36-7-14 and
issuing its bonds to refund those bonds; and
(2) sell all or a portion of a local public improvement or
improvements to the authority for a price sufficient to provide
for the refunding of those bonds and lease back the local public
improvement or improvements from the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-14 Lease of local public improvements to commission; provisions
Sec. 14. (a) Before a lease may be entered into, the commission
must find that the lease rental provided for is fair and reasonable.
(b) A lease of local public improvements from the authority to the
commission:
(1) must comply with IC 36-7-14-25.2 or IC 36-7-30-20;
(2) may not require payment of lease rental for a newly
constructed local public improvement or for improvements to
an existing local public improvement except to the extent that
the local public improvement or improvements thereto have
been completed and are ready for occupancy or use;
(3) may contain provisions:
(A) allowing the commission to continue to operate an
existing local public improvement until completion of the
improvements, reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing local
public improvement being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the commission to purchase the
local public improvement upon the terms stated in the lease
during the term of the lease for a price equal to the amount
required to pay all indebtedness incurred on account of the local
public improvement, including indebtedness incurred for the
refunding of that indebtedness;
(6) may be entered into before acquisition or construction of a
local public improvement;
(7) may provide that the commission shall agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of the
authority; and
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(8) may provide that the lease rental payments by the
commission shall be made from any one (1) or more of the
sources set forth in IC 36-7-14-25.2 or IC 36-7-30-20. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,
SEC.60; P.L.26-1995, SEC.6.
IC 36-7-14.5-15 Legal authority for lease agreements
Sec. 15. This chapter and IC 36-7-14-25.2 or IC 36-7-30-20,
contain full and complete authority for leases between the authority
and the commission. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board or the
commission or any other officer, department, agency, or
instrumentality of the state or any political subdivision is required to
enter into any lease, except as prescribed in this chapter and
IC 36-7-14-25.2 or IC 36-7-30-20. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1995,
SEC.7.
IC 36-7-14.5-16 Plans and specifications for local public improvements to be
constructed; approval by commission
Sec. 16. If the lease provides for a local public improvement or
improvements thereto to be constructed by the authority, the plans
and specifications shall be submitted to and approved by the
commission. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-17 Easement or license agreements between authority and
commission; recordation
Sec. 17. The authority and the commission may enter into
common wall (party wall) agreements or other agreements
concerning easements or licenses. These agreements shall be
recorded with the recorder of the county. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-18 Lease or sale of property from commission to authority
Sec. 18. (a) The commission may lease for a nominal lease rental,
or sell to the authority, one (1) or more local public improvements or
portions thereof or land upon which a local public improvement is
located or is to be constructed.
(b) Any lease of all or a portion of a local public improvement by
the commission to the authority must be for a term equal to the term
of the lease of that local public improvement back to the
redevelopment commission.
(c) The commission may sell property to the authority for such
amount as it determines to be in the best interest of the commission,
which amount may be paid from the proceeds of bonds of the
authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-19 Bonds; procedures; use of revenue
Sec. 19. (a) The authority may issue bonds for the purpose of
obtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one
(1) or more local public improvements; or
(3) funding or refunding bonds issued under this chapter or
IC 36-7-14.
(b) The bonds are payable solely from the lease rentals from the
lease of the local public improvement for which the bonds were
issued, insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The board shall sell the bonds at public or private sale upon
such terms as determined by the board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of local public improvements, or the cost of
refunding or refinancing outstanding bonds, for which the bonds are
issued. The cost may include:
(1) planning and development of the local public improvements
and all related buildings, facilities, structures, and
improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the local public improvements
that are necessary or desirable to make the local public
improvements suitable for use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5)
years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,
SEC.61.
IC 36-7-14.5-20 Authority for issuance of bonds; legal investment status of bonds
Sec. 20. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board of any other
officer, department, agency, or instrumentality of the state or of any
political subdivision is required to issue any bonds, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associations, credit unions, banks of
discount and deposit, savings banks, loan and trust and safe deposit
companies, rural loan and savings associations, guaranty loan and
savings associations, mortgage guaranty companies, small loan
companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.42-1993,
SEC.97.
IC 36-7-14.5-21 Trust indenture securing bonds
Sec. 21. (a) The authority may secure bonds issued under this
chapter by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank
within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased local public improvements, but may not mortgage land
or local public improvements;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding in accordance with IC 5-1-14-4 from the
time that the pledge or assignment is made, against all persons
whether they have notice of the lien or not. Any trust indenture by
which a pledge is created or an assignment need not be filed or
recorded. The lien is perfected against third parties in accordance
with IC 5-1-14-4. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-22 Issuance of bonds by commission upon exercise of option to
purchase leased property
Sec. 22. If the commission exercises its option to purchase leased
property, it may issue its bonds as authorized by statute. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-23 Tax-exempt status of authority property and bonds
Sec. 23. All:
(1) property owned by the authority;
(2) revenues of the authority; and
(3) bonds issued by the authority, the interest on the bonds, the
proceeds received by a holder from the sale of bonds to the
extent of the holder's cost of acquisition, proceeds received
upon redemption before maturity, proceeds received at maturity,
and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.21-1990,
SEC.53; P.L.254-1997(ss), SEC.30.
IC 36-7-14.5-24 Action contesting validity of bonds
Sec. 24. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after the fifteenth day
following:
(1) the receipt of bids for the bonds, if the bonds are sold at
public sale; or
(2) the publication one (1) time in a newspaper of general
circulation published in the county of notice of the execution
and delivery of the contract for the sale of bonds;
whichever occurs first. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5
Chapter 14.5. Redevelopment Authority
IC 36-7-14.5-1 Application of chapter
Sec. 1. This chapter applies to each unit having a commission. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-2 "Authority" defined
Sec. 2. As used in this chapter, "authority" refers to a
redevelopment authority created by this chapter. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-3 "Board" defined
Sec. 3. As used in this chapter, "board" refers to the board of
directors of the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-4 "Bonds" defined
Sec. 4. As used in this chapter, "bonds" means bonds, notes, or
other evidence of indebtedness issued by the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-5 "Commission" defined
Sec. 5. As used in this chapter, "commission" refers to a
redevelopment commission established under IC 36-7-14 or a
military base reuse authority established under IC 36-7-30 and
located outside the boundaries of a county with a consolidated city. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,
SEC.29; P.L.26-1995, SEC.3.
IC 36-7-14.5-6 "Local public improvement" defined
Sec. 6. As used in this chapter, "local public improvement" means
any of the following:
(1) A redevelopment project.
(2) A purpose of a commission under IC 36-7-14 or IC 36-7-30.
(3) A purpose of an authority under this chapter. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.2-1989,
SEC.30; P.L.26-1993, SEC.2; P.L.26-1995, SEC.4.
IC 36-7-14.5-7 Creation of redevelopment authority
Sec. 7. (a) A ____________ Redevelopment Authority (the blank
to be filled in with a name designated by the legislative body of the
unit) may be created in the unit as a separate body corporate and
politic and as an instrumentality of the unit to exercise any power
granted to the authority under this chapter.
(b) An authority may be created by ordinance of the legislative
body of the unit. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.3.
IC 36-7-14.5-8 Composition of board; term of office; vacancy; removal for cause;
oath of office; compensation
Sec. 8. (a) The board is composed of three (3) members, who must
be residents of the unit appointed by the executive of the unit.
(b) A member is entitled to serve a three (3) year term. A member
may be reappointed to subsequent terms.
(c) If a vacancy occurs on the board, the executive of the unit shall
fill the vacancy by appointing a new member for the remainder of the
vacated term.
(d) A board member may be removed for cause by the executive
of the unit.
(e) Each member, before entering upon the duties of office, must
take and subscribe an oath of office under IC 5-4-1, which shall be
endorsed upon the certificate of appointment and filed with the
records of the board.
(f) A member may not receive a salary, and no profit or money of
the authority inures to the benefit of a member. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-9 Annual organizational meeting; election of officers; special
meetings; quorum
Sec. 9. (a) Immediately after January 15 of each year, the board
shall hold an organizational meeting. It shall elect one (1) of the
members president, another vice president, and another
secretary-treasurer to perform the duties of those offices. These
officers serve from the date of their election and until their
successors are elected and qualified. The board may elect an assistant
secretary-treasurer.
(b) Special meetings may be called by the president of the board
or any two (2) members of the board.
(c) A majority of the members constitutes a quorum, and the
concurrence of a majority of the members is necessary to authorize
any action. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-10 Bylaws; rules
Sec. 10. The board may adopt such bylaws and rules as it
considers necessary for the proper conduct of its duties and the
safeguarding of the funds and property entrusted to its care. As added by P.L.380-1987(ss), SEC.18. IC 36-7-14.5-11 Purposes of authority
Sec. 11. The authority is organized for the following purposes:
(1) Financing, constructing, and leasing local public
improvements to the commission.
(2) Financing and constructing additional improvements to local
public improvements owned by the authority and leasing them
to the commission.
(3) Acquiring all or a portion of one (1) or more local public
improvements from the commission by purchase or lease and
leasing these local public improvements back to the
commission, with any additional improvements that may be
made to them.
(4) Acquiring all or a portion of one (1) or more local public
improvements from the commission by purchase or lease to
fund or refund indebtedness incurred on account of those local
public improvements to enable the commission to make a
savings in debt services obligations or lease rental obligations
or to obtain relief from covenants that the commission considers
to be unduly burdensome.
(5) In a county having a United States government military base
that is scheduled for closing or is completely or partially
inactive or closed and if specified in the ordinance creating the
authority or in another ordinance adopted by the executive body
of the unit, an authority may exercise any of the powers of a
redevelopment commission established under IC 36-7-14,
including the establishment, in accordance with IC 36-7-14, of
one (1) or more economic development areas in the county in
addition to an economic development area established under
section 12.5 of this chapter. However, an economic
development area that includes any part of a military base
described in section 12.5(a) of this chapter is subject to the
requirements of section 12.5 of this chapter. An action taken by
an authority under this subdivision shall be treated as if the
action were taken under the law granting the power to the
redevelopment commission. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.4; P.L.190-2005, SEC.10; P.L.1-2006, SEC.566.
IC 36-7-14.5-12 Powers and duties of authority; dissolution of authority
Sec. 12. (a) In order to accomplish the purposes set forth in
section 11(a) of this chapter, the authority may do the following:
(1) Finance, improve, construct, reconstruct, renovate,
purchase, lease, acquire, or equip local public improvements.
(2) Lease those local public improvements to the commission.
(3) Sue, be sued, plead, or be impleaded, but all actions against
the authority must be brought in the circuit or superior court of
the county in which the authority is located.
(4) Condemn, appropriate, lease, rent, purchase, or hold any
real or personal property needed or considered useful in
connection with local public improvements.
(5) Acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter.
(6) Enter upon any lots or lands for the purpose of surveying or
examining them to determine the location of a local public
improvement.
(7) Design, order, contract for, or construct, reconstruct, or
renovate any local public improvements or improvements
thereto.
(8) Employ managers, superintendents, architects, engineers,
attorneys, auditors, clerks, construction managers, or other
employees necessary for construction of local public
improvements or improvements to them.
(9) Make and enter into all contracts or agreements necessary
or incidental to the performance of its duties or the execution of
its powers under this chapter.
(10) Take any other action necessary to implement the
authority's purposes as set forth in section 11(a) of this chapter.
(b) Whenever the board determines that:
(1) the purposes for which the authority was formed have been
substantially fulfilled; and
(2) all bonds issued and all other obligations incurred by the
authority have been fully paid or satisfied or provision for the
payment of the bonds and obligations has been made in
accordance with the terms of the resolution or trust indenture
securing them;
the board may declare the authority dissolved. On the effective date
of the resolution of dissolution, the title to all funds and other
property owned by the authority at the time of the dissolution vests
in the commission on behalf of the unit creating the commission.
However, if the commission is not in existence, the title vests in the
unit. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1993,
SEC.5.
IC 36-7-14.5-12.3 Powers that may be exercised by county executive
Sec. 12.3. (a) This section applies to a redevelopment commission
in a county having a United States government military base that is
scheduled for closing or is completely or partially inactive or closed.
(b) The county executive body may adopt an ordinance to elect to
allow the authority for the county to exercise the powers described
in section 11(5) of this chapter. An ordinance adopted under this
section may also do any of the following:
(1) Establish or change the:
(A) number of members on the board of the authority; or
(B) name of the authority;
that would otherwise apply under this chapter.
(2) Provide for any other matter that is necessary or appropriate
to carry out the powers described in section 11(5) or 12.5 of this
chapter.
The county executive may amend or rescind an ordinance adopted
under this section if the rights of holders of bonded indebtedness,
leases, or other obligations (as defined under 5-1-3-1) of the
authority are not adversely affected. As added by P.L.190-2005, SEC.11.
IC 36-7-14.5-12.5 Economic development area in counties with military base
closings; powers; allocation areas; distribution of taxes
Sec. 12.5. (a) This section applies only to an authority in a county
having a United States government military base that is scheduled for
closing or is completely or partially inactive or closed.
(b) In order to accomplish the purposes set forth in section 11 of
this chapter, an authority may create an economic development area:
(1) by following the procedures set forth in IC 36-7-14-41 for
the establishment of an economic development area by a
redevelopment commission; and
(2) with the same effect as if the economic development area
was created by a redevelopment commission.
The area established under this section shall be established only in
the area where a United States government military base that is
scheduled for closing or is completely or partially inactive or closed
is or was located.
(c) In order to accomplish the purposes set forth in section 11 of
this chapter, an authority may do the following in a manner that
serves an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation,
or lease, or any combination of methods, any personal property
or interest in real property needed for the redevelopment of
economic development areas located within the corporate
boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract,
or other instrument), exchange, lease, rent, or otherwise dispose
of property acquired for use in the redevelopment of economic
development areas on the terms and conditions that the
authority considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the real
property acquired for redevelopment purposes to any other
department of the unit or to any other governmental agency for
public ways, levees, sewerage, parks, playgrounds, schools, and
other public purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopment
purposes.
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment
purposes.
(7) Survey or examine any land to determine whether the land
should be included within an economic development area to be
acquired for redevelopment purposes and to determine the value
of that land.
(8) Appear before any other department or agency of the unit,
or before any other governmental agency in respect to any
matter affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any economic development area within the jurisdiction
of the authority.
(9) Institute or defend in the name of the unit any civil action,
but all actions against the authority must be brought in the
circuit or superior court of the county where the authority is
located.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and
perform the duties of the authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit subject to the same
conditions and procedures that apply to the exercise of the
power of eminent domain by a redevelopment commission
under IC 36-7-14.
(12) Appoint an executive director, appraisers, real estate
experts, engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees the
authority considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(14) Prescribe the duties and regulate the compensation of
employees of the authority.
(15) Provide a pension and retirement system for employees of
the authority by using the public employees' retirement fund or
a retirement plan approved by the United States Department of
Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
authority subject to subdivision (13).
(17) Rent offices for use of the department or authority, or
accept the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Any local public improvement or structure that is
necessary for redevelopment purposes or economic
development within the corporate boundaries of the unit.
(B) Any structure that enhances development or economic
development.
(20) Contract for the construction, extension, or improvement
of pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
(21) Accept loans, grants, and other forms of financial
assistance from, or contract with, the federal government, the
state government, a municipal corporation, a special taxing
district, a foundation, or any other source.
(22) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the authority
and the execution of the powers of the authority under this
chapter.
(23) Take any action necessary to implement the purpose of the
authority.
(24) Provide financial assistance, in the manner that best serves
the purposes set forth in section 11 of this chapter, including
grants and loans, to enable private enterprise to develop,
redevelop, and reuse military base property or otherwise enable
private enterprise to provide social and economic benefits to the
citizens of the unit.
(d) An authority may designate all or a portion of an economic
development area created under this section as an allocation area by
following the procedures set forth in IC 36-7-14-39 for the
establishment of an allocation area by a redevelopment commission.
The allocation provision may modify the definition of "property
taxes" under IC 36-7-14-39(a) to include taxes imposed under
IC 6-1.1 on the depreciable personal property located and taxable on
the site of operations of designated taxpayers in accordance with the
procedures applicable to a commission under IC 36-7-14-39.3.
IC 36-7-14-39.3 applies to such a modification. An allocation area
established by an authority under this section is a special taxing
district authorized by the general assembly to enable the unit to
provide special benefits to taxpayers in the allocation area by
promoting economic development that is of public use and benefit.
For allocation areas established for an economic development area
created under this section after June 30, 1997, and to the expanded
portion of an allocation area for an economic development area that
was established before June 30, 1997, and that is expanded under this
section after June 30, 1997, the net assessed value of property that is
assessed as residential property under the rules of the department of
local government finance, as finally determined for any assessment
date, must be allocated. All of the provisions of IC 36-7-14-39 apply
to an allocation area created under this section, except that the
authority shall be vested with the rights and duties of a commission
as referenced in those sections, and except that, notwithstanding
IC 36-7-14-39(b)(2), property tax proceeds paid into the allocation
fund may be used by the authority only to do one (1) or more of the
following:
(1) Pay the principal of and interest and redemption premium on
any obligations incurred by the special taxing district or any
other entity for the purpose of financing or refinancing military
base reuse activities in or serving or benefiting that allocation
area.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceeds
in that allocation area or from other revenues of the authority
(including lease rental revenues).
(3) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expenditures
made by it that benefits or provides for local public
improvements or structures in or serving or benefiting that
allocation area.
(5) Pay expenses incurred by the authority that benefit or
provide for local public improvements or structures that are in
the allocation area or serving or benefiting the allocation area.
(6) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in clause (B). The reimbursements
under this subdivision must be made within three (3) years after
the date on which the investments that are the basis for the
increment financing are made.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in
or directly serving or benefitting an economic development area
created by an authority under this section, and in anticipation of the
taxes allocated under subsection (d), other revenues of the authority,
or any combination of these sources, the authority may, by
resolution, issue the bonds of the special taxing district in the name
of the unit. Bonds issued under this section may be issued in any
amount without limitation. The following apply if such a resolution
is adopted:
(1) The authority shall certify a copy of the resolution
authorizing the bonds to the municipal or county fiscal officer,
who shall then prepare the bonds. The seal of the unit must be
impressed on the bonds, or a facsimile of the seal must be
printed on the bonds.
(2) The bonds must be executed by the appropriate officer of
the unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public sale
in accordance with IC 5-1-11 or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but are
an indebtedness of the taxing district. The bonds and interest
are payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
(B) from other revenues available to the authority; or
(C) from a combination of the methods stated in clauses (A)
and (B).
(6) Proceeds from the sale of bonds may be used to pay the cost
of interest on the bonds for a period not to exceed five (5) years
from the date of issuance.
(7) Laws relating to the filing of petitions requesting the
issuance of bonds and the right of taxpayers and voters to
remonstrate against the issuance of bonds do not apply to bonds
issued under this section.
(8) If a debt service reserve is created from the proceeds of
bonds, the debt service reserve may be used to pay principal and
interest on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solely
or in part from revenues to the authority from a project or
projects, the authority may adopt a resolution or trust indenture
or enter into covenants as is customary in the issuance of
revenue bonds. The resolution or trust indenture may pledge or
assign the revenues from the project or projects. The resolution
or trust indenture may also contain any provisions for protecting
and enforcing the rights and remedies of the bond owners as
may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority. The
authority may establish fees and charges for the use of any
project and covenant with the owners of any bonds to set those
fees and charges at a rate sufficient to protect the interest of the
owners of the bonds. Any revenue bonds issued by the authority
that are payable solely from revenues of the authority shall
contain a statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinance
adopted under section 11 of this chapter may provide, or be amended
to provide, that the board of directors of the authority shall be
composed of not fewer than three (3) nor more than eleven (11)
members, who must be residents of or be employed at a place of
employment located within the unit. The members shall be appointed
by the executive of the unit.
(g) The acquisition of real and personal property by an authority
under this section is not subject to the provisions of IC 5-22,
IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
purchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or other
disposition of real and personal property without complying with the
provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
statute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided within
an economic development area established under this section are
subject to regulation by the appropriate regulatory agencies unless
the utility service is provided by a utility that provides utility service
solely within the geographic boundaries of an existing or a closed
military installation, in which case the utility service is not subject
to regulation for purposes of rate making, regulation, service
delivery, or issuance of bonds or other forms of indebtedness.
However, this exemption from regulation does not apply to utility
service if the service is generated, treated, or produced outside the
boundaries of the existing or closed military installation. As added by P.L.26-1993, SEC.6. Amended by P.L.26-1995, SEC.5;
P.L.255-1997(ss), SEC.16; P.L.49-1997, SEC.78; P.L.2-1998,
SEC.85; P.L.90-2002, SEC.477; P.L.192-2002(ss), SEC.179;
P.L.190-2005, SEC.12; P.L.185-2005, SEC.25; P.L.1-2006,
SEC.567; P.L.219-2007, SEC.127; P.L.146-2008, SEC.742;
P.L.182-2009(ss), SEC.405; P.L.104-2010, SEC.1.
IC 36-7-14.5-13 Refunding bonds
Sec. 13. (a) Bonds issued under IC 36-7-14 may be refunded as
provided in this section.
(b) The commission may:
(1) lease all or a portion of a local public improvement or
improvements to the authority, which may be at a nominal lease
rental with a lease back to the commission, conditioned upon
the authority assuming bonds issued under IC 36-7-14 and
issuing its bonds to refund those bonds; and
(2) sell all or a portion of a local public improvement or
improvements to the authority for a price sufficient to provide
for the refunding of those bonds and lease back the local public
improvement or improvements from the authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-14 Lease of local public improvements to commission; provisions
Sec. 14. (a) Before a lease may be entered into, the commission
must find that the lease rental provided for is fair and reasonable.
(b) A lease of local public improvements from the authority to the
commission:
(1) must comply with IC 36-7-14-25.2 or IC 36-7-30-20;
(2) may not require payment of lease rental for a newly
constructed local public improvement or for improvements to
an existing local public improvement except to the extent that
the local public improvement or improvements thereto have
been completed and are ready for occupancy or use;
(3) may contain provisions:
(A) allowing the commission to continue to operate an
existing local public improvement until completion of the
improvements, reconstruction, or renovation; and
(B) requiring payment of lease rentals for an existing local
public improvement being used, reconstructed, or renovated;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the commission to purchase the
local public improvement upon the terms stated in the lease
during the term of the lease for a price equal to the amount
required to pay all indebtedness incurred on account of the local
public improvement, including indebtedness incurred for the
refunding of that indebtedness;
(6) may be entered into before acquisition or construction of a
local public improvement;
(7) may provide that the commission shall agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of the
authority; and
(C) assume responsibility for utilities, repairs, alterations,
and any costs of operation; and
(8) may provide that the lease rental payments by the
commission shall be made from any one (1) or more of the
sources set forth in IC 36-7-14-25.2 or IC 36-7-30-20. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,
SEC.60; P.L.26-1995, SEC.6.
IC 36-7-14.5-15 Legal authority for lease agreements
Sec. 15. This chapter and IC 36-7-14-25.2 or IC 36-7-30-20,
contain full and complete authority for leases between the authority
and the commission. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board or the
commission or any other officer, department, agency, or
instrumentality of the state or any political subdivision is required to
enter into any lease, except as prescribed in this chapter and
IC 36-7-14-25.2 or IC 36-7-30-20. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.26-1995,
SEC.7.
IC 36-7-14.5-16 Plans and specifications for local public improvements to be
constructed; approval by commission
Sec. 16. If the lease provides for a local public improvement or
improvements thereto to be constructed by the authority, the plans
and specifications shall be submitted to and approved by the
commission. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-17 Easement or license agreements between authority and
commission; recordation
Sec. 17. The authority and the commission may enter into
common wall (party wall) agreements or other agreements
concerning easements or licenses. These agreements shall be
recorded with the recorder of the county. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-18 Lease or sale of property from commission to authority
Sec. 18. (a) The commission may lease for a nominal lease rental,
or sell to the authority, one (1) or more local public improvements or
portions thereof or land upon which a local public improvement is
located or is to be constructed.
(b) Any lease of all or a portion of a local public improvement by
the commission to the authority must be for a term equal to the term
of the lease of that local public improvement back to the
redevelopment commission.
(c) The commission may sell property to the authority for such
amount as it determines to be in the best interest of the commission,
which amount may be paid from the proceeds of bonds of the
authority. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-19 Bonds; procedures; use of revenue
Sec. 19. (a) The authority may issue bonds for the purpose of
obtaining money to pay the cost of:
(1) acquiring property;
(2) constructing, improving, reconstructing, or renovating one
(1) or more local public improvements; or
(3) funding or refunding bonds issued under this chapter or
IC 36-7-14.
(b) The bonds are payable solely from the lease rentals from the
lease of the local public improvement for which the bonds were
issued, insurance proceeds, and any other funds pledged or available.
(c) The bonds shall be authorized by a resolution of the board.
(d) The terms and form of the bonds shall either be set out in the
resolution or in a form of trust indenture approved by the resolution.
(e) The bonds shall mature within fifty (50) years.
(f) The board shall sell the bonds at public or private sale upon
such terms as determined by the board.
(g) All money received from any bonds issued under this chapter
shall be applied solely to the payment of the cost of the acquisition
or construction, or both, of local public improvements, or the cost of
refunding or refinancing outstanding bonds, for which the bonds are
issued. The cost may include:
(1) planning and development of the local public improvements
and all related buildings, facilities, structures, and
improvements;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the local public improvements
that are necessary or desirable to make the local public
improvements suitable for use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5)
years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal bond insurance, debt service reserve insurance,
letters of credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums, if any, and interest on, the
bonds being refunded or refinanced. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.35-1990,
SEC.61.
IC 36-7-14.5-20 Authority for issuance of bonds; legal investment status of bonds
Sec. 20. (a) This chapter contains full and complete authority for
the issuance of bonds. No law, procedure, proceedings, publications,
notices, consents, approvals, orders, or acts by the board of any other
officer, department, agency, or instrumentality of the state or of any
political subdivision is required to issue any bonds, except as
prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associations, credit unions, banks of
discount and deposit, savings banks, loan and trust and safe deposit
companies, rural loan and savings associations, guaranty loan and
savings associations, mortgage guaranty companies, small loan
companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.42-1993,
SEC.97.
IC 36-7-14.5-21 Trust indenture securing bonds
Sec. 21. (a) The authority may secure bonds issued under this
chapter by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank
within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign lease rentals, receipts, and income from
leased local public improvements, but may not mortgage land
or local public improvements;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority and board;
(3) set forth the rights and remedies of bondholders and trustee;
and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding in accordance with IC 5-1-14-4 from the
time that the pledge or assignment is made, against all persons
whether they have notice of the lien or not. Any trust indenture by
which a pledge is created or an assignment need not be filed or
recorded. The lien is perfected against third parties in accordance
with IC 5-1-14-4. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-22 Issuance of bonds by commission upon exercise of option to
purchase leased property
Sec. 22. If the commission exercises its option to purchase leased
property, it may issue its bonds as authorized by statute. As added by P.L.380-1987(ss), SEC.18.
IC 36-7-14.5-23 Tax-exempt status of authority property and bonds
Sec. 23. All:
(1) property owned by the authority;
(2) revenues of the authority; and
(3) bonds issued by the authority, the interest on the bonds, the
proceeds received by a holder from the sale of bonds to the
extent of the holder's cost of acquisition, proceeds received
upon redemption before maturity, proceeds received at maturity,
and the receipt of interest in proceeds;
are exempt from taxation in Indiana for all purposes except the
financial institutions tax imposed under IC 6-5.5 or a state
inheritance tax imposed under IC 6-4.1. As added by P.L.380-1987(ss), SEC.18. Amended by P.L.21-1990,
SEC.53; P.L.254-1997(ss), SEC.30.
IC 36-7-14.5-24 Action contesting validity of bonds
Sec. 24. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after the fifteenth day
following:
(1) the receipt of bids for the bonds, if the bonds are sold at
public sale; or
(2) the publication one (1) time in a newspaper of general
circulation published in the county of notice of the execution
and delivery of the contract for the sale of bonds;
whichever occurs first. As added by P.L.380-1987(ss), SEC.18.
