IC 6-1.1-39
Chapter 39. Economic Development Districts
IC 6-1.1-39-1 Application of chapter
Sec. 1. (a) This chapter applies to all counties, cities, and towns
(referred to in this chapter as units).
(b) Notwithstanding any other law, for economic development
districts established after January 1, 1992, this chapter does not apply
to fire protection districts established under IC 36-8-11. As added by P.L.19-1985, SEC.5. Amended by P.L.1-1993, SEC.35.
IC 6-1.1-39-1.1 "Additional area" defined
Sec. 1.1. As used in this chapter, "additional area" means an area
added to an economic development district under section 6 of this
chapter. As added by P.L.63-1991, SEC.1 and P.L.42-1992, SEC.6. Amended
by P.L.1-1993, SEC.36.
IC 6-1.1-39-1.2 "Local public improvement" defined
Sec. 1.2. As used in this chapter, "local public improvement"
means sewerlines, waterlines, streets, sidewalks, bridges, roads,
highways, public ways, and any related public improvements. As added by P.L.19-1988, SEC.5.
IC 6-1.1-39-1.5 "Industrial development program" defined
Sec. 1.5. As used in this chapter, "industrial development
program" has the meaning set forth in IC 5-28-9-3. As added by P.L.24-1987, SEC.11. Amended by P.L.4-2005, SEC.43.
IC 6-1.1-39-1.6 "Qualified industrial development project" defined
Sec. 1.6. As used in this chapter, "qualified industrial
development project" means an industrial development project (as
defined in IC 4-4-10.9-11(a)) that has a cost of the project (as defined
in IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000). As added by P.L.24-1987, SEC.12.
IC 6-1.1-39-2 Designation of unit area as district; adoption of declaratory
ordinance
Sec. 2. (a) If the fiscal body of a unit finds that:
(1) in order to promote opportunities for the gainful
employment of its citizens, the attraction of a new business
enterprise to the unit, the retention or expansion of a business
enterprise existing within the boundaries of the unit, or the
preservation or enhancement of the tax base of the unit, an area
under the fiscal body's jurisdiction should be declared an
economic development district;
(2) the public health and welfare of the unit will be benefited by
designating the area as an economic development district; and
(3) there has been proposed a qualified industrial development
project to be located in the economic development district, with
the proposal supported by:
(A) financial and economic data; and
(B) preliminary commitments by business enterprises,
associations, state or federal governmental units, or similar
entities that evidence a reasonable likelihood that the
proposed qualified industrial development project will be
initiated and accomplished;
the fiscal body may on or before the adoption deadline determined
under subsection (c), adopt an ordinance declaring the area to be an
economic development district and declaring that the public health
and welfare of the unit will be benefited by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),
it is sufficient to describe the boundaries of the area by its location
in relation to public ways or streams or otherwise as determined by
the fiscal body.
(c) The adoption deadline referred to in subsection (a) is
determined in the following manner:
(1) The initial adoption deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial adoption deadline and
subsequent adoption deadlines are automatically extended in
increments of five (5) years, so that adoption deadlines
subsequent to the initial adoption deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an adoption deadline
determined under subdivision (2), the general assembly may
enact a law that:
(A) terminates the automatic extension of adoption deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
adoption deadline. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.13;
P.L.18-1992, SEC.23; P.L.25-1995, SEC.55; P.L.216-2005, SEC.5.
IC 6-1.1-39-2.5 Review of proposed project; preliminary certification
Sec. 2.5. (a) Within thirty (30) days after the adoption of the
ordinance under section 2 of this chapter, the fiscal body shall file
with the Indiana economic development corporation:
(1) a copy of the ordinance;
(2) a description of the proposed industrial development
program and qualified industrial development project; and
(3) other additional data and information that will enable the
corporation to determine preliminarily whether the unit may
qualify for a loan from the industrial development fund
established under IC 5-28-9.
(b) The Indiana economic development corporation shall review
the data and related information submitted under subsection (a) to
determine preliminarily whether:
(1) the proposed project will qualify as a qualified industrial
development project;
(2) there is a reasonable likelihood that the proposed qualified
industrial development project will be initiated and
accomplished; and
(3) there is a reasonable likelihood that an application by the
unit under IC 5-28-9-12 for a loan from the industrial
development fund to institute and administer the proposed
industrial development program will be approved by the
corporation and the state board of finance.
(c) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project does not
or will not qualify as a qualified industrial development project or
that there is not a reasonable likelihood that a loan from the
industrial development fund will be approved under IC 5-28-9-12,
the corporation shall certify this determination in writing to the fiscal
body adopting the ordinance. Upon this certification, the ordinance
proposing to establish the economic development district is void.
(d) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project qualifies
or will qualify as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12, the
corporation shall certify this determination to the fiscal body
adopting the ordinance proposing to establish the economic
development district. Upon receipt of this certification, the fiscal
body shall proceed to take final action with respect to the ordinance
in accordance with section 3 of this chapter.
(e) A favorable preliminary certification under subsection (d) does
not, however, represent or constitute a final determination by the
Indiana economic development corporation and state board of
finance as to whether the unit will obtain a loan from the industrial
development fund in accordance with IC 5-28-9. As added by P.L.24-1987, SEC.14. Amended by P.L.4-2005, SEC.44.
IC 6-1.1-39-3 Notice of adoption of ordinance; hearing; requisites; final action;
appeal
Sec. 3. (a) The fiscal body shall publish notice of the adoption and
substance of the ordinance in accordance with IC 5-3-1 after:
(1) the adoption of the ordinance under section 2 of this
chapter; and
(2) the fiscal body receives preliminary certification from the
Indiana economic development corporation under section 2.5 of
this chapter that the proposed industrial development project
qualifies as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12.
The notice must state the general boundaries of the area designated
as an economic development district and must state that written
remonstrances may be filed with the fiscal body until the time
designated for the hearing. The notice must also name the place,
date, and time when the fiscal body will receive and hear
remonstrances and objections from persons interested in or affected
by the proceedings pertaining to the proposed economic development
district designation and will determine the public utility and benefit
of the proposed economic development district designation. All
persons affected in any manner by the hearing, including all
taxpayers of the economic development district, shall be considered
notified of the pendency of the hearing and of subsequent acts,
hearings, adjournments, and orders of the fiscal body affecting the
economic development district if the fiscal body gives the notice
required by this section.
(b) A copy of the notice of the hearing shall be filed with the
office of the unit's plan commission, board of zoning appeals, works
board, park board, building commissioner, and any other
departments, bodies, or officers of the unit having to do with unit
planning, variances from zoning ordinances, land use, or the issuance
of building permits.
(c) At the hearing, which may be recessed and reconvened from
time to time, the fiscal body shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the fiscal body shall take final action determining the
public utility and benefit of the proposed economic development
district designation and confirming, modifying and confirming, or
rescinding the ordinance. The final action taken by the fiscal body
shall be recorded and is final and conclusive, except that an appeal
may be taken in the manner prescribed by section 4 of this chapter. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.15;
P.L.4-2005, SEC.45.
IC 6-1.1-39-4 Appellate procedure; grounds; burden of proof
Sec. 4. (a) A person who filed a written remonstrance with the
fiscal body under section 3 of this chapter and is aggrieved by the
final action taken, may, within ten (10) days after that final action,
file in the office of the clerk of the circuit or superior court of the
county in which the action is taken a copy of the ordinance of the
fiscal body and the person's remonstrance against that ordinance,
together with the person's bond as provided by IC 34-13-5-7, if the
appeal is determined against the person. The only ground of
remonstrance that the court may hear is whether the proposed
economic development district designation will be of public utility
and benefit. The burden of proof is on the remonstrator.
(b) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall decide the appeal based on the record and evidence before the
fiscal body, not by trial de novo, and may confirm the final action of
the fiscal body or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil actions. As added by P.L.19-1985, SEC.5. Amended by P.L.1-1998, SEC.77.
IC 6-1.1-39-5 Allocation and distribution of property taxes; assessed value of
taxable property; rules; forms
Sec. 5. (a) A declaratory ordinance adopted under section 2 of this
chapter and confirmed under section 3 of this chapter must include
a provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section.
The allocation provision must apply to the entire economic
development district. The allocation provisions must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property
in the economic development district be allocated and distributed as
follows:
(1) Except as otherwise provided in this section, the proceeds
of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment
date with respect to which the allocation and distribution is
made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March
1, 1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit
may provide in the declaratory ordinance that the taxes
attributable to the assessed value of the property as finally
determined for March 1, 1984, shall be allocated to and, when
collected, paid into the funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of
the property tax proceeds in excess of those described in
subdivision (1), as specified in the declaratory ordinance, shall
be allocated to the unit for the economic development district
and, when collected, paid into a special fund established by the
unit for that economic development district that may be used
only to pay the principal of and interest on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district. The amount not paid into
the special fund shall be paid to the respective units in the
manner prescribed by subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on
which the obligations can be redeemed) on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district, money in the special fund
in excess of that amount shall be paid to the respective taxing
units in the manner prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in
the economic development district that is annexed by any taxing unit
after the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated
upon or in, or added to, the economic development district effective
on the next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all
taxable property in the economic development district, for purposes
of tax limitation, property tax replacement, and formulation of the
budget, tax rate, and tax levy for each political subdivision in which
the property is located, is the lesser of:
(1) the assessed value of the property as valued without regard
to this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of
this chapter. After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment on the property tax proceeds allocated to the district
under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the district
under this section. However, the adjustments under this subsection
may not include the effect of property tax abatements under
IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on
depreciable personal property that the unit has by ordinance
allocated to the economic development district. However, the
ordinance may not limit the allocation to taxes on depreciable
personal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to
an economic development district property taxes imposed under
IC 6-1.1 on depreciable personal property that has a useful life in
excess of eight (8) years, the ordinance continues in effect until an
ordinance is adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), 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 after the
effective date of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.16;
P.L.86-1987, SEC.5; P.L.255-1997(ss), SEC.6; P.L.90-2002,
SEC.272; P.L.4-2005, SEC.46; P.L.154-2006, SEC.56;
P.L.146-2008, SEC.296.
IC 6-1.1-39-6 Enlargement of districts
Sec. 6. An economic development district may be enlarged by the
fiscal body by following the same procedure for the creation of an
economic development district specified in this chapter. As added by P.L.19-1985, SEC.5. Amended by P.L.42-1992, SEC.7;
P.L.192-2002(ss), SEC.46; P.L.1-2004, SEC.48 and P.L.23-2004,
SEC.51; P.L.219-2007, SEC.83; P.L.146-2008, SEC.297.
IC 6-1.1-39-7 Allocation areas; declaration as part of district prohibited
Sec. 7. No area shall be declared part of an economic
development district if it has already been declared an allocation area
under IC 36-7-14 or IC 36-7-15.1. As added by P.L.19-1985, SEC.5.
IC 6-1.1-39-8 Expiration of district designation
Sec. 8. If no loans have been made to a unit under IC 4-4-8
(before its repeal) or IC 5-28-9 for the financing of industrial
development programs in an economic development district within
two (2) years from the date of the ordinance confirming the
establishment of that district, or if money in the special fund
established by the unit for that district is sufficient to pay all
principal of and interest on and the performance of all other
obligations by a unit on all loans made under IC 4-4-8 (before its
repeal) or IC 5-28-9 for the financing of industrial development
programs in, or serving, an economic development district, then the
economic development district designation expires. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.17;
P.L.19-1988, SEC.6; P.L.4-2005, SEC.47.
IC 6-1.1-39-9 Industrial development program obligations; ordinance; proceeds
of obligation
Sec. 9. (a) The fiscal body of a unit may by ordinance authorize
the issuance of obligations to the department of commerce under
IC 4-4-8 (before its repeal) or to the Indiana economic development
corporation under IC 5-28-9 payable solely from taxes allocated
under section 5 of this chapter. Any obligations issued and payable
from taxes allocated under section 5 of this chapter are not general
obligations of the unit that established the economic development
district under this chapter.
(b) The economic development district created by a unit under
this chapter is a special taxing district authorized by the general
assembly to enable the unit to provide special benefits to taxpayers
in the economic development district by providing local public
improvements that are of public use and benefit.
(c) The ordinance of a unit authorizing the issuance of obligations
must contain a finding of the fiscal body that the proposed industrial
development program:
(1) constitutes a local public improvement;
(2) provides special benefits to property owners in the district;
and
(3) will be of public use and benefit.
(d) Proceeds of obligations issued under this section, IC 4-4-8
(before its repeal), and IC 5-28-9 may be used to pay for the
following:
(1) The cost of local public improvements.
(2) Interest on the obligations for the period of construction of
the local public improvements plus one (1) year after
completion of construction.
(3) Reasonable debt service reserves.
(4) Costs of issuance of the obligations.
(5) Any other reasonable and necessary expenses related to
issuance of the obligations. As added by P.L.19-1988, SEC.7. Amended by P.L.4-2005, SEC.48;
P.L.146-2008, SEC.298.
IC 6-1.1-39
Chapter 39. Economic Development Districts
IC 6-1.1-39-1 Application of chapter
Sec. 1. (a) This chapter applies to all counties, cities, and towns
(referred to in this chapter as units).
(b) Notwithstanding any other law, for economic development
districts established after January 1, 1992, this chapter does not apply
to fire protection districts established under IC 36-8-11. As added by P.L.19-1985, SEC.5. Amended by P.L.1-1993, SEC.35.
IC 6-1.1-39-1.1 "Additional area" defined
Sec. 1.1. As used in this chapter, "additional area" means an area
added to an economic development district under section 6 of this
chapter. As added by P.L.63-1991, SEC.1 and P.L.42-1992, SEC.6. Amended
by P.L.1-1993, SEC.36.
IC 6-1.1-39-1.2 "Local public improvement" defined
Sec. 1.2. As used in this chapter, "local public improvement"
means sewerlines, waterlines, streets, sidewalks, bridges, roads,
highways, public ways, and any related public improvements. As added by P.L.19-1988, SEC.5.
IC 6-1.1-39-1.5 "Industrial development program" defined
Sec. 1.5. As used in this chapter, "industrial development
program" has the meaning set forth in IC 5-28-9-3. As added by P.L.24-1987, SEC.11. Amended by P.L.4-2005, SEC.43.
IC 6-1.1-39-1.6 "Qualified industrial development project" defined
Sec. 1.6. As used in this chapter, "qualified industrial
development project" means an industrial development project (as
defined in IC 4-4-10.9-11(a)) that has a cost of the project (as defined
in IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000). As added by P.L.24-1987, SEC.12.
IC 6-1.1-39-2 Designation of unit area as district; adoption of declaratory
ordinance
Sec. 2. (a) If the fiscal body of a unit finds that:
(1) in order to promote opportunities for the gainful
employment of its citizens, the attraction of a new business
enterprise to the unit, the retention or expansion of a business
enterprise existing within the boundaries of the unit, or the
preservation or enhancement of the tax base of the unit, an area
under the fiscal body's jurisdiction should be declared an
economic development district;
(2) the public health and welfare of the unit will be benefited by
designating the area as an economic development district; and
(3) there has been proposed a qualified industrial development
project to be located in the economic development district, with
the proposal supported by:
(A) financial and economic data; and
(B) preliminary commitments by business enterprises,
associations, state or federal governmental units, or similar
entities that evidence a reasonable likelihood that the
proposed qualified industrial development project will be
initiated and accomplished;
the fiscal body may on or before the adoption deadline determined
under subsection (c), adopt an ordinance declaring the area to be an
economic development district and declaring that the public health
and welfare of the unit will be benefited by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),
it is sufficient to describe the boundaries of the area by its location
in relation to public ways or streams or otherwise as determined by
the fiscal body.
(c) The adoption deadline referred to in subsection (a) is
determined in the following manner:
(1) The initial adoption deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial adoption deadline and
subsequent adoption deadlines are automatically extended in
increments of five (5) years, so that adoption deadlines
subsequent to the initial adoption deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an adoption deadline
determined under subdivision (2), the general assembly may
enact a law that:
(A) terminates the automatic extension of adoption deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
adoption deadline. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.13;
P.L.18-1992, SEC.23; P.L.25-1995, SEC.55; P.L.216-2005, SEC.5.
IC 6-1.1-39-2.5 Review of proposed project; preliminary certification
Sec. 2.5. (a) Within thirty (30) days after the adoption of the
ordinance under section 2 of this chapter, the fiscal body shall file
with the Indiana economic development corporation:
(1) a copy of the ordinance;
(2) a description of the proposed industrial development
program and qualified industrial development project; and
(3) other additional data and information that will enable the
corporation to determine preliminarily whether the unit may
qualify for a loan from the industrial development fund
established under IC 5-28-9.
(b) The Indiana economic development corporation shall review
the data and related information submitted under subsection (a) to
determine preliminarily whether:
(1) the proposed project will qualify as a qualified industrial
development project;
(2) there is a reasonable likelihood that the proposed qualified
industrial development project will be initiated and
accomplished; and
(3) there is a reasonable likelihood that an application by the
unit under IC 5-28-9-12 for a loan from the industrial
development fund to institute and administer the proposed
industrial development program will be approved by the
corporation and the state board of finance.
(c) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project does not
or will not qualify as a qualified industrial development project or
that there is not a reasonable likelihood that a loan from the
industrial development fund will be approved under IC 5-28-9-12,
the corporation shall certify this determination in writing to the fiscal
body adopting the ordinance. Upon this certification, the ordinance
proposing to establish the economic development district is void.
(d) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project qualifies
or will qualify as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12, the
corporation shall certify this determination to the fiscal body
adopting the ordinance proposing to establish the economic
development district. Upon receipt of this certification, the fiscal
body shall proceed to take final action with respect to the ordinance
in accordance with section 3 of this chapter.
(e) A favorable preliminary certification under subsection (d) does
not, however, represent or constitute a final determination by the
Indiana economic development corporation and state board of
finance as to whether the unit will obtain a loan from the industrial
development fund in accordance with IC 5-28-9. As added by P.L.24-1987, SEC.14. Amended by P.L.4-2005, SEC.44.
IC 6-1.1-39-3 Notice of adoption of ordinance; hearing; requisites; final action;
appeal
Sec. 3. (a) The fiscal body shall publish notice of the adoption and
substance of the ordinance in accordance with IC 5-3-1 after:
(1) the adoption of the ordinance under section 2 of this
chapter; and
(2) the fiscal body receives preliminary certification from the
Indiana economic development corporation under section 2.5 of
this chapter that the proposed industrial development project
qualifies as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12.
The notice must state the general boundaries of the area designated
as an economic development district and must state that written
remonstrances may be filed with the fiscal body until the time
designated for the hearing. The notice must also name the place,
date, and time when the fiscal body will receive and hear
remonstrances and objections from persons interested in or affected
by the proceedings pertaining to the proposed economic development
district designation and will determine the public utility and benefit
of the proposed economic development district designation. All
persons affected in any manner by the hearing, including all
taxpayers of the economic development district, shall be considered
notified of the pendency of the hearing and of subsequent acts,
hearings, adjournments, and orders of the fiscal body affecting the
economic development district if the fiscal body gives the notice
required by this section.
(b) A copy of the notice of the hearing shall be filed with the
office of the unit's plan commission, board of zoning appeals, works
board, park board, building commissioner, and any other
departments, bodies, or officers of the unit having to do with unit
planning, variances from zoning ordinances, land use, or the issuance
of building permits.
(c) At the hearing, which may be recessed and reconvened from
time to time, the fiscal body shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the fiscal body shall take final action determining the
public utility and benefit of the proposed economic development
district designation and confirming, modifying and confirming, or
rescinding the ordinance. The final action taken by the fiscal body
shall be recorded and is final and conclusive, except that an appeal
may be taken in the manner prescribed by section 4 of this chapter. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.15;
P.L.4-2005, SEC.45.
IC 6-1.1-39-4 Appellate procedure; grounds; burden of proof
Sec. 4. (a) A person who filed a written remonstrance with the
fiscal body under section 3 of this chapter and is aggrieved by the
final action taken, may, within ten (10) days after that final action,
file in the office of the clerk of the circuit or superior court of the
county in which the action is taken a copy of the ordinance of the
fiscal body and the person's remonstrance against that ordinance,
together with the person's bond as provided by IC 34-13-5-7, if the
appeal is determined against the person. The only ground of
remonstrance that the court may hear is whether the proposed
economic development district designation will be of public utility
and benefit. The burden of proof is on the remonstrator.
(b) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall decide the appeal based on the record and evidence before the
fiscal body, not by trial de novo, and may confirm the final action of
the fiscal body or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil actions. As added by P.L.19-1985, SEC.5. Amended by P.L.1-1998, SEC.77.
IC 6-1.1-39-5 Allocation and distribution of property taxes; assessed value of
taxable property; rules; forms
Sec. 5. (a) A declaratory ordinance adopted under section 2 of this
chapter and confirmed under section 3 of this chapter must include
a provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section.
The allocation provision must apply to the entire economic
development district. The allocation provisions must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property
in the economic development district be allocated and distributed as
follows:
(1) Except as otherwise provided in this section, the proceeds
of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment
date with respect to which the allocation and distribution is
made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March
1, 1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit
may provide in the declaratory ordinance that the taxes
attributable to the assessed value of the property as finally
determined for March 1, 1984, shall be allocated to and, when
collected, paid into the funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of
the property tax proceeds in excess of those described in
subdivision (1), as specified in the declaratory ordinance, shall
be allocated to the unit for the economic development district
and, when collected, paid into a special fund established by the
unit for that economic development district that may be used
only to pay the principal of and interest on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district. The amount not paid into
the special fund shall be paid to the respective units in the
manner prescribed by subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on
which the obligations can be redeemed) on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district, money in the special fund
in excess of that amount shall be paid to the respective taxing
units in the manner prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in
the economic development district that is annexed by any taxing unit
after the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated
upon or in, or added to, the economic development district effective
on the next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all
taxable property in the economic development district, for purposes
of tax limitation, property tax replacement, and formulation of the
budget, tax rate, and tax levy for each political subdivision in which
the property is located, is the lesser of:
(1) the assessed value of the property as valued without regard
to this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of
this chapter. After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment on the property tax proceeds allocated to the district
under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the district
under this section. However, the adjustments under this subsection
may not include the effect of property tax abatements under
IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on
depreciable personal property that the unit has by ordinance
allocated to the economic development district. However, the
ordinance may not limit the allocation to taxes on depreciable
personal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to
an economic development district property taxes imposed under
IC 6-1.1 on depreciable personal property that has a useful life in
excess of eight (8) years, the ordinance continues in effect until an
ordinance is adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), 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 after the
effective date of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.16;
P.L.86-1987, SEC.5; P.L.255-1997(ss), SEC.6; P.L.90-2002,
SEC.272; P.L.4-2005, SEC.46; P.L.154-2006, SEC.56;
P.L.146-2008, SEC.296.
IC 6-1.1-39-6 Enlargement of districts
Sec. 6. An economic development district may be enlarged by the
fiscal body by following the same procedure for the creation of an
economic development district specified in this chapter. As added by P.L.19-1985, SEC.5. Amended by P.L.42-1992, SEC.7;
P.L.192-2002(ss), SEC.46; P.L.1-2004, SEC.48 and P.L.23-2004,
SEC.51; P.L.219-2007, SEC.83; P.L.146-2008, SEC.297.
IC 6-1.1-39-7 Allocation areas; declaration as part of district prohibited
Sec. 7. No area shall be declared part of an economic
development district if it has already been declared an allocation area
under IC 36-7-14 or IC 36-7-15.1. As added by P.L.19-1985, SEC.5.
IC 6-1.1-39-8 Expiration of district designation
Sec. 8. If no loans have been made to a unit under IC 4-4-8
(before its repeal) or IC 5-28-9 for the financing of industrial
development programs in an economic development district within
two (2) years from the date of the ordinance confirming the
establishment of that district, or if money in the special fund
established by the unit for that district is sufficient to pay all
principal of and interest on and the performance of all other
obligations by a unit on all loans made under IC 4-4-8 (before its
repeal) or IC 5-28-9 for the financing of industrial development
programs in, or serving, an economic development district, then the
economic development district designation expires. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.17;
P.L.19-1988, SEC.6; P.L.4-2005, SEC.47.
IC 6-1.1-39-9 Industrial development program obligations; ordinance; proceeds
of obligation
Sec. 9. (a) The fiscal body of a unit may by ordinance authorize
the issuance of obligations to the department of commerce under
IC 4-4-8 (before its repeal) or to the Indiana economic development
corporation under IC 5-28-9 payable solely from taxes allocated
under section 5 of this chapter. Any obligations issued and payable
from taxes allocated under section 5 of this chapter are not general
obligations of the unit that established the economic development
district under this chapter.
(b) The economic development district created by a unit under
this chapter is a special taxing district authorized by the general
assembly to enable the unit to provide special benefits to taxpayers
in the economic development district by providing local public
improvements that are of public use and benefit.
(c) The ordinance of a unit authorizing the issuance of obligations
must contain a finding of the fiscal body that the proposed industrial
development program:
(1) constitutes a local public improvement;
(2) provides special benefits to property owners in the district;
and
(3) will be of public use and benefit.
(d) Proceeds of obligations issued under this section, IC 4-4-8
(before its repeal), and IC 5-28-9 may be used to pay for the
following:
(1) The cost of local public improvements.
(2) Interest on the obligations for the period of construction of
the local public improvements plus one (1) year after
completion of construction.
(3) Reasonable debt service reserves.
(4) Costs of issuance of the obligations.
(5) Any other reasonable and necessary expenses related to
issuance of the obligations. As added by P.L.19-1988, SEC.7. Amended by P.L.4-2005, SEC.48;
P.L.146-2008, SEC.298.
IC 6-1.1-39
Chapter 39. Economic Development Districts
IC 6-1.1-39-1 Application of chapter
Sec. 1. (a) This chapter applies to all counties, cities, and towns
(referred to in this chapter as units).
(b) Notwithstanding any other law, for economic development
districts established after January 1, 1992, this chapter does not apply
to fire protection districts established under IC 36-8-11. As added by P.L.19-1985, SEC.5. Amended by P.L.1-1993, SEC.35.
IC 6-1.1-39-1.1 "Additional area" defined
Sec. 1.1. As used in this chapter, "additional area" means an area
added to an economic development district under section 6 of this
chapter. As added by P.L.63-1991, SEC.1 and P.L.42-1992, SEC.6. Amended
by P.L.1-1993, SEC.36.
IC 6-1.1-39-1.2 "Local public improvement" defined
Sec. 1.2. As used in this chapter, "local public improvement"
means sewerlines, waterlines, streets, sidewalks, bridges, roads,
highways, public ways, and any related public improvements. As added by P.L.19-1988, SEC.5.
IC 6-1.1-39-1.5 "Industrial development program" defined
Sec. 1.5. As used in this chapter, "industrial development
program" has the meaning set forth in IC 5-28-9-3. As added by P.L.24-1987, SEC.11. Amended by P.L.4-2005, SEC.43.
IC 6-1.1-39-1.6 "Qualified industrial development project" defined
Sec. 1.6. As used in this chapter, "qualified industrial
development project" means an industrial development project (as
defined in IC 4-4-10.9-11(a)) that has a cost of the project (as defined
in IC 4-4-10.9-5) greater than one hundred million dollars
($100,000,000). As added by P.L.24-1987, SEC.12.
IC 6-1.1-39-2 Designation of unit area as district; adoption of declaratory
ordinance
Sec. 2. (a) If the fiscal body of a unit finds that:
(1) in order to promote opportunities for the gainful
employment of its citizens, the attraction of a new business
enterprise to the unit, the retention or expansion of a business
enterprise existing within the boundaries of the unit, or the
preservation or enhancement of the tax base of the unit, an area
under the fiscal body's jurisdiction should be declared an
economic development district;
(2) the public health and welfare of the unit will be benefited by
designating the area as an economic development district; and
(3) there has been proposed a qualified industrial development
project to be located in the economic development district, with
the proposal supported by:
(A) financial and economic data; and
(B) preliminary commitments by business enterprises,
associations, state or federal governmental units, or similar
entities that evidence a reasonable likelihood that the
proposed qualified industrial development project will be
initiated and accomplished;
the fiscal body may on or before the adoption deadline determined
under subsection (c), adopt an ordinance declaring the area to be an
economic development district and declaring that the public health
and welfare of the unit will be benefited by the designation.
(b) For the purpose of adopting an ordinance under subsection (a),
it is sufficient to describe the boundaries of the area by its location
in relation to public ways or streams or otherwise as determined by
the fiscal body.
(c) The adoption deadline referred to in subsection (a) is
determined in the following manner:
(1) The initial adoption deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial adoption deadline and
subsequent adoption deadlines are automatically extended in
increments of five (5) years, so that adoption deadlines
subsequent to the initial adoption deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an adoption deadline
determined under subdivision (2), the general assembly may
enact a law that:
(A) terminates the automatic extension of adoption deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
adoption deadline. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.13;
P.L.18-1992, SEC.23; P.L.25-1995, SEC.55; P.L.216-2005, SEC.5.
IC 6-1.1-39-2.5 Review of proposed project; preliminary certification
Sec. 2.5. (a) Within thirty (30) days after the adoption of the
ordinance under section 2 of this chapter, the fiscal body shall file
with the Indiana economic development corporation:
(1) a copy of the ordinance;
(2) a description of the proposed industrial development
program and qualified industrial development project; and
(3) other additional data and information that will enable the
corporation to determine preliminarily whether the unit may
qualify for a loan from the industrial development fund
established under IC 5-28-9.
(b) The Indiana economic development corporation shall review
the data and related information submitted under subsection (a) to
determine preliminarily whether:
(1) the proposed project will qualify as a qualified industrial
development project;
(2) there is a reasonable likelihood that the proposed qualified
industrial development project will be initiated and
accomplished; and
(3) there is a reasonable likelihood that an application by the
unit under IC 5-28-9-12 for a loan from the industrial
development fund to institute and administer the proposed
industrial development program will be approved by the
corporation and the state board of finance.
(c) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project does not
or will not qualify as a qualified industrial development project or
that there is not a reasonable likelihood that a loan from the
industrial development fund will be approved under IC 5-28-9-12,
the corporation shall certify this determination in writing to the fiscal
body adopting the ordinance. Upon this certification, the ordinance
proposing to establish the economic development district is void.
(d) If the Indiana economic development corporation preliminarily
determines under subsection (b) that the proposed project qualifies
or will qualify as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12, the
corporation shall certify this determination to the fiscal body
adopting the ordinance proposing to establish the economic
development district. Upon receipt of this certification, the fiscal
body shall proceed to take final action with respect to the ordinance
in accordance with section 3 of this chapter.
(e) A favorable preliminary certification under subsection (d) does
not, however, represent or constitute a final determination by the
Indiana economic development corporation and state board of
finance as to whether the unit will obtain a loan from the industrial
development fund in accordance with IC 5-28-9. As added by P.L.24-1987, SEC.14. Amended by P.L.4-2005, SEC.44.
IC 6-1.1-39-3 Notice of adoption of ordinance; hearing; requisites; final action;
appeal
Sec. 3. (a) The fiscal body shall publish notice of the adoption and
substance of the ordinance in accordance with IC 5-3-1 after:
(1) the adoption of the ordinance under section 2 of this
chapter; and
(2) the fiscal body receives preliminary certification from the
Indiana economic development corporation under section 2.5 of
this chapter that the proposed industrial development project
qualifies as a qualified industrial development project and that
there is a reasonable likelihood that a loan from the industrial
development fund will be approved under IC 5-28-9-12.
The notice must state the general boundaries of the area designated
as an economic development district and must state that written
remonstrances may be filed with the fiscal body until the time
designated for the hearing. The notice must also name the place,
date, and time when the fiscal body will receive and hear
remonstrances and objections from persons interested in or affected
by the proceedings pertaining to the proposed economic development
district designation and will determine the public utility and benefit
of the proposed economic development district designation. All
persons affected in any manner by the hearing, including all
taxpayers of the economic development district, shall be considered
notified of the pendency of the hearing and of subsequent acts,
hearings, adjournments, and orders of the fiscal body affecting the
economic development district if the fiscal body gives the notice
required by this section.
(b) A copy of the notice of the hearing shall be filed with the
office of the unit's plan commission, board of zoning appeals, works
board, park board, building commissioner, and any other
departments, bodies, or officers of the unit having to do with unit
planning, variances from zoning ordinances, land use, or the issuance
of building permits.
(c) At the hearing, which may be recessed and reconvened from
time to time, the fiscal body shall hear all persons interested in the
proceedings and shall consider all written remonstrances and
objections that have been filed. After considering the evidence
presented, the fiscal body shall take final action determining the
public utility and benefit of the proposed economic development
district designation and confirming, modifying and confirming, or
rescinding the ordinance. The final action taken by the fiscal body
shall be recorded and is final and conclusive, except that an appeal
may be taken in the manner prescribed by section 4 of this chapter. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.15;
P.L.4-2005, SEC.45.
IC 6-1.1-39-4 Appellate procedure; grounds; burden of proof
Sec. 4. (a) A person who filed a written remonstrance with the
fiscal body under section 3 of this chapter and is aggrieved by the
final action taken, may, within ten (10) days after that final action,
file in the office of the clerk of the circuit or superior court of the
county in which the action is taken a copy of the ordinance of the
fiscal body and the person's remonstrance against that ordinance,
together with the person's bond as provided by IC 34-13-5-7, if the
appeal is determined against the person. The only ground of
remonstrance that the court may hear is whether the proposed
economic development district designation will be of public utility
and benefit. The burden of proof is on the remonstrator.
(b) An appeal under this section shall be promptly heard by the
court without a jury. All remonstrances upon which an appeal has
been taken shall be consolidated and heard and determined within
thirty (30) days after the time of the filing of the appeal. The court
shall decide the appeal based on the record and evidence before the
fiscal body, not by trial de novo, and may confirm the final action of
the fiscal body or sustain the remonstrances. The judgment of the
court is final and conclusive, unless an appeal is taken as in other
civil actions. As added by P.L.19-1985, SEC.5. Amended by P.L.1-1998, SEC.77.
IC 6-1.1-39-5 Allocation and distribution of property taxes; assessed value of
taxable property; rules; forms
Sec. 5. (a) A declaratory ordinance adopted under section 2 of this
chapter and confirmed under section 3 of this chapter must include
a provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section.
The allocation provision must apply to the entire economic
development district. The allocation provisions must require that any
property taxes subsequently levied by or for the benefit of any public
body entitled to a distribution of property taxes on taxable property
in the economic development district be allocated and distributed as
follows:
(1) Except as otherwise provided in this section, the proceeds
of the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment
date with respect to which the allocation and distribution is
made; or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units. However, if the effective date of the
allocation provision of a declaratory ordinance is after March
1, 1985, and before January 1, 1986, and if an improvement to
property was partially completed on March 1, 1985, the unit
may provide in the declaratory ordinance that the taxes
attributable to the assessed value of the property as finally
determined for March 1, 1984, shall be allocated to and, when
collected, paid into the funds of the respective taxing units.
(2) Except as otherwise provided in this section, part or all of
the property tax proceeds in excess of those described in
subdivision (1), as specified in the declaratory ordinance, shall
be allocated to the unit for the economic development district
and, when collected, paid into a special fund established by the
unit for that economic development district that may be used
only to pay the principal of and interest on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district. The amount not paid into
the special fund shall be paid to the respective units in the
manner prescribed by subdivision (1).
(3) When the money in the fund is sufficient to pay all
outstanding principal of and interest (to the earliest date on
which the obligations can be redeemed) on obligations owed by
the unit under IC 4-4-8 (before its repeal) or IC 5-28-9 for the
financing of industrial development programs in, or serving,
that economic development district, money in the special fund
in excess of that amount shall be paid to the respective taxing
units in the manner prescribed by subdivision (1).
(b) Property tax proceeds allocable to the economic development
district under subsection (a)(2) must, subject to subsection (a)(3), be
irrevocably pledged by the unit for payment as set forth in subsection
(a)(2).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in
the economic development district that is annexed by any taxing unit
after the effective date of the allocation provision of the declaratory
ordinance is the lesser of:
(1) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Notwithstanding any other law, each assessor shall, upon
petition of the fiscal body, reassess the taxable property situated
upon or in, or added to, the economic development district effective
on the next assessment date after the petition.
(e) Notwithstanding any other law, the assessed value of all
taxable property in the economic development district, for purposes
of tax limitation, property tax replacement, and formulation of the
budget, tax rate, and tax levy for each political subdivision in which
the property is located, is the lesser of:
(1) the assessed value of the property as valued without regard
to this section; or
(2) the base assessed value.
(f) The state board of accounts and department of local
government finance shall make the rules and prescribe the forms and
procedures that they consider expedient for the implementation of
this chapter. After each general reassessment under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment on the property tax proceeds allocated to the district
under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall
adjust the base assessed value to neutralize any effect of the annual
adjustment on the property tax proceeds allocated to the district
under this section. However, the adjustments under this subsection
may not include the effect of property tax abatements under
IC 6-1.1-12.1.
(g) As used in this section, "property taxes" means:
(1) taxes imposed under this article on real property; and
(2) any part of the taxes imposed under this article on
depreciable personal property that the unit has by ordinance
allocated to the economic development district. However, the
ordinance may not limit the allocation to taxes on depreciable
personal property with any particular useful life or lives.
If a unit had, by ordinance adopted before May 8, 1987, allocated to
an economic development district property taxes imposed under
IC 6-1.1 on depreciable personal property that has a useful life in
excess of eight (8) years, the ordinance continues in effect until an
ordinance is adopted by the unit under subdivision (2).
(h) As used in this section, "base assessed value" means:
(1) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (f); plus
(2) to the extent that it is not included in subdivision (1), 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 after the
effective date of the allocation provision.
Subdivision (2) applies only to economic development districts
established after June 30, 1997, and to additional areas established
after June 30, 1997. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.16;
P.L.86-1987, SEC.5; P.L.255-1997(ss), SEC.6; P.L.90-2002,
SEC.272; P.L.4-2005, SEC.46; P.L.154-2006, SEC.56;
P.L.146-2008, SEC.296.
IC 6-1.1-39-6 Enlargement of districts
Sec. 6. An economic development district may be enlarged by the
fiscal body by following the same procedure for the creation of an
economic development district specified in this chapter. As added by P.L.19-1985, SEC.5. Amended by P.L.42-1992, SEC.7;
P.L.192-2002(ss), SEC.46; P.L.1-2004, SEC.48 and P.L.23-2004,
SEC.51; P.L.219-2007, SEC.83; P.L.146-2008, SEC.297.
IC 6-1.1-39-7 Allocation areas; declaration as part of district prohibited
Sec. 7. No area shall be declared part of an economic
development district if it has already been declared an allocation area
under IC 36-7-14 or IC 36-7-15.1. As added by P.L.19-1985, SEC.5.
IC 6-1.1-39-8 Expiration of district designation
Sec. 8. If no loans have been made to a unit under IC 4-4-8
(before its repeal) or IC 5-28-9 for the financing of industrial
development programs in an economic development district within
two (2) years from the date of the ordinance confirming the
establishment of that district, or if money in the special fund
established by the unit for that district is sufficient to pay all
principal of and interest on and the performance of all other
obligations by a unit on all loans made under IC 4-4-8 (before its
repeal) or IC 5-28-9 for the financing of industrial development
programs in, or serving, an economic development district, then the
economic development district designation expires. As added by P.L.19-1985, SEC.5. Amended by P.L.24-1987, SEC.17;
P.L.19-1988, SEC.6; P.L.4-2005, SEC.47.
IC 6-1.1-39-9 Industrial development program obligations; ordinance; proceeds
of obligation
Sec. 9. (a) The fiscal body of a unit may by ordinance authorize
the issuance of obligations to the department of commerce under
IC 4-4-8 (before its repeal) or to the Indiana economic development
corporation under IC 5-28-9 payable solely from taxes allocated
under section 5 of this chapter. Any obligations issued and payable
from taxes allocated under section 5 of this chapter are not general
obligations of the unit that established the economic development
district under this chapter.
(b) The economic development district created by a unit under
this chapter is a special taxing district authorized by the general
assembly to enable the unit to provide special benefits to taxpayers
in the economic development district by providing local public
improvements that are of public use and benefit.
(c) The ordinance of a unit authorizing the issuance of obligations
must contain a finding of the fiscal body that the proposed industrial
development program:
(1) constitutes a local public improvement;
(2) provides special benefits to property owners in the district;
and
(3) will be of public use and benefit.
(d) Proceeds of obligations issued under this section, IC 4-4-8
(before its repeal), and IC 5-28-9 may be used to pay for the
following:
(1) The cost of local public improvements.
(2) Interest on the obligations for the period of construction of
the local public improvements plus one (1) year after
completion of construction.
(3) Reasonable debt service reserves.
(4) Costs of issuance of the obligations.
(5) Any other reasonable and necessary expenses related to
issuance of the obligations. As added by P.L.19-1988, SEC.7. Amended by P.L.4-2005, SEC.48;
P.L.146-2008, SEC.298.
