§ 36-1-11-10 — Lease of property; procedure

(a) A disposing agent may lease property
rather than sell, transfer, or exchange it under this chapter only if the
disposing agent determines that a lease rather than a sale, transfer, or
exchange would be in the best interest of the disposing agent's political
subdivision or agency and the public. Except as provided in section 12
of this chapter, the disposing agent must proceed under this section in
leasing property.
(b) The disposing agent shall first have the property appraised in the
manner prescribed in section 4(b) of this chapter, except that the
appraisers shall determine the fair market rental value of the property.
(c) The disposing agent shall receive bids in the manner prescribed
in section 4 of this chapter and lease the property to the highest and
best bidder. The disposing agent may reject all bids. If the disposing
agent rejects all bids, the disposing agent must make a written
determination to reject all bids explaining why all bids were rejected.
(d) The disposing agent shall determine the terms and conditions of
any lease under this section, which may include options to renew and
options to purchase. The property may not be leased to a person who
is ineligible under section 16 of this chapter.
(e) The terms of a lease with option to purchase may provide that all
or part of the rental payments under the lease apply to the purchase
price. The purchase price must be equal to at least the minimum sale
price determined under section 4(f) of this chapter.
(f) Property owned by a political subdivision or agency may be
leased for a term longer than three (3) years if the lease is approved by
the fiscal body of the political subdivision.
(g) The disposing agent may lease the real property under this
section for a value that is less than ninety percent (90%) of the
appraised fair market rental value as determined by the average of the
two (2) appraisals under section 4(b) of this chapter only after
publishing an additional notice in accordance with IC 5-3-1, stating the
amount of the bid to be accepted. If the disposing agent rejects all bids,
the disposing agent must make a written determination to reject all bids
explaining why all bids were rejected.
[Pre-Local Government Recodification Citations:
17-1-14-11 part; 18-4-5-6 part.]
As added by Acts 1981, P.L.57, SEC.37. Amended by
P.L.339-1983, SEC.1; P.L.60-1988, SEC.31; P.L.188-2011,
SEC.5.