2.
(a)Subject to the prior approval of the
fiscal body of the unit under subsection (c), a redevelopment
commission may enter into a lease of any property that could be
financed with the proceeds of bonds issued under this chapter with a
lessor for a term not to exceed:
(1)fifty (50) years, for a lease entered into before July 1, 2008;
(2)thirty-five (35) years, for leases entered into after June 30,
2019, to finance a project that is located in a redevelopment
project area, an economic development area, or an urban renewal
project area and that includes, as part of the project, the use and
repurposing of two (2) or more buildings and structures that are:
(A)at least seventy-five (75) years old; and
(B)located at a site at which manufacturing previously
occurred over a period of at le
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2. (a) Subject to the prior approval of the
fiscal body of the unit under subsection (c), a redevelopment
commission may enter into a lease of any property that could be
financed with the proceeds of bonds issued under this chapter with a
lessor for a term not to exceed:
(1) fifty (50) years, for a lease entered into before July 1, 2008;
(2) thirty-five (35) years, for leases entered into after June 30,
2019, to finance a project that is located in a redevelopment
project area, an economic development area, or an urban renewal
project area and that includes, as part of the project, the use and
repurposing of two (2) or more buildings and structures that are:
(A) at least seventy-five (75) years old; and
(B) located at a site at which manufacturing previously
occurred over a period of at least seventy-five (75) years; or
(3) twenty-five (25) years, for a lease that is not described in
subdivision (1) or (2), or a lease entered into by the commission
of a qualified city for the purpose of financing a mixed use
development project.
The lease may provide for payments to be made by the redevelopment
commission from special benefits taxes levied under section 27 of this
chapter, taxes allocated under section 39 of this chapter, any other
revenues available to the redevelopment commission, or any
combination of these sources.
(b) A lease may provide that payments by the redevelopment
commission to the lessor are required only to the extent and only for the
period that the lessor is able to provide the leased facilities in
accordance with the lease. The terms of each lease must be based upon
the value of the facilities leased and may not create a debt of the unit
or the district for purposes of the Constitution of the State of Indiana.
(c) A lease may be entered into by the redevelopment commission
only after a public hearing by the redevelopment commission at which
all interested parties are provided the opportunity to be heard. After the
public hearing, the redevelopment commission may adopt a resolution
authorizing the execution of the lease on behalf of the unit if it finds
that the service to be provided throughout the term of the lease will
serve the public purpose of the unit and is in the best interests of its
residents. Any lease approved by a resolution of the redevelopment
commission must also be approved by an ordinance or resolution of the
fiscal body of the unit. The approving ordinance or resolution of the
fiscal body must include the following:
(1) The maximum annual lease rental for the lease.
(2) The maximum interest rate or rates, any provisions for
redemption before maturity, and any provisions for the payment
of capitalized interest associated with the lease.
(3) The maximum term of the lease.
(d) Upon execution of a lease providing for payments by the
redevelopment commission in whole or in part from the levy of special
benefits taxes under section 27 of this chapter and upon approval of the
lease by the unit's fiscal body, the redevelopment commission shall
publish notice of the execution of the lease and its approval in
accordance with IC 5-3-1. Fifty (50) or more taxpayers residing in the
redevelopment district who will be affected by the lease and who may
be of the opinion that no necessity exists for the execution of the lease
or that the payments provided for in the lease are not fair and
reasonable may file a petition in the office of the county auditor within
thirty (30) days after the publication of the notice of execution and
approval. The petition must set forth the petitioners' names, addresses,
and objections to the lease and the facts showing that the execution of
the lease is unnecessary or unwise or that the payments provided for in
the lease are not fair and reasonable, as the case may be.
(e) Upon the filing of the petition, the county auditor shall
immediately certify a copy of it, together with such other data as may
be necessary in order to present the questions involved, to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time for a hearing, which must be not less than five (5) or
more than thirty (30) days after the time is fixed. The department of
local government finance may either hold the hearing in the affected
county or through electronic means. Notice of the hearing shall be
given by the department of local government finance to the members
of the fiscal body, to the redevelopment commission, and to the first
fifty (50) petitioners on the petition by a letter signed by the
commissioner or deputy commissioner of the department and enclosed
with fully prepaid postage sent to those persons at their usual place of
residence, at least five (5) days before the date of the hearing. The
decision of the department of local government finance on the appeal
upon the necessity for the execution of the lease, and as to whether the
payments under it are fair and reasonable, is final.
(f) A redevelopment commission entering into a lease payable from
allocated taxes under section 39 of this chapter or other available funds
of the redevelopment commission may:
(1) pledge the revenue to make payments under the lease pursuant
to IC 5-1-14-4; and
(2) establish a special fund to make the payments.
(g) Lease rentals may be limited to money in the special fund so that
the obligations of the redevelopment commission to make the lease
rental payments are not considered debt of the unit or the district for
purposes of the Constitution of the State of Indiana.
(h) Except as provided in this section, no approvals of any
governmental body or agency are required before the redevelopment
commission enters into a lease under this section.
(i) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought within
thirty (30) days after the publication of the notice of the execution and
approval of the lease. However, if the lease is payable in whole or in
part from tax levies and an appeal has been taken to the department of
local government finance, an action to contest the validity or enjoin the
performance must be brought within thirty (30) days after the decision
of the department.
(j) If a redevelopment commission exercises an option to buy a
leased facility from a lessor, the redevelopment commission may
subsequently sell the leased facility, without regard to any other statute,
to the lessor at the end of the lease term at a price set forth in the lease
or at fair market value established at the time of the sale by the
redevelopment commission through auction, appraisal, or arms length
negotiation. If the facility is sold at auction, after appraisal, or through
negotiation, the redevelopment commission shall conduct a hearing
after public notice in accordance with IC 5-3-1 before the sale. Any
action to contest the sale must be brought within fifteen (15) days of
the hearing.