§ 36-7-15.1-17.1 — Lease of property to commission; conditions

Indiana § 36-7-15.1-17.1

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7: PLANNING AND DEVELOPMENT
• Ch. 15.1: Redevelopment of Areas in Marion County Needing

Text

1. (a) A commission may enter into a
lease of any property that may 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; or
(2) twenty-five (25) years, for a lease entered into after June 30,
2008.
The lease may provide for payments to be made by the commission
from special benefits taxes levied under section 19 of this chapter,
taxes allocated under section 26 of this chapter, any other revenue
available to the commission, or any combination of these sources.
(b) A lease may provide that payments by the 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 commission only after a
public hearing by the commission at which all interested parties are
given the opportunity to be heard. Notice of the hearing must be given
by publication in accordance with IC 5-3-1. After the public hearing,
the 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 commission must be approved by an ordinance of
the fiscal body of the unit.
(d) Upon execution of a lease providing for payments by the
commission in whole or in part from the levy of special benefits taxes
under section 19 of this chapter and upon approval of the lease by the
fiscal body, the 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 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. 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 and place for the hearing in the redevelopment district, which
must be not less than five (5) or more than thirty (30) days after the
time for the hearing is fixed. Notice of the hearing shall be given by the
department of local government finance to the members of the fiscal
body, to the 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.
(e) A commission entering into a lease payable from allocated taxes
under section 26 of this chapter or revenues or other available funds of
the 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.
Lease rentals may be limited to money in the special fund so that the
obligations of the commission to make the lease rental payments are
not considered a debt of the unit or the district for purposes of the
Constitution of the State of Indiana.
(f) Except as provided in this section, no approvals of any
governmental body or agency are required before the commission
enters into a lease under this section.
(g) 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 to enjoin
performance must be brought within thirty (30) days after the decision
of the department.
(h) If a commission exercises an option to buy a leased facility from
a lessor, the 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 commission through auction, appraisal, or
arms length negotiation. If the facility is sold at auction, after appraisal,
or through negotiation, the 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 after the
hearing.

Legislative History

As added by P.L.84-1987, SEC.9. Amended by P.L.90-2002, SEC.478; P.L.146-2008, SEC.752.