§ 36-7-15.1-45 — Issuance and sale of bonds by commission

Indiana § 36-7-15.1-45

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

Text

(a) In addition to other methods of raising
money for property acquisition or redevelopment in a redevelopment
project area, and in anticipation of the special tax to be levied under
section 50 of this chapter, the taxes allocated under section 53 of this
chapter, or other revenues of the redevelopment district, a commission
may, by resolution, issue the bonds of its redevelopment district in the
name of the excluded city. The amount of the bonds may not exceed
the total, as estimated by the commission, of all expenses reasonably
incurred in connection with the acquisition and redevelopment of the
property, including:
(1) the total cost of all land, rights-of-way, and other property to
be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering, legal,
financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and redevelopment
of the property or the issuance of bonds;
(3) capitalized interest permitted in this chapter and a debt service
reserve for the bonds, to the extent that the redevelopment
commission determines that a reserve is reasonably required;
(4) the total cost of all clearing and construction work provided
for in the resolution; and
(5) expenses that the commission is required or permitted to pay
under IC 8-23-17.
(b) If a commission plans to acquire different parcels of land or let
different contracts for redevelopment work at approximately the same
time, whether under one (1) or more resolutions, a commission may
provide for the total cost in one (1) issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution and
negotiable subject to the requirements concerning registration of the
bonds. The resolution authorizing the bonds must state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008; or
(B) twenty-five (25) years, for bonds issued after June 30, 2008.
The resolution may also state that the bonds are redeemable before
maturity with or without a premium, as determined by the commission.
(d) The commission shall certify a copy of the resolution authorizing
the bonds to the fiscal officer of the excluded city, 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.
(e) The bonds shall be executed by the excluded city executive and
attested by the excluded city fiscal officer. The interest coupons, if any,
shall be executed by the facsimile signature of the excluded city fiscal
officer.
(f) The bonds are exempt from taxation as provided by IC 6-8-5.
(g) The excluded city fiscal officer shall sell the bonds according to
law. Bonds payable solely or in part from tax proceeds allocated under
section 53(b)(3) of this chapter or other revenues of the district may be
sold at private negotiated sale and at a price or prices not less than
ninety-seven percent (97%) of the par value.
(h) The bonds are not a corporate obligation of the excluded city but
are an indebtedness of the redevelopment district. The bonds and
interest are payable:
(1) from a special tax levied upon all of the property in the
redevelopment district, as provided by section 50 of this chapter;
(2) from the tax proceeds allocated under section 53(b)(3) of this
chapter;
(3) from other revenues available to the commission; or
(4) from a combination of the methods described in subdivisions
(1) through (3);
and from any revenues of the designated project. If the bonds are
payable solely from the tax proceeds allocated under section 53(b)(3)
of this chapter, other revenues of the redevelopment commission, or
any combination of these sources, they may be issued in any amount
without limitation.
(i) Proceeds from the sale of the 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 issue.
(j) The laws relating to the filing of petitions requesting the issuance
of bonds and the right of taxpayers and voters to remonstrate against,
or vote on, the issuance of bonds applicable to bonds issued under this
chapter do not apply to bonds payable solely or in part from tax
proceeds allocated under section 53(b)(3) of this chapter, other
revenues of the commission, or any combination of these sources.
(k) If bonds are issued under this chapter that are payable solely or
in part from revenues to a commission from a project or projects, a
commission 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 but may not convey or mortgage any project or
parts of a project. 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 commission.
The commission may establish fees and charges for the use of any
project and covenant with the owners of 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 commission that are payable
solely from revenues of the commission must contain a statement to
that effect in the form of bond.

Legislative History

As added by P.L.102-1999, SEC.12. Amended by P.L.185-2005, SEC.45; P.L.219-2007, SEC.132; P.L.146-2008, SEC.762; P.L.203-2011, SEC.16.