§ 36-7-30-19 — Lease of property

(a) A reuse authority 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 fifty
(50) years and the lease may provide for payments to be made by the
reuse authority from taxes allocated under section 25 of this chapter,
any other revenues available to the reuse authority, or any combination
of these sources.
(b) A lease may provide that payments by the reuse authority 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 reuse authority only after a
public hearing by the reuse authority at which all interested parties are
provided the opportunity to be heard. After the public hearing, the
reuse authority may adopt a resolution authorizing the execution of the
lease on behalf of the unit if the reuse authority 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 reuse authority must be approved by the
fiscal body of the unit.
(d) A reuse authority entering into a lease payable from allocated
taxes under section 25 of this chapter or other available funds of the
reuse authority may do the following:
(1) Pledge the revenue to make payments under the lease under
IC 5-1-14-4.
(2) Establish a special fund to make the payments.
(e) Lease payments may be limited to money in the special fund so
that the obligations of the reuse authority 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, approvals of any
governmental body or agency are not required before the reuse
authority may enter into a lease under this section.
(g) If a reuse authority exercises an option to buy a leased facility
from a lessor, the reuse authority 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 reuse authority through
auction, appraisal, or negotiation. If the facility is sold at auction, after
appraisal or through negotiation, the reuse authority 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 not more than fifteen
(15) days after the hearing.
(h) Notwithstanding this section, a reuse authority may negotiate
and enter into leases of property from the United States or any
department or agency of the United States without complying with the
requirements of this section.

Legislative History

As added by P.L.26-1995, SEC.14.