§ 36-7-30.5-24 — Lease of property

Indiana § 36-7-30.5-24

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 7: PLANNING AND DEVELOPMENT
• Ch. 30.5: Development of Multicounty Federal Military Bases

Text

(a) A development 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 of not more
than fifty (50) years. The lease may provide for payments to be made
by the development authority from taxes allocated under section 30 of
this chapter, any other revenues available to the development authority,
or any combination of these sources.
(b) A lease may provide that payments by the development 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 development authority only
after a public hearing by the development authority at which all
interested parties are provided the opportunity to be heard. After the
public hearing, the development authority may adopt a resolution
authorizing the execution of the lease on behalf of the unit if the
development 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 development authority must be approved by the fiscal body of the
appropriate unit.
(d) A development authority entering into a lease payable from
allocated taxes under section 30 of this chapter or other available funds
of the development 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 development authority to make the lease
rental payments are not considered a debt of a 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 development
authority may enter into a lease under this section.
(g) If a development authority exercises an option to buy a leased
facility from a lessor, the development 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 development
authority through auction, appraisal, or negotiation. If the facility is
sold at auction, after appraisal or through negotiation, the development
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 development 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.203-2005, SEC.11.