§ 36-9-11.1-13 — Sale or lease of space and air rights; treatment of proceeds

Indiana § 36-9-11.1-13

• Jurisdiction: Indiana
• Title 36: LOCAL GOVERNMENT
• Art. 9: TRANSPORTATION AND PUBLIC WORKS
• Ch. 11.1: Parking Facilities in Marion County

Text

(a) Space and air rights over a parking
facility may be sold or leased to others for a lease period, including
options and renewals, not to exceed ninety-nine (99) years, subject to
the following:
(1) Any sale or lease must comply with IC 36-1-11.
(2) The deed or lease must specify the initial purpose for which
the leased space may be used. If the purpose is to erect in the
space a building or other structure attached to the land
constituting the site of the parking facility, the deed or lease must
require approval by the board of the plans and specifications for
any building or structure to be erected and of the manner in which
it shall be imposed upon or around the land. In such a case, the
deed or lease must provide for use by the purchaser or the lessee
of those areas of the surface of the site that are essential for the
support of the building or other structure to be erected, as well as
for the connection of essential public or private utilities to the
building or structure and ingress and egress to and from the
building or structure. The costs of common facilities, utilities,
ingress, egress, and supports may be apportioned between the
parking facilities and the buildings or structures. The deed or
lease must provide that if the construction of the initial building
or structure is not completed within five (5) years after the date of
execution of the deed or lease, the lease is cancellable at the
option of the consolidated city, or in the case of sale, the property
reverts at the option of the city.
(3) Any building or structure erected in the space sold or leased
shall be financed, operated, maintained, and repaired by the lessee
or purchaser or assignees or successors in interest separate from
the parking facility financed, operated, maintained and repaired
by the city, and the city may not have any obligation or liability to
the purchaser, assignees, successors in interest, or lessees or
creditors of those parties other than to provide the air space so
leased or purchased and to permit the use of the site for the
necessary supports for the building or structure erected in the
leased space, ingress and egress for the building or structure, and
the construction of essential public or private utilities.
(4) The deed or lease must require the lessee to carry sufficient
public liability and property damage insurance to indemnify the
city and protect it from all loss and damage from the hazards and
perils normally insured against by insurance arising out of the
existence and operation of any building or other structure in the
leased or sold space.
(5) Any building or other structure erected above the parking
facility is subject to taxes levied on private property unless the
building or structure is acquired by the city and wholly used for
governmental purposes.
(b) The lease rental or sale price received by the city shall be
considered to be revenues of the parking facility or facilities and shall
be deposited, handled, and disbursed in the same manner as other
revenues of the parking facility or facilities. However, if considering
the lease rental or sale price as revenue would result in the revenue
bonds constituting industrial development bonds under the Internal
Revenue Code as it existed on January 1, 1986, and any applicable
regulations under that Code, then the lease rental shall be deposited in
the general fund of the city and disbursed in the same manner as other
money in the general fund.
As added by Acts 1982, P.L.77, SEC.13. Amended by
P.L.2-1987, SEC.52.