§ 36-9-4-7 — Purchase of property from system by municipality; contracts and leases; appraisals

(a) If the municipal legislative body decides to
purchase buses or real property, or both, from the urban mass
transportation system under section 5 of this chapter, it must enter into
and confirm by ordinance a contract and lease requiring the
municipality to:
(1) purchase all or part of:
(A) the buses operated by the system; or
(B) the real property owned by the system; as determined by the
parties; and
(2) lease the buses or property purchased to the system for use in
providing mass transportation within the municipality.
(b) The municipality must pay the system a sum equal to the fair
value of the buses or real property purchased, less the amount
outstanding under any mortgage, contract of sale, or other security
device that may attach to the buses or real property. The municipality
may immediately pay off any such outstanding amount or assume any
such mortgage, contract of sale, or other security device.
(c) The fair value of the buses or real property shall be determined
by three (3) appraisers experienced in the appraisal of buses or real
property. One (1) of the appraisers shall be appointed by the
municipality and one (1) by the system. These two (2) appraisers shall
then appoint a third appraiser. However, if they are unable to do so,
each shall submit the names of three (3) appraisers to the circuit court
for the county in which the municipality is located and the court shall
appoint the third appraiser from the names submitted.
(d) If the municipal legislative body decides to purchase both buses
and real property for lease to an urban mass transportation system,
three (3) appraisers shall be appointed to determine the fair value of the
buses and an additional three (3) appraisers shall be appointed to
determine the fair value of the real property. Each group of three (3)
appraisers shall be appointed in the manner prescribed by subsection
(c).
(e) Before making their appraisal, the appraisers must appear before
the clerk of the legislative body and take an oath to make a just and true
appraisal of the buses or real property.
(f) A lease of buses or real property by a municipality to a system
under this section must incorporate provisions for rental and other
terms and provisions that the municipal legislative body considers
necessary under this chapter. The municipality and the system may
enter into additional contracts and leases during the term of the lease.
The term of a lease of buses under this section may not exceed
twenty-five (25) years.
[Pre-Local Government Recodification Citation: 19-5-2-7
part.]
As added by Acts 1981, P.L.309, SEC.77. Amended by Acts
1981, P.L.317, SEC.1.