§ 5-1-17-13 — Lease; findings; term; conditions

Indiana § 5-1-17-13

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 17: Indiana Stadium and Convention Building Authority

Text

(a) Before a lease may be entered into by a
capital improvement board under this chapter, the capital improvement
board must find that the lease rental provided for is fair and reasonable.
(b) A lease or sublease of land or capital improvements from the
authority, or from a state agency under section 26 of this chapter, to a
capital improvement board:
(1) may not have a term exceeding forty (40) years;
(2) may not require payment of lease rentals for a newly
constructed capital improvement or for improvements to an
existing capital improvement until the capital improvement or
improvements thereto have been completed and are ready for
occupancy;
(3) may contain provisions:
(A) allowing the capital improvement board to continue to
operate an existing capital improvement until completion of the
improvements, reconstruction, or renovation of that capital
improvement or any other capital improvement; and
(B) requiring payment of lease rentals for land, for an existing
capital improvement being used, reconstructed, or renovated,
or for any other existing capital improvement;
(4) may contain an option to renew the lease for the same or
shorter term on the conditions provided in the lease;
(5) must contain an option for the capital improvement board to
purchase the capital improvement upon the terms stated in the
lease:
(A) during the term of the lease for a price equal to the amount
required to pay all indebtedness incurred on account of the
capital improvement, including indebtedness incurred for the
refunding of that indebtedness; or
(B) for one dollar ($1) after the term of the lease, if all
indebtedness incurred on account of the capital improvement,
including indebtedness incurred for the refunding of that
indebtedness, is no longer outstanding;
(6) may be entered into before acquisition or construction of a
capital improvement;
(7) may provide that the capital improvement board shall agree to:
(A) pay all taxes and assessments thereon;
(B) maintain insurance thereon for the benefit of the authority;
(C) assume responsibility for utilities, repairs, alterations, and
any costs of operation; and
(D) pay a deposit or series of deposits to the authority from any
funds legally available to the capital improvement board before
the commencement of the lease to secure the performance of
the capital improvement board's obligations under the lease;
(8) subject to IC 36-10-8-13 and IC 36-10-9-11, may provide that
the lease rental payments by the capital improvement board shall
be made from:
(A) proceeds of one (1) or more of the excise taxes as defined
in IC 36-10-8 or IC 36-10-9;
(B) proceeds of the county supplemental auto rental excise tax
imposed under IC 6-6-9.7;
(C) that part of the proceeds of the county food and beverage
tax imposed under IC 6-9-35, which the capital improvement
board or its designee receives pursuant thereto;
(D) revenue captured under IC 36-7-31;
(E) net revenues of the capital improvement;
(F) any other funds available to the capital improvement board;
or
(G) any combination of the sources described in clauses (A)
through (F);
(9) subject to subdivision (10), must provide that the capital
improvement board is solely responsible for the operation and
maintenance of the capital improvement upon completion of
construction, including the negotiation and maintenance of
agreements with tenants or users of the capital improvement;
(10) must provide that, during the term of the lease, the authority
retains the right to approve any lease agreements and amendments
to any lease agreements between the capital improvement board
and any National Football League franchised professional football
team that will use the capital improvement;
(11) must provide that:
(A) subject to the terms of the lease, the capital improvement
board will retain all revenues from operation of the capital
improvement; and
(B) the authority has no responsibility to fund the ongoing
maintenance and operations of the capital improvement; and
(12) with respect to a capital improvement that is subject to the
county admissions tax imposed by IC 6-9-13, must provide that
upon request of the authority the capital improvement board will
impose a fee:
(A) not to exceed three dollars ($3), as determined by the
authority, for each admission to a professional sporting event
described in IC 6-9-13-1; and
(B) not to exceed one dollar ($1), as determined by the
authority, for each admission to any other event described in IC 6-9-13-1;
and, so long as there are any current or future obligations owed by
the capital improvement board to the authority or any state agency
pursuant to a lease or other agreement entered into between the
capital improvement board and the authority or any state agency
under section 26 of this chapter, the capital improvement board
or its designee shall deposit the revenues received from the fee
imposed under this subdivision in a special fund, which may be
used only for the payment of the obligations described in this
subdivision.
(c) A capital improvement board may designate the authority as its
agent to receive on behalf of the capital improvement board any of the
revenues identified in subsection (b)(8).
(d) All information prepared by the capital improvement board or
a political subdivision served by the capital improvement board with
respect to a capital improvement proposed to be financed under this
chapter, including a construction budget and timeline, must be
provided to the budget director. Any information described in this
subsection that was prepared before May 15, 2005, must be provided
to the budget director not later than May 15, 2005.

Legislative History

As added by P.L.214-2005, SEC.6.