§ 5-1-17.5-37 — Issuance of bonds; terms and conditions; use of bond proceeds

Indiana § 5-1-17.5-37

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1: BONDS AND OTHER OBLIGATIONS
• Ch. 17.5: Motorsports Investment District

Text

(a) Subject to subsection (f), the authority
may issue bonds for the purpose of obtaining money to pay the cost of
improving, constructing, reconstructing, renovating, acquiring, or
equipping improvements within a qualified motorsports facility.
(b) The terms and form of the bonds must be set out either in the
resolution or in a form of trust indenture approved by the resolution.
(c) The bonds must mature within twenty (20) years.
(d) The authority shall sell the bonds at public or private sale upon
the terms determined by the authority.
(e) All money received from any bonds issued under this chapter
shall be applied to the payment of the cost of improving, constructing,
reconstructing, renovating, acquiring, or equipping improvements
within a qualified motorsports facility, or payment of the cost of
refunding or refinancing outstanding bonds for which the bonds are
issued. The cost may include:
(1) planning and development of the improvement and all
buildings, facilities, structures, and improvements related to the
improvement;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the capital improvement suitable
for use and operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) bond insurance, debt service reserve insurance, letters of
credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums (if any) for, and interest on the
bonds being refunded or refinanced.
(f) The authority may not issue bonds under this chapter unless:
(1) the owner or owners of the qualified motorsports facility, the
authority, and the commission have entered into a written
agreement concerning the terms of the financing of the
improvements financed under this chapter, including the
obligation of the owner or owners of the qualified motorsports
facility to make payments in an amount equal to at least two
million dollars ($2,000,000) in each state fiscal year to the
commission for deposit in the motorsports facility fund during the
term of the agreement;
(2) in connection with the issuance of such bonds, the authority
has leased the equipment, structures, and capital improvements
being financed with the proceeds of the bonds to the commission
under a lease under section 32 of this chapter, and the
commission has entered into a sublease of such equipment,
structures, and capital improvements with the owner or owners of
the qualified motorsports facility. Such a sublease must include
the terms described in sections 34(c) and 36(c) of this chapter;
and
(3) as part of the written agreement concerning the terms of the
financing of the improvements, the ultimate parent company of
the qualified motorsports facility:
(A) guarantees the full and timely performance of all of the
duties, responsibilities, and obligations of the qualified
motorsports facility and the owner or owners of the qualified
motorsports facility; and
(B) guarantees that if:
(i) the aggregate amount credited to the owner or owners of
the qualified motorsports facility under IC 4-10-23-12 from
income tax incremental amounts, gross retail incremental
amounts, and admissions fees deposited in the state general
fund under IC 6-8-14 during the thirty (30) years after the
date of the adoption of the resolution establishing the
motorsports improvement district; plus
(ii) the amounts deposited in the motorsports facility fund
established under section 30.5 of this chapter;
is less than the aggregate of the amount of money appropriated to
the commission and used to pay rent by the commission to the
authority under any lease entered into between the authority and
the commission under this chapter and any expenses that are
incurred by the authority or the commission under this chapter
and are not paid out of such rent, then the ultimate parent
company will pay the difference to the commission.
(g) Each bond issued under this chapter must contain on its face a
statement that neither the faith and credit nor the taxing power of the
state is pledged to the payment of the principal of or the interest on the
bond.
(h) In connection with the issuance of each series of bonds under
this section, the authority (or its successor agency) and the public
finance director shall be responsible for selecting all investment
bankers, bond counsel, trustees, and financial advisors.

Legislative History

As added by P.L.233-2013, SEC.5. Amended by P.L.190-2014, SEC.9.