§ 5-1.2-5-11 — Use and occupancy agreements; negotiation; terms

Indiana § 5-1.2-5-11

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 1.2: INDIANA FINANCE AUTHORITY
• Ch. 5: State Facility Financing

Text

(a) Before or after the award of construction
contracts, or the arranging of financing, the authority and the
department of administration may negotiate a use and occupancy
agreement. The budget agency, after consulting with the budget
committee, must approve any use and occupancy agreement before the
department of administration may execute the agreement. The use and
occupancy agreement:
(1) must set forth the terms and conditions of the use and
occupancy;
(2) must set forth the amounts agreed to be paid at stated intervals
for the use and occupancy;
(3) must provide that the department of administration is not
obligated to continue to pay for the use and occupancy but is
instead required to vacate the state facility if it is shown that the
terms and conditions of the use and occupancy and the amount to
be paid for the use and occupancy are unjust and unreasonable
considering the value of the services and facilities being provided;
(4) must provide that the department of administration is required
to vacate the state facility if funds have not been appropriated or
are not available to pay any sum agreed to be paid for use and
occupancy when due;
(5) may provide for costs such as maintenance, operations, taxes,
and insurance to be paid by the department of administration;
(6) may contain an option to renew the agreement;
(7) may contain an option to purchase the state facility for an
amount equal to the amount required to pay the principal of and
interest on indebtedness of the authority incurred on account of
the state facility and expenses of the authority attributable to the
state facility;
(8) may not provide for payment of sums for use and occupancy
until the construction of the state facility has been completed and
the state facility is available for use and occupancy by the
department of administration; and
(9) may contain any other provisions agreeable to the authority
and the department of administration.
(b) In determining just and reasonable amounts to be paid for the
use and occupancy of the state facility under subsection (a)(3), the
authority shall impose and collect amounts that in the aggregate will be
sufficient to:
(1) pay the expenses of operation, maintenance, and repair of the
state facility, to the extent that the expenses are not otherwise
provided; and
(2) leave a balance of revenues from the state facility to pay the
principal of and interest (including any reserve or sinking funds)
on bonds or loans as they become due and retire them at or before
maturity.
(c) The department of administration may negotiate and execute a
use and occupancy agreement for all or any state agencies or branches
of state government.

Legislative History

As added by P.L.189-2018, SEC.25.