(a)BOT agreements may provide the following:
(1)The design, construction, operation, management,
maintenance, or financing of the cost of a public facility shall be
partially or entirely the responsibility of the operator.
(2)The governmental body may lease the public facility and real
property owned by the governmental body upon which the public
facility is to be located to the operator for a predetermined period.
Except as provided in subdivision (7), the BOT agreement must
provide for ownership of all improvements by the governmental
body, unless the governmental body elects to provide for
ownership of the public facility by the operator during the term of
the BOT agreement. In this case, ownership reverts back to the
governmental body upon the termination of the BOT agreement.
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(a) BOT agreements may provide the following:
(1) The design, construction, operation, management,
maintenance, or financing of the cost of a public facility shall be
partially or entirely the responsibility of the operator.
(2) The governmental body may lease the public facility and real
property owned by the governmental body upon which the public
facility is to be located to the operator for a predetermined period.
Except as provided in subdivision (7), the BOT agreement must
provide for ownership of all improvements by the governmental
body, unless the governmental body elects to provide for
ownership of the public facility by the operator during the term of
the BOT agreement. In this case, ownership reverts back to the
governmental body upon the termination of the BOT agreement.
(3) The BOT agreement must identify which costs are to be the
responsibility of the operator and which costs are to be the
responsibility of the governmental body.
(4) The operator may be authorized to retain a mutually agreed
upon percentage of the revenues received in the operation and
management of the public facility, or the operator may be paid an
amount established by the governmental body, which shall be
applied as follows:
(A) Capital outlay costs for the public facility and public
service plus interest and principal repayment for any debt
incurred.
(B) Costs associated with the operation, management, and
maintenance of the public facility.
(C) Payment to the governmental body for reimbursement of
the costs of maintenance, law enforcement, and other services
if the services are performed by the governmental body under
the BOT agreement.
(D) An agreed upon return on investment to the operator.
(5) The operator may pay the governmental body either a lease
payment or a percentage of gross revenue per month for the
operator's operation and use of the public facility.
(6) This subdivision applies only to a BOT agreement entered into
before July 1, 2019. The BOT agreement may require a
performance bond and provide for the payment of contractors and
subcontractors under IC 4-13.6-7, IC 5-16-5, or IC 36-1-12,
whichever is applicable.
(7) If a regional jail (as defined in IC 11-12-5.5-1) is the subject
of a BOT agreement under this chapter, the operator and the
governmental body may mutually agree that ownership of the
regional jail will remain with the operator during the term of the
BOT agreement and after termination of the BOT agreement. The
governmental body shall pay costs associated with the design,
construction, financing, operation, management, and maintenance
of the regional jail from funds identified under IC 11-12-5.5-3.
(8) This subdivision applies only to a BOT agreement entered into
after June 30, 2019. The BOT agreement must provide for the
following:
(A) The payment of contractors and subcontractors under IC 4-13.6-7, IC 5-16-5, or IC 36-1-12, whichever is applicable.
(B) The bonding provisions stated in subsection (b).
(9) The BOT agreement may provide for the transfer of the public
facility to the governmental body by means of a lease or an
installment contract. The lease payments or installment payments
may be made from any source legally available to the
governmental body for such purpose. Lease payments or
installment payments payable from property taxes pursuant to a
BOT agreement constitute "debt service obligations of a political
subdivision" for purposes of IC 6-1.1-20.6.
(b) The BOT agreement provisions for payment and performance
bonds under subsection (a)(8) are as follows:
(1) For a payment bond, an amount not less than one hundred
percent (100%) of the cost to design and construct the public
facility.
(2) For a performance bond, an amount not less than fifty percent
(50%) of the cost to design and construct the public facility.