Bill Text: IN SB0289 | 2013 | Regular Session | Introduced
Bill Title: Sales tax increment financing areas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-08 - First reading: referred to Committee on Commerce and Economic Development & Technology [SB0289 Detail]
Download: Indiana-2013-SB0289-Introduced.html
Citations Affected: IC 6-2.5-4-5; IC 6-3-2-1.5; IC 6-3.1; IC 36-7-30.
Synopsis: Sales tax increment financing areas. Provides that a military
base reuse authority (reuse authority) may designate a sales tax
increment financing area (STIF area) if the reuse authority finds that
there are certain obstacles to redevelopment or development within the
proposed area. Requires the reuse authority to submit the resolution
designating the STIF area to the budget committee for review and
recommendation to the budget agency. Provides that the budget agency
must approve or disapprove the STIF area. Specifies that a STIF area
must terminate not later than 15 years after the initial designation of the
area is approved by the budget agency, but that a reuse authority may
extend the duration of the area for an additional period of not more than
15 years. Provides that the department of state revenue shall annually
calculate the incremental sales tax amounts within a STIF area, and that
the auditor of state shall annually distribute the incremental sales tax
amounts to the reuse authority. Provides that the amount necessary to
make the distribution is appropriated from the state general fund.
Specifies that a reuse authority may use incremental sales tax amounts
to pay costs related to infrastructure within the STIF area (including
debt service or lease payments on bonds or leases that are issued or
entered into to finance infrastructure or to lease infrastructure).
Effective: Upon passage.
January 8, 2013, read first time and referred to Committee on Commerce, Economic
Development & Technology.
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A BILL FOR AN ACT to amend the Indiana Code concerning
taxation and to make an appropriation.
(b) A power subsidiary or a person engaged as a public utility is a retail merchant making a retail transaction when the subsidiary or person furnishes or sells electrical energy, natural or artificial gas, water, steam, or steam heating service to a person for commercial or domestic consumption.
(c) Notwithstanding subsection (b), a power subsidiary or a person engaged as a public utility is not a retail merchant making a retail transaction in any of the following transactions:
(1) The power subsidiary or person provides, installs, constructs, services, or removes tangible personal property which is used in
connection with the furnishing of the services or commodities
listed in subsection (b).
(2) The power subsidiary or person sells the services or
commodities listed in subsection (b) to another public utility or
power subsidiary described in this section or a person described
in section 6 of this chapter.
(3) The power subsidiary or person sells the services or
commodities listed in subsection (b) to a person for use in
manufacturing, mining, production, processing (after December
31, 2012), repairing (after December 31, 2012), refining,
recycling (as defined in IC 6-2.5-5-45.8), oil extraction, mineral
extraction, irrigation, agriculture, floriculture (after December 31,
2012), arboriculture (after December 31, 2012), or horticulture.
However, this exclusion for sales of the services and commodities
only applies if the services are consumed as an essential and
integral part of an integrated process that produces tangible
personal property and those sales are separately metered for the
excepted uses listed in this subdivision, or if those sales are not
separately metered but are predominately used by the purchaser
for the excepted uses listed in this subdivision.
(4) The power subsidiary or person sells the services or
commodities listed in subsection (b) and all the following
conditions are satisfied:
(A) The services or commodities are sold to a business that
after June 30, 2004:
(i) relocates all or part of its operations to a facility; or
(ii) expands all or part of its operations in a facility;
located in a military base (as defined in IC 36-7-30-1(c)),
IC 36-7-30-1), a military base reuse area established under
IC 36-7-30, the part of an economic development area
established under IC 36-7-14.5-12.5 that is or formerly was a
military base (as defined in IC 36-7-30-1(c)), IC 36-7-30-1),
a military base recovery site designated under IC 6-3.1-11.5,
or a qualified military base enhancement area established
under IC 36-7-34.
(B) The business uses the services or commodities in the
facility described in clause (A) not later than five (5) years
after the operations that are relocated to the facility or
expanded in the facility commence.
(C) The sales of the services or commodities are separately
metered for use by the relocated or expanded operations.
(D) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(1), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business is a United States Department of Defense
contractor.
(iii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the United States Department of Defense.
(E) In the case of a business that uses the services or
commodities in a qualified military base enhancement area
established under IC 36-7-34-4(2), the business must satisfy at
least one (1) of the following criteria:
(i) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined
in IC 36-7-34-3).
(ii) The business and the qualified military base have a
mutually beneficial relationship evidenced by a
memorandum of understanding between the business and
the qualified military base (as defined in IC 36-7-34-3).
However, this subdivision does not apply to a business that
substantially reduces or ceases its operations at another location
in Indiana in order to relocate its operations in an area described
in this subdivision, unless the department determines that the
business had existing operations in the area described in this
subdivision and that the operations relocated to the area are an
expansion of the business's operations in the area.
(1) a military base (as defined in
(2) a military base reuse area established under IC 36-7-30;
(3) the part of an economic development area established under IC 36-7-14.5-12.5 that is or formerly was a military base (as defined in
(4) a military base recovery site designated under IC 6-3.1-11.5; or
(5) a qualified military base enhancement area established under
IC 36-7-34.
(b) Except as provided in subsection (e), a tax at the rate of five
percent (5%) of adjusted gross income is imposed on that part of the
adjusted gross income of a corporation that is derived from sources
within a qualified area if the corporation locates all or part of its
operations in a qualified area during the taxable year, as determined
under subsection (g). The tax rate under this section applies to the
taxable year in which the corporation locates its operations in the
qualified area and to the next succeeding four (4) taxable years.
(c) In the case of a corporation that locates all or part of its
operations in a qualified military base enhancement area established
under IC 36-7-34-4(1), the tax rate imposed under this section applies
to the corporation only if the corporation meets at least one (1) of the
following criteria:
(1) The corporation is a participant in the technology transfer
program conducted by the qualified military base (as defined in
IC 36-7-34-3).
(2) The corporation is a United States Department of Defense
contractor.
(3) The corporation and the qualified military base have a
mutually beneficial relationship evidenced by a memorandum of
understanding between the corporation and the United States
Department of Defense.
(d) In the case of a business that uses the services or commodities
in a qualified military base enhancement area established under
IC 36-7-34-4(2), the business must satisfy at least one (1) of the
following criteria:
(1) The business is a participant in the technology transfer
program conducted by the qualified military base (as defined in
IC 36-7-34-3).
(2) The business and the qualified military base have a mutually
beneficial relationship evidenced by a memorandum of
understanding between the business and the qualified military
base (as defined in IC 36-7-34-3).
(e) A taxpayer is not entitled to the tax rate described in subsection
(b) to the extent that the taxpayer substantially reduces or ceases its
operations at another location in Indiana in order to relocate its
operations within the qualified area, unless:
(1) the taxpayer had existing operations in the qualified area; and
(2) the operations relocated to the qualified area are an expansion
of the taxpayer's operations in the qualified area.
(f) A determination under subsection (e) that a taxpayer is not
entitled to the tax rate provided by this section as a result of a
substantial reduction or cessation of operations applies to the taxable
year in which the substantial reduction or cessation occurs and in all
subsequent years. Determinations under this section shall be made by
the department of state revenue.
(g) The department of state revenue:
(1) shall adopt rules under IC 4-22-2 to establish a procedure for
determining the part of a corporation's adjusted gross income that
was derived from sources within a qualified area; and
(2) may adopt other rules that the department considers necessary
for the implementation of this chapter.
(1) is located in:
(A) the part of an economic development area established under IC 36-7-14.5-12.5 that is or formerly was a military base (as defined in
(B) a military base reuse area established under IC 36-7-30;
(2) was placed in service at least twenty (20) years ago; and
(3) has been vacant for two (2) or more years.
However, subdivision (3) does not apply to a facility that is owned by a municipality, a county, a military base reuse authority, or a redevelopment authority.
(1) a military base (as defined in
(2) a military base reuse area established under IC 36-7-30;
(3) the part of an economic development area established under IC 36-7-14.5-12.5 that is or formerly was a military base (as defined in
(4) a military base recovery site designated under IC 6-3.1-11.5; or
(5) a qualified military base enhancement area established under IC 36-7-34.
(b) As used in this chapter and except as adjusted under section
16.9 of this chapter, "base period sales tax amount" means the
aggregate amount of state gross retail and use taxes remitted under
IC 6-2.5 by the businesses operating in a sales tax increment
financing area during the state fiscal year that precedes the date on
which the budget agency approves the designation of the sales tax
increment financing area under section 16.5 of this chapter.
(b) (c) As used in sections 18 and 24 of this chapter, "bonds" means
bonds, notes, evidences of indebtedness, or other obligations issued by
the reuse authority in the name of the unit.
(d) As used in this chapter, "incremental sales tax amount"
means the remainder of:
(1) the aggregate amount of state gross retail and use taxes
that are remitted under IC 6-2.5 by businesses operating in a
sales tax increment financing area during a state fiscal year;
minus
(2) the base period sales tax amount;
as determined by the department of state revenue under section
17.4 of this chapter.
(c) (e) As used in this chapter, "military base" means a United States
government military base or other military installation that is scheduled
for closing or is completely or partially inactive or closed.
(d) (f) As used in this chapter, "military base property" means real
and personal property that is currently or was formerly part of a
military base and is subject to reuse.
(e) (g) As used in this chapter, "municipal utility" means a utility
that is owned by a municipality and provides at least one (1) of the
following:
(1) Water services.
(2) Sewer services.
(3) Electric services.
(4) Stormwater services.
(f) (h) As used in this chapter, "reuse authority" means a military
base reuse authority established under section 3 of this chapter.
(i) As used in this chapter, "sales tax increment financing area"
means a sales tax increment financing area established under this
chapter.
(1) Acquire by purchase, exchange, gift, grant, condemnation, or lease, or any combination of methods, any personal military base property or interest in real military base property or other real or
personal property located within the corporate boundaries of the
unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract, or
other instrument), exchange, lease, rent, or otherwise dispose of
real or personal military base property or other real and personal
property to private enterprise or state or local government, on the
terms and conditions that the reuse authority considers best for the
unit and its inhabitants.
(3) Sell, lease, or grant interests in all or part of the real property
acquired from a military base to any other department of the unit
or to any other governmental agency for public ways, levees,
sewerage, parks, playgrounds, schools, and other public purposes
on any terms that may be agreed on.
(4) Clear real property acquired for the purposes of this chapter.
(5) Repair and maintain structures acquired for the purposes of
this chapter.
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired from a military base.
(7) Survey or examine any land to determine whether it should be
acquired for the purpose of this chapter and to determine the
value of the land.
(8) Appear before any other department or agency of the unit or
any other governmental agency in respect to any matter affecting:
(A) real property acquired or being acquired for the purposes
of this chapter; or
(B) any reuse area within the jurisdiction of the reuse
authority.
(9) Institute or defend in the name of the unit any civil action.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and perform
the duties of the reuse authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit in the manner
prescribed by section 16 of this chapter.
(12) Appoint an executive director, appraisers, real estate experts,
engineers, architects, surveyors, attorneys, accountants, and other
consultants that are necessary or desired by the authority in
exercising its powers or carrying out its responsibilities under this
chapter.
(13) Appoint clerks, guards, laborers, and other employees the
reuse authority considers advisable. However, the appointments
must be made in accordance with the merit system of the unit if
the unit has a merit system.
(14) Prescribe the duties and regulate the compensation of
employees of the military base reuse authority.
(15) Provide a pension and retirement system for employees of
the military base reuse authority, or use the public employees'
retirement fund or a retirement plan approved by the United
States Department of Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
military base reuse authority subject to subdivision (13).
(17) Rent offices for use of the reuse authority or accept the use
of offices furnished by the unit.
(18) Equip the offices of the reuse authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Expend on behalf of the special taxing district all or any part
of the money of the special taxing district.
(20) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Local public improvements or structures that are necessary
for the reuse of military base property within the corporate
boundaries of the unit.
(B) Any structure that enhances the development, economic
development, or reuse of military base property.
(21) Accept loans, grants, and other forms of financial assistance
from the federal government, the state government, a municipal
corporation, a special taxing district, a foundation, or any other
source.
(22) Provide financial assistance, in the manner that best serves
the purposes of this chapter, including grants and loans, to enable
private enterprise to develop, redevelop, and reuse military base
property or otherwise enable private enterprise to provide social
and economic benefits to the citizens of the unit.
(23) Enter into contracts for providing police, fire protection, and
utility services to the military base reuse area.
(24) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the reuse
authority and the execution of the power of the reuse authority
under this chapter.
(25) Designate a sales tax increment financing area as
provided in this chapter.
(25) (26) Take any action necessary to implement the purposes of
the reuse authority.
(b) All powers that may be exercised under this chapter by the reuse
authority may also be exercised by the reuse authority in carrying out
its duties and purposes under IC 36-7-14.5 or IC 36-7-15.3.
(1) Approve a plan for and designate a sales tax increment financing area.
(2) Modify a plan for or the boundaries of a sales tax increment financing area.
(b) A sales tax increment financing area may not include a geographic area that is part of any other area or district in which any incremental state gross retail tax or incremental state use tax is captured under any other law.
(c) Whenever a reuse authority finds that:
(1) the public would benefit from a plan of improvements within a proposed sales tax increment financing area;
(2) there are significant obstacles to redevelopment or development within the proposed sales tax increment financing area due to:
(A) obsolete or inefficient buildings;
(B) insufficient infrastructure or utility services;
(C) utility relocation requirements;
(D) transportation or access problems;
(E) topographical obstacles to redevelopment; or
(F) environmental contamination or remediation requirements; and
(3) the obstacles described in subdivision (2) cannot be addressed by the ordinary operations of private enterprise without resort to the use of a sales tax increment financing area;
the reuse authority shall have the data described in subsection (d) prepared for the proposed sales tax increment financing area.
(d) After making a finding under subsection (c), the reuse authority shall have the following prepared:
(1) Maps and plats showing the boundaries of the proposed sales tax increment financing area and showing the location of the various parcels of property, streets, alleys, and other features affecting the improvement and development of the area.
(2) A description of the improvements to be made within the
proposed sales tax increment financing area.
(3) An estimate of the cost of the improvements to be made
within the proposed sales tax increment financing area,
including any acquisition costs.
(e) After preparation of the data required by subsection (d), the
reuse authority may adopt a resolution:
(1) declaring that the plan of improvements to the proposed
sales tax increment financing area will be of public utility and
benefit; and
(2) designating the sales tax increment financing area.
The resolution must state the boundaries of the sales tax increment
financing area and any interests in land within the boundaries of
the sales tax increment financing area that the reuse authority
proposes to acquire, if any.
(f) A sales tax increment financing area designated under this
section must consist of contiguous territory. The territory of the
sales tax increment financing area may not extend outside of the
boundaries of the military base reuse area under the jurisdiction
of the reuse authority.
(1) Publish notice of the adoption and substance of the resolution in accordance with IC 5-3-1. The notice must state the general boundaries of the sales tax increment financing area.
(2) Submit the resolution to the budget committee for review and recommendation to the budget agency. The budget agency shall approve or disapprove the sales tax increment financing area. If the budget agency fails to take action on a resolution designating a sales tax increment financing area within six (6) months after the date that the resolution is submitted to the budget committee, the designation of the sales tax increment financing area is considered for purposes of this chapter to have been approved by the budget agency.
(b) When considering the approval of a sales tax increment financing area designated by a reuse authority, the budget agency must make the following findings before approving the designation of the sales tax increment financing area:
(1) The area to be designated as a district meets the conditions
necessary for the designation as a sales tax increment
financing area.
(2) The designation of the sales tax increment financing area
will benefit the people of Indiana by:
(A) assisting in the redevelopment of the sales tax
increment financing area;
(B) promoting significant opportunities for employment
within the sales tax increment financing area;
(C) attracting a new business enterprise to the sales tax
increment financing area; or
(D) retaining or expanding a business enterprise within the
sales tax increment financing area.
(c) An incremental sales tax amount may not be allocated under
this chapter to a sales tax increment financing area until the
designation of the sales tax increment financing area is approved
by the budget agency.
(b) A reuse authority may before the termination of the sales tax increment financing area adopt a resolution extending the duration of the sales tax increment financing area for an additional period of not more than fifteen (15) years after the date upon which the sales tax increment financing area was originally scheduled to terminate.
(c) The duration of a sales tax increment financing area may be extended only one (1) time under subsection (b).
(d) The duration of a sales tax increment financing area may be extended as provided in this section without a review by the budget committee and without an approval by the budget agency.
(e) If a reuse authority adopts a resolution to extend the duration of a sales tax increment financing area as provided in this section, the reuse authority shall send a certified copy of the resolution to the department of state revenue and to the budget agency.
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE UPON PASSAGE]: Sec. 16.9. (a) A reuse authority
may petition for permission to modify the boundaries of a sales tax
increment financing area. The petition must be submitted to the
budget committee for review and recommendation to the budget
agency.
(b) If the budget agency approves the modification after review
by the budget committee, the budget agency shall:
(1) adjust the base period sales tax amount as appropriate to
reflect the adjustment in the boundaries of the sales tax
increment financing area; and
(2) certify the sales tax increment financing area's modified
boundaries and adjusted base period sales tax amount to the
department of state revenue.
(c) If the budget agency fails to take action on a petition under
this section within six (6) months after the date the resolution is
submitted to the budget committee, the requested modification of
the boundaries of the sales tax increment financing area is
considered, for purposes of this chapter, to have been approved by
the budget agency.
(1) Employers in the sales tax increment financing area.
(2) Street names and the range of street numbers of each street in the sales tax increment financing area.
(3) Federal tax identification number of each business in the sales tax increment financing area.
(4) The street address of each employer in the sales tax increment financing area.
(5) Name, telephone number, and electronic mail address (if available) of a contact person for each employer in the sales tax increment financing area.
(b) The reuse authority shall provide the budget agency and the department of state revenue with an updated list of the information listed in subsection (a):
(1) before July 1 of each year; and
(2) not more than thirty (30) days after the date that the
budget agency approves a petition to modify the boundaries
of the sales tax increment financing area under section 16.9 of
this chapter.
(b) Businesses operating in a sales tax increment financing area shall report, in the manner and in the form prescribed by the department of state revenue, information that the department determines is necessary to calculate incremental sales tax amounts.
(c) On the first business day in October of each year, the auditor of state shall distribute the incremental sales tax amount calculated under subsection (a) to the reuse authority that designated the sales tax increment financing area from which the incremental sales tax amount was collected. The amount necessary to make the distribution is appropriated from the state general fund. The reuse authority shall deposit incremental sales tax amounts distributed under this section into the reuse authority's local sales tax increment financing fund.
(1) Roads, streets, public ways, curbs, sidewalks, bridges, and fences.
(2) Parking facilities.
(3) Lighting, traffic signals, and landscaping.
(4) Rail lines, spurs, and sidings.
(5) Information and high technology infrastructure (as defined in IC 5-28-9-4).
(6) Electric, gas, telephone or other communications lines, or any other utility line or pipeline (or another similar or related structure or improvement), including any necessary easements for the line, pipeline, or other structure or improvement.
(7) Sanitary sewer systems or facilities.
(8) Wastewater treatment systems or facilities.
(9) Water storage systems or facilities.
(10) Drains and drainage or flood control systems or facilities.
(11) Any other capital improvement that:
(A) makes real property more suitable for industrial, commercial, or retail use; or
(B) is necessary for the transportation of goods.
(b) If the budget agency approves the designation of a sales tax increment financing area under this chapter, the reuse authority shall establish a local sales tax increment financing fund to provide money for the purposes of the sales tax increment financing area. The reuse authority shall administer the fund. The fund consists of incremental sales tax amounts deposited under section 17.4 of this chapter.
(c) Money in a local sales tax increment financing fund does not revert to any other fund at the end of the reuse authority's fiscal year.
(d) Money in a local sales tax increment financing fund may be used by a reuse authority only for the following purposes:
(1) To pay for the lease, purchase, construction, extension, repair, rehabilitation, or other completion of infrastructure within the sales tax increment financing area.
(2) To pay for:
(A) property acquisition;
(B) site preparation or demolition;
(C) legal, architectural, or engineering work; or
(D) other preparation of surveys, plans, and specifications;
related to infrastructure within the sales tax increment financing area.
(3) To reimburse any governmental body or private entity for expenditures made for infrastructure within the sales tax increment financing area.
(4) To pay debt service or lease payments on bonds or leases that are issued or entered into under this chapter to finance costs described in subdivisions (1) through (3).
(5) To pay capitalized interest or to establish and maintain debt service reserves for bonds or leases that are issued or entered into under this chapter to finance costs described in subdivisions (1) through (3).
military base reuse area (including the payment of any
infrastructure costs described in section 17.5(d)(1) through
17.5(d)(3) of this chapter), and in anticipation of the taxes allocated
under section 25 of this chapter, other revenues of the district, or any
combination of these sources, the reuse authority may by resolution
issue the bonds of the special taxing district in the name of the unit.
(b) The reuse authority shall certify a copy of the resolution
authorizing the bonds to the municipal or county fiscal officer, who
shall then prepare the bonds. The seal of the unit must be impressed on
the bonds or a facsimile of the seal must be printed on the bonds.
(c) The bonds must be executed by the appropriate officer of the
unit, and attested by the unit's fiscal officer.
(d) The bonds are exempt from taxation for all purposes.
(e) Bonds issued under this section may be sold at public sale in
accordance with IC 5-1-11 or at a negotiated sale.
(f) The bonds are not a corporate obligation of the unit but are an
indebtedness of the taxing district. The bonds and interest are payable,
as set forth in the bond resolution of the reuse authority, from any of
the following:
(1) The tax proceeds allocated under section 25 of this chapter.
(2) Incremental sales tax amounts deposited in the reuse
authority's local sales tax increment financing fund, if the
bonds were issued to finance the payment of any
infrastructure costs described in section 17.5(d)(1) through
17.5(d)(3) of this chapter.
(2) (3) Other revenues available to the reuse authority.
(3) (4) A combination of the methods stated in subdivisions (1)
through (2). (3).
If the bonds are payable solely from the tax proceeds allocated under
section 25 of this chapter, other revenues of the reuse authority, or any
combination of these sources, the bonds may be issued in any amount
without limitation.
(g) Proceeds from the sale of bonds may be used to pay the cost of
interest on the bonds for a period not to exceed five (5) years after the
date of issuance.
(h) All laws relating to the filing of petitions requesting the issuance
of bonds and the right of taxpayers and voters to remonstrate against
the issuance of bonds do not apply to bonds issued under this chapter.
(i) If a debt service reserve is created from the proceeds of bonds,
the debt service reserve may be used to pay principal and interest on
the bonds as provided in the bond resolution.
(j) If bonds are issued under this chapter that are payable solely or
in part from revenues of the reuse authority (including any
incremental sales tax amounts deposited in the reuse authority's
local sales tax increment financing fund), the reuse authority may
adopt a resolution or trust indenture or enter into covenants as is
customary in the issuance of revenue bonds. The resolution or trust
indenture may pledge or assign revenues of the reuse authority and
properties becoming available to the reuse authority under this chapter.
The resolution or trust indenture may also contain provisions for
protecting and enforcing the rights and remedies of the bond owners as
may be reasonable and proper and not in violation of law, including a
covenant setting forth the duties of the reuse authority. The reuse
authority may establish fees and charges for the use of any project and
covenant with the owners of any bonds to set the fees and charges at a
rate sufficient to protect the interest of the owners of the bonds.
Revenue bonds issued by the reuse authority that are payable solely
from revenues of the reuse authority shall contain a statement to that
effect in the form of the bond.
(b) A lease may provide that payments by the reuse authority to the lessor are required only to the extent and only for the period that the lessor is able to provide the leased facilities in accordance with the lease. The terms of each lease must be based upon the value of the facilities leased and may not create a debt of the unit or the district for purposes of the Constitution of the State of Indiana.
(c) A lease may be entered into by the reuse authority only after a public hearing by the reuse authority at which all interested parties are provided the opportunity to be heard. After the public hearing, the reuse authority may adopt a resolution authorizing the execution of the lease on behalf of the unit if the reuse authority finds that the service to be provided throughout the term of the lease will serve the public
purpose of the unit and is in the best interests of its residents. Any lease
approved by a resolution of the reuse authority must be approved by the
fiscal body of the unit.
(d) A reuse authority entering into a lease payable from allocated
taxes under section 25 of this chapter, incremental sales tax amounts
deposited in the reuse authority's local sales tax increment
financing fund, or other available funds of the reuse authority may do
the following:
(1) Pledge the revenue to make payments under the lease under
IC 5-1-14-4.
(2) Establish a special fund to make the payments.
(e) Lease payments may be limited to money in the special fund so
that the obligations of the reuse authority to make the lease rental
payments are not considered a debt of the unit or the district for
purposes of the Constitution of the State of Indiana.
(f) Except as provided in this section, approvals of any
governmental body or agency are not required before the reuse
authority may enter into a lease under this section.
(g) If a reuse authority exercises an option to buy a leased facility
from a lessor, the reuse authority may subsequently sell the leased
facility, without regard to any other statute, to the lessor at the end of
the lease term at a price set forth in the lease or at fair market value
established at the time of the sale by the reuse authority through
auction, appraisal, or negotiation. If the facility is sold at auction, after
appraisal or through negotiation, the reuse authority shall conduct a
hearing after public notice in accordance with IC 5-3-1 before the sale.
Any action to contest the sale must be brought not more than fifteen
(15) days after the hearing.
(h) Notwithstanding this section, a reuse authority may negotiate
and enter into leases of property from the United States or any
department or agency of the United States without complying with the
requirements of this section.
(b) A pledge or covenant under this section may be for the term of the bonds issued under section 18 of this chapter, the term of a lease entered into under section 19 of this chapter, or for a shorter period as determined by the reuse authority. Incremental sales tax amounts pledged by a reuse authority under this section shall be considered revenues or other money available to the reuse authority under sections 18 through 19 of this chapter for payment of:
(1) bonds issued to finance the payment of any infrastructure costs described in section 17.5(d)(1) through 17.5(d)(3) of this chapter; or
(2) leases of infrastructure described in section 17.5(a) of this chapter.
(c) The general assembly covenants not to impair a pledge made under this section as long as any bonds described in subsection (b)(1) are outstanding or as long as any lease described in subsection (b)(2) is still in effect. The pledge or covenant shall be enforced as provided in IC 5-1-14-4.
