Bill Text: IN SB0346 | 2013 | Regular Session | Engrossed
Bill Title: Redevelopment commissions.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2013-03-21 - Referred to Committee on Ways and Means pursuant to House Rule 127 [SB0346 Detail]
Download: Indiana-2013-SB0346-Engrossed.html
Citations Affected: IC 36-7.
Synopsis: Redevelopment commissions. Provides that a
redevelopment commission may, subject to prior approval by the unit's
fiscal body, provide financial assistance to the owner of commercial
property within a redevelopment project area or economic development
area designated by the redevelopment commission, to assist the owner
in constructing, rehabilitating, or repairing the commercial property.
Effective: July 1, 2013.
(HOUSE SPONSORS _ FRIEND, WOLKINS)
January 8, 2013, read first time and referred to Committee on Tax and Fiscal Policy.
January 29, 2013, amended, reported favorably _ Do Pass.
February 7, 2013, read second time, ordered engrossed.
February 8, 2013, engrossed.
February 11, 2013, read third time, passed. Yeas 48, nays 0.
March 12, 2013, read first time and referred to Committee on Commerce, Small Business and Economic Development.
March 21, 2013, reported _ Do Pass. Referred to Committee on Ways and Means pursuant to Rule 127.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
(1) Acquire by purchase, exchange, gift, grant, condemnation, or lease, or any combination of methods, any personal property or interest in real property needed for the redevelopment of areas needing redevelopment that are 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 property acquired for use in the redevelopment of areas needing redevelopment on the terms and conditions that the commission considers best for the unit and its inhabitants.
(3) Sell, lease, or grant interests in all or part of the real property acquired for redevelopment purposes 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 redevelopment purposes.
(5) Enter on or into, inspect, investigate, and assess real property
and structures acquired or to be acquired for redevelopment
purposes to determine the existence, source, nature, and extent of
any environmental contamination, including the following:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(6) Remediate environmental contamination, including the
following, found on any real property or structures acquired for
redevelopment purposes:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(7) Repair and maintain structures acquired for redevelopment
purposes.
(8) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment purposes.
(9) Survey or examine any land to determine whether it should be
included within an area needing redevelopment to be acquired for
redevelopment purposes and to determine the value of that land.
(10) Appear before any other department or agency of the unit, or
before any other governmental agency in respect to any matter
affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any area needing redevelopment within the jurisdiction of
the commissioners.
(11) Institute or defend in the name of the unit any civil action.
(12) 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 department of redevelopment.
(13) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit in the manner
prescribed by section 20 of this chapter.
(14) Appoint an executive director, appraisers, real estate experts,
engineers, architects, surveyors, and attorneys.
(15) Appoint clerks, guards, laborers, and other employees the
commission considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(16) Prescribe the duties and regulate the compensation of
employees of the department of redevelopment.
(17) Provide a pension and retirement system for employees of
the department of redevelopment by using the Indiana public
employees' retirement fund or a retirement plan approved by the
United States Department of Housing and Urban Development.
(18) Discharge and appoint successors to employees of the
department of redevelopment subject to subdivision (15).
(19) Rent offices for use of the department of redevelopment, or
accept the use of offices furnished by the unit.
(20) Equip the offices of the department of redevelopment with
the necessary furniture, furnishings, equipment, records, and
supplies.
(21) Expend, on behalf of the special taxing district, all or any
part of the money of the special taxing district.
(22) Contract for the construction of:
(A) local public improvements (as defined in IC 36-7-14.5-6)
or structures that are necessary for redevelopment of areas
needing redevelopment or economic development within the
corporate boundaries of the unit; or
(B) any structure that enhances development or economic
development.
(23) Contract for the construction, extension, or improvement of
pedestrian skyways.
(24) 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.
(25) Provide financial assistance (including grants and loans) to
enable individuals and families to purchase or lease residential
units within the district. However, financial assistance may be
provided only to individuals and families whose income is at or
below the unit's median income for individuals and families,
respectively.
(26) Provide financial assistance (including grants and loans) to
neighborhood development corporations to permit them to:
(A) provide financial assistance for the purposes described in
subdivision (25); or
(B) construct, rehabilitate, or repair commercial property
within the district.
(27) Require as a condition of financial assistance to the owner of
a multiple unit residential structure that any of the units leased by
the owner must be leased:
(A) for a period to be determined by the commission, which
may not be less than five (5) years;
(B) to families whose income does not exceed eighty percent
(80%) of the unit's median income for families; and
(C) at an affordable rate.
(28) Subject to prior approval by the fiscal body of the unit
that established the redevelopment commission, provide
financial assistance (including grants and loans) to the owner
of commercial property within a redevelopment project area
or economic development area designated by the
redevelopment commission under this chapter, to assist the
owner in constructing, rehabilitating, or repairing the
commercial property. Financial assistance approved or
provided before July 1, 2013, that would have been authorized
by this subdivision if this subdivision had been in effect when
the assistance was approved or provided is legalized and
validated.
(b) Conditions imposed by the commission under subsection (a)(27)
remain in force throughout the period determined under subsection
(a)(27)(A), even if the owner sells, leases, or conveys the property. The
subsequent owner or lessee is bound by the conditions for the
remainder of the period.
(c) As used in this section, "pedestrian skyway" means a pedestrian
walkway within or outside of the public right-of-way and through and
above public or private property and buildings, including all structural
supports required to connect skyways to buildings or buildings under
construction. Pedestrian skyways constructed, extended, or improved
over or through public or private property constitute public property
and public improvements, constitute a public use and purpose, and do
not require vacation of any public way or other property.
(d) All powers that may be exercised under this chapter by the
redevelopment commission may also be exercised by the
redevelopment commission in carrying out its duties and purposes
under IC 36-7-14.5.
"Allocation area" means that part of a redevelopment project area to which an allocation provision of a declaratory resolution adopted under section 15 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a
declaratory resolution or an amendment to a declaratory
resolution establishing an economic development area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a
declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net
assessed value of property that is assessed as residential
property under the rules of the department of local government
finance, as finally determined for any assessment date after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development area before July 1, 1995, is expanded after June 30, 1995, the definition in subdivision (1) applies to the expanded part of the area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project area before July 1, 1997, is expanded after June 30, 1997, the definition in subdivision (2) applies to the expanded part of the area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes" means taxes imposed under IC 6-1.1 on real property. However, upon approval by a resolution of the redevelopment commission adopted before June 1, 1987, "property taxes" also includes taxes imposed under IC 6-1.1 on depreciable personal property. If a redevelopment commission adopted before June 1, 1987, a resolution to include within the definition of property taxes taxes imposed under IC 6-1.1 on depreciable personal property that has a useful life in excess of eight (8) years, the commission may by resolution determine the percentage of taxes imposed under IC 6-1.1 on all depreciable personal property that will be included within the definition of property taxes. However, the percentage included must not exceed twenty-five percent (25%) of the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter on or before the allocation deadline determined under subsection (i) may include a provision with respect to the allocation and distribution of property taxes for the purposes and in the manner provided in this section. A declaratory resolution previously adopted may include an allocation provision by the amendment of that declaratory resolution on or before the allocation deadline determined under subsection (i) in accordance with the procedures required for its original adoption. A declaratory resolution or an amendment that establishes an allocation provision after June 30, 1995, must specify an expiration date for the allocation provision. For an allocation area established before July 1, 2008, the expiration date may not be more than thirty (30) years after the date on which the allocation provision is established. For an allocation area established after June 30, 2008, the expiration date may not be more than twenty-five (25) years after the date on which the first obligation was incurred to pay principal and interest on bonds or lease rentals on leases payable from tax increment revenues. However, with respect to bonds or other obligations that were issued before July 1, 2008, if any of the bonds or other obligations that were scheduled when issued to mature before the specified expiration date and that are payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. The allocation provision may apply to all or part
of the redevelopment project area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds payable solely or in part from allocated tax proceeds in that allocation area.
(F) Make payments on leases payable from allocated tax proceeds in that allocation area under section 25.2 of this chapter.
(G) Reimburse the unit for expenditures made by it for local public improvements (which include buildings, parking facilities, and other items described in section 25.1(a) of this chapter) that are physically located in or physically connected to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or parking facility that is physically located in or physically connected to that allocation area under any lease entered into under IC 36-1-10.
(I) For property taxes first due and payable before January 1, 2009, pay all or a part of a property tax replacement credit to taxpayers in an allocation area as determined by the redevelopment commission. This credit equals the amount determined under the following STEPS for each taxpayer in a taxing district (as defined in IC 6-1.1-1-20) that contains all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2), IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and IC 6-1.1-21-2(g)(5) (before their repeal) that is attributable to the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax replacement amount (as defined in IC 6-1.1-21-2 (before its repeal)) for that year as determined under IC 6-1.1-21-4 (before its repeal) that is attributable to the taxing district; by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in IC 6-1.1-21-2 (before its repeal)) levied in the taxing district that have been allocated during that year to an allocation fund under this section.
If not all the taxpayers in an allocation area receive the credit in full, each taxpayer in the allocation area is entitled to
receive the same proportion of the credit. A taxpayer may not
receive a credit under this section and a credit under section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
However, the total amount of money spent for this purpose in
any year may not exceed the total amount of money in the
allocation fund that is attributable to property taxes paid by the
industrial facilities described in this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(M) Provide financial assistance under section 12.2(a)(28)
of this chapter.
The allocation fund may not be used for operating expenses of the commission.
(4) Except as provided in subsection (g), before July 15 of each year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value of the taxable property in the allocation area for the most recent assessment date minus the base assessed value, when multiplied by the estimated tax rate of the allocation area, will exceed the amount of assessed value needed to produce the property taxes necessary to make, when due, principal and interest payments on bonds described in subdivision (3), plus the amount necessary for other purposes described in subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal body of the county or municipality that established the department of redevelopment, and the officers who are authorized to fix budgets, tax rates, and tax levies under IC 6-1.1-17-5 for each of the other taxing units that is wholly or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the commission has determined may be allocated to the respective taxing units in the manner prescribed in subdivision (1); or
(ii) state that the commission has determined that there is no excess assessed value that may be allocated to the respective taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units the amount, if any, of excess assessed value determined by the commission. The commission may not authorize an allocation of assessed value to the respective taxing units under this subdivision if to do so would endanger the interests of the holders of bonds described in subdivision (3) or lessors under section 25.3 of this chapter.
(c) For the purpose of allocating taxes levied by or for any taxing unit or units, the assessed value of taxable property in a territory in the allocation area that is annexed by any taxing unit after the effective date of the allocation provision of the declaratory resolution is the lesser of:
(1) the assessed value of the property for the assessment date with respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
portion of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that has no obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(3) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1) and (b)(2) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) and (b)(2)
from property located in the enterprise zone. The unit that creates the
special zone fund shall use the fund (based on the recommendations of
the urban enterprise association) for programs in job training, job
enrichment, and basic skill development that are designed to benefit
residents and employers in the enterprise zone or other purposes
specified in subsection (b)(3), except that where reference is made in
subsection (b)(3) to allocation area it shall refer for purposes of
payments from the special zone fund only to that part of the allocation
area that is also located in the enterprise zone. Those programs shall
reserve at least one-half (1/2) of their enrollment in any session for
residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment of real property in an area under
IC 6-1.1-4-4 and after each reassessment in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value one (1) time to neutralize any effect of the
annual adjustment on the property tax proceeds allocated to the
redevelopment district under this section. However, the adjustments
under this subsection may not include the effect of property tax
abatements under IC 6-1.1-12.1, and these adjustments may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(3) than would otherwise have been
received if the general reassessment, the reassessment under the
reassessment plan, or the annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and
subsequent allocation deadlines are automatically extended in
increments of five (5) years, so that allocation deadlines
subsequent to the initial allocation deadline fall on December 31,
2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline
determined under subdivision (2), the general assembly may enact
a law that:
(A) terminates the automatic extension of allocation deadlines
under subdivision (2); and
(B) specifically designates a particular date as the final
allocation deadline.
(1) Acquire by purchase, exchange, gift, grant, lease, or condemnation, or any combination of methods, any real or personal property or interest in property needed for the redevelopment of areas needing redevelopment that are located within the redevelopment district.
(2) Hold, use, sell (by conveyance by deed, land sale contract, or other instrument), exchange, lease, rent, invest in, or otherwise dispose of, through any combination of methods, property acquired for use in the redevelopment of areas needing redevelopment on the terms and conditions that the commission considers best for the city and its inhabitants.
(3) Acquire from and sell, lease, or grant interests in all or part of the real property acquired for redevelopment purposes to any other department of the city, 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 upon.
(4) Clear real property acquired for redevelopment purposes.
(5) Enter on or into, inspect, investigate, and assess real property and structures acquired or to be acquired for redevelopment purposes to determine the existence, source, nature, and extent of any environmental contamination, including the following:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(6) Remediate environmental contamination, including the following, found on any real property or structures acquired for redevelopment purposes:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(7) Repair and maintain structures acquired or to be acquired for redevelopment purposes.
(8) Enter upon, survey, or examine any land, to determine whether it should be included within an area needing redevelopment to be acquired for redevelopment purposes, and determine the value of that land.
(9) Appear before any other department or agency of the city, or
before any other governmental agency in respect to any matter
affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any area needing redevelopment within the jurisdiction of
the commission.
(10) Subject to section 13 of this chapter, exercise the power of
eminent domain in the name of the city, within the redevelopment
district, in the manner prescribed by this chapter.
(11) Establish a uniform fee schedule whenever appropriate for
the performance of governmental assistance, or for providing
materials and supplies to private persons in project or program
related activities.
(12) Expend, on behalf of the redevelopment district, all or any
part of the money available for the purposes of this chapter.
(13) Contract for the construction, extension, or improvement of
pedestrian skyways.
(14) 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.
(15) Provide financial assistance (including grants and loans) to
enable individuals and families to purchase or lease residential
units within the district. However, financial assistance may be
provided only to those individuals and families whose income is
at or below the county's median income for individuals and
families, respectively.
(16) Provide financial assistance (including grants and loans) to
neighborhood development corporations to permit them to:
(A) provide financial assistance for the purposes described in
subdivision (15); or
(B) construct, rehabilitate, or repair commercial property
within the district.
(17) Require as a condition of financial assistance to the owner of
a multiunit residential structure that any of the units leased by the
owner must be leased:
(A) for a period to be determined by the commission, which
may not be less than five (5) years;
(B) to families whose income does not exceed eighty percent
(80%) of the county's median income for families; and
(C) at an affordable rate.
Conditions imposed by the commission under this subdivision
remain in force throughout the period determined under clause
(A), even if the owner sells, leases, or conveys the property. The
subsequent owner or lessee is bound by the conditions for the
remainder of the period.
(18) Provide programs in job training, job enrichment, and basic
skill development for residents of an enterprise zone.
(19) Provide loans and grants for the purpose of stimulating
business activity in an enterprise zone or providing employment
for residents of an enterprise zone.
(20) Contract for the construction, extension, or improvement of:
(A) public ways, sidewalks, sewers, waterlines, parking
facilities, park or recreational areas, or other local public
improvements (as defined in IC 36-7-15.3-6) or structures that
are necessary for redevelopment of areas needing
redevelopment or economic development within the
redevelopment district; or
(B) any structure that enhances development or economic
development.
(21) Subject to prior approval by the fiscal body of the unit
that established the redevelopment commission, provide
financial assistance (including grants and loans) to the owner
of commercial property within a redevelopment project area
or economic development area designated by the
redevelopment commission under this chapter, to assist the
owner in constructing, rehabilitating, or repairing the
commercial property.
(b) In addition to its powers under subsection (a), the commission
may plan and undertake, alone or in cooperation with other agencies,
projects for the redevelopment of, rehabilitating, preventing the spread
of, or eliminating slums or areas needing redevelopment, both
residential and nonresidential, which projects may include any of the
following:
(1) The repair or rehabilitation of buildings or other
improvements by the commission, owners, or tenants.
(2) The acquisition of real property.
(3) Either of the following with respect to environmental
contamination on real property:
(A) Investigation.
(B) Remediation.
(4) The demolition and removal of buildings or improvements on
buildings acquired by the commission where necessary for any of
the following:
(A) To eliminate unhealthful, unsanitary, or unsafe conditions.
(B) To mitigate or eliminate environmental contamination.
(C) To lessen density.
(D) To reduce traffic hazards.
(E) To eliminate obsolete or other uses detrimental to public welfare.
(F) To otherwise remove or prevent the conditions described in IC 36-7-1-3.
(G) To provide land for needed public facilities.
(5) The preparation of sites and the construction of improvements (such as public ways and utility connections) to facilitate the sale or lease of property.
(6) The construction of buildings or facilities for residential, commercial, industrial, public, or other uses.
(7) The disposition in accordance with this chapter, for uses in accordance with the plans for the projects, of any property acquired in connection with the projects.
(c) The commission may use its powers under this chapter relative to real property and interests in real property obtained by voluntary sale or transfer, even though the real property and interests in real property are not located in a redevelopment or urban renewal project area established by the adoption and confirmation of a resolution under sections 8(c), 9, 10, and 11 of this chapter. In acquiring real property and interests in real property outside of a redevelopment or urban renewal project area, the commission shall comply with section 12(b) through 12(e) of this chapter. The commission shall hold, develop, use, and dispose of this real property and interests in real property substantially in accordance with section 15 of this chapter.
(d) As used in this section, "pedestrian skyway" means a pedestrian walkway within or outside of the public right-of-way and through and above public or private property and buildings, including all structural supports required to connect skyways to buildings or buildings under construction. Pedestrian skyways constructed, extended, or improved over or through public or private property constitute public property and public improvements, constitute a public use and purpose, and do not require vacation of any public way or other property.
(e) All powers that may be exercised under this chapter by the commission may also be exercised by the commission in carrying out its duties and purposes under IC 36-7-15.3.
"Allocation area" means that part of a redevelopment project area to which an allocation provision of a resolution adopted under section 8 of this chapter refers for purposes of distribution and allocation of property taxes.
"Base assessed value" means the following:
(1) If an allocation provision is adopted after June 30, 1995, in a declaratory resolution or an amendment to a declaratory resolution establishing an economic development area:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
(2) If an allocation provision is adopted after June 30, 1997, in a declaratory resolution or an amendment to a declaratory resolution establishing a redevelopment project area:
(A) the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision of the declaratory resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), the net assessed value of property that is assessed as residential property under the rules of the department of local government finance, as finally determined for any assessment date after the effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in a declaratory resolution or an amendment to a declaratory resolution establishing a redevelopment project area expires after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for the assessment date immediately preceding the effective date of the allocation provision adopted after June 30, 1997, as adjusted under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30, 1995,
must specify an expiration date for the allocation provision. For an
allocation area established before July 1, 2008, the expiration date may
not be more than thirty (30) years after the date on which the allocation
provision is established. For an allocation area established after June
30, 2008, the expiration date may not be more than twenty-five (25)
years after the date on which the first obligation was incurred to pay
principal and interest on bonds or lease rentals on leases payable from
tax increment revenues. However, with respect to bonds or other
obligations that were issued before July 1, 2008, if any of the bonds or
other obligations that were scheduled when issued to mature before the
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of
the expiration date, the allocation provision does not expire until all of
the bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the redevelopment project area.
The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the consolidated city to pay for local public improvements that are physically located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds payable solely or in part from allocated tax proceeds in that allocation area.
(F) Make payments on leases payable from allocated tax proceeds in that allocation area under section 17.1 of this chapter.
(G) Reimburse the consolidated city for expenditures for local public improvements (which include buildings, parking facilities, and other items set forth in section 17 of this chapter) that are physically located in or physically connected to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or parking facility that is physically located in or physically connected to that allocation area under any lease entered into under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as industrial property under the rules of the department of local government finance.
However, the total amount of money spent for this purpose in any year may not exceed the total amount of money in the allocation fund that is attributable to property taxes paid by the industrial facilities described in this clause. The reimbursements under this clause must be made within three (3) years after the date on which the investments that are the basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project (as defined in IC 36-9-41-1.5) within the unit that established the redevelopment commission. However, property tax proceeds may be used under this clause to pay the costs of carrying out an eligible efficiency project only if those property tax proceeds exceed the amount necessary to do the following:
(i) Make, when due, any payments required under clauses (A) through (I), including any payments of principal and interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
(K) Provide financial assistance under section 7(a)(21) of
this chapter.
The special fund may not be used for operating expenses of the
commission.
(4) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, and the officers who
are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the commission, reassess the taxable property situated upon
or in, or added to, the allocation area, effective on the next assessment
date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund the amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. A unit that has no obligations, bonds, or leases
payable from allocated tax proceeds under subsection (b)(3) shall
establish a special zone fund and deposit all the property tax proceeds
in excess of those described in subsection (b)(1) and (b)(2) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) and (b)(2) from property located in the enterprise
zone. The unit that creates the special zone fund shall use the fund,
based on the recommendations of the urban enterprise association, for
one (1) or more of the following purposes:
(1) To pay for programs in job training, job enrichment, and basic skill development designed to benefit residents and employers in the enterprise zone. The programs must reserve at least one-half (1/2) of the enrollment in any session for residents of the enterprise zone.
(2) To make loans and grants for the purpose of stimulating business activity in the enterprise zone or providing employment for enterprise zone residents in the enterprise zone. These loans and grants may be made to the following:
(A) Businesses operating in the enterprise zone.
(B) Businesses that will move their operations to the enterprise zone if such a loan or grant is made.
(3) To provide funds to carry out other purposes specified in subsection (b)(3). However, where reference is made in subsection (b)(3) to the allocation area, the reference refers for purposes of payments from the special zone fund only to that part of the allocation area that is also located in the enterprise zone.
(h) The state board of accounts and department of local government finance shall make the rules and prescribe the forms and procedures that they consider expedient for the implementation of this chapter. After each general reassessment of real property in an area under IC 6-1.1-4-4 and after each reassessment under a reassessment plan prepared under IC 6-1.1-4-4.2, the department of local government finance shall adjust the base assessed value one (1) time to neutralize any effect of the reassessment of the real property in the area on the property tax proceeds allocated to the redevelopment district under this section. After each annual adjustment under IC 6-1.1-4-4.5, the department of local government finance shall adjust the base assessed value to neutralize any effect of the annual adjustment on the property tax proceeds allocated to the redevelopment district under this section. However, the adjustments under this subsection may not include the effect of property tax abatements under IC 6-1.1-12.1, and these adjustments may not produce less property tax proceeds allocable to the redevelopment district under subsection (b)(3) than would otherwise have been received if the general reassessment, reassessment under the reassessment plan, or annual adjustment had not occurred. The department of local government finance may prescribe procedures for county and township officials to follow to assist the department in making the adjustments.
(i) The allocation deadline referred to in subsection (b) is determined in the following manner:
(1) The initial allocation deadline is December 31, 2011.
(2) Subject to subdivision (3), the initial allocation deadline and subsequent allocation deadlines are automatically extended in increments of five (5) years, so that allocation deadlines subsequent to the initial allocation deadline fall on December 31, 2016, and December 31 of each fifth year thereafter.
(3) At least one (1) year before the date of an allocation deadline determined under subdivision (2), the general assembly may enact a law that:
(A) terminates the automatic extension of allocation deadlines under subdivision (2); and
(B) specifically designates a particular date as the final allocation deadline.