2010 Indiana Code
TITLE 36. LOCAL GOVERNMENT
ARTICLE 7. PLANNING AND DEVELOPMENT
CHAPTER 15.1. REDEVELOPMENT OF AREAS IN MARION COUNTY NEEDING REDEVELOPMENT
IC 36-7-15.1
Chapter 15.1. Redevelopment of Areas in Marion County Needing
Redevelopment
IC 36-7-15.1-1
Application of chapter
Sec. 1. This chapter applies in each county having a consolidated
city.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.84-1987,
SEC.5.
IC 36-7-15.1-1.3
Effect of change of reference from "blighted, deteriorated, or
deteriorating area" to "area needing redevelopment"
Sec. 1.3. (a) After June 30, 2005, a reference in any statute, rule,
ordinance, resolution, contract, or other document or record to a
blighted, deteriorated, or deteriorating area established under this
chapter shall be treated as a reference to an area needing
redevelopment (as defined in IC 36-7-1-3).
(b) After June 30, 2005, a reference in any statute, rule, ordinance,
resolution, contract, or other document or record to a redevelopment
area established under this chapter shall be treated as a reference to
a redevelopment project area established under IC 36-7-14 or this
chapter.
As added by P.L.20-2010, SEC.10.
IC 36-7-15.1-2
Declaration of policy
Sec. 2. (a) The assessment, clearance, remediation, replanning,
and redevelopment of areas needing redevelopment are public and
governmental functions that cannot be accomplished through the
ordinary operations of private enterprise, due to the necessity for the
exercise of the power of eminent domain, the necessity for requiring
the proper use of the land so as to best serve the interests of the
county and its citizens, and the cost of these projects.
(b) The conditions that exist in areas needing redevelopment are
beyond remedy and control by regulatory processes because of the
obsolescence and deteriorated conditions of improvements,
environmental contamination, faulty land use, shifting of population,
and technological and social changes.
(c) The assessment, clearing, remediation, replanning, and
redevelopment of areas needing redevelopment will benefit the
health, safety, morals, and welfare and will serve to protect and
increase property values in the county and the state.
(d) The assessment, clearance, remediation, replanning, and
redevelopment of areas needing redevelopment under this chapter are
public uses and purposes for which public money may be spent and
private property may be acquired.
(e) This chapter shall be liberally construed to carry out the
purposes of this section.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.185-2005,
SEC.26; P.L.221-2007, SEC.40.
IC 36-7-15.1-3
Definitions
Sec. 3. Except as provided in section 37 of this chapter, as used
in this chapter:
"Commission" refers to the metropolitan development
commission acting as the redevelopment commission of the
consolidated city, subject to IC 36-3-4-23.
"Department" refers to the department of metropolitan
development, subject to IC 36-3-4-23.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.102-1999,
SEC.2.
IC 36-7-15.1-4
Redevelopment district constituting special taxing district
Sec. 4. (a) The redevelopment district referred to in IC 36-3-1-6
constitutes a special taxing district for the purpose of levying and
collecting special benefit taxes for redevelopment purposes as
provided in this chapter.
(b) All of the taxable property within the redevelopment district
is considered to be benefited by redevelopment projects carried out
under this chapter to the extent of the special taxes levied under this
chapter.
As added by Acts 1982, P.L.77, SEC.8.
IC 36-7-15.1-5
Pecuniary interests of commissioners and nonvoting advisers
Sec. 5. A member of the commission or a nonvoting adviser
appointed under IC 36-7-4-207 may not have a pecuniary interest in
any contract, employment, purchase, or sale made under this chapter.
However, any property required for redevelopment purposes in
which a member or nonvoting adviser has a pecuniary interest may
be acquired but only by gift or condemnation.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.146-2008,
SEC.743.
IC 36-7-15.1-6
Duties of commission
Sec. 6. The commission shall:
(1) investigate, study, and survey areas needing redevelopment
within the redevelopment district;
(2) investigate, study, determine, and to the extent possible
combat the causes of the conditions described in IC 36-7-1-3;
(3) promote the use of land in the manner that best serves the
interests of the consolidated city and its inhabitants, both from
the standpoint of human needs and economic values;
(4) cooperate:
(A) with the departments and agencies of:
(i) the city; and
(ii) other governmental entities; and
(B) with:
(i) public instrumentalities; and
(ii) public bodies;
created by state law;
in the manner that best serves the purposes of this chapter;
(5) make findings and reports on its activities under this section,
and keep those reports open to inspection by the public at the
offices of the department;
(6) select and acquire the areas needing redevelopment to be
redeveloped under this chapter; and
(7) replan and dispose of the areas needing redevelopment in
the manner that best serves the social and economic interests of
the city and its inhabitants.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.185-2005,
SEC.27; P.L.221-2007, SEC.41.
IC 36-7-15.1-7
Powers of commission
Sec. 7. (a) In carrying out its duties and purposes under this
chapter, the commission may do the following:
(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.
(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.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.358-1983,
SEC.1; P.L.23-1984, SEC.17; P.L.84-1987, SEC.6; P.L.193-1988,
SEC.1; P.L.2-1989, SEC.31; P.L.14-1991, SEC.14; P.L.185-2005,
SEC.28; P.L.221-2007, SEC.42; P.L.146-2008, SEC.744.
IC 36-7-15.1-8
Assembly of data; adoption of resolution; amendment of resolution
or plan
Sec. 8. (a) Whenever the commission finds that:
(1) an area in the redevelopment district is an area needing
redevelopment;
(2) the conditions described in IC 36-7-1-3 cannot be corrected
in the area by regulatory processes or by the ordinary operations
of private enterprise without resort to this chapter; and
(3) the public health and welfare will be benefited by:
(A) the acquisition and redevelopment of the area under this
chapter as a redevelopment project area or an urban renewal
area; or
(B) the amendment of the resolution or plan, or both, for an
existing redevelopment project area or urban renewal area;
and
(4) in the case of an amendment to the resolution or plan for an
existing redevelopment project area or urban renewal area:
(A) the amendment is reasonable and appropriate when
considered in relation to the original resolution or plan and
the purposes of this chapter;
(B) the resolution or plan, with the proposed amendment,
conforms to the comprehensive plan for the unit; and
(C) except as provided by subsection (f), if the amendment
enlarges the boundaries of the area, the existing area does
not generate sufficient revenue to meet the financial
obligations of the original project;
the commission shall cause to be prepared a redevelopment or urban
renewal plan.
(b) The redevelopment or urban renewal plan must include:
(1) maps, plats, or maps and plats, showing:
(A) the boundaries of the area in which property would be
acquired for, or otherwise affected by, the establishment of
a redevelopment project area or urban renewal area, or the
amendment of the resolution or plan for an existing area;
(B) the location of the various parcels of property, public
ways, and other features affecting the acquisition, clearance,
replatting, replanning, rezoning, or redevelopment of the
area or areas, indicating any parcels of property to be
excluded from the acquisition or otherwise excluded from
the effects of the establishment of the redevelopment project
area or the amendment of the resolution or plan for an
existing area; and
(C) the parts of the area acquired that are to be devoted to
public ways, levees, sewerage, parks, playgrounds, and other
public purposes;
(2) lists of the owners of the various parcels of property
proposed to be acquired for, or otherwise affected by, the
establishment of an area or the amendment of the resolution or
plan for an existing area; and
(3) an estimate of the costs, if any, to be incurred for the
acquisition and redevelopment of property.
(c) This subsection applies to the initial establishment of a
redevelopment project area or urban renewal area. After completion
of the data required by subsection (b), the commission shall adopt a
resolution declaring that:
(1) the area needing redevelopment is a detriment to the social
or economic interests of the consolidated city and its
inhabitants;
(2) it will be of public utility and benefit to acquire the area and
redevelop it under this chapter; and
(3) the area is designated as a redevelopment project area for
purposes of this chapter.
The resolution must state the general boundaries of the
redevelopment project area and identify the interests in real or
personal property, if any, that the department proposes to acquire in
the area.
(d) This subsection applies to the amendment of the resolution or
plan for an existing redevelopment project area or urban renewal
area. After completion of the data required by subsection (b), the
redevelopment commission shall adopt a resolution declaring that:
(1) except as provided by subsection (f), if the amendment
enlarges the boundaries of the area, the existing area does not
generate sufficient revenue to meet the financial obligations of
the original project;
(2) it will be of public utility and benefit to amend the
resolution or plan for the area; and
(3) any additional area to be acquired under the amendment is
designated as part of the existing redevelopment project area or
urban renewal area for purposes of this chapter.
The resolution must state the general boundaries of the
redevelopment project area or urban renewal area, including any
changes made to those boundaries by the amendment, and describe
the activities that the department is permitted to take under the
amendment, with any designated exceptions.
(e) For the purpose of adopting a resolution under subsection (c)
or (d), it is sufficient to describe the boundaries of the redevelopment
project area by its location in relation to public ways or streams, or
otherwise, as determined by the commission. Property proposed for
acquisition may be described by street numbers or location.
(f) The commission is not required to make the finding and
declaration described in subsections (a)(4)(C) and (d)(1) concerning
the enlargement of the boundaries of an existing redevelopment
project area or urban renewal area if, before the adoption of the
resolution under subsection (d), the Indiana economic development
corporation issues a finding approving the enlargement of the
boundaries. Before issuing a finding under this subsection, the
Indiana economic development corporation must consider whether
the enlargement of the boundaries will:
(1) lead to increased investment in Indiana;
(2) foster job creation or job retention in Indiana;
(3) have a positive impact on the unit in which the area is
located; or
(4) otherwise benefit the people of Indiana by increasing
opportunities for employment in Indiana and strengthening the
economy of Indiana.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.358-1983,
SEC.2; P.L.14-1991, SEC.15; P.L.185-2005, SEC.29; P.L.146-2008,
SEC.745.
IC 36-7-15.1-9
Conformity of resolution and redevelopment plan with
comprehensive city development plan; submission of resolution
and plan to legislative body for approval
Sec. 9. (a) After or concurrent with adoption of a resolution under
section 8 of this chapter, the commission shall determine whether the
resolution and the redevelopment plan conform to the comprehensive
plan of development for the consolidated city and approve or
disapprove the resolution and plan proposed. If the commission
approves the resolution and plan, it shall submit the resolution and
plan to the legislative body of the consolidated city, which may
approve or disapprove the resolution and plan.
(b) In determining the location and extent of a redevelopment
project area proposed to be acquired for redevelopment, the
commission shall give consideration to transitional and permanent
provisions for adequate housing for the residents of the area who will
be displaced by the redevelopment project.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.185-2005,
SEC.30; P.L.146-2008, SEC.746.
IC 36-7-15.1-10
Notice and hearing on resolution; filing remonstrance; final action
taken by commission
Sec. 10. (a) After approval by the commission and the legislative
body of the consolidated city under section 9 of this chapter, the
commission shall publish notice of the adoption and substance of the
resolution in accordance with IC 5-3-1. The notice must:
(1) state that maps, plats, or maps and plats have been prepared
and can be inspected at the office of the department; and
(2) name a date when the commission will:
(A) receive and hear remonstrances and other testimony
from persons interested in or affected by the proceeding
pertaining to the proposed project or other actions to be
taken under the resolution; and
(B) determine the public utility and benefit of the proposed
project or other actions.
All persons affected in any manner by the hearing, including all
taxpayers of the redevelopment district, shall be considered notified
of the pendency of the hearing and of subsequent acts, hearings,
adjournments, and orders of the commission by the notice given
under this section.
(b) A copy of the notice of the hearing on the resolution shall be
filed in the office of the commission, board of zoning appeals, works
board, park board, and any other departments, bodies, or officers of
the consolidated city having to do with planning, variances from
zoning ordinances, land use, or the issuance of building permits.
These agencies and officers shall take notice of the pendency of the
hearing, and until the commission confirms, modifies and confirms,
or rescinds the resolution, or the confirmation of the resolution is set
aside on appeal, they may not, without approval of the commission:
(1) authorize any construction on property or sewers in the area
described in the resolution, including substantial modifications,
rebuilding, conversion, enlargement, additions, and major
structural improvements; or
(2) take any action regarding the zoning or rezoning of property,
or the opening, closing, or improvement of public ways in the
area described in the resolution.
This subsection does not prohibit the granting of permits for ordinary
maintenance or minor remodeling, or for changes necessary for the
continued occupancy of buildings in the area.
(c) If the resolution to be considered at the hearing includes a
provision establishing or amending an allocation provision under
section 26 of this chapter, the commission shall file the following
information with each taxing unit that is wholly or partly located
within the allocation area:
(1) A copy of the notice required by subsection (a).
(2) A statement disclosing the impact of the allocation area,
including the following:
(A) The estimated economic benefits and costs incurred by
the allocation area, as measured by increased employment
and anticipated growth of real property assessed values.
(B) The anticipated impact on tax revenues of each taxing
unit.
The commission shall file the information required by this subsection
with the officers of the taxing unit who are authorized to fix budgets,
tax rates, and tax levies under IC 6-1.1-17-5 at least ten (10) days
before the date of the hearing.
(d) At the hearing, which may be adjourned from time to time, the
commission shall hear all persons interested in the proceedings and
shall consider all written remonstrances and objections that have
been filed. After considering the evidence presented, the commission
shall take final action determining the public utility and benefit of the
proposed project or other actions to be taken under the resolution,
and confirming, modifying and confirming, or rescinding the
resolution. The final action taken by the commission shall be
recorded and is final and conclusive, except that an appeal may be
taken under section 11 of this chapter.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.38-1988,
SEC.13; P.L.14-1991, SEC.16; P.L.25-1995, SEC.88; P.L.146-2008,
SEC.747.
IC 36-7-15.1-10.5
Notice
Sec. 10.5. (a) In addition to the requirements of section 10 of this
chapter, if the resolution or plan for an existing redevelopment
project area or urban renewal area is proposed to be amended in a
way that changes:
(1) parts of the area that are to be devoted to a public way,
levee, sewerage, park, playground, or other public purpose;
(2) the proposed use of the land in the area; or
(3) requirements for rehabilitation, building requirements,
proposed zoning, maximum densities, or similar requirements;
the commission must, at least ten (10) days before the public hearing
under section 10 of this chapter, send the notice required by section
10 of this chapter by first class mail to affected neighborhood
associations.
(b) In addition to the requirements of section 10 of this chapter,
if the resolution or plan for an existing redevelopment project area
or urban renewal area is proposed to be amended in a way that:
(1) enlarges the boundaries of the area; or
(2) adds one (1) or more parcels to the list of parcels to be
acquired;
the commission must, at least ten (10) days before the public hearing
under section 10 of this chapter, send the notice required by section
10 of this chapter by first class mail to affected neighborhood
associations and to persons owning property that is in the proposed
enlargement of the area or that is proposed to be added to the
acquisition list. If the enlargement of an area is proposed, notice must
also be filed in accordance with section 10(b) of this chapter, and
agencies and officers may not take actions prohibited by section
10(b) in the proposed enlarged area.
(c) The commission may require that neighborhood associations
register with the commission. The commission may adopt a rule that
requires that a neighborhood association encompass a part of the
geographic area included in or proposed to be included in a
redevelopment project area, urban renewal area, or economic
development area to qualify as an affected neighborhood association.
As added by P.L.193-1988, SEC.2. Amended by P.L.185-2005,
SEC.31; P.L.146-2008, SEC.748.
IC 36-7-15.1-11
Remonstrance; appeal
Sec. 11. (a) A person who filed a written remonstrance with the
commission under section 10 of this chapter and is aggrieved by the
final action taken may, within ten (10) days after that final action,
file with the presiding judge of the superior court a copy of the order
of the commission and the person's remonstrance against that order,
together with the person's bond, as provided by IC 34-13-5-7, in the
event the appeal is determined against the person. The burden of
proof is on the remonstrator, and no change of venue may be granted.
(b) An appeal under this section shall be promptly heard by the
court without a jury. Except in a county containing a consolidated
city, all the judges of the court, or a majority of the judges if not all
are available, shall hear the appeal. In a county containing a
consolidated city, the appeal shall be heard by one (1) judge unless
rules adopted by the court or by the Indiana supreme court require an
appeal to be heard by additional judges. All remonstrances upon
which an appeal has been taken shall be consolidated and heard and
determined within thirty (30) days after the time of the filing of the
appeal. The court shall decide the appeal based on the record and
evidence before the commission, not by trial de novo. It may confirm
the final action of the commission or sustain the remonstrances. If
the appeal is decided in a county that does not contain a consolidated
city, the vote of at least a majority of all the elected judges is
required to confirm the final action of the commission or sustain the
remonstrances. The judgment of the court is final and conclusive,
unless an appeal is taken as in other civil actions. An appeal to the
court of appeals or supreme court has priority over all other civil
appeals.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.1-1998,
SEC.207; P.L.141-2007, SEC.4.
IC 36-7-15.1-12
Acquisition of real property by commission
Sec. 12. (a) If no appeal is taken, or if an appeal is taken but is
unsuccessful, the commission shall proceed with the proposed
project, to the extent that money is available for that purpose.
(b) The commission shall first approve and adopt a list of the real
property and interests in real property to be acquired, and the price
to be offered to the owner of each parcel or interests. The prices to
be offered may not exceed the average of two (2) independent
appraisals of fair market value procured by the commission, except
that appraisals are not required in transactions with other
governmental agencies. However, if the real property is less than five
(5) acres in size and the fair market value of the real property or
interest has been appraised by one (1) independent appraiser at less
than ten thousand dollars ($10,000), the second appraisal may be
made by a qualified employee of the department. The prices
indicated on the list may not be exceeded unless specifically
authorized by the commission under section 7 of this chapter or
ordered by a court in condemnation proceedings. The commission
may except from acquisition any real property in the area if it finds
that such an acquisition is not necessary under the redevelopment
plan. Appraisals made under this section are for the information of
the commission and are not open for public inspection.
(c) Negotiations for the purchase of property may be carried on
directly by the commission, by its employees, or by expert
negotiators employed for that purpose. The commission shall adopt
a standard form of option for use in negotiations, but no option,
contract, or understanding relative to the purchase of real property is
binding on the commission until approved and accepted by the
commission in writing. The commission may authorize the payment
of a nominal fee to bind an option, and as a part of the consideration
for conveyance may agree to pay the expense incident to the
conveyance and determination of the title of the property. Payment
for the property purchased shall be made when and as directed by the
commission, but only on delivery of proper instruments conveying
the title or interest of the owner to "City of __________ for the use
and benefit of its Department of Metropolitan Development".
(d) Notwithstanding subsections (a) through (c), the commission
may, before the time referred to in this section, accept gifts of
property needed for the redevelopment of redevelopment project
areas. The commission may, before the time referred to in this
section, take options on or contract for the acquisition of property
needed for the redevelopment of redevelopment project areas if the
options and contracts are not binding on the commission or the
redevelopment district until the time referred to in this section and
until money is available to pay the consideration set out in the
options or contracts.
(e) Section 15(a) through 15(h) of this chapter does not apply to
exchanges of real property (or interests in real property) in
connection with the acquisition of real property (or interests in real
property) under this section. In acquiring real property (or interests
in real property) under this section the commission may, as an
alternative to offering payment of money as specified in subsection
(b), offer for the real property (or interest in real property) that the
commission desires to acquire:
(1) exchange of real property or interests in real property owned
by the redevelopment district;
(2) exchange of real property or interests in real property owned
by the redevelopment district, along with the payment of money
by the commission; or
(3) exchange of real property or interests in real property owned
by the redevelopment district along with the payment of money
by the owner of the real property or interests in real property
that the commission desires to acquire.
The commission shall have the fair market value of the real property
or interests in real property owned by the redevelopment district
appraised as specified in section 15(b) of this chapter. The appraisers
may not also appraise the value of the real property or interests in
real property to be acquired by the redevelopment district. The
commission shall establish the nature of the offer to the owner based
on the difference between the average of the two (2) appraisals of the
fair market value of the real property or interests in real property to
be acquired by the commission and the average of the appraisals of
fair market value of the real property or interests in real property to
be exchanged by the commission.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.358-1983,
SEC.3; P.L.222-1986, SEC.1; P.L.193-1988, SEC.3; P.L.14-1991,
SEC.17; P.L.185-2005, SEC.32.
IC 36-7-15.1-13
Eminent domain; approval by city-county legislative body
Sec. 13. (a) Subject to the approval of the city-county legislative
body, if the commission considers it necessary to acquire real
property in a redevelopment project area by the exercise of the power
of eminent domain, it shall adopt a resolution setting out its
determination to exercise that power and directing its attorney to file
a petition in the name of the city on behalf of the department in the
circuit or superior court of the county.
(b) Eminent domain proceedings under this section are governed
by IC 32-24.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.2-2002,
SEC.112; P.L.185-2005, SEC.33; P.L.146-2008, SEC.749.
IC 36-7-15.1-14
Clearing and planning by commission; repair and maintenance;
environmental contamination; labor and contracts; utilities;
payments; public dedication
Sec. 14. (a) The commission may proceed with the clearing and
replanning of the area described in the resolution before the
acquisition of all of that area. It may also proceed with any of the
following:
(1) The repair and maintenance of buildings that have been
acquired and are not to be cleared.
(2) Investigation of environmental contamination.
(3) Remediation of environmental contamination.
The commission may carry out the activities under this subsection by
labor employed directly by the commission or by contract. Contracts
for clearance may provide that the contractor is entitled to retain and
dispose of salvaged material, as a part of the contract price or on the
basis of stated prices for the amounts of the various materials
actually salvaged.
(b) All contracts for material or labor under this section shall be
let under IC 36-1.
(c) In the replanning and rezoning of the real property acquired,
the opening, closing, relocation, and improvement of public ways,
and the construction, relocation, or improvement of levees, sewers,
and utility services, the commission shall proceed in the same
manner as private owners of property. It may negotiate with the
proper officers and agencies to secure the proper orders, approvals,
and consents.
(d) The commission may pay any charges or assessments made on
account of orders, approvals, consents, and construction work under
this section, or may agree to pay these assessments in installments as
provided by statute in the case of private owners. The commission
may:
(1) by special waiver filed with the works board, waive the
statutory procedure and notices required by law in order to
create valid liens on private property; and
(2) cause any assessments to be spread on a different basis than
that provided by statute.
(e) None of the real property acquired under this chapter may be
set aside and dedicated for public ways, sewers, levees, parks, or
other public purposes until the commission has obtained the consent
and approval of the department or agency under whose jurisdiction
the property will be placed.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.221-2007,
SEC.43.
IC 36-7-15.1-15
Appraisal, publication, and bidding requirements
Sec. 15. (a) This section does not apply to the sale or grant of real
property or interests in real property to:
(1) nonprofit corporations, community development
corporations, or neighborhood development corporations under
section 15.1 of this chapter; or
(2) an urban enterprise association under section 15.2 of this
chapter.
The provisions of this section concerning appraisal, publication, and
bidding requirements do not apply to sales, leases, or other
dispositions of real or personal property or interests in property to
other public agencies, including the federal government or any
agency or department of the federal government, for public purposes.
(b) Before offering for sale, exchange, or lease (or a combination
of methods) to the public any of the property or interests acquired,
the commission shall cause two (2) separate appraisals of the fair
market value to be made by independent appraisers. However, if the
property is less than five (5) acres in size and the fair market value
of the real property or interest has been appraised by one (1)
independent appraiser at less than ten thousand dollars ($10,000), the
second appraisal may be made by a qualified employee of the
department. In the case of an exchange, the same appraiser may not
appraise both of the properties to be exchanged. In making
appraisals, the appraisers shall take into consideration the size,
location, and physical condition of the parcels, the advantages
accruing to the parcels under the redevelopment plan, and all other
factors having a bearing on the value of the parcels. The appraisals
are solely for the information of the commission and are not open for
public inspection.
(c) The commission shall then prepare an offering sheet showing
the parcels to be offered and the offering prices, which may not be
less than the average of the two (2) appraisals. Copies of the offering
sheets shall be furnished to prospective buyers on request. Maps,
plats, or maps and plats showing the size and location of all parcels
to be offered shall also be kept available for inspection at the office
of the department.
(d) A notice shall be published in accordance with IC 5-3-1. The
notice must state that at a designated time the commission will open
and consider written offers for the purchase or lease of the property
or interests being offered. In giving the notice it is not necessary to
describe each parcel separately, or to specify the exact terms of
disposition, but the notice:
(1) must state the general location of the parcels;
(2) call attention generally to any limitations in the
redevelopment or urban renewal plan on the use to be made of
the real property offered; and
(3) state that a bid submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) At the time fixed in the notice the commission shall open and
consider any offers received. The offers may consist of consideration
in the form of cash, other property, or a combination of cash and
property. However, with respect to property other than cash, the offer
must be accompanied by evidence of the property's fair market value
that is satisfactory to the commission in the commission's sole
discretion. All offers received shall be opened at public meetings of
the commission and shall be kept open for public inspection.
(f) The commission may reject any or all bids or may make
awards to the highest and best bidders. In determining the best bids,
the commission shall take into consideration the following factors:
(1) The size and character of the improvements proposed to be
made by the bidder on the real property bid on.
(2) The bidder's plans and ability to improve the real property
with reasonable promptness.
(3) Whether the real property when improved will be sold or
rented.
(4) The bidder's proposed sale or rental prices.
(5) The bidder's compliance with subsection (d)(3).
(6) Any factors that will assure the commission that the sale or
lease, if made, will further the execution of the redevelopment
plan and best serve the interest of the community, from the
standpoint of both human and economic welfare.
(g) The commission may contract with a bidder in regard to the
factors listed in subsection (f), and the contract may provide for the
deposit of surety bonds, the making of good faith deposits, liquidated
damages, the right of reversion or repurchase, or other rights and
remedies if the bidder fails to comply with the contract.
(h) After the opening, consideration, and determination of the
written offers filed in response to the notice, the commission may
dispose of all or part of the remaining available property or interests
for any approved use, either at public sale or by private negotiation
carried on by the commission, its regular employees, or real estate
experts employed for that purpose. For a period of thirty (30) days
after the opening of the written offers and determination on them, no
sale, exchange, or lease may be made at a price or rental less than
that shown on the offering sheet, except in the case of sales or rentals
of:
(1) ten (10) or more parcels to a purchaser or lessee who agrees
to improve the parcels immediately;
(2) parcels of property to individuals or families whose income
is at or below the county's median income for individual and
family income, respectively, for the purpose of constructing
single family or two (2) family housing; or
(3) parcels of property to a contractor or developer for the
purpose of constructing single family or two (2) family housing
for individuals or families whose income is at or below the
county's median income for individual and family income,
respectively;
but after that period the commission may adjust the offering prices
in the manner it considers necessary to further the redevelopment or
urban renewal plan.
(i) A conveyance under this section may not be made until the
agreed consideration has been paid, unless the commission adopts a
resolution:
(1) stating that consideration does not have to be paid before the
conveyance is made; and
(2) setting forth an arrangement for future payment of
consideration or provision of an infrastructure credit against the
consideration, or both.
If full consideration is not paid before the conveyance is made, the
commission may use a land sale contract or mortgage to secure
payment of the consideration or may accept as a credit against the
agreed consideration a contractual obligation to perform public
infrastructure work related to the property being conveyed. All
deeds, land sale contracts, leases, or other conveyances, and all
contracts and agreements, including contracts of purchase, sale, or
exchange and contracts for advancements, loans, grants,
contributions, or other aid, shall be executed in the name of the "City
of _________, Department of Metropolitan Development", and shall
be executed by the president or vice president of the commission or
by the director of the department if authorized. A seal is not required
on these instruments or any other instruments executed in the name
of the department.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.193-1988,
SEC.4; P.L.336-1989(ss), SEC.52; P.L.14-1991, SEC.18;
P.L.28-1993, SEC.13; P.L.113-2002, SEC.7.
IC 36-7-15.1-15.1
Grant or sale at no cost of real property to qualifying corporation
for low or moderate income housing; notice and hearing
Sec. 15.1. (a) As used in this section, "qualifying corporation"
refers to a nonprofit corporation or neighborhood development
corporation that meets the requirements of subsection (b)(1) and the
criteria established by the county fiscal body under subsection (i).
(b) The commission may sell or grant at no cost title to real
property to a nonprofit corporation or neighborhood development
corporation for the purpose of providing low or moderate income
housing or other development that will benefit or serve low or
moderate income families if the following requirements are met:
(1) The nonprofit corporation or neighborhood development
corporation has, as a major corporate purpose and function, the
provision of housing for low and moderate income families
within the geographic area in which the parcel of property is
located.
(2) The qualifying corporation agrees to cause development that
will serve or benefit low or moderate income families on the
parcel of property within a specified period, which may not
exceed five (5) years from the date of the sale or grant.
(3) The qualifying corporation, if the qualifying corporation is
a neighborhood development corporation, agrees that the
qualifying corporation and each applicant, recipient, contractor,
or subcontractor undertaking work in connection with the real
property will:
(A) use lower income project area residents as trainees and
as employees; and
(B) contract for work with business concerns located in the
project area or owned in substantial part by persons residing
in the project area;
to the greatest extent feasible, as determined under the
standards specified in 24 CFR 135.
(4) The county fiscal body has determined that the corporation
meets the criteria established under subsection (i).
(5) The qualifying corporation agrees to rehabilitate or
otherwise develop the property in a manner that is similar to
and consistent with the use of the other properties in the area
served by the qualifying corporation.
(c) To carry out the purposes of this section, the commission may
secure from the county under IC 6-1.1-25-9(e) parcels of property
acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.
(d) Before offering any parcel of property for sale or grant, the
fair market value of the parcel of property must be determined. The
fair market value may be determined by an appraisal made by a
qualified employee of the department. However, if the qualified
employee of the department determines that:
(1) the property:
(A) is less than five (5) acres in size; and
(B) has a fair market value that is less than ten thousand
dollars ($10,000); or
(2) if the commission has obtained the parcel in the manner
described in subsection (c);
an appraisal is not required. An appraisal under this subsection is
solely for the information of the commission and is not available for
public inspection.
(e) The commission must decide whether the commission will sell
or grant the parcel of real property at a public meeting. In making
this decision, the commission shall give substantial weight to the
extent to which and the terms under which the qualifying corporation
will cause development to serve or benefit families of low or
moderate income. If more than one (1) qualifying corporation is
interested in acquiring a parcel of real property, the commission shall
conduct a hearing at which a representative of each corporation may
state the reasons why the commission should sell or grant the parcel
to that corporation.
(f) Before conducting a hearing under subsection (e), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address if any, or a common description of the property other
than the legal description.
(g) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a hearing to sell or grant the parcel to a qualifying
corporation even though the parcel has not yet been transferred to the
commission. After the hearing, the commission may adopt a
resolution directing the department to take appropriate steps
necessary to acquire the parcel from the county and to transfer the
parcel to the qualifying corporation.
(h) A conveyance of property to a qualifying corporation under
this section shall be made in accordance with section 15(i) of this
chapter.
(i) The county fiscal body shall establish criteria for determining
the eligibility of nonprofit corporations and neighborhood
development corporations for sales or grants of real property under
this section. A nonprofit corporation or neighborhood development
corporation may apply to the county fiscal body for a determination
concerning the corporation's compliance with the criteria established
under this subsection.
As added by P.L.14-1991, SEC.19. Amended by P.L.31-1994,
SEC.20; P.L.39-1994, SEC.26; P.L.2-1995, SEC.133; P.L.86-1999,
SEC.3; P.L.177-2003, SEC.10.
IC 36-7-15.1-15.2
Sale or grant of real property to urban enterprise association
Sec. 15.2. (a) The commission may sell or grant, at no cost, title
to real property to an urban enterprise association for the purpose of
developing the real property if the following requirements are met:
(1) The urban enterprise association has incorporated as a
nonprofit corporation under IC 5-28-15-14(b)(3).
(2) The parcel of property to be sold or granted is located
entirely within the enterprise zone for which the urban
enterprise association was created under IC 5-28-15-13.
(3) The urban enterprise association agrees to cause
development on the parcel of property within a specified period
that may not exceed five (5) years from the date of the sale or
grant.
(4) The urban enterprise association agrees to rehabilitate or
otherwise develop the property in a manner that is similar to
and consistent with the use of the other properties in the
enterprise zone.
(b) To carry out the purposes of this section, the commission may
secure from the county under IC 6-1.1-25-9(e) parcels of property
acquired by the county under IC 6-1.1-24 and IC 6-1.1-25.
(c) Before offering any parcel of property for sale or grant, the fair
market value of the parcel of property must be determined by an
appraiser, who may be an employee of the department. However, if
the commission has obtained the parcel in the manner described in
subsection (b), an appraisal is not required. An appraisal under this
subsection is solely for the information of the commission and is not
available for public inspection.
(d) The commission must decide at a public meeting whether the
commission will sell or grant the parcel of real property. In making
this decision, the commission shall give substantial weight to the
extent to which and the terms under which the urban enterprise
association will cause development on the property.
(e) Before conducting a meeting under subsection (d), the
commission shall publish a notice in accordance with IC 5-3-1
indicating that at a designated time the commission will consider
selling or granting the parcel of real property under this section. The
notice must state the general location of the property, including the
street address, if any, or a common description of the property other
than the legal description.
(f) If the county agrees to transfer a parcel of real property to the
commission to be sold or granted under this section, the commission
may conduct a meeting to sell or grant the parcel to an urban
enterprise zone even though the parcel has not yet been transferred
to the commission. After the hearing, the commission may adopt a
resolution directing the department to take appropriate steps
necessary to acquire the parcel from the county and to transfer the
parcel to the urban enterprise association.
(g) A conveyance of property to an urban enterprise association
under this section shall be made in accordance with section 15(i) of
this chapter.
(h) An urban enterprise association that purchases or receives real
property under this section shall report the terms of the conveyance
to the board of the Indiana economic development corporation not
later than thirty (30) days after the date the conveyance of the
property is made.
As added by P.L.113-2002, SEC.8. Amended by P.L.4-2005,
SEC.137.
IC 36-7-15.1-15.5
Additional powers of commission
Sec. 15.5. (a) This section applies to the following:
(1) Real property:
(A) that was acquired by the commission to carry out a
redevelopment project, an economic development area
project, or an urban renewal project; and
(B) relative to which the commission has, at a public
hearing, decided that the real property is not needed to
complete the redevelopment activity, an economic
development area activity, or urban renewal activity in the
project area.
(2) Real property acquired under this chapter that is not in a
redevelopment project area, an economic development area, or
an urban renewal project area.
(3) Parcels of property secured from the county under
IC 6-1.1-25-9(e) that were acquired by the county under
IC 6-1.1-24 and IC 6-1.1-25.
(4) Real property donated or transferred to the commission to
be held and disposed of under this section.
However, this section does not apply to property acquired under
section 22.5 of this chapter.
(b) The commission may do the following to or for real property
described in subsection (a):
(1) Examine, classify, manage, protect, insure, and maintain the
property.
(2) Eliminate deficiencies (including environmental
deficiencies), carry out repairs, remove structures, and make
improvements.
(3) Control the use of the property.
(4) Lease the property.
(5) Use any powers under section 7(a) or 7(b) of this chapter in
relation to the property.
(c) The commission may enter into contracts to carry out part or
all of the functions described in subsection (b).
(d) The commission may extinguish all delinquent taxes, special
assessments, and penalties relative to real property donated to the
commission to be held and disposed of under this section. The
commission shall provide the county auditor with a list of the real
property on which delinquent taxes, special assessments, and
penalties are extinguished under this subsection.
(e) Real property described in subsection (a) may be sold,
exchanged, transferred, granted, donated, or otherwise disposed of
in any of the following ways:
(1) In accordance with section 15, 15.1, 15.2, 15.6, or 15.7 of
this chapter.
(2) In accordance with the provisions authorizing an urban
homesteading program under IC 36-7-17.
(f) In disposing of real property under subsection (e), the
commission may:
(1) group together properties for disposition in a manner that
will best serve the interest of the community, from the
standpoint of both human and economic welfare; and
(2) group together nearby or similar properties to facilitate
convenient disposition.
As added by P.L.169-2006, SEC.73.
IC 36-7-15.1-15.6
"Abutting landowner"; "offering price"; sale of property to
abutting landowner; appraisal
Sec. 15.6. (a) As used in this section, "abutting landowner" means
an owner of property that:
(1) touches, borders on, or is contiguous to the property that is
the subject of sale; and
(2) does not constitute a:
(A) public easement; or
(B) public right-of-way.
(b) As used in this section, "offering price" means the appraised
value of real property plus all costs associated with the sale,
including:
(1) appraisal fees;
(2) title insurance;
(3) recording fees; and
(4) advertising costs.
(c) If the assessed value of a tract of real property to be sold is
less than fifteen thousand dollars ($15,000), based on the most recent
assessment of the tract or of the tract of which it was a part before it
was acquired, the commission may proceed under this section.
(d) The commission may determine that:
(1) the highest and best use of the tract is sale to an abutting
landowner;
(2) the cost to the public of maintaining the tract equals or
exceeds the estimated fair market value of the tract; or
(3) it is economically unjustifiable to sell the tract under section
15 of this chapter.
(e) Not more than ten (10) days after the commission makes a
determination under subsection (d), the commission shall publish a
notice in accordance with IC 5-3-1 identifying the tracts intended for
sale by legal description and, if possible, by key number and street
address. The notice must also include the offering price and a
statement that:
(1) the property may not be sold to a person who is ineligible
under IC 36-1-11-16; and
(2) an offer to purchase the property submitted by a trust (as
defined in IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
At the time of publication of notice under this subsection, the
commission shall send notice by certified mail to all abutting
landowners. This notice shall contain the same information as the
published notice.
(f) The commission shall also have each tract appraised. The
appraiser must be a person who is professionally engaged in making
appraisals, a person licensed under IC 25-34.1, or an employee of the
political subdivision who is familiar with the value of the tract.
However, if the assessed value of a tract is less than six thousand
dollars ($6,000), based on the most recent assessment of the tract or
of the tract of which it was a part before it was acquired, the
commission is not required to have the tract appraised.
(g) If, not more than ten (10) days after the date of publication of
the notice under subsection (e), the commission receives one (1) or
more eligible offers to purchase a tract listed in the notice at or in
excess of the offering price, the commission shall conduct the
negotiation and sale of the tract under section 15(f), 15(g), and 15(i)
of this chapter.
(h) Notwithstanding subsection (g), if not more than ten (10) days
after the date of publication of the notice under subsection (e) the
commission does not receive from any person other than an abutting
landowner an eligible offer to purchase the tract at or in excess of the
offering price, the commission shall conduct the negotiation and sale
of the tract as follows:
(1) If only one (1) eligible abutting landowner makes an eligible
offer to purchase the tract, then subject to IC 36-1-11-16 and
without further appraisal or notice, the commission shall offer
to negotiate for the sale of the tract with that abutting
landowner.
(2) If more than one (1) eligible abutting landowner submits an
eligible offer to purchase the tract, the tract shall be sold to the
eligible abutting landowner who submits the highest eligible
offer for the tract and who complies with any requirement under
subsection (e)(2).
(3) If no eligible abutting landowner submits an eligible offer
to purchase the tract, the commission may sell the tract to any
person who submits the highest eligible offer for the tract,
except a person who is ineligible to purchase the tract under
IC 36-1-11-16.
As added by P.L.169-2006, SEC.74.
IC 36-7-15.1-15.7
Disposal of real property; appraisal
Sec. 15.7. (a) The commission may dispose of real property to
which section 15.5 of this chapter applies by following the procedure
set forth in this section.
(b) The commission shall first have the property appraised by two
(2) appraisers. The appraisers must be:
(1) persons professionally engaged in making appraisals;
(2) persons licensed under IC 25-34.1; or
(3) employees of the political subdivision familiar with the
value of the property.
The appraisers shall make a joint appraisal of the property.
(c) The commission may:
(1) negotiate a sale or transfer; and
(2) dispose of the property;
at a value that is not less than the appraised value determined under
subsection (b).
(d) Disposal of real property under this chapter is subject to the
approval of the commission. The commission may not approve a
disposal of property without conducting a public hearing after giving
notice under IC 5-3-1.
(e) In addition to any other reason for disapproving a disposal of
property under this section, the commission may disapprove a sale of
a tract of residential property to any bidder who does not by affidavit
declare that the bidder will reside on that property for at least one (1)
year after the bidder obtains possession of the property.
As added by P.L.169-2006, SEC.75.
IC 36-7-15.1-16
Special tax on property in redevelopment district
Sec. 16. (a) For the purpose of raising money to carry out this
chapter or IC 36-7-15.3, the city-county legislative body may levy
each year a special tax upon all property in the redevelopment
district. The tax so levied each year shall be certified to the fiscal
officers of the city and the county before September 2 of each year.
The tax shall be estimated and entered upon the tax duplicates by the
county auditor, and shall be collected and enforced by the county
treasurer in the same manner as state and county taxes are estimated,
entered, collected, and enforced.
(b) As the tax is collected by the county treasurer, it shall be
accumulated and kept in a separate fund to be known as the
redevelopment district fund and shall be expended and applied only
for the purposes of this chapter or IC 36-7-15.3.
(c) The amount of the special tax levy shall be based on the
budget of the department but may not exceed one and sixty-seven
hundredths cents ($0.0167) on each one hundred dollars ($100) of
taxable valuation in the redevelopment district, except as otherwise
provided in this chapter.
(d) The budgets and tax levies under this chapter are subject to
review and modification in the manner prescribed by IC 36-3-6.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.84-1987,
SEC.7; P.L.2-1989, SEC.32; P.L.6-1997, SEC.211; P.L.146-2008,
SEC.750.
IC 36-7-15.1-17
Redevelopment district bonds
Sec. 17. (a) In addition to other methods of raising money for
property acquisition or redevelopment in a redevelopment project
area, and in anticipation of the special tax to be levied under section
19 of this chapter, the taxes allocated under section 26 of this
chapter, or other revenues of the redevelopment district, the
commission may, by resolution, issue the bonds of the redevelopment
district in the name of the consolidated city and in accordance with
IC 36-3-5-8. The amount of the bonds may not exceed the total, as
estimated by the commission, of all expenses reasonably incurred in
connection with the acquisition and redevelopment of the property,
including:
(1) the total cost of all land, rights-of-way, and other property
to be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and
redevelopment of the property or the issuance of bonds;
(3) capitalized interest permitted in this chapter and a debt
service reserve for the bonds, to the extent that the
redevelopment commission determines that a reserve is
reasonably required;
(4) the total cost of all clearing and construction work provided
for in the resolution; and
(5) expenses that the commission is required or permitted to pay
under IC 8-23-17.
(b) If the commission plans to acquire different parcels of land or
let different contracts for redevelopment work at approximately the
same time, whether under one (1) or more resolutions, the
commission may provide for the total cost in one (1) issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution
and negotiable subject to the requirements of the bond resolution for
the registration of the bonds. The resolution authorizing the bonds
must state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008; or
(B) twenty-five (25) years, for bonds issued after June 30,
2008.
The resolution may also state that the bonds are redeemable before
maturity with or without a premium, as determined by the
commission.
(d) The commission shall certify a copy of the resolution
authorizing the bonds to the fiscal officer of the consolidated city,
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.
(e) The bonds shall be executed by the city executive and attested
by the fiscal officer. The interest coupons, if any, shall be executed
by the facsimile signature of the fiscal officer.
(f) The bonds are exempt from taxation as provided by IC 6-8-5.
(g) The city fiscal officer shall sell the bonds according to law.
Notwithstanding IC 36-3-5-8, bonds payable solely or in part from
tax proceeds allocated under section 26(b)(2) of this chapter or other
revenues of the district may be sold at private negotiated sale and at
a price or prices not less than ninety-seven percent (97%) of the par
value.
(h) The bonds are not a corporate obligation of the city but are an
indebtedness of the redevelopment district. The bonds and interest
are payable:
(1) from a special tax levied upon all of the property in the
redevelopment district, as provided by section 19 of this
chapter;
(2) from the tax proceeds allocated under section 26(b)(2) of
this chapter;
(3) from other revenues available to the commission; or
(4) from a combination of the methods stated in subdivisions (1)
through (3);
and from any revenues of the designated project. If the bonds are
payable solely from the tax proceeds allocated under section 26(b)(2)
of this chapter, other revenues of the redevelopment commission, or
any combination of these sources, they may be issued in any amount
without limitation.
(i) Proceeds from the sale of the bonds may be used to pay the
cost of interest on the bonds for a period not to exceed five (5) years
from the date of issue.
(j) Notwithstanding IC 36-3-5-8, the laws relating to the filing of
petitions requesting the issuance of bonds and the right of taxpayers
and voters to remonstrate against, or vote on, the issuance of bonds
applicable to bonds issued under this chapter do not apply to bonds
payable solely or in part from tax proceeds allocated under section
26(b)(2) of this chapter, other revenues of the commission, or any
combination of these sources.
(k) If bonds are issued under this chapter that are payable solely
or in part from revenues to the commission from a project or
projects, the commission 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 the
revenues from the project or projects, but may not convey or
mortgage any project or parts of a project. The resolution or trust
indenture may also contain any 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
covenants setting forth the duties of the commission. The
commission may establish fees and charges for the use of any project
and covenant with the owners of any bonds to set those fees and
charges at a rate sufficient to protect the interest of the owners of the
bonds. Any revenue bonds issued by the commission that are payable
solely from revenues of the commission must contain a statement to
that effect in the form of bond.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.72-1983,
SEC.6; P.L.84-1987, SEC.8; P.L.2-1989, SEC.33; P.L.18-1990,
SEC.293; P.L.14-1991, SEC.20; P.L.185-2005, SEC.34;
P.L.219-2007, SEC.128; P.L.146-2008, SEC.751.
IC 36-7-15.1-17.1
Lease of property to commission; conditions
Sec. 17.1. (a) A commission may enter into a lease of any
property that may be financed with the proceeds of bonds issued
under this chapter with a lessor for a term not to exceed:
(1) fifty (50) years, for a lease entered into before July 1, 2008;
or
(2) twenty-five (25) years, for a lease entered into after June 30,
2008.
The lease may provide for payments to be made by the commission
from special benefits taxes levied under section 19 of this chapter,
taxes allocated under section 26 of this chapter, any other revenue
available to the commission, or any combination of these sources.
(b) A lease may provide that payments by the commission 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 commission only after a
public hearing by the commission at which all interested parties are
given the opportunity to be heard. Notice of the hearing must be
given by publication in accordance with IC 5-3-1. After the public
hearing, the commission may adopt a resolution authorizing the
execution of the lease on behalf of the unit if it 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 commission must be approved
by an ordinance of the fiscal body of the unit.
(d) Upon execution of a lease providing for payments by the
commission in whole or in part from the levy of special benefits
taxes under section 19 of this chapter and upon approval of the lease
by the fiscal body, the commission shall publish notice of the
execution of the lease and its approval in accordance with IC 5-3-1.
Fifty (50) or more taxpayers residing in the district who will be
affected by the lease and who may be of the opinion that no necessity
exists for the execution of the lease or that the payments provided for
in the lease are not fair and reasonable may file a petition in the
office of the county auditor within thirty (30) days after the
publication of the notice of execution and approval. The petition
must set forth the petitioners' names, addresses, and objections to the
lease and the facts showing that the execution of the lease is
unnecessary or unwise or that the payments provided for in the lease
are not fair and reasonable, as the case may be. Upon the filing of the
petition, the county auditor shall immediately certify a copy of it,
together with such other data as may be necessary in order to present
the questions involved, to the department of local government
finance. Upon receipt of the certified petition and information, the
department of local government finance shall fix a time and place for
the hearing in the redevelopment district, which must be not less than
five (5) or more than thirty (30) days after the time for the hearing is
fixed. Notice of the hearing shall be given by the department of local
government finance to the members of the fiscal body, to the
commission, and to the first fifty (50) petitioners on the petition by
a letter signed by the commissioner or deputy commissioner of the
department and enclosed with fully prepaid postage sent to those
persons at their usual place of residence, at least five (5) days before
the date of the hearing. The decision of the department of local
government finance on the appeal, upon the necessity for the
execution of the lease and as to whether the payments under it are
fair and reasonable, is final.
(e) A commission entering into a lease payable from allocated
taxes under section 26 of this chapter or revenues or other available
funds of the commission may:
(1) pledge the revenue to make payments under the lease
pursuant to IC 5-1-14-4; and
(2) establish a special fund to make the payments.
Lease rentals may be limited to money in the special fund so that the
obligations of the commission 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, no approvals of any
governmental body or agency are required before the commission
enters into a lease under this section.
(g) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought
within thirty (30) days after the publication of the notice of the
execution and approval of the lease. However, if the lease is payable
in whole or in part from tax levies and an appeal has been taken to
the department of local government finance, an action to contest the
validity or to enjoin performance must be brought within thirty (30)
days after the decision of the department.
(h) If a commission exercises an option to buy a leased facility
from a lessor, the commission 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 commission through
auction, appraisal, or arms length negotiation. If the facility is sold
at auction, after appraisal, or through negotiation, the commission
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 within fifteen (15) days after the hearing.
As added by P.L.84-1987, SEC.9. Amended by P.L.90-2002,
SEC.478; P.L.146-2008, SEC.752.
IC 36-7-15.1-17.2
Persons authorized as lessors
Sec. 17.2. (a) Any of the following persons may lease facilities
referred to in section 17.1 of this chapter to a commission:
(1) A not-for-profit corporation organized under Indiana law or
admitted to do business in Indiana.
(2) An authority established under IC 36-10-9.1.
(b) Notwithstanding any other law, a lessor under this section and
section 17.1 of this chapter is a qualified entity for purposes of
IC 5-1.4-1-10.
(c) Notwithstanding any other law, a redevelopment facility
leased by the commission under this chapter from a lessor borrowing
bond proceeds from a unit under IC 36-7-12 is an economic
development facility for purposes of IC 36-7-11.9-3 and IC 36-7-12.
(d) Notwithstanding IC 36-7-12-25 and IC 36-7-12-26, payments
by the commission to a lessor described in subsection (c) may be
made from sources set forth in section 17.1 of this chapter so long as
the payments and the lease are structured to prevent the lease
obligation from constituting debt of the unit or the district for
purposes of the Constitution of the State of Indiana.
As added by P.L.84-1987, SEC.10.
IC 36-7-15.1-17.5
Pledge of revenues
Sec. 17.5. (a) Notwithstanding any other law, the legislative body
may pledge revenues received or to be received by the unit from:
(1) the unit's distributive share of the county option income tax
under IC 6-3.5-6;
(2) any other source legally available to the unit for the
purposes of this chapter; or
(3) combination of revenues under subdivisions (1) through (2);
in any amount to pay amounts payable under section 17 or 17.1 of
this chapter.
(b) The legislative body may covenant to adopt an ordinance to
increase its tax rate under the county option income tax or any other
revenues at the time it is necessary to raise funds to pay any amounts
payable under section 17 or 17.1 of this chapter.
(c) The commission may pledge revenues received or to be
received from any source legally available to it for the purposes of
this chapter in any amount to pay amounts payable under section 17
or 17.1 of this chapter.
(d) The pledge or the covenant under this section may be for the
life of the bonds issued under section 17 of this chapter, the term of
a lease entered into under section 17.1 of this chapter, or for a shorter
period as determined by the legislative body. Money pledged by the
legislative body under this section shall be considered revenues or
other money available to the commission under sections 17 through
17.1 of this chapter.
(e) The general assembly covenants not to impair this pledge or
covenant so long as any bonds issued under section 17 of this chapter
are outstanding or as long as any lease entered into under section
17.1 of this chapter is still in effect. The pledge or covenant shall be
enforced as provided in IC 5-1-14-4.
As added by P.L.84-1987, SEC.11. Amended by P.L.2-1989, SEC.34.
IC 36-7-15.1-18
Redevelopment district fund
Sec. 18. (a) All proceeds from the sale of bonds under section 17
of this chapter shall be kept as a separate and specific fund to pay the
expenses incurred in connection with the acquisition and
redevelopment of property. The fund shall be known as the
redevelopment district fund. Any surplus of funds remaining after all
expenses are paid shall be paid into and become a part of the
redevelopment district bond fund established under section 19 of this
chapter.
(b) All gifts, donations, proceeds of sales, or other payments that
are given or paid to the department or to the consolidated city for
redevelopment purposes shall be promptly deposited to the credit of
the redevelopment district fund. The commission may use these gifts
and donations for the purposes of this chapter.
(c) Before the eleventh day of each calendar month the city fiscal
officer shall notify the commission and the officers of the city who
have duties in respect to the funds and accounts of the city of the
amount standing to the credit of the redevelopment district fund at
the close of business on the last day of the preceding month.
As added by Acts 1982, P.L.77, SEC.8.
IC 36-7-15.1-19
Redevelopment district bond fund; special tax
Sec. 19. (a) This section applies only to:
(1) bonds that are issued under section 17 of this chapter; or
(2) leases entered into under section 17.1 of this chapter;
that are payable from a special tax levied upon all of the property in
the redevelopment district. This section does not apply to bonds or
leases that are payable solely from tax proceeds allocated under
section 26(b)(2) of this chapter, other revenues of the commission,
or any combination of these sources.
(b) The city-county legislative body shall levy each year a special
tax on all of the property of the redevelopment district, in such a
manner as to meet and pay:
(1) the principal of the bonds as they mature, together with all
accruing interest on the bonds; or
(2) lease rental payments under section 17.1 of this chapter.
The tax levied shall be certified to the fiscal officers of the
consolidated city and the county before October 2 in each year. The
tax shall be estimated and entered on the tax duplicate by the county
auditor and shall be collected and enforced by the county treasurer
in the same manner as other state and county taxes are estimated,
entered, collected, and enforced.
(c) As the tax is collected, it shall be accumulated in a separate
fund to be known as the redevelopment district bond fund and shall
be applied to the payment of the bonds as they mature and the
interest on the bonds as it accrues, or to make lease payments and to
no other purpose. All accumulations of the fund before their use for
the payment of bonds and interest or to make lease payments shall be
deposited with the depository or depositories for other public funds
of the city in accordance with the statutes concerning the deposit of
public funds, unless they are invested under IC 5-13.
(d) The tax levies provided for in this section are reviewable by
other bodies vested by law with the authority to ascertain that the
levies are sufficient to raise the amount that, with other amounts
available, is sufficient to meet the payments under the lease payable
from the levy of taxes.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.72-1983,
SEC.7; P.L.84-1987, SEC.12; P.L.2-1989, SEC.35.
IC 36-7-15.1-20
Urban renewal projects
Sec. 20. In addition to its authority under any other section of this
chapter, the commission may plan and undertake urban renewal
projects. For purposes of this chapter, an urban renewal project
includes undertakings and activities for the elimination or the
prevention of the development or spread of the conditions described
in IC 36-7-1-3, and may involve any work or undertaking that is
performed for those purposes constituting a redevelopment project,
or any rehabilitation or conservation work, or any combination of
such an undertaking or work, such as the following:
(1) Carrying out plans for a program of voluntary or compulsory
repair and rehabilitation of buildings or other improvements.
(2) Acquisition of real property and demolition, removal, or
rehabilitation of buildings and improvements on the property
when necessary to do any of the following:
(A) Eliminate unhealthful, unsanitary, or unsafe conditions.
(B) Mitigate or eliminate environmental contamination.
(C) Lessen density.
(D) Reduce traffic hazards.
(E) Eliminate uses that are obsolete or otherwise detrimental
to the public welfare.
(F) Otherwise remove or prevent the spread of the conditions
described in IC 36-7-1-3.
(G) Provide land for needed public facilities.
(3) Installation, construction, or reconstruction of streets,
utilities, parks, playgrounds, and other improvements necessary
for carrying out the objectives of the urban renewal project.
(4) The disposition, for uses in accordance with the objectives
of the urban renewal project, of any property acquired in the
area of the project.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.185-2005,
SEC.35; P.L.221-2007, SEC.44.
IC 36-7-15.1-21
Urban renewal plan
Sec. 21. An urban renewal project undertaken under this chapter
must be undertaken in accordance with an urban renewal plan for the
area of the project. For purposes of this chapter, an urban renewal
plan is a plan for an urban renewal project that:
(1) conforms to the comprehensive plan for the county as a
whole; and
(2) is sufficiently complete to indicate:
(A) land acquisition, demolition and removal of structures,
redevelopment, improvements, and rehabilitation proposed
to be carried out in the area of the urban renewal project;
(B) zoning and planning changes, if any;
(C) land uses;
(D) maximum densities;
(E) building requirements; and
(F) the plan's relationship to definite local objectives
respecting appropriate land uses, improved traffic, public
transportation, public utilities, recreational and community
facilities, and other public improvements.
As added by Acts 1982, P.L.77, SEC.8.
IC 36-7-15.1-22
Commission powers and duties concerning planning and urban
renewal plans and projects
Sec. 22. (a) In connection with the planning and undertaking of an
urban renewal plan or urban renewal project, the commission and all
public and private officers, agencies, and bodies have all the rights,
powers, privileges, duties, and immunities that they have with respect
to a redevelopment plan or redevelopment project, as if all of the
provisions of this chapter applicable to a redevelopment plan or
redevelopment project were applicable to an urban renewal plan or
urban renewal project.
(b) In addition to its other powers, the commission may also:
(1) make plans for carrying out a program of voluntary repair
and rehabilitation of buildings and improvements;
(2) make plans for the enforcement of laws and regulations
relating to the use of land and the use and occupancy of
buildings and improvements, and to the compulsory repair,
rehabilitation, demolition, or removal of buildings and
improvements;
(3) make preliminary plans outlining urban renewal activities
for neighborhoods to embrace two (2) or more urban renewal
areas;
(4) make preliminary surveys, including environmental
assessments, to determine if the undertaking and carrying out of
an urban renewal project are feasible;
(5) make plans for the relocation of persons (including families,
business concerns, and others) displaced by an urban renewal
project;
(6) make relocation payments in accordance with eligibility
requirements of IC 8-23-17 or the Uniform Relocation
Assistance and Real Property Acquisitions Policy Act of 1970
(42 U.S.C. 4621 et seq.) to or with respect to persons (including
families, business concerns, and others) displaced by an urban
renewal project, for moving expenses and losses of property for
which reimbursement or compensation is not otherwise made,
including the making of payments financed by the federal
government; and
(7) develop, test, and report methods and techniques, and carry
out demonstrations and other activities, for the prevention and
the elimination of the conditions described in IC 36-7-1-3 in
urban areas.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.14-1991,
SEC.21; P.L.185-2005, SEC.36; P.L.221-2007, SEC.45.
IC 36-7-15.1-22.5
SEC.37; P.L.163-2006, SEC.21; P.L.146-2008, SEC.753.
Acquisition through eminent domain; public meeting; notice;
resolution and petition; approval by county fiscal body
Sec. 22.5. (a) Subject to the approval of the county fiscal body,
the commission may acquire a parcel of real property by the exercise
of eminent domain when the following conditions exist:
(1) The real property meets at least one (1) of the conditions
described in IC 32-24-4.5-7(1).
(2) The real property is capable of being developed or
rehabilitated to provide affordable housing for low or moderate
income families or to provide other development that will
benefit or serve low or moderate income families.
(3) The real property suffers from one (1) or more of the
conditions listed in IC 36-7-1-3, resulting in a negative impact
on the use or value of the neighboring properties or other
properties in the community.
(b) The commission or its designated hearing examiner shall
conduct a public meeting to determine whether the conditions set
forth in subsection (a) exist relative to a parcel of real property. Each
person holding a fee or life estate interest of record in the property
must be given notice by first class mail of the time and date of the
hearing at least ten (10) days before the hearing, and is entitled to
present evidence and make arguments at the hearing.
(c) If the commission considers it necessary to acquire real
property under this section, it shall adopt a resolution setting out its
determination to exercise that power and directing its attorney to file
a petition in the name of the city on behalf of the department in the
circuit or superior court in the county.
(d) Eminent domain proceedings under this section are governed
by IC 32-24.
(e) The commission shall use real property acquired under this
section for one (1) of the following purposes:
(1) Sale in an urban homestead program under IC 36-7-17.
(2) Sale to a family whose income is at or below the county's
median income for families.
(3) Sale or grant to a neighborhood development corporation or
other nonprofit corporation, with a condition in the granting
clause of the deed requiring the nonprofit organization to lease
or sell the property to a family whose income is at or below the
county's median income for families or to cause development
that will serve or benefit families whose income is at or below
the county's median income for families. However, a nonprofit
organization is eligible for a sale or grant under this subdivision
only if the county fiscal body has determined that the nonprofit
organization meets the criteria established under subsection (f).
(4) Any other purpose appropriate under this chapter so long as
it will serve or benefit families whose income is at or below the
county's median income for families.
(f) The county fiscal body shall establish criteria for determining
the eligibility of neighborhood development corporations and other
nonprofit corporations for sales and grants of real property under
subsection (e)(3). A neighborhood development corporation or other
nonprofit corporation may apply to the county fiscal body for a
determination concerning the corporation's compliance with the
criteria established under this subsection.
(g) A neighborhood development corporation or nonprofit
corporation that receives property under this section must agree to
rehabilitate or otherwise develop the property in a manner that is
similar to and consistent with the use of the other properties in the
area served by the corporation.
As added by P.L.193-1988, SEC.5. Amended by P.L.31-1994,
SEC.21; P.L.86-1999, SEC.4; P.L.2-2002, SEC.113; P.L.185-2005,
IC 36-7-15.1-23
Aid and cooperation of public entities; delegation; agreements
Sec. 23. (a) Any:
(1) political subdivision;
(2) other governmental entity;
(3) public instrumentality created by state law; or
(4) public body created by state law;
may, in the area in which it is authorized to act, do all things
necessary to aid and cooperate in the planning and undertaking of an
urban renewal project, including furnishing the financial and other
assistance that it is authorized by this chapter to furnish for or in
connection with a redevelopment plan or redevelopment project.
(b) The commission may delegate to:
(1) an executive department of the consolidated city or county;
(2) another governmental entity;
(3) a public instrumentality created by state law; or
(4) a public body created by state law;
any of the powers or functions of the commission with respect to the
planning or undertaking of an urban renewal project in the area in
which that department or entity is authorized to act. The department,
entity, public instrumentality, or public body may then carry out or
perform those powers or functions for the commission.
(c) A unit, another governmental entity, a public instrumentality
created by state law, or a public body created by state law may enter
into agreements with the commission or any other entity respecting
action to be taken under this chapter, including the furnishing of
funds or other assistance in connection with an urban renewal plan
or urban renewal project. These agreements may extend over any
period, notwithstanding any other law.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.221-2007,
SEC.46.
IC 36-7-15.1-24
Financial assistance; federal aid; issuance of bonds, notes, and
warrants; approval by legislative body
Sec. 24. (a) Subject to the approval of the legislative body of the
consolidated city, and in order to:
(1) undertake survey and planning activities under this chapter;
(2) undertake and carry out any redevelopment project, urban
renewal project, economic development plan, or housing
program;
(3) pay principal and interest on any advances;
(4) pay or retire any bonds and interest on them; or
(5) refund loans previously made under this section;
the commission may apply for and accept advances, short term and
long term loans, grants, contributions, loan guarantees, and any other
form of financial assistance from the federal government, or from
any of its agencies. The commission may apply for and accept loans
under this section from sources other than the federal government or
federal agencies but only if the loans are unconditionally guaranteed
by the federal government or federal agencies. The commission may
also enter into and carry out contracts and agreements in connection
with that financial assistance upon the terms and conditions that the
commission considers reasonable and appropriate, as long as those
terms and conditions are not inconsistent with the purposes of this
chapter. The provisions of such a contract or agreement in regard to
the handling, deposit, and application of project funds, as well as all
other provisions, are valid and binding on the consolidated city or its
executive departments and officers, as well as the commission,
notwithstanding any other provision of this chapter.
(b) Subject to the approval of the fiscal body of the consolidated
city, the commission may issue and sell bonds, notes, or warrants:
(1) to the federal government to evidence short term or long
term loans made under this section; or
(2) to persons or entities other than the federal government to
evidence short or long term loans made under this section that
are unconditionally guaranteed by the federal government or
federal agencies;
without notice of sale being given or a public offering being made.
(c) Notwithstanding any other law, bonds, notes, or warrants
issued by the commission under this section may:
(1) be in the amounts, form, or denomination;
(2) be either coupon or registered;
(3) carry conversion or other privileges;
(4) have a rank or priority;
(5) be of such description;
(6) be secured (subject to other provisions of this section) in
such manner;
(7) bear interest at a rate or rates;
(8) be payable as to both principal and interest in a medium of
payment, at a time or times (which may be upon demand) and
at a place or places;
(9) be subject to terms of redemption (with or without
premium);
(10) contain or be subject to any covenants, conditions, and
provisions; and
(11) have any other characteristics;
that the commission considers reasonable and appropriate.
(d) Bonds, notes, or warrants issued under this section are not an
indebtedness of the city or redevelopment district within the meaning
of any constitutional or statutory limitation of indebtedness. The
bonds, notes, or warrants are not payable from or secured by a levy
of taxes, but are payable only from and secured only by income,
funds, and properties of the project becoming available to the
commission under this chapter or by grant funds from the federal
government, as the commission specifies in the resolution
authorizing their issuance.
(e) Bonds, notes, or warrants issued under this section are exempt
from taxation as provided by IC 6-8-5.
(f) Bonds, notes, or warrants issued under this section shall be
executed by the city executive and attested by the fiscal officer in the
name of the "City of ____________________, Department of
Metropolitan Development".
(g) Following the adoption of the resolution authorizing the
issuance of bonds, notes, or warrants under this section, the
commission shall certify a copy of that resolution to the officers of
the city who have duties with respect to bonds, notes, or warrants of
the city. At the proper time, the commission shall deliver to the
officers the unexecuted bonds, notes, or warrants prepared for
execution in accordance with the resolution.
(h) All bonds, notes, or warrants issued under this section shall be
sold by the officers of the city who have duties with respect to the
sale of bonds, notes, or warrants of the city. If an officer whose
signature appears on any bonds, notes, or warrants issued under this
section leaves office before their delivery, the signature remains
valid and sufficient for all purposes as if he had remained in office
until the delivery.
(i) If at any time during the life of a loan contract or agreement
under this section the commission can obtain loans for the purposes
of this section from sources other than the federal government at
interest rates not less favorable than provided in the loan contract or
agreement, and if the loan contract or agreement so permits, the
commission may do so and may pledge the loan contract and any
rights under that contract as security for the repayment of the loans
obtained from other sources. Any loan under this subsection may be
evidenced by bonds, notes, or warrants issued and secured in the
same manner as provided in this section for loans from the federal
government. These bonds, notes, or warrants may be sold at either
public or private sale, as the commission considers appropriate.
(j) Money obtained from the federal government or from other
sources under this section, and money that is required by a contract
or agreement under this section to be used for project expenditure
purposes, repayment of survey and planning advances, or repayment
of temporary or definitive loans, may be expended by the
commission without regard to any law pertaining to the making and
approval of budgets, appropriations, and expenditures.
(k) Bonds, notes, or warrants issued under this section are
declared to be issued for an essential public and governmental
purpose.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.2-1989,
SEC.36; P.L.146-2008, SEC.754.
IC 36-7-15.1-25
Tax exemptions
Sec. 25. (a) Real property acquired by the redevelopment district
is exempt from taxation while owned by the district.
(b) All receipts of the department, including receipts from the sale
of real property, personal property, and materials disposed of, are
exempt from all taxes.
(c) As used in this subsection, "year one" means any calendar year
and "year two" means the calendar year following year one. When
real property is acquired by the redevelopment district during the
period from assessment on March 1 of year one to the last day of
February of year two, the taxes due in year two shall be prorated
between the seller and the city. When the proration is made, the
auditor shall remove the city's prorated share from the tax duplicate
by auditor's correction.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.192-1984,
SEC.12; P.L.14-1991, SEC.22; P.L.192-2002(ss), SEC.180.
IC 36-7-15.1-26
Real property tax allocation and distribution
Sec. 26. (a) As used in this section:
"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) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) 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.
The special fund may not be used for operating expenses of the
commission.
(3) 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 (2) plus the amount necessary for other purposes
described in subdivision (2) 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 (2).
(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)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(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)(2) shall establish an allocation fund for the
purposes specified in subsection (b)(2) 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) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) for the year. A unit that has no obligations, bonds,
or leases payable from allocated tax proceeds under subsection (b)(2)
shall establish a special zone fund and deposit all the property tax
proceeds in excess of those described in subsection (b)(1) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) 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)(2). However, where reference is made in
subsection (b)(2) 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 under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment 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)(2) than would otherwise
have been received if the general reassessment 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.
As added by Acts 1982, P.L.77, SEC.8. Amended by P.L.72-1983,
SEC.8; P.L.393-1987(ss), SEC.7; P.L.37-1988, SEC.26;
P.L.14-1991, SEC.23; P.L.41-1992, SEC.7; P.L.18-1992, SEC.27;
P.L.2-1995, SEC.134; P.L.25-1995, SEC.89; P.L.85-1995, SEC.41;
P.L.255-1997(ss), SEC.17; P.L.90-2002, SEC.479; P.L.4-2005,
SEC.138; P.L.185-2005, SEC.38; P.L.216-2005, SEC.7;
P.L.154-2006, SEC.77; P.L.146-2008, SEC.755; P.L.88-2009,
SEC.14; P.L.182-2009(ss), SEC.406.
IC 36-7-15.1-26.1
Repealed
(Repealed by P.L.146-2008, SEC.812.)
IC 36-7-15.1-26.2
Definitions; amendment of resolution; property taxes
Sec. 26.2. (a) As used in this section, "depreciable personal
property" refers to all of the designated taxpayer's depreciable
personal property that is located in the allocation area.
(b) As used in this section, "designated taxpayer" means a
taxpayer designated by the commission in a declaratory resolution
adopted or amended under section 8 or 10.5 of this chapter, and with
respect to which the commission finds that:
(1) taxes to be derived from the taxpayer's depreciable personal
property in the allocation area, in excess of the taxes
attributable to the base assessed value of that personal property,
are needed to pay debt service for bonds issued under section 17
of this chapter or to make payments on leases payable under
section 17.1 of this chapter in order to provide local public
improvements for a particular allocation area;
(2) the taxpayer's property in the allocation area will consist
primarily of industrial, manufacturing, warehousing, research
and development, processing, distribution, transportation, or
convention center hotel related projects; and
(3) the taxpayer's property in the allocation area will not consist
primarily of retail, commercial, or residential projects.
For purposes of subdivision (3), a convention center hotel project is
not considered a retail, commercial, or residential project.
(c) The allocation provision of a declaratory resolution may
modify the definition of "property taxes" under section 26(a) of this
chapter to include taxes imposed under IC 6-1.1 on the depreciable
personal property of designated taxpayers in accordance with the
procedures and limitations set forth in this section and section 26 of
this chapter. If such a modification is included in the resolution, for
purposes of section 26 of this chapter the term "base assessed value"
with respect to the depreciable personal property of designated
taxpayers means the net assessed value of the depreciable personal
property as finally determined for the assessment date immediately
preceding:
(1) the effective date of the modification, for modifications
adopted before July 1, 1995; and
(2) the adoption date of the modification for modifications
adopted after June 30, 1995;
as adjusted under section 26(h) of this chapter.
As added by P.L.41-1992, SEC.8. Amended by P.L.25-1995, SEC.90;
P.L.234-2007, SEC.205.
IC 36-7-15.1-26.5
Repealed
(Repealed by P.L.146-2008, SEC.813.)
IC 36-7-15.1-26.7
Repealed
(Repealed by P.L.146-2008, SEC.813.)
IC 36-7-15.1-26.9
Repealed
(Repealed by P.L.146-2008, SEC.813.)
IC 36-7-15.1-27
Crimes and offenses
Sec. 27. A person who knowingly:
(1) applies any money raised under this chapter to any purpose
other than those permitted by this chapter; or
(2) fails to follow the voucher and warrant procedure prescribed
by law in expending any money raised under this chapter;
commits a Class C felony.
As added by Acts 1982, P.L.77, SEC.8.
IC 36-7-15.1-28
Planning and development as public and governmental function;
goals; public purpose; construction
Sec. 28. (a) The planning, replanning, development, and
redevelopment of economic development areas are public and
governmental functions that cannot be accomplished through the
ordinary operations of private enterprise due to:
(1) the necessity for the exercise of the power of eminent
domain;
(2) the necessity for requiring the proper use of the land so as
to best serve the interests of the county and its citizens; and
(3) the costs of these projects.
(b) The planning, replanning, development, and redevelopment of
economic development areas will:
(1) benefit the health, safety, morals, and welfare;
(2) increase the economic well-being of the county and the
state; and
(3) serve to protect and increase property values in the county
and the state.
(c) The planning, replanning, development, and redevelopment of
economic development areas under this section and sections 29, 30,
57, and 58 of this chapter are public uses and purposes for which
public money may be spent and private property may be acquired.
(d) This section and sections 29, 30, 57, and 58 of this chapter
shall be liberally construed to carry out the purposes of this section.
As added by P.L.222-1986, SEC.2. Amended by P.L.102-1999,
SEC.3.
IC 36-7-15.1-29
Determination of economic development area; approval;
requirements; procedures
Sec. 29. (a) The commission may, by following the procedures set
forth in sections 8, 9, and 10 of this chapter, approve a plan for and
determine that a geographic area in the redevelopment district is an
economic development area. Designation of an economic
development area is subject to judicial review in the manner
prescribed in section 11 of this chapter.
(b) The commission may determine that a geographic area is an
economic development area if it finds:
(1) the plan for the economic development area:
(A) promotes significant opportunities for the gainful
employment of its citizens;
(B) attracts a major new business enterprise to the unit;
(C) retains or expands a significant business enterprise
existing in the boundaries of the unit; or
(D) meets other purposes of this section and sections 28 and
30 of this chapter;
(2) the plan for the economic development area cannot be
achieved by regulatory processes or by the ordinary operation
of private enterprise without resort to the powers allowed under
this section and sections 28 and 30 of this chapter because of:
(A) lack of local public improvement;
(B) existence of improvements or conditions that lower the
value of the land below that of nearby land;
(C) multiple ownership of land; or
(D) other similar conditions;
(3) the public health and welfare will be benefited by
accomplishment of the plan for the economic development area;
(4) the accomplishment of the plan for the economic
development area will be a public utility and benefit as
measured by:
(A) attraction or retention of permanent jobs;
(B) increase in the property tax base;
(C) improved diversity of the economic base; or
(D) other similar public benefits; and
(5) the plan for the economic development area conforms to the
comprehensive plan of development for the consolidated city.
(c) The determination that a geographic area is an economic
development area must be approved by the city-county legislative
body. The approval may be given either before or after judicial
review is requested. The requirement that the city-county legislative
body approve economic development areas does not prevent the
commission from amending the plan for the economic development
area. However, the enlargement of any boundary in the economic
development area must be approved by the city-county legislative
body, and a boundary may not be enlarged unless:
(1) the existing area does not generate sufficient revenue to
meet the financial obligations of the original project; or
(2) the Indiana economic development corporation has, in the
manner provided by section 8(f) of this chapter, made a finding
approving the enlargement of the boundary.
As added by P.L.222-1986, SEC.3. Amended by P.L.146-2008,
SEC.757.
IC 36-7-15.1-30
Powers of commission
Sec. 30. (a) All of the rights, powers, privileges, and immunities
that may be exercised by the commission in a redevelopment project
area or urban renewal area may be exercised by the commission in
an economic development area, subject to the following:
(1) The content and manner of exercise of these rights, powers,
privileges, and immunities shall be determined by the purposes
and nature of an economic development area.
(2) Real property (or interests in real property) relative to which
action is taken under this section or section 28 or 29 of this
chapter in an economic development area is not required to
meet the conditions described in IC 36-7-1-3.
(3) The special tax levied in accordance with section 16 of this
chapter may be used to carry out activities under this chapter in
economic development areas.
(4) Bonds may be issued in accordance with section 17 of this
chapter to defray expenses of carrying out activities under this
chapter in economic development areas if no other revenue
sources are available for this purpose.
(5) The tax exemptions set forth in section 25 of this chapter are
applicable in economic development areas.
(6) An economic development area may be an allocation area
for the purposes of distribution and allocation of property taxes.
(7) The commission may not use its power of eminent domain
under section 13 of this chapter to carry out activities under this
chapter in economic development areas.
(b) The content and manner of discharge of duties set forth in
section 6 of this chapter shall be determined by the purposes and
nature of an economic development area.
As added by P.L.222-1986, SEC.4. Amended by P.L.185-2005,
SEC.39; P.L.146-2008, SEC.758.
IC 36-7-15.1-31
Findings of general assembly
Sec. 31. The general assembly finds the following:
(1) There exists within areas needing redevelopment a shortage
of safe and affordable housing for persons of low and moderate
income.
(2) The planning, replanning, development, and redevelopment
of housing within areas needing redevelopment are public and
governmental functions that cannot be accomplished through
the ordinary operations of private enterprise because of:
(A) the necessity for the exercise of the power of eminent
domain;
(B) the necessity for requiring the proper use of the land so
as to best serve the interests of the county and its citizens;
and
(C) the costs of these projects.
(3) The provision of affordable housing for persons of low or
moderate income does not compete with the ordinary operation
of private enterprise.
(4) It is in the public interest that work on the provision of
housing be commenced as soon as possible to relieve the need
for this housing, which constitutes an emergency.
(5) The absence of affordable housing in areas needing
redevelopment necessitates excessive and disproportionate
expenditures of public funds for crime prevention, public health
and safety, fire and accident prevention, and other public
services and facilities.
(6) The planning, replanning, development, and redevelopment
of housing within areas needing redevelopment will do the
following:
(A) Benefit the health, safety, morals, and welfare of the
county and the state.
(B) Serve to protect and increase property values in the
county and the state.
(C) Benefit persons of low and moderate income by making
affordable housing available to them.
(D) Reduce public expenditures required for governmental
functions such as police and fire protection and other
services.
(7) The planning, replanning, development, and redevelopment
of housing within areas needing redevelopment under this
section and sections 32 through 35 of this chapter are:
(A) necessary in the public interest; and
(B) public uses and purposes for which public money may
be spent and private property may be acquired.
(8) This section and sections 32 through 35 of this chapter shall
be liberally construed to carry out the purposes of this section
and this chapter.
As added by P.L.193-1988, SEC.7. Amended by P.L.185-2005,
SEC.40.
IC 36-7-15.1-32
Housing program; notice and hearing; neighbor associations and
residents
Sec. 32. (a) The commission must establish a program for
housing. The program, which may include such elements as the
commission considers appropriate, must be adopted as part of a
redevelopment plan or amendment to a redevelopment plan, and must
establish an allocation area for purposes of sections 26 and 35 of this
chapter for the accomplishment of the program.
(b) The notice and hearing provisions of sections 10 and 10.5 of
this chapter apply to the resolution adopted under subsection (a).
Judicial review of the resolution may be made under section 11 of
this chapter.
(c) Before formal submission of any housing program to the
commission, the department shall consult with persons interested in
or affected by the proposed program and provide the affected
neighborhood associations, residents, township assessors (if any),
and the county assessor with an adequate opportunity to participate
in an advisory role in planning, implementing, and evaluating the
proposed program. The department may hold public meetings in the
affected neighborhood to obtain the views of neighborhood
associations and residents.
As added by P.L.193-1988, SEC.8. Amended by P.L.219-2007,
SEC.130; P.L.146-2008, SEC.759.
IC 36-7-15.1-33
Commission rights, powers, privileges, and immunities
Sec. 33. All of the rights, powers, privileges, and immunities that
may be exercised by the commission in redevelopment project areas
may be exercised by the commission in implementing its program for
housing including the following:
(1) The special tax levied in accordance with section 16 of this
chapter may be used to accomplish the housing program.
(2) Bonds may be issued under this chapter to accomplish the
housing program, but only one (1) issue of bonds may be issued
and payable from increments in any allocation area except for
refunding bonds or bonds issued in an amount necessary to
complete a housing program for which bonds were previously
issued.
(3) Leases may be entered into under this chapter to accomplish
the housing program.
(4) The tax exemptions set forth in section 25 of this chapter are
applicable.
(5) Property taxes may be allocated under section 26 of this
chapter.
As added by P.L.193-1988, SEC.9. Amended by P.L.185-2005,
SEC.41.
IC 36-7-15.1-34
Housing program; resolution; findings
Sec. 34. The commission must make the following findings in the
resolution adopting a housing program under section 32 of this
chapter:
(1) The program meets the purposes of section 31 of this
chapter.
(2) The program cannot be accomplished by regulatory
processes or by the ordinary operation of private enterprise
because of:
(A) lack of public improvements;
(B) existence of improvements or conditions that lower the
value of the land below that of nearby land; or
(C) other similar conditions.
(3) The public health and welfare will be benefited by
accomplishment of the program.
(4) The accomplishment of the program will be of public utility
and benefit as measured by:
(A) provision of adequate housing for low and moderate
income persons;
(B) increase in the property tax base; or
(C) other similar public benefits.
(5) At least one-third (1/3) of the parcels in the allocation area
established by the program are vacant.
(6) At least three-fourths (3/4) of the allocation area is used for
residential purposes or is planned to be used for residential
purposes.
(7) At least one-third (1/3) of the residential units in the
allocation area were constructed before 1941.
(8) At least one-third (1/3) of the parcels in the allocation area
have one (1) or more of the following characteristics:
(A) The dwelling unit on the parcel is not permanently
occupied.
(B) The parcel is the subject of a governmental order, issued
under a statute or ordinance, requiring the correction of a
housing code violation or unsafe building condition.
(C) Two (2) or more property tax payments on the parcel are
delinquent.
(D) The parcel is owned by local, state, or federal
government.
As added by P.L.193-1988, SEC.10. Amended by P.L.1-1993,
SEC.246.
IC 36-7-15.1-35
Base assessed value; special fund use for allocation area program;
maximum additional credit; resolution
Sec. 35. (a) Notwithstanding section 26(a) of this chapter, with
respect to the allocation and distribution of property taxes for the
accomplishment of a program adopted under section 32 of this
chapter, "base assessed value" means the net assessed value of all of
the land as finally determined for the assessment date immediately
preceding the effective date of the allocation provision, as adjusted
under section 26(g) of this chapter. However, "base assessed value"
does not include the value of real property improvements to the land.
(b) The special fund established under section 26(b) of this
chapter for the allocation area for a program adopted under section
32 of this chapter may be used only for purposes related to the
accomplishment of the program, including the following:
(1) The construction, rehabilitation, or repair of residential units
within the allocation area.
(2) The construction, reconstruction, or repair of infrastructure
(such as streets, sidewalks, and sewers) within or serving the
allocation area.
(3) The acquisition of real property and interests in real
property within the allocation area.
(4) The demolition of real property within the allocation area.
(5) To provide financial assistance to enable individuals and
families to purchase or lease residential units within the
allocation area. 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.
(6) To provide financial assistance to neighborhood
development corporations to permit them to provide financial
assistance for the purposes described in subdivision (5).
(7) For property taxes first due and payable before 2009, to
provide each taxpayer in the allocation area a credit for property
tax replacement as determined under subsections (c) and (d).
However, this credit may be provided by the commission only
if the city-county legislative body establishes the credit by
ordinance adopted in the year before the year in which the
credit is provided.
(c) The maximum credit that may be provided under subsection
(b)(7) to a taxpayer in a taxing district that contains all or part of an
allocation area established for a program adopted under section 32
of this chapter shall be determined as follows:
STEP ONE: Determine that part of the sum of the amounts
described in IC 6-1.1-21-2(g)(1)(A) and IC 6-1.1-21-2(g)(2)
through IC 6-1.1-21-2(g)(5) that is attributable to the taxing
district.
STEP TWO: Divide:
(A) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2) for that
year as determined under IC 6-1.1-21-4(a)(1) that is
attributable to the taxing district; by
(B) the amount determined under STEP ONE.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the taxpayer's taxes (as defined in IC 6-1.1-21-2) levied
in the taxing district allocated to the allocation fund,
including the amount that would have been allocated but for
the credit.
(d) Except as provided in subsection (g), the commission may
determine to grant to taxpayers in an allocation area from its
allocation fund a credit under this section, as calculated under
subsection (c), by applying one-half (1/2) of the credit to each
installment of taxes (as defined in IC 6-1.1-21-2) that under
IC 6-1.1-22-9 are due and payable in a year. Except as provided in
subsection (g), one-half (1/2) of the credit shall be applied to each
installment of taxes (as defined in IC 6-1.1-21-2). The commission
must provide for the credit annually by a resolution and must find in
the resolution the following:
(1) That the money to be collected and deposited in the
allocation fund, based upon historical collection rates, after
granting the credit will equal the amounts payable for
contractual obligations from the fund, plus ten percent (10%) of
those amounts.
(2) If bonds payable from the fund are outstanding, that there is
a debt service reserve for the bonds that at least equals the
amount of the credit to be granted.
(3) If bonds of a lessor under section 17.1 of this chapter or
under IC 36-1-10 are outstanding and if lease rentals are
payable from the fund, that there is a debt service reserve for
those bonds that at least equals the amount of the credit to be
granted.
If the tax increment is insufficient to grant the credit in full, the
commission may grant the credit in part, prorated among all
taxpayers.
(e) Notwithstanding section 26(b) of this chapter, the special fund
established under section 26(b) of this chapter for the allocation area
for a program adopted under section 32 of this chapter may only be
used to do one (1) or more of the following:
(1) Accomplish one (1) or more of the actions set forth in
section 26(b)(2)(A) through 26(b)(2)(H) of this chapter.
(2) Reimburse the consolidated city for expenditures made by
the city in order to accomplish the housing program in that
allocation area.
The special fund may not be used for operating expenses of the
commission.
(f) Notwithstanding section 26(b) of this chapter, the commission
shall, relative to the special fund established under section 26(b) of
this chapter for an allocation area for a program adopted under
section 32 of this chapter, do the following before July 15 of each
year:
(1) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area, 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:
(A) to make, when due, principal and interest payments on
bonds described in section 26(b)(2) of this chapter;
(B) to pay the amount necessary for other purposes
described in section 26(b)(2) of this chapter; and
(C) to reimburse the consolidated city for anticipated
expenditures described in subsection (e)(2).
(2) 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:
(A) 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 section
26(b)(1) of this chapter; or
(B) 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 section 26(b)(1) of
this chapter.
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission.
(g) This subsection applies to an allocation area only to the extent
that the net assessed value of property that is assessed as residential
property under the rules of the department of local government
finance is not included in the base assessed value. If property tax
installments with respect to a homestead (as defined in
IC 6-1.1-20.9-1) are due in installments established by the
department of local government finance under IC 6-1.1-22-9.5, each
taxpayer subject to those installments in an allocation area is entitled
to an additional credit under subsection (d) for the taxes (as defined
in IC 6-1.1-21-2) due in installments. The credit shall be applied in
the same proportion to each installment of taxes (as defined in
IC 6-1.1-21-2).
As added by P.L.193-1988, SEC.11. Amended by P.L.2-1989,
SEC.38; P.L.192-2002(ss), SEC.182; P.L.1-2004, SEC.66 and
P.L.23-2004, SEC.68; P.L.219-2007, SEC.131; P.L.146-2008,
SEC.760.
IC 36-7-15.1-35.5
Supplemental housing program; housing trust fund; low income
housing trust fund advisory committee
Sec. 35.5. (a) The general assembly finds the following:
(1) Federal law permits the sale of a multiple family housing
project that is or has been covered, in whole or in part, by a
contract for project based assistance from the United States
Department of Housing and Urban Development without
requiring the continuation of that project based assistance.
(2) Such a sale displaces the former residents of a multiple
family housing project described in subdivision (1) and
increases the shortage of safe and affordable housing for
persons of low and moderate income within the county.
(3) The displacement of families and individuals from
affordable housing requires increased expenditures of public
funds for crime prevention, public health and safety, fire and
accident prevention, and other public services and facilities.
(4) The establishment of a supplemental housing program under
this section will do the following:
(A) Benefit the health, safety, morals, and welfare of the
county and the state.
(B) Serve to protect and increase property values in the
county and the state.
(C) Benefit persons of low and moderate income by making
affordable housing available to them.
(5) The establishment of a supplemental housing program under
this section and sections 32 through 35 of this chapter is:
(A) necessary in the public interest; and
(B) a public use and purpose for which public money may be
spent and private property may be acquired.
(b) In addition to its other powers with respect to a housing
program under sections 32 through 35 of this chapter, the
commission may establish a supplemental housing program. Except
as provided by this section, the commission has the same powers and
duties with respect to the supplemental housing program that the
commission has under sections 32 through 35 of this chapter with
respect to the housing program.
(c) One (1) allocation area may be established for the
supplemental housing program. The commission is not required to
make the findings required under section 34(5) through 34(8) of this
chapter with respect to the allocation area. However, the commission
must find that the property contained within the boundaries of the
allocation area consists solely of one (1) or more multiple family
housing projects that are or have been covered, in whole or in part,
by a contract for project based assistance from the United States
Department of Housing and Urban Development or have been owned
at one time by a public housing agency. The allocation area need not
be contiguous. The definition of "base assessed value" set forth in
section 35(a) of this chapter applies to the special fund established
under section 26(b) of this chapter for the allocation area.
(d) The special fund established under section 26(b) of this
chapter for the allocation area established under this section may be
used only for the following purposes:
(1) Subject to subdivision (2), on January 1 and July 1 of each
year the balance of the special fund shall be transferred to the
housing trust fund established under subsection (e).
(2) The commission may provide each taxpayer in the allocation
area a credit for property tax replacement in the manner
provided by section 35(b)(7) of this chapter. Transfers made
under subdivision (1) shall be reduced by the amount necessary
to provide the credit.
(e) The commission shall, by resolution, establish a housing trust
fund to be administered, subject to the terms of the resolution, by:
(1) the housing division of the consolidated city; or
(2) the department, division, or agency that has been designated
to perform the public housing function by an ordinance adopted
under IC 36-7-18-1.
(f) The housing trust fund consists of:
(1) amounts transferred to the fund under subsection (d);
(2) payments in lieu of taxes deposited in the fund under
IC 36-3-2-11;
(3) gifts and grants to the fund;
(4) investment income earned on the fund's assets;
(5) money deposited in the fund under IC 36-2-7-10(j); and
(6) other funds from sources approved by the commission.
(g) The commission shall, by resolution, establish uses for the
housing trust fund. However, the uses must be limited to:
(1) providing financial assistance to those individuals and
families whose income is at or below eighty percent (80%) of
the county's median income for individuals and families,
respectively, to enable those individuals and families to
purchase or lease residential units within the county;
(2) paying expenses of administering the fund;
(3) making grants, loans, and loan guarantees for the
development, rehabilitation, or financing of affordable housing
for individuals and families whose income is at or below eighty
percent (80%) of the county's median income for individuals
and families, respectively, including the elderly, persons with
disabilities, and homeless individuals and families; and
(4) providing technical assistance to nonprofit developers of
affordable housing.
(h) At least fifty percent (50%) of the dollars allocated for
production, rehabilitation, or purchase of housing must be used for
units to be occupied by individuals and families whose income is at
or below fifty percent (50%) of the county's area median income for
individuals and families, respectively.
(i) The low income housing trust fund advisory committee is
established. The low-income housing trust fund advisory committee
consists of eleven (11) members. The membership of the low income
housing trust fund advisory committee is comprised of:
(1) one (1) member appointed by the mayor, to represent the
interests of low income families;
(2) one (1) member appointed by the mayor, to represent the
interests of owners of subsidized, multifamily housing
communities;
(3) one (1) member appointed by the mayor, to represent the
interests of banks and other financial institutions;
(4) one (1) member appointed by the mayor, of the department
of metropolitan development;
(5) three (3) members representing the community at large
appointed by the commission, from nominations submitted to
the commission as a result of a general call for nominations
from neighborhood associations, community based
organizations, and other social services agencies;
(6) one (1) member appointed by and representing the Coalition
for Homeless Intervention and Prevention of Greater
Indianapolis;
(7) one (1) member appointed by and representing the Local
Initiatives Support Corporation;
(8) one (1) member appointed by and representing the
Indianapolis Coalition for Neighborhood Development; and
(9) one (1) member appointed by and representing the
Indianapolis Neighborhood Housing Partnership.
Members of the low income housing trust fund advisory committee
serve for a term of four (4) years, and are eligible for reappointment.
If a vacancy exists on the committee, the appointing authority who
appointed the former member whose position has become vacant
shall appoint an individual to fill the vacancy. A committee member
may be removed at any time by the appointing authority who
appointed the committee member.
(j) The low income housing trust fund advisory committee shall
make recommendations to the commission regarding:
(1) the development of policies and procedures for the uses of
the low income housing trust fund; and
(2) long term sources of capital for the low income housing
trust fund, including:
(A) revenue from:
(i) development ordinances;
(ii) fees; or
(iii) taxes;
(B) financial market based income;
(C) revenue derived from private sources; and
(D) revenue generated from grants, gifts, donations, or
income in any other form, from a:
(i) government program;
(ii) foundation; or
(iii) corporation.
(k) The county treasurer shall invest the money in the fund not
currently needed to meet the obligations of the fund in the same
manner as other public funds may be invested.
As added by P.L.19-2000, SEC.3. Amended by P.L.211-2007,
SEC.48.
IC 36-7-15.1-36
Military base reuse area
Sec. 36. A redevelopment project area, an urban renewal area, or
an economic development area established under this chapter may
not include land that constitutes part of a military base reuse area
established under IC 36-7-30.
As added by P.L.26-1995, SEC.8. Amended by P.L.185-2005,
SEC.42.
IC 36-7-15.1-36.2
Quadrennial fiscal analysis; report
Sec. 36.2. On a quadrennial basis, the general assembly shall
provide for an evaluation of the provisions of this chapter, giving
first priority to using the Indiana economic development corporation
established under IC 5-28-3. The evaluation must be a fiscal analysis,
including an assessment of the effectiveness of the provisions of this
chapter to:
(1) create new jobs;
(2) increase income; and
(3) increase the tax base;
in the jurisdiction of the county. The fiscal analysis may also
consider impacts on tax burdens borne by property owners. The
fiscal analysis may also include a review of the practices and
experiences of other states or political subdivisions with laws similar
to the provisions of this chapter. The Indiana economic development
corporation established under IC 5-28-3 or another person or entity
designated by the general assembly shall submit a report on the
evaluation to the governor, the president pro tempore of the senate,
and the speaker of the house of representatives before December 1,
2007, and every fourth year thereafter.
As added by P.L.25-1995, SEC.91. Amended by P.L.4-2005,
SEC.139.
IC 36-7-15.1-37
Additional definitions; applicability of certain sections
Sec. 37. (a) As used in this section and sections 38 through 58 of
this chapter:
"City" or "excluded city" refers to an excluded city (as defined in
IC 36-3-1-7) but does not refer to an excluded city described in
IC 36-7-14-1(b).
"Commission" refers to the metropolitan development
commission acting as the redevelopment commission of an excluded
city.
(b) Sections 38 through 58 of this chapter do not apply to an
excluded city described in IC 36-7-14-1(b).
As added by P.L.102-1999, SEC.4. Amended by P.L.190-2005,
SEC.13; P.L.1-2006, SEC.568.
IC 36-7-15.1-38
Redevelopment districts
Sec. 38. (a) There exists in each excluded city a redevelopment
district comprised of all land situated within the geographic
boundaries of each respective excluded city.
(b) Each redevelopment district described in subsection (a)
constitutes a special taxing district for the purpose of levying and
collecting special benefit taxes for redevelopment purposes as
provided in this chapter.
(c) All of the taxable property within each redevelopment district
established by subsection (a) is considered to be benefited by
redevelopment projects carried out under sections 37 through 58 of
this chapter to the extent of the special taxes levied under sections 37
through 58 of this chapter.
As added by P.L.102-1999, SEC.5.
IC 36-7-15.1-39
Powers and duties of commission; eminent domain
Sec. 39. (a) A commission has the duties set forth in section 6 of
this chapter.
(b) A commission may exercise all the powers set forth in section
7 of this chapter, except that all powers regarding condemnation and
eminent domain under this section are vested solely in the legislative
body of an excluded city. Eminent domain proceedings under this
section are governed by IC 32-24.
As added by P.L.102-1999, SEC.6. Amended by P.L.2-2002,
SEC.114.
IC 36-7-15.1-40
Establishment of redevelopment project area; amendment to
redevelopment resolutions; appeals
Sec. 40. (a) A commission shall establish a redevelopment project
area by following the procedures set forth in sections 8 through 10
of this chapter. The establishment of a redevelopment project area
under this subsection must also be approved by resolution of the
legislative body of the excluded city.
(b) A commission may amend a resolution or plan for a
redevelopment project area or economic development area by
following the procedures set forth in sections 8 through 10.5 of this
chapter. An amendment made under this subsection must also be
approved by resolution of the legislative body of the excluded city.
(c) A person who filed a written remonstrance with the
commission under subsection (a) and is aggrieved by the final action
taken may seek appeal of the action by following the procedures for
appeal set forth in section 11 of this chapter. The appeal hearing is
governed by the procedures of section 11(b) of this chapter.
As added by P.L.102-1999, SEC.7. Amended by P.L.185-2005,
SEC.43; P.L.146-2008, SEC.761.
IC 36-7-15.1-41
Assistance from public entities with redevelopment or economic
development projects; agreements
Sec. 41. (a) A political subdivision, another governmental entity,
a public instrumentality created by state law, or a public body created
by state law may, in the area in which it is authorized to act, do all
things necessary to aid and cooperate in the planning and
undertaking of a redevelopment or economic development project,
including furnishing the financial and other assistance that it is
authorized by this chapter to furnish for or in connection with a
redevelopment plan or redevelopment project.
(b) A unit, another governmental entity, a public instrumentality
created by state law, or a public body created by state law may enter
into agreements with the commission or any other entity respecting
action to be taken under this chapter, including the furnishing of
funds or other assistance in connection with a redevelopment or
economic development plan or project. These agreements may
extend over any period, notwithstanding any other law.
As added by P.L.102-1999, SEC.8. Amended by P.L.221-2007,
SEC.47.
IC 36-7-15.1-42
Approval of real property to be acquired; negotiations for
purchase; methods and means of acquisition
Sec. 42. (a) If no appeal is taken, or if an appeal is taken but is
unsuccessful, the commission shall proceed with the proposed
project, to the extent that money is available for that purpose.
(b) The commission shall first approve and adopt a list of the real
property and interests in real property to be acquired and the price to
be offered to the owner of each parcel or interest. The prices to be
offered may not exceed the average of two (2) independent
appraisals of fair market value procured by the commission, except
that appraisals are not required in transactions with other
governmental agencies. However, if the real property is less than five
(5) acres in size and the fair market value of the real property or
interest has been appraised by one (1) independent appraiser at less
than ten thousand dollars ($10,000), the second appraisal may be
made by a qualified employee of the department. The prices
indicated on the list may not be exceeded unless specifically
authorized by the commission under section 39 of this chapter or
ordered by a court in condemnation proceedings. The commission
may except from acquisition any real property in the area if it finds
that such an acquisition is not necessary under the redevelopment
plan. Appraisals made under this section are for the information of
the commission and are not open for public inspection.
(c) Negotiations for the purchase of property may be carried on
directly by the commission, by its employees, or by expert
negotiators employed for that purpose. The commission shall adopt
a standard form of option for use in negotiations, but no option,
contract, or understanding relative to the purchase of real property is
binding on the commission until approved and accepted by the
commission in writing. The commission may authorize the payment
of a nominal fee to bind an option and as a part of the consideration
for conveyance may agree to pay the expense incident to the
conveyance and determination of the title of the property. Payment
for the property purchased shall be made when and as directed by the
commission, but only on delivery of proper instruments conveying
the title or interest of the owner to "City [or Town] of ___________
for the use and benefit of its Redevelopment District".
(d) Notwithstanding subsections (a) through (c), the commission
may, before the time referred to in this section, accept gifts of
property needed for the redevelopment of redevelopment project
areas. The commission may, before the time referred to in this
section, take options on or contract for the acquisition of property
needed for the redevelopment of redevelopment project areas if the
options and contracts are not binding on the commission or the
redevelopment district until the time referred to in this section and
until money is available to pay the consideration set out in the
options or contracts.
(e) Section 44(a) through 44(h) of this chapter does not apply to
exchanges of real property (or interests in real property) in
connection with the acquisition of real property (or interests in real
property) under this section. In acquiring real property (or interests
in real property) under this section the commission may, as an
alternative to offering payment of money as specified in subsection
(b), offer for the real property (or interest in real property) that the
commission desires to acquire:
(1) exchange of real property or interests in real property owned
by the redevelopment district;
(2) exchange of real property or interests in real property owned
by the redevelopment district, along with the payment of money
by the commission; or
(3) exchange of real property or interests in real property owned
by the redevelopment district along with the payment of money
by the owner of the real property or interests in real property
that the commission desires to acquire.
The commission shall have the fair market value of the real property
or interests in real property owned by the redevelopment district
appraised as specified in section 44(b) of this chapter. The appraisers
may not also appraise the value of the real property or interests in
real property to be acquired by the redevelopment district. The
commission shall establish the nature of the offer to the owner based
on the difference between the average of the two (2) appraisals of the
fair market value of the real property or interests in real property to
be acquired by the commission and the average of the appraisals of
fair market value of the real property or interests in real property to
be exchanged by the commission.
As added by P.L.102-1999, SEC.9. Amended by P.L.185-2005,
SEC.44.
IC 36-7-15.1-43
Additional powers of commission
Sec. 43. A commission has the powers and must follow the
procedures set forth in section 14 of this chapter.
As added by P.L.102-1999, SEC.10.
IC 36-7-15.1-44
Appraisal, publication, and bidding requirements; exceptions;
procedures
Sec. 44. (a) The provisions of this section concerning appraisal,
publication, and bidding requirements do not apply to sales, leases,
or other dispositions of real or personal property interests in property
to other public agencies, including the federal government or any
agency or department of the federal government, for public purposes.
(b) Before offering for sale, exchange, or lease (or a combination
of methods) to the public any of the property or interests acquired,
the commission shall cause two (2) separate appraisals of the fair
market value to be made by independent appraisers. However, if the
property is less than five (5) acres in size and the fair market value
of the real property or interest has been appraised by one (1)
independent appraiser at less than ten thousand dollars ($10,000), the
second appraisal may be made by a qualified employee of the
department. In the case of an exchange, the same appraiser may not
appraise both of the properties to be exchanged. In making
appraisals, the appraisers shall take into consideration the size,
location, and physical condition of the parcels, the advantages
accruing to the parcels under the redevelopment plan, and all other
factors having a bearing on the value of the parcels. The appraisals
are solely for the information of the commission and are not open for
public inspection.
(c) The commission shall then prepare an offering sheet showing
the parcels to be offered and the offering prices, which may not be
less than the average of the two (2) appraisals. Copies of the offering
sheets shall be furnished to prospective buyers on request. Maps,
plats, or maps and plats showing the size and location of all parcels
to be offered shall also be kept available for inspection at the office
of the department.
(d) A notice shall be published in accordance with IC 5-3-1. The
notice must state that at a designated time the commission will open
and consider written offers for the purchase or lease of the property
or interests being offered. In giving the notice it is not necessary to
describe each parcel separately or to specify the exact terms of
disposition, but the notice must:
(1) state the general location of the parcels;
(2) call attention generally to any limitations in the
redevelopment plan on the use to be made of the real property
offered; and
(3) state that a bid submitted by a trust (as defined in
IC 30-4-1-1(a)) must identify each:
(A) beneficiary of the trust; and
(B) settlor empowered to revoke or modify the trust.
(e) At the time fixed in the notice, the commission shall open and
consider any offers received. The offers may consist of consideration
in the form of cash, other property, or a combination of cash and
property. However, with respect to property other than cash, the offer
must be accompanied by evidence of the property's fair market value
that is satisfactory to the commission in the commission's sole
discretion. All offers received shall be opened at public meetings of
the commission and shall be kept open for public inspection.
(f) The commission may reject any or all bids or may make
awards to the highest and best bidders. In determining the best bids,
the commission shall take into consideration the following factors:
(1) The size and character of the improvements proposed to be
made by the bidder on the real property bid on.
(2) The bidders' plans and ability to improve the real property
with reasonable promptness.
(3) Whether the real property when improved will be sold or
rented.
(4) The bidder's proposed sale or rental prices.
(5) The bidder's compliance with subsection (d)(3).
(6) Any factors that will assure the commission that the sale or
lease, if made, will further the execution of the redevelopment
plan and best serve the interest of the community, from the
standpoint of both human and economic welfare.
(g) The commission may contract with a bidder in regard to the
factors listed in subsection (f), and the contract may provide for the
deposit of surety bonds, the making of good faith deposits, liquidated
damages, the right of reversion or repurchase, or other rights and
remedies if the bidder fails to comply with the contract.
(h) After the opening, consideration, and determination of the
written offers filed in response to the notice, the commission may
dispose of all or part of the remaining available property or interests
for any approved use, either at public sale or by private negotiation
carried on by the commission, its regular employees, or real estate
experts employed for that purpose. For a period of thirty (30) days
after the opening of the written offers and determination on them, no
sale, exchange, or lease may be made at a price or rental less than
that shown on the offering sheet, except in the case of sales or rentals
of:
(1) ten (10) or more parcels to a purchaser or lessee who agrees
to improve the parcels immediately;
(2) parcels of property to individuals or families whose income
is at or below the county's median income for individual and
family income, respectively, for the purpose of constructing
single family or two (2) family housing; or
(3) parcels of property to a contractor or developer for the
purpose of constructing single family or two (2) family housing
for individuals or families whose income is at or below the
county's median income for individual and family income,
respectively;
but after that period the commission may adjust the offering prices
in the manner it considers necessary to further the redevelopment
plan.
(i) A conveyance under this section may not be made until the
agreed consideration has been paid, unless the commission adopts a
resolution:
(1) stating that consideration does not have to be paid before the
conveyance is made; and
(2) setting forth an arrangement for future payment of
consideration or provision of an infrastructure credit against the
consideration, or both.
If full consideration is not paid before the conveyance is made, the
commission may use a land sale contract or mortgage to secure
payment of the consideration or may accept as a credit against the
agreed consideration a contractual obligation to perform public
infrastructure work related to the property being conveyed. All
deeds, land sale contracts, leases, or other conveyances, and all
contracts and agreements, including contracts of purchase, sale, or
exchange and contracts for advancements, loans, grants,
contributions, or other aid, shall be executed in the name of the "City
[or Town] of _____________, for the use and benefit of its
Redevelopment District", and shall be executed by the president or
vice president of the commission.
As added by P.L.102-1999, SEC.11.
IC 36-7-15.1-45
Issuance and sale of bonds by commission
Sec. 45. (a) In addition to other methods of raising money for
property acquisition or redevelopment in a redevelopment project
area, and in anticipation of the special tax to be levied under section
50 of this chapter, the taxes allocated under section 53 of this
chapter, or other revenues of the redevelopment district, a
commission may, by resolution, issue the bonds of its redevelopment
district in the name of the excluded city. The amount of the bonds
may not exceed the total, as estimated by the commission, of all
expenses reasonably incurred in connection with the acquisition and
redevelopment of the property, including:
(1) the total cost of all land, rights-of-way, and other property
to be acquired and redeveloped;
(2) all reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and
redevelopment of the property or the issuance of bonds;
(3) capitalized interest permitted in this chapter and a debt
service reserve for the bonds, to the extent that the
redevelopment commission determines that a reserve is
reasonably required;
(4) the total cost of all clearing and construction work provided
for in the resolution; and
(5) expenses that the commission is required or permitted to pay
under IC 8-23-17.
(b) If a commission plans to acquire different parcels of land or let
different contracts for redevelopment work at approximately the
same time, whether under one (1) or more resolutions, a commission
may provide for the total cost in one (1) issue of bonds.
(c) The bonds must be dated as set forth in the bond resolution
and negotiable subject to the requirements concerning registration of
the bonds. The resolution authorizing the bonds must state:
(1) the denominations of the bonds;
(2) the place or places at which the bonds are payable; and
(3) the term of the bonds, which may not exceed:
(A) fifty (50) years, for bonds issued before July 1, 2008; or
(B) twenty-five (25) years, for bonds issued after June 30,
2008.
The resolution may also state that the bonds are redeemable before
maturity with or without a premium, as determined by the
commission.
(d) The commission shall certify a copy of the resolution
authorizing the bonds to the fiscal officer of the excluded city, 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.
(e) The bonds shall be executed by the excluded city executive
and attested by the excluded city fiscal officer. The interest coupons,
if any, shall be executed by the facsimile signature of the excluded
city fiscal officer.
(f) The bonds are exempt from taxation as provided by IC 6-8-5.
(g) The excluded city fiscal officer shall sell the bonds according
to law. Bonds payable solely or in part from tax proceeds allocated
under section 53(b)(2) of this chapter or other revenues of the district
may be sold at private negotiated sale and at a price or prices not less
than ninety-seven percent (97%) of the par value.
(h) The bonds are not a corporate obligation of the excluded city
but are an indebtedness of the redevelopment district. The bonds and
interest are payable:
(1) from a special tax levied upon all of the property in the
redevelopment district, as provided by section 50 of this
chapter;
(2) from the tax proceeds allocated under section 53(b)(2) of
this chapter;
(3) from other revenues available to the commission; or
(4) from a combination of the methods described in
subdivisions (1) through (3);
and from any revenues of the designated project. If the bonds are
payable solely from the tax proceeds allocated under section 53(b)(2)
of this chapter, other revenues of the redevelopment commission, or
any combination of these sources, they may be issued in any amount
without limitation.
(i) Proceeds from the sale of the bonds may be used to pay the
cost of interest on the bonds for a period not to exceed five (5) years
from the date of issue.
(j) The laws relating to the filing of petitions requesting the
issuance of bonds and the right of taxpayers and voters to
remonstrate against, or vote on, the issuance of bonds applicable to
bonds issued under this chapter do not apply to bonds payable solely
or in part from tax proceeds allocated under section 53(b)(2) of this
chapter, other revenues of the commission, or any combination of
these sources.
(k) If bonds are issued under this chapter that are payable solely
or in part from revenues to a commission from a project or projects,
a commission 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 the revenues from
the project or projects but may not convey or mortgage any project
or parts of a project. The resolution or trust indenture may also
contain any 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 covenants setting forth the duties
of the commission. The commission may establish fees and charges
for the use of any project and covenant with the owners of bonds to
set those fees and charges at a rate sufficient to protect the interest of
the owners of the bonds. Any revenue bonds issued by the
commission that are payable solely from revenues of the commission
must contain a statement to that effect in the form of bond.
As added by P.L.102-1999, SEC.12. Amended by P.L.185-2005,
SEC.45; P.L.219-2007, SEC.132; P.L.146-2008, SEC.762.
IC 36-7-15.1-46
Lease of property by commission
Sec. 46. (a) A commission may enter into a lease of any property
that may be financed with the proceeds of bonds issued under section
45 of this chapter with a lessor for a term not to exceed:
(1) fifty (50) years, for a lease entered into before July 1, 2008;
or
(2) twenty-five (25) years, for a lease entered into after June 30,
2008.
The lease may provide for payments to be made by the commission
from special benefits taxes levied under section 50 of this chapter,
taxes allocated under section 53 of this chapter, any other revenue
available to the commission, or any combination of these sources.
(b) A lease may provide that payments by the commission 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 commission only after a
public hearing by the commission at which all interested parties are
given the opportunity to be heard. Notice of the hearing must be
given by publication in accordance with IC 5-3-1. After the public
hearing, the commission may adopt a resolution authorizing the
execution of the lease on behalf of the unit if it 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 commission must be approved
by an ordinance of the fiscal body of the excluded city.
(d) Upon execution of a lease providing for payments by the
commission in whole or in part from the levy of special benefits
taxes under section 50 of this chapter and upon approval of the lease
by the fiscal body, the commission shall publish notice of the
execution of the lease and its approval in accordance with IC 5-3-1.
Fifty (50) or more taxpayers residing in the district who will be
affected by the lease and who may be of the opinion that no necessity
exists for the execution of the lease or that the payments provided for
in the lease are not fair and reasonable may file a petition in the
office of the county auditor within thirty (30) days after the
publication of the notice of execution and approval. The petition
must set forth the petitioners' names, addresses, and objections to the
lease and the facts showing that the execution of the lease is
unnecessary or unwise or that the payments provided for in the lease
are not fair and reasonable, as the case may be. Upon the filing of the
petition, the county auditor shall immediately certify a copy of the
petition, together with such other data as may be necessary in order
to present the questions involved, to the department of local
government finance. Upon receipt of the certified petition and
information, the department of local government finance shall fix a
time and place for the hearing in the redevelopment district, which
must not be less than five (5) or more than thirty (30) days after the
time for the hearing is fixed. Notice of the hearing shall be given by
the department of local government finance to the members of the
fiscal body, to the commission, and to the first fifty (50) petitioners
on the petition by a letter signed by the commissioner or deputy
commissioner of the department and enclosed with fully prepaid
postage sent to those persons at their usual place of residence, at least
five (5) days before the date of the hearing. The decision of the
department of local government finance on the appeal, upon the
necessity for the execution of the lease and as to whether the
payments under it are fair and reasonable, is final.
(e) A commission entering into a lease payable from allocated
taxes under section 53 of this chapter or revenues or other available
funds of the commission may:
(1) pledge the revenue to make payments under the lease as
provided in IC 5-1-14-4; and
(2) establish a special fund to make the payments.
Lease rentals may be limited to money in the special fund so that the
obligations of the commission 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, no approvals of any
governmental body or agency are required before the commission
enters into a lease under this section.
(g) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought
within thirty (30) days after the publication of the notice of the
execution and approval of the lease. However, if the lease is payable
in whole or in part from tax levies and an appeal has been taken to
the department of local government finance, an action to contest the
validity or to enjoin performance must be brought within thirty (30)
days after the decision of the department of local government
finance.
(h) If a commission exercises an option to buy a leased facility
from a lessor, the commission 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 commission through
auction, appraisal, or arms length negotiation. If the facility is sold
at auction, after appraisal, or through negotiation, the commission
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 within fifteen (15) days after the hearing.
As added by P.L.102-1999, SEC.13. Amended by P.L.90-2002,
SEC.483; P.L.146-2008, SEC.763.
IC 36-7-15.1-47
Persons permitted to lease facilities
Sec. 47. (a) Any of the following persons may lease facilities
referred to in section 46 of this chapter to a commission:
(1) A nonprofit corporation organized under Indiana law or
admitted to do business in Indiana.
(2) An authority established under IC 36-10-9.1.
(b) Notwithstanding any other law, a redevelopment facility
leased by the commission under this chapter from a lessor borrowing
bond proceeds from a unit under IC 36-7-12 is an economic
development facility for purposes of IC 36-7-11.9-3 and IC 36-7-12.
(c) Notwithstanding IC 36-7-12-25 and IC 36-7-12-26, payments
by the commission to a lessor described in subsection (b) may be
made from sources set forth in section 46 of this chapter so long as
the payments and the lease are structured to prevent the lease
obligation from constituting debt of the unit or the district for
purposes of the Constitution of the State of Indiana.
As added by P.L.102-1999, SEC.14.
IC 36-7-15.1-48
Pledge of revenue received or to be received; nonimpairment by
general assembly
Sec. 48. (a) Notwithstanding any other law, the legislative body
of the excluded city may pledge revenues received or to be received
by the excluded city from:
(1) the excluded city's distributive share of the county option
income tax under IC 6-3.5-6;
(2) any other source legally available to the excluded city for
the purposes of this chapter; or
(3) a combination of revenues under subdivisions (1) through
(2);
in any amount to pay amounts payable under section 45 or 46 of this
chapter.
(b) The legislative body of the excluded city may covenant to
adopt an ordinance to increase its tax rate under the county option
income tax or any other revenues at the time it is necessary to raise
funds to pay amounts payable under section 45 or 46 of this chapter.
(c) The commission may pledge revenues received or to be
received from any source legally available to it for the purposes of
this chapter in any amount to pay amounts payable under section 45
or 46 of this chapter.
(d) The pledge or the covenant under this section may be for the
life of the bonds issued under section 45 of this chapter, the term of
a lease entered into under section 46 of this chapter, or a shorter
period as determined by the legislative body of the excluded city.
Money pledged by the legislative body of the excluded city under
this section shall be considered revenues or other money available to
the commission under sections 45 through 46 of this chapter.
(e) The general assembly covenants not to impair this pledge or
covenant so long as any bonds issued under section 45 of this chapter
are outstanding or as long as any lease entered into under section 46
of this chapter is still in effect. The pledge or covenant shall be
enforced as provided in IC 5-1-14-4.
As added by P.L.102-1999, SEC.15. Amended by P.L.14-2000,
SEC.82.
IC 36-7-15.1-49
Redevelopment district fund
Sec. 49. (a) All proceeds of bonds issued under section 45 of this
chapter shall be kept as a separate and specific fund to pay the
expenses incurred in connection with the acquisition and
redevelopment of property. The fund shall be known as the
redevelopment district fund. Any surplus of funds remaining after all
expenses are paid shall be paid into and become a part of the
redevelopment district bond fund established under section 50 of this
chapter.
(b) All gifts, donations, proceeds of sales, or other payments that
are given or paid to an excluded city or its commission for
redevelopment purposes shall be promptly deposited to the credit of
the redevelopment district fund. The commission may use these gifts
and donations for the purposes of this chapter.
(c) Before the fifteenth day of each calendar month, the excluded
city fiscal officer shall notify the commission and the officers of the
excluded city who have duties in respect to the funds and accounts
of the excluded city of the amount standing to the credit of the
redevelopment district fund at the close of business on the last day
of the preceding month.
As added by P.L.102-1999, SEC.16.
IC 36-7-15.1-50
Tax on redevelopment district property; redevelopment district
bond fund
Sec. 50. (a) This section applies only to:
(1) bonds that are issued under section 45 of this chapter; or
(2) leases entered into under section 46 of this chapter;
that are payable from a special tax levied upon all of the property in
the redevelopment district. This section does not apply to bonds or
leases that are payable solely from tax proceeds allocated under
section 53(b)(2) of this chapter, other revenues of the commission,
or any combination of these sources.
(b) The excluded city legislative body shall levy each year a tax
on all of the property of the redevelopment district in such a manner
as to meet and pay:
(1) the principal of the bonds as they mature, together with all
accruing interest on the bonds; or
(2) lease rental payments under section 46 of this chapter.
The tax levied shall be certified to the fiscal officers of the excluded
city and the county before October 2 in each year. The tax shall be
estimated and entered on the tax duplicate by the county auditor and
shall be collected and enforced by the county treasurer in the same
manner as other state and county taxes are estimated, entered,
collected, and enforced.
(c) As the tax is collected, it shall be accumulated in a separate
fund to be known as the redevelopment district bond fund and shall
be applied to the payment of the bonds as they mature and the
interest on the bonds as it accrues, or to make lease payments, and to
no other purpose. All accumulations of the fund before use for the
payment of bonds and interest or to make lease payments shall be
deposited with the depository or depositories for other public funds
of the city in accordance with the statutes concerning the deposit of
public funds, unless they are invested under IC 5-13.
(d) The tax levies provided for in this section are reviewable by
other bodies vested by law with the authority to ascertain that the
levies are sufficient to raise the amount that, with other amounts
available, is sufficient to meet the payments under the lease payable
from the levy of taxes.
As added by P.L.102-1999, SEC.17.
IC 36-7-15.1-51
Application for and acceptance of loans; issuance and sale of
bonds; approval of fiscal body and legislative body
Sec. 51. (a) Subject to the approval of the legislative body of the
consolidated city, and in order to:
(1) undertake survey and planning activities under this chapter;
(2) undertake and carry out any redevelopment project or
economic development plan;
(3) pay principal and interest on any advances;
(4) pay or retire any bonds and interest on them; or
(5) refund loans previously made under this section;
the commission may apply for and accept advances, short term and
long term loans, grants, contributions, loan guarantees, and any other
form of financial assistance from the federal government or from any
of its agencies. The commission may apply for and accept loans
under this section from sources other than the federal government or
federal agencies, but only if the loans are unconditionally guaranteed
by the federal government or federal agencies. The commission may
also enter into and carry out contracts and agreements in connection
with that financial assistance upon the terms and conditions that the
commission considers reasonable and appropriate, if those terms and
conditions are not inconsistent with the purposes of this chapter. The
provisions of such a contract or agreement in regard to the handling,
deposit, and application of project funds as all other provisions are
valid and binding on the excluded city or its executive departments
and officers, as well as the commission, notwithstanding any other
provision of this chapter.
(b) Subject to the approval of the fiscal body of the consolidated
city, the commission may issue and sell bonds, notes, or warrants:
(1) to the federal government to evidence short term or long
term loans made under this section; or
(2) to persons or entities other than the federal government to
evidence short or long term loans made under this section that
are unconditionally guaranteed by the federal government or
federal agencies;
without notice of sale being given or a public offering being made.
(c) Notwithstanding any other law, bonds, notes, or warrants
issued by the commission under this section may:
(1) be in the amounts, form, or denomination;
(2) be either coupon or registered;
(3) carry conversion or other privileges;
(4) have a rank or priority;
(5) be of such description;
(6) be secured (subject to other provisions of this section) in
such manner;
(7) bear interest at a rate or rates;
(8) be payable as to both principal and interest in a medium of
payment, at a time or times (which may be upon demand), and
at a place or places;
(9) be subject to terms of redemption (with or without
premium);
(10) contain or be subject to any covenants, conditions, and
provisions; and
(11) have any other characteristics;
that the commission considers reasonable and appropriate.
(d) Bonds, notes, or warrants issued under this section are not an
indebtedness of the excluded city or its redevelopment district within
the meaning of any constitutional or statutory limitation of
indebtedness. The bonds, notes, or warrants are not payable from or
secured by a levy of taxes but are payable only from and secured
only by income, funds, and properties of the project becoming
available to the commission under this chapter or by grant funds
from the federal government, as the commission specifies in the
resolution authorizing their issuance.
(e) Bonds, notes, or warrants issued under this section are exempt
from taxation as provided by IC 6-8-5.
(f) Bonds, notes, or warrants issued under this section shall be
executed by the city executive and attested by the fiscal officer in the
name of the "City (or Town) of _______________, for and on behalf
of its Redevelopment District".
(g) Following the adoption of the resolution authorizing the
issuance of bonds, notes, or warrants under this section, the
commission shall certify a copy of that resolution to the officers of
the excluded city who have duties with respect to bonds, notes, or
warrants of the excluded city. At the proper time, the commission
shall deliver to the officers the unexecuted bonds, notes, or warrants
prepared for execution in accordance with the resolution.
(h) All bonds, notes, or warrants issued under this section shall be
sold by the officers of the excluded city who have duties with respect
to the sale of bonds, notes, or warrants of the excluded city. If an
officer whose signature appears on any bonds, notes, or warrants
issued under this section leaves office before their delivery, the
signature remains valid and sufficient for all purposes as if the
officer had remained in office until the delivery.
(i) If, at any time during the life of a loan contract or agreement
under this section, the commission can obtain loans for the purposes
of this section from sources other than the federal government at
interest rates not less favorable than provided in the loan contract or
agreement, and if the loan contract or agreement so permits, the
commission may do so and may pledge the loan contract and any
rights under that contract as security for the repayment of the loans
obtained from other sources. Any loan under this subsection may be
evidenced by bonds, notes, or warrants issued and secured in the
same manner as provided in this section for loans from the federal
government. These bonds, notes, or warrants may be sold at either
public or private sale, as the commission considers appropriate.
(j) Money obtained from the federal government or from other
sources under this section, and money that is required by a contract
or agreement under this section to be used for project expenditure
purposes, repayment of survey and planning advances, or repayment
of temporary or definitive loans, may be expended by the
commission without regard to any law pertaining to the making and
approval of budgets, appropriations, and expenditures.
(k) Bonds, notes, or warrants issued under this section are
declared to be issued for an essential public and governmental
purpose.
As added by P.L.102-1999, SEC.18. Amended by P.L.146-2008,
SEC.764.
IC 36-7-15.1-52
Tax exempt real property and receipts
Sec. 52. (a) Real property acquired by the redevelopment district
is exempt from taxation while owned by the district.
(b) All receipts of the redevelopment district, including receipts
from the sale of real property, personal property, and materials
disposed of, are exempt from all taxes.
(c) As used in this subsection, "year one" means any calendar year
and "year two" means the calendar year following year one. When
real property is acquired by the redevelopment district during the
period from assessment on March 1 of year one to the last day of
February of year two, the taxes due in year two shall be prorated
between the seller and the city. When the proration is made, the
auditor shall remove the city's prorated share from the tax duplicate
by auditor's correction.
As added by P.L.102-1999, SEC.19. Amended by P.L.192-2002(ss),
SEC.183.
IC 36-7-15.1-53
Resolution or amendment establishing allocation provisions;
assessed value of taxable property; funds; rules
Sec. 53. (a) As used in this section:
"Allocation area" means that part of a redevelopment project area
to which an allocation provision of a resolution adopted under
section 40 of this chapter refers for purposes of distribution and
allocation of property taxes.
"Base assessed value" means:
(1) 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
(2) to the extent that it is not included in subdivision (1), 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.
Except as provided in section 55 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property.
(b) A resolution adopted under section 40 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
must be approved by resolution of the legislative body of the
excluded city and 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) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivision (1) 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 50 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
excluded 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 46 of this
chapter.
(G) Reimburse the excluded city for expenditures for local
public improvements (which include buildings, park
facilities, and other items set forth in section 45 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.
The special fund may not be used for operating expenses of the
commission.
(3) 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 (2) plus the amount necessary for other purposes
described in subdivision (2) and subsection (g).
(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 to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (2).
(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)(2) may, subject to subsection (b)(3), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(2).
(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)(2) shall establish an allocation fund for the
purposes specified in subsection (b)(2) 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) from property located in the enterprise
zone that exceeds the amount sufficient for the purposes specified in
subsection (b)(2) for the year. A unit that has no obligations, bonds,
or leases payable from allocated tax proceeds under subsection (b)(2)
shall establish a special zone fund and deposit all the property tax
proceeds in excess of those described in subsection (b)(1) in the fund
derived from property tax proceeds in excess of those described in
subsection (b)(1) 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 an 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)(2). However, where reference is made in
subsection (b)(2) 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 under IC 6-1.1-4, the
department of local government finance shall adjust the base
assessed value one (1) time to neutralize any effect of the general
reassessment 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)(2) than would otherwise
have been received if the general reassessment 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.
As added by P.L.102-1999, SEC.20. Amended by P.L.90-2002,
SEC.484; P.L.4-2005, SEC.140; P.L.185-2005, SEC.46;
P.L.216-2005, SEC.8; P.L.154-2006, SEC.78; P.L.146-2008,
SEC.765; P.L.182-2009(ss), SEC.407.
IC 36-7-15.1-54
Repealed
(Repealed by P.L.146-2008, SEC.812.)
IC 36-7-15.1-55
Modification of definition of "property taxes"; depreciable
personal property
Sec. 55. (a) As used in this section, "depreciable personal
property" refers to all of the designated taxpayer's depreciable
personal property that is located in the allocation area.
(b) As used in this section "designated taxpayer" means a taxpayer
designated by the commission in a declaratory resolution adopted or
amended under section 40(a) or 40(b) of this chapter, and with
respect to which the commission finds that:
(1) taxes to be derived from the taxpayer's depreciable personal
property in the allocation area, in excess of the taxes
attributable to the base assessed value of that personal property,
are needed to pay debt service for bonds issued under section 45
of this chapter to make payments on leases payable under
section 46 of this chapter in order to provide local public
improvements for a particular allocation area;
(2) the taxpayer's property in the allocation area will consist
primarily of industrial, manufacturing, warehousing, research
and development, processing, distribution, or transportation
related projects; and
(3) the taxpayer's property in the allocation area will not consist
primarily of retail, commercial, or residential projects.
(c) The allocation provision of a declaratory resolution may
modify the definition of "property taxes" under section 53(a) of this
chapter to include taxes imposed under IC 6-1.1 on the depreciable
personal property of designated taxpayers in accordance with the
procedures and limitations set forth in this section and section 53 of
this chapter. If such a modification is included in the resolution, for
purposes of section 53 of this chapter, the term "base assessed value"
with respect to the depreciable personal property of designated
taxpayers means the net assessed value of the depreciable personal
property as finally determined for the assessment date immediately
preceding the adoption date of the modification as adjusted under
section 53(h) of this chapter.
As added by P.L.102-1999, SEC.22.
IC 36-7-15.1-56
Repealed
(Repealed by P.L.146-2008, SEC.813.)
IC 36-7-15.1-57
Designation of economic development area
Sec. 57. (a) The commission may, by following the procedures set
forth in sections 8, 9, and 10 of this chapter, approve a plan for and
determine that a geographic area in the redevelopment district is an
economic development area. Designation of an economic
development area is subject to judicial review in the manner
prescribed in section 11 of this chapter.
(b) The commission may determine that a geographic area is an
economic development area if it finds that:
(1) the plan for the economic development area:
(A) promotes significant opportunities for the gainful
employment of its citizens;
(B) attracts a major new business enterprise to the unit;
(C) retains or expands a significant business enterprise
existing in the boundaries of the unit; or
(D) meets other purposes of this section and sections 28 and
58 of this chapter;
(2) the plan for the economic development area cannot be
achieved by regulatory processes or by the ordinary operation
of private enterprise without resort to the powers allowed under
this section and sections 28 and 58 of this chapter because of:
(A) lack of local public improvement;
(B) existence of improvements or conditions that lower the
value of the land below that of nearby land;
(C) multiple ownership of land; or
(D) other similar conditions;
(3) the public health and welfare will be benefited by
accomplishment of the plan for the economic development area;
(4) the accomplishment of the plan for the economic
development area will be of public utility and benefit as
measured by:
(A) attraction or retention of permanent jobs;
(B) increase in the property tax base;
(C) improved diversity of the economic base; or
(D) other similar public benefits; and
(5) the plan for the economic development area conforms to the
comprehensive plan of development for the county.
(c) The determination that a geographic area is an economic
development area must be approved by the excluded city legislative
body. The approval may be given either before or after judicial
review is requested. The requirement that the excluded city
legislative body approve economic development areas does not
prevent the commission from amending the plan for the economic
development area. However, the enlargement of any boundary in the
economic development area must be approved by the excluded city
legislative body, and a boundary may not be enlarged unless:
(1) the existing area does not generate sufficient revenue to
meet the financial obligations of the original project; or
(2) the Indiana economic development corporation has, in the
manner provided by section 8(f) of this chapter, made a finding
approving the enlargement of the boundary.
As added by P.L.102-1999, SEC.24. Amended by P.L.146-2008,
SEC.766.
IC 36-7-15.1-58
Commission powers in economic development area
Sec. 58. (a) All of the rights, powers, privileges, and immunities
that may be exercised by a commission in a redevelopment project
area may be exercised by a commission in an economic development
area, subject to the following:
(1) The content and manner of exercise of these rights, powers,
privileges, and immunities shall be determined by the purposes
and nature of an economic development area.
(2) Real property (or interests in real property) relative to which
action is taken under this section or section 28 or 57 of this
chapter in an economic development area is not required to
meet the conditions described in IC 36-7-1-3.
(3) Bonds may be issued in accordance with section 45 of this
chapter to defray expenses of carrying out activities under this
chapter in economic development areas if no other revenue
sources are available for this purpose.
(4) The tax exemptions set forth in section 52 of this chapter are
applicable in economic development areas.
(5) An economic development area may be an allocation area
for the purposes of distribution and allocation of property taxes.
However, a declaratory resolution or an amendment that
establishes an allocation area must be approved by resolution of
the legislative body of the excluded city.
(6) The excluded city legislative body may not use its power of
eminent domain under section 39 of this chapter to carry out
activities under this chapter in economic development areas.
(b) The content and manner of discharge of duties set forth in
section 39(a) of this chapter shall be determined by the purposes and
nature of an economic development area.
As added by P.L.102-1999, SEC.25. Amended by P.L.185-2005,
SEC.47; P.L.146-2008, SEC.767.
Disclaimer: These codes may not be the most recent version. Indiana may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
