2013 Indiana Code TITLE 5. STATE AND LOCAL ADMINISTRATION ARTICLE 1. BONDS AND OTHER OBLIGATIONS CHAPTER 17.5. MOTORSPORTS INVESTMENT DISTRICT
Download as PDF
IC 5-1-17.5
Chapter 17.5. Motorsports Investment District
IC 5-1-17.5-1
Legislative findings
Sec. 1. The general assembly finds the following:
(1) Marion County and certain surrounding counties and
municipalities located in those counties face unique and distinct
challenges and opportunities related to the economic
development issues associated with the maintenance of a
world-class motorsports facility in the town of Speedway.
(2) A unique approach is required to ensure that such a
motorsports facility can be maintained to allow these counties
and municipalities to meet these challenges and opportunities.
(3) The powers and responsibilities provided to the Indiana
motorsports commission created by this chapter and the Indiana
finance authority are appropriate and necessary to carry out the
public purposes of encouraging and fostering economic
development in central Indiana and maintaining a world-class
motorsports facility in the town of Speedway.
(4) Encouragement of economic development in central Indiana
will:
(A) generate significant economic activity, a substantial part
of which results from persons residing outside Indiana,
which may attract new businesses and encourage existing
businesses to remain or expand in central Indiana;
(B) promote central Indiana to residents outside Indiana,
which may attract residents outside Indiana and new
businesses to relocate to central Indiana;
(C) protect and increase state and local tax revenues; and
(D) encourage overall economic growth in central Indiana
and in Indiana.
(5) Marion County faces unique challenges in the development
of infrastructure and other facilities necessary to promote
economic development as a result of its need to rely on sources
of revenue other than property taxes, due to the large number of
tax-exempt properties located in Marion County, because
Indianapolis is the seat of state government and Marion County
government, and because Marion County is home to multiple
institutions of higher education and the site of numerous state
and regional nonprofit corporations.
(6) Economic development benefits the health and welfare of
the people of Indiana, is a public use and purpose for which
public money may be spent, and is of public utility and benefit.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-2
"Admissions fees"
Sec. 2. As used in this chapter, "admissions fees" means the
admissions fees under IC 6-8-14.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-3
"Affected statutes"
Sec. 3. As used in this chapter, "affected statutes" has the meaning
set forth in IC 4-4-10.9-1.2.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-4
"Authority"
Sec. 4. As used in this chapter, "authority" refers to the Indiana
finance authority.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-5
"Board"
Sec. 5. As used in this chapter, "board" refers to the board of
directors of the commission.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-6
"Bonds"
Sec. 6. As used in this chapter, "bonds" has the meaning set forth
in IC 4-4-10.9-2.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-7
"Budget agency"
Sec. 7. As used in this chapter, "budget agency" means the budget
agency established by IC 4-12-1-3.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-8
"Budget committee"
Sec. 8. As used in this chapter, "budget committee" means the
budget committee established by IC 4-12-1-3.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-9
"Commission"
Sec. 9. As used in this chapter, "commission" refers to the Indiana
motorsports commission created by this chapter.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-10
"Department"
Sec. 10. As used in this chapter, "department" refers to the
department of state revenue.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-11
"Motorsports investment district"
Sec. 11. As used in this chapter, "motorsports investment district"
means the geographic area established as a motorsports investment
district under this chapter.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-12
"Person"
Sec. 12. As used in this chapter, "person" has the meaning set
forth in IC 36-1-2-12.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-13
"Political subdivision"
Sec. 13. As used in this chapter, "political subdivision" has the
meaning set forth in IC 36-1-2-13.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-14
"Qualified motorsports facility"
Sec. 14. (a) As used in this chapter, "qualified motorsports
facility" means a facility that:
(1) is located in Indiana;
(2) is used for professional motorsports racing events;
(3) has a motorsports racetrack that is greater than two (2) miles
in length; and
(4) holds at least two (2) professional motorsports racing events
annually at which the combined admissions total at least two
hundred thousand (200,000).
(b) For purposes of this section, a professional motorsports racing
event includes a professional motorsports racing practice session that
is open to the general public.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-15
Commission established; purpose
Sec. 15. The Indiana motorsports commission is created in Indiana
as a separate body corporate and politic, as an instrumentality of the
state, to finance and lease real and personal property improvements
for the benefit of an owner of a qualified motorsports facility within
a motorsports investment district.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-16
Board of directors of the commission
Sec. 16. (a) The board of directors of the commission is composed
of the following five (5) directors, who serve at the pleasure of the
governor and must be residents of Indiana:
(1) The budget director, or the budget director's designee, who
shall serve as chair of the commission.
(2) Four (4) directors appointed by the governor. The president
pro tempore of the senate and the speaker of the house of
representatives may each make one (1) recommendation to the
governor concerning the appointment of a director under this
subdivision.
(b) The commission shall be governed by the board. The directors
may not be elected public officials of the state or any political
subdivision. Except for the budget director, the directors first
appointed continue in office for terms expiring on July 1, 2014, July
1, 2015, July 1, 2016, and July 1, 2017, and until their respective
successors are duly appointed and qualified.
(c) Except for the budget director, the term of any director first
appointed must be designated by the governor. If a vacancy occurs
on the board, the governor shall fill the vacancy by appointing a new
director. The successor of each such director is appointed for a term
of four (4) years, except that any person appointed to fill a vacancy
is appointed to serve only for the unexpired term and until a
successor is duly appointed and qualified. A director is eligible for
reappointment.
(d) The directors shall hold an initial organizational meeting
within thirty (30) days after the board's appointment and after public
notice given by the budget director in accordance with IC 5-3-1-4. As
soon as practicable after January 15 of each year, the board shall
hold its annual organizational meeting. The board shall elect one (1)
of the directors as vice-chair and another director as
secretary-treasurer to perform the duties of those offices. These
officers serve from the date of their election and until their
successors are elected and qualified. Special meetings may be called
by the chair or any two (2) directors of the board.
(e) Three (3) directors constitute a quorum of the commission, and
the affirmative vote of at least three (3) directors is necessary for any
official action taken by the board. A vacancy in the membership of
the board does not impair the rights of a quorum to exercise all the
rights and perform all the duties of the board.
(f) Except for the budget director, the directors are entitled to
reimbursement for traveling expenses and other expenses actually
incurred in connection with their duties as provided by law. Directors
are not entitled to the salary per diem provided by IC 4-10-11-2.1(b)
or any other compensation while performing their duties.
(g) All expenses incurred in carrying out the provisions of this
chapter shall be payable solely from funds provided under this
chapter or from the proceeds of bonds issued by the authority under
this chapter, and no liability or obligation shall be incurred by the
commission or the authority under this chapter beyond the extent to
which money shall have been provided under the authority of this
chapter.
(h) The board:
(1) is responsible for implementing the powers and duties of the
commission under this chapter;
(2) may adopt bylaws for the regulation of the affairs of the
board, the conduct of the business of the commission, and the
safeguarding of the funds and property entrusted to the
commission; and
(3) shall, without complying with IC 4-22-2, adopt the code of
ethics specified in executive order 05-12 for its members and
employees.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-17
Powers of the commission
Sec. 17. The commission is authorized and empowered to do the
following:
(1) To sue and be sued, and to plead and be impleaded in the
name of the commission.
(2) To receive and accept from any federal agency grants and to
receive and accept aid or contributions from any source of
money, property, labor, or other things of value, to be held,
used, and applied only for the purposes for which such grants
and contributions may be made.
(3) To hold, use, administer, and expend such sum or sums as
may at any time be appropriated or transferred to the
commission.
(4) To purchase, acquire, or hold debt securities or other
investments for the commission's own account at prices and in
a manner the commission considers advisable, and to sell or
otherwise dispose of those securities or investments at prices
without relation to cost and in a manner the commission
considers advisable.
(5) To lease real or personal property as lessor or lessee from or
to the authority or any person under this chapter.
(6) To do all acts and things necessary or proper to carry out the
powers expressly granted in this chapter.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-18
Staff support and expenses; employees
Sec. 18. The authority shall provide staff support for the
commission and pay all expenses of the commission from funds
transferred to the commission from the motorsports investment
district fund established under section 30 of this chapter. In
providing such staff, the authority may employ, without the approval
of the attorney general or any other state officer, any accounting and
technical experts, attorneys, and other officers, employees, and
agents, permanent or temporary, as may be necessary in the
authority's judgment to carry out the efficient operation of the
commission, including professionals who can prepare a report on the
matters to be considered in making the findings of the board set forth
in section 24 of this chapter, and the commission may fix their
compensation and title. Employees of the authority employed under
this section shall not be considered employees of the state.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-19
Surety bonds of directors
Sec. 19. (a) Except as provided in subsection (b), each director of
the board shall execute a surety bond in the penal sum of fifty
thousand dollars ($50,000). To the extent an individual described in
this section is already covered by a bond required by state law, the
individual is not required to obtain another bond, so long as the bond
required by state law is in at least the penal sum specified in this
section and covers the individual's activities for the commission.
(b) Instead of a bond, the chair may execute a blanket surety bond
covering each director.
(c) Each surety bond must be conditioned upon the faithful
performance of the individual's duties and shall be issued by a surety
company authorized to transact business in this state as surety. At all
times after the issuance of any surety bonds, each individual
described in this section shall maintain the surety bonds in full force
and effect. All costs of the surety bonds shall be borne by the
commission.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-20
Personal liability of directors
Sec. 20. The directors of the board are not subject to personal
liability or accountability by reason of any act authorized by this
chapter with respect to the:
(1) issuance of any obligations;
(2) execution of any lease or sublease; or
(3) execution of any other agreement under this chapter.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-21
Annual audit
Sec. 21. The commission shall cause an audit or review of its
books and accounts to be made at least once each year by certified
public accountants.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-22
Annual report
Sec. 22. The commission shall, following the close of each fiscal
year of the commission, submit an annual report of its activities for
the preceding year to the governor, the budget committee, and the
legislative council. An annual report submitted under this section to
the legislative council must be in an electronic format under
IC 5-14-6. Each report must set forth a complete operating and
financial statement for the commission during the fiscal year the
report covers.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-23
Director's interest in contracts or in sale or lease of property
prohibited
Sec. 23. (a) A director of the commission who knowingly has an
interest:
(1) in any contract with the commission; or
(2) in the sale or lease of any real or personal property to the
commission;
commits a Class A misdemeanor. All such contracts or leases are
void.
(b) This section does not apply to contracts for purchases of
property, real or personal, between the commission and:
(1) the authority;
(2) any political subdivision; or
(3) any department or agency of the state.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-24
Resolution by commission establishing a district; public hearing;
required findings by commission; territory of district
Sec. 24. (a) The commission may, after a public hearing, adopt a
resolution establishing a motorsports investment district. Notice of
the public hearing must be provided in accordance with IC 5-3-1.
(b) In establishing the motorsports investment district, the
commission must make the following findings:
(1) There are improvements that will be undertaken in the
motorsports investment district that will have a positive effect
on the activities of a qualified motorsports facility.
(2) The improvements that will be undertaken in the
motorsports investment district will benefit the public health
and welfare and will be of public utility and benefit.
(3) The improvements that will be undertaken in the
motorsports investment district will protect or increase state and
local tax bases and tax revenues.
(c) A motorsports investment district consists of:
(1) the geographic area that is included within the qualified
motorsports facility;
(2) adjacent property that is:
(A) related to the operation of the qualified motorsports
facility; and
(B) owned by the owner of the qualified motorsports facility
or a subsidiary or affiliate of the qualified motorsports
facility;
(3) property on which activities related to the qualified
motorsports facility occur; and
(4) other public property specified by the commission;
as determined in the resolution adopted by the commission.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-25
Allocation of amounts appropriated to the commission; expiration
date of district
Sec. 25. A resolution establishing a motorsports investment
district must provide for the allocation to the motorsports investment
district fund established under section 30 of this chapter of the
money appropriated to the commission. The resolution must state an
expiration date for the motorsports investment district, which must
be the later of:
(1) the date that is thirty (30) years after the date of the adoption
of the resolution; or
(2) the date on which the owner or owners of a qualified
motorsports facility no longer have a financial liability to the
commission.
Subject to section 24(c) of this chapter, the commission shall specify
in the resolution the geographic area that is included within the
motorsports investment district.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-26
Filing of informational tax returns by certain taxpayers; guidelines
Sec. 26. (a) A taxpayer operating in the motorsports investment
district that files a consolidated return with the department also shall
file annually an informational return with the department for each
business location of the taxpayer within the motorsports investment
district.
(b) If the department is unable to determine the extent to which
taxes remitted by a taxpayer are gross retail incremental amounts or
income tax incremental amounts for purposes of IC 4-10-23, the
department shall use the best information available in calculating
those incremental amounts.
(c) The department shall adopt guidelines to govern its
responsibilities under this chapter.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-27
Submission to the budget agency of resolution establishing district
Sec. 27. Upon adoption by the commission of a resolution
establishing a motorsports investment district under this chapter, the
commission shall submit the resolution to the budget agency.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-28
Budget committee review; approval by budget agency; required
findings before resolution may be approved
Sec. 28. The budget agency, after review by the budget
committee, shall approve the resolution establishing the motorsports
investment district if the budget agency finds that the improvements
to be made within the qualified motorsports facility are economically
sound and will benefit the people of Indiana by protecting or
increasing state and local tax bases and tax revenues for at least the
duration of the motorsports investment district.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-29
Information to be provided to department of state revenue
Sec. 29. (a) If the commission adopts a resolution establishing a
motorsports investment district, the commission shall notify the
department in an electronic format approved by the department of the
adoption of the resolution and shall include with the notification a
complete list of the following:
(1) Employers and vendors with a responsibility to remit taxes
in the motorsports investment district.
(2) Street names and the range of street numbers of each street
in the motorsports investment district.
(b) The commission shall update the list prepared under
subsection (a) before July 1 of each year.
(c) At the request of the department, the commission, the owner
or owners of a motorsports facility located in the district, and any
political subdivision in which all or a part of the district is located
shall disclose to the department the names of the employers
described in subsection (a) and such other information that may
assist in the determination of the gross retail incremental amounts or
income tax incremental amounts for purposes of IC 4-10-23.
(d) At the request of the department, a political subdivision in
which the qualified motorsports facility is located shall provide to
the department information requested by the department concerning
permits issued by the political subdivision to vendors operating
within the motorsports investment district.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-30
Motorsports investment district fund; request for appropriations;
use of money in the fund
Sec. 30. (a) If a motorsports investment district is established
under this chapter, the commission shall establish a motorsports
investment district fund for the motorsports investment district. The
fund shall be administered by the commission. Except as provided in
subsection (f), money in the fund does not revert to the state general
fund at the end of a state fiscal year.
(b) The commission shall deposit amounts appropriated to the
commission in the motorsports investment district fund as provided
in this chapter.
(c) The commission shall request that the general assembly make
an appropriation not to exceed five million dollars ($5,000,000) to
the commission for deposit in the motorsports investment district
fund in each state fiscal year following the creation of the motor
sports investment district fund, until the earlier of:
(1) the date that is twenty-two (22) years after the date on which
appropriations are first deposited in the motorsports investment
district fund; or
(2) the date on which all bonds issued by the authority under
section 37 of this chapter are no longer deemed outstanding.
The commission may use money in the motorsports investment
district fund for the purposes of this chapter.
(d) Amounts held in the motorsports investment district fund may
be distributed to a trustee of any bonds that are issued or to be issued
by the authority under section 37 of this chapter and that are secured
by rent to be paid by the commission under a lease entered into with
the authority under section 32 of this chapter.
(e) Money in the motorsports investment district fund may be
used by the commission or a trustee for the following:
(1) Payment of the rent due under leases of structures or other
capital improvements that are located within a motorsports
investment district.
(2) Payment of all expenses incurred by the commission or the
authority in connection with the exercise of its duties and
obligations set forth in this chapter, including those incurred in
connection with the establishment of the motorsports
investment district.
(f) On the date that all bonds issued by the authority under section
37 of this chapter are no longer deemed outstanding and all expenses
incurred by the commission or the authority in connection with the
exercise of its duties and obligations set forth in this chapter have
been paid, all money then remaining on deposit in the motorsports
investment district fund reverts to the state general fund.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-31
Powers of Indiana finance authority
Sec. 31. The authority may do any of the following:
(1) Finance the improvement, construction, reconstruction,
renovation, and acquisition of real and personal property
improvements within a qualified motorsports facility.
(2) Exercise the authority's powers under IC 4-4-11 within a
qualified motorsports facility.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-32
Lease of structures and improvements; requirements
Sec. 32. (a) The commission may lease all or any part of
structures and capital improvements located within a qualified
motorsports facility from the authority, and the authority may lease
all or any part of structures and capital improvements located within
a qualified motorsports facility to the commission. Any property
subject to such a lease is not exempt from taxation under the laws of
the state solely by reason of it being subject to such a lease. In a lease
from the authority to the commission, the commission may pledge:
(1) amounts appropriated to the commission and deposited in
the motorsports investment district fund;
(2) any other rental payments, receipts, and income from the
leased structures and capital improvements; or
(3) any other money legally available to the commission for the
payment of rent under such a lease.
(b) The amount of any such rent may include the amount
necessary to pay the principal of, redemption premium, and interest
on any bonds issued by the authority under section 37 of this chapter,
when due, the amount of any necessary reserves, and the amount of
any expenses incurred by the authority or the commission in
connection with the exercise of its duties and obligations set forth in
this chapter.
(c) A lease from the authority to the commission under subsection
(a):
(1) must set forth the terms and conditions of the use and
occupancy, if applicable, under the lease;
(2) must set forth the amounts agreed to be paid at stated
intervals for the use and occupancy, if applicable, under the
lease;
(3) must provide that the commission is not obligated to
continue to pay for the use and occupancy, if applicable, under
the lease, but is instead required to vacate the equipment,
structures, and capital improvements subject to the lease, if it is
shown that the terms and conditions of such use and occupancy
and the amount to be paid for such use and occupancy are
unjust and unreasonable considering the value of the services,
equipment, structures, and capital improvements thereby
afforded;
(4) must provide that the commission is required to vacate such
equipment, structures, and capital improvements if funds are not
available to pay any sum agreed to be paid for such use and
occupancy when due; and
(5) may contain any other provisions agreed upon by the
authority and the commission.
(d) If the commission enters into such a lease with the authority,
it may sublease the structures and capital improvements subject to
the lease to the owner or owners of the qualified motorsports facility.
(e) The commission may, in anticipation of the acquisition,
construction, reconstruction, renovation, or equipping of any such
structures or capital improvements, including any equipment or
necessary appurtenances, enter into a lease with the authority before
any such construction, reconstruction, renovation, or equipping. Such
a lease must require the payment of lease rental by the commission
to begin when the equipment, structures, or improvements have been
acquired or completed and are ready for use and occupancy, if
applicable, but not before that time.
(f) If necessary to enter into a lease under subsection (a):
(1) the commission may lease structures and capital
improvements located within a motorsports investment district
from the owner or owners of the qualified motorsports facility
and sublease all or any part of such structures and capital
improvements to the authority for a nominal rent; and
(2) the authority may lease all or any part of such structures and
capital improvements from the commission for a nominal rent.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-33
Option to renew lease
Sec. 33. A lease from the authority to the commission under
section 32 of this chapter may provide the commission with an
option to renew the lease for the same term or a shorter term, on the
conditions provided in the lease.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-34
Option to purchase leased property; conveyance of property;
requirements
Sec. 34. (a) A lease from the authority to the commission under
section 32 of this chapter shall give the commission an option to
purchase the leased property before the expiration of the term of the
lease:
(1) on the date or dates in each year that are fixed by the lease;
and
(2) at a price to be computed by a method set forth in the lease.
However, such a lease may not provide, or be construed to provide,
that the commission is under an obligation to purchase the leased
structures or improvements or is under an obligation respecting any
creditors or bondholders of the authority.
(b) If the commission does not exercise the option to purchase the
property, then upon the expiration of the lease and upon full
performance by the commission, the property becomes the absolute
property of the commission or the authority's leasehold interest in
such property terminates, as applicable. The authority shall take the
steps necessary to convey title or such leasehold interest to the
commission.
(c) If the commission purchases the leased property as provided
in subsection (a) or in the event described in subsection (b), the
commission may convey, with or without consideration, its
ownership or leasehold interest, as applicable, in such property to the
owner or owners of the qualified motorsports facility. However, the
commission shall not convey its ownership or leasehold interest in
any such property to the owner or owners of the qualified
motorsports facility until:
(1) the date on which the aggregate amount of credits provided
to the owner or owners of the qualified motorsports facility
under IC 4-10-23 equals or exceeds the aggregate of the amount
of money appropriated to the commission and used to pay rent
by the commission to the authority under any lease entered into
between the authority and the commission under this chapter
and any expenses that are incurred by the authority or the
commission under this chapter and are not paid out of such rent;
and
(2) all bonds issued by the authority under section 37 of this
chapter are no longer deemed outstanding.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-35
Authorization and execution of leases by commission board of
directors
Sec. 35. Each lease under section 32 of this chapter must be
authorized by resolution of the board, which shall be entered in the
official records of the commission. Such a lease must be executed on
behalf of the commission by the chair or the vice-chair and the
secretary-treasurer of the commission, and on behalf of the authority
by the chairman or the vice chairman of the authority and the public
finance director.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-36
Commission approval of financed improvements; liens and security
interests; transfer of controlling ownership interest in qualified
motorsports facility; credits against obligations of owners
Sec. 36. (a) Improvements financed under this chapter must be
approved by the commission. The commission shall secure the
obligations of the owner or owners of the qualified motorsports
facility to the commission under a lease or sublease under this
chapter with liens or security interests, which may include:
(1) perfected security interests in personal property;
(2) a mortgage lien on the real property; or
(3) such other security determined to be appropriate by the
commission and the authority.
(b) On the date that the aggregate amount of credits provided to
the owner or owners of the qualified motorsports facility under
IC 4-10-23 equals or exceeds the aggregate of the amount of the
appropriations made to the commission and used to pay rent by the
commission to the authority under any lease entered into between the
authority and the commission under this chapter and any expenses
that are incurred by the authority or the commission under this
chapter and are not paid out of such rent, and all bonds issued by the
authority under section 37 of this chapter are no longer deemed
outstanding, the commission shall take the legal steps required to
terminate each of its security interests in and mortgage liens on the
improvements described in subsection (a).
(c) If a controlling ownership interest in a qualified motorsports
facility is sold after the authority issues bonds under this chapter, the
commission shall determine whether there exists good cause not to
allow the purchaser to assume the motorsports facility's obligations
under this chapter. If the commission determines that no such good
cause exists, the commission shall be deemed to have accepted the
purchaser's assumption of the motorsports facility's obligations under
this chapter, and the purchaser shall be deemed to have assumed and
become obligated to fully perform those obligations. If the
commission determines that there exists good cause not to approve
the purchaser's assumption of the motorsports facility's obligations
under this chapter, the commission shall be deemed to have
disapproved such assumption and the commission may require that
the owner or owners of the qualified motorsports facility shall pay or
cause to be paid to the commission an amount to be deposited in the
motorsports investment district fund sufficient to pay the cost of
defeasing all outstanding bonds issued by the authority under section
37 of this chapter and paying all expenses of the commission and the
authority incurred in connection with such defeasance. For purposes
of this section, the following shall not be deemed to be the sale of a
controlling ownership interest:
(1) Transfers among the qualified motorsports facility and its
subsidiaries and affiliates existing at the time the owner or
owners of the qualified motorsports facility enter into the
written agreement under this chapter concerning the terms of
the financing of the improvements under this chapter.
(2) Transfers among the qualified motorsports facility's existing
equity owners (as determined at the time the owner or owners
of the qualified motorsports facility enter into the written
agreement under this chapter concerning the terms of the
financing of the improvements under this chapter).
(3) Transfers between the qualified motorsports facility's
existing equity owners (as determined at the time the owner or
owners of the qualified motorsports facility enter into the
written agreement under this chapter concerning the terms of
the financing of the improvements under this chapter) and
trusts, family limited partnerships, and other entities for estate
planning purposes.
(d) Money deposited in the motorsports investment district fund
may be used to pay the cost of defeasing all outstanding bonds issued
by the authority under section 37 of this chapter and paying all other
expenses of the commission and the authority incurred in connection
with such defeasance.
(e) If, after the date payments are received by the commission
from the owner or owners of the qualified motorsports facility under
subsection (c), all bonds issued by the authority under section 37 of
this chapter are no longer deemed outstanding, and all expenses
incurred by the commission or the authority in connection with the
exercise of its duties and obligations set forth in this chapter have
been paid, all money then remaining in the motorsports investment
district fund reverts to the state general fund.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-37
Issuance of bonds; terms and conditions; use of bond proceeds
Sec. 37. (a) Subject to subsection (f), the authority may issue
bonds for the purpose of obtaining money to pay the cost of
improving, constructing, reconstructing, renovating, acquiring, or
equipping improvements within a qualified motorsports facility.
(b) The terms and form of the bonds must be set out either in the
resolution or in a form of trust indenture approved by the resolution.
(c) The bonds must mature within twenty (20) years.
(d) The authority shall sell the bonds at public or private sale upon
the terms determined by the authority.
(e) All money received from any bonds issued under this chapter
shall be applied to the payment of the cost of improving,
constructing, reconstructing, renovating, acquiring, or equipping
improvements within a qualified motorsports facility, or payment of
the cost of refunding or refinancing outstanding bonds for which the
bonds are issued. The cost may include:
(1) planning and development of the improvement and all
buildings, facilities, structures, and improvements related to the
improvement;
(2) acquisition of a site and clearing and preparing the site for
construction;
(3) equipment, facilities, structures, and improvements that are
necessary or desirable to make the capital improvement suitable
for use and operations;
(4) architectural, engineering, consultant, and attorney's fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction;
(8) financial advisory fees;
(9) insurance during construction;
(10) bond insurance, debt service reserve insurance, letters of
credit, or other credit enhancement; and
(11) in the case of refunding or refinancing, payment of the
principal of, redemption premiums (if any) for, and interest on
the bonds being refunded or refinanced.
(f) The authority may not issue bonds under this chapter unless:
(1) the owner or owners of the qualified motorsports facility,
the authority, and the commission have entered into a written
agreement concerning the terms of the financing of the
improvements financed under this chapter, including the
obligation of the owner or owners of the qualified motorsports
facility to make payments in an amount equal to at least two
million dollars ($2,000,000) in each state fiscal year to the
commission for deposit in the motorsports investment fund
during the term of the agreement;
(2) in connection with the issuance of such bonds, the authority
has leased the equipment, structures, and capital improvements
being financed with the proceeds of the bonds to the
commission under a lease under section 32 of this chapter, and
the commission has entered into a sublease of such equipment,
structures, and capital improvements with the owner or owners
of the qualified motorsports facility. Such a sublease must
include the terms described in sections 34(c) and 36(c) of this
chapter; and
(3) as part of the written agreement concerning the terms of the
financing of the improvements, the ultimate parent company of
the qualified motorsports facility:
(A) guarantees the full and timely performance of all of the
duties, responsibilities, and obligations of the qualified
motorsports facility and the owner or owners of the qualified
motorsports facility; and
(B) guarantees that if the aggregate amount credited to the
owner or owners of the qualified motorsports facility under
IC 4-10-23-12 from income tax incremental amounts, gross
retail incremental amounts, and admissions fees deposited in
the state general fund under IC 6-8-14 during the thirty (30)
years after the date of the adoption of the resolution
establishing the motorsports improvement district is less
than the aggregate of the amount of money appropriated to
the commission and used to pay rent by the commission to
the authority under any lease entered into between the
authority and the commission under this chapter and any
expenses that are incurred by the authority or the
commission under this chapter and are not paid out of such
rent, then the ultimate parent company will pay the
difference to the commission.
(g) Each bond issued under this chapter must contain on its face
a statement that neither the faith and credit nor the taxing power of
the state is pledged to the payment of the principal of or the interest
on the bond.
(h) In connection with the issuance of each series of bonds under
this section, the authority (or its successor agency) and the public
finance director shall be responsible for selecting all investment
bankers, bond counsel, trustees, and financial advisors.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-38
Authority for certain actions by the commission and the Indiana
finance authority; bonds as legal investments
Sec. 38. (a) This chapter contains full and complete authority for
the issuance of bonds, the improvement, construction, reconstruction,
renovation, purchase, lease, acquisition, and equipping of structures
and capital improvements located within a motorsports investment
district by the commission and the authority, and the leasing of such
structures and capital improvements by the commission or the
authority. No law, procedure, proceedings, publications, notices,
consents, approvals, orders, or acts by the commission, the authority,
or any other officer, department, agency, or instrumentality of the
state or of any political subdivision is required to issue any bonds
under this chapter, to improve, construct, reconstruct, renovate,
purchase, lease, acquire, and equip structures and capital
improvements located within a motorsports investment district, or to
enter into any lease, except as prescribed in this chapter.
(b) Bonds issued under this chapter are legal investments for
private trust funds and the funds of banks, trust companies, insurance
companies, building and loan associations, credit unions, banks of
discount and deposit, savings banks, loan and trust and safe deposit
companies, rural loan and savings associations, guaranty loan and
savings associations, mortgage guaranty companies, small loan
companies, industrial loan and investment companies, and other
financial institutions organized under Indiana law.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-39
Securing of bonds; trust indenture; validity of pledge or
assignment
Sec. 39. (a) The authority may secure bonds issued under this
chapter by a trust indenture between the authority and a corporate
trustee, which may be any trust company or national or state bank
within Indiana that has trust powers.
(b) The trust indenture may:
(1) pledge or assign money appropriated to the commission and
to be paid as rent by the commission to the authority, but may
not mortgage land or capital improvements;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders, including
covenants setting forth the duties of the authority;
(3) set forth the rights and remedies of bondholders and the
trustee; and
(4) restrict the individual right of action of bondholders.
(c) Any pledge or assignment made by the authority under this
section is valid and binding from the time that the pledge or
assignment is made, against all persons whether or not they have
notice of the lien. Any trust indenture by which a pledge is created
or an assignment made need not be filed or recorded. The lien is
perfected against third parties by filing the trust indenture in the
records of the authority.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-40
Action to contest validity of bonds
Sec. 40. Any action to contest the validity of bonds to be issued
under this chapter may not be brought after the fifteenth day
following:
(1) the receipt of bids for the bonds, if the bonds are sold at
public sale; or
(2) the publication one (1) time in a newspaper of general
circulation published in the county of notice of the execution
and delivery of the contract for the sale of bonds;
whichever occurs first.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-41
Equal opportunities in procurement and contracting
Sec. 41. Improvements financed under this chapter are subject to
the provisions of 25 IAC 5 concerning equal opportunities for
minority business enterprises and women's business enterprises to
participate in procurement and contracting processes. The goal for
participation by minority business enterprises shall be fifteen percent
(15%), the goal for participation by women's business enterprises
shall be eight percent (8%), and the goal for participation by veteran
or disabled business enterprises shall be three percent (3%),
consistent with the goals of delivering the project on time and within
the budgeted amount and, insofar as possible, using Indiana
businesses for employees, goods, and services. In fulfilling the goals,
historical precedents in the same market shall be taken into account.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-42
Income tax withholding; department of state revenue guidelines
Sec. 42. The department shall develop guidelines and instructions
concerning the appropriate amount of adjusted gross income tax to
be withheld from purse money and prizes won for racing in the
motorsports investment district.
As added by P.L.233-2013, SEC.5.
IC 5-1-17.5-43
Office of management and budget review
Sec. 43. The office of management and budget shall in 2023 do
the following:
(1) Conduct a review of:
(A) the structures and improvement that have been financed
and constructed under this chapter;
(B) the amount of:
(i) the gross retail incremental amounts and income tax
incremental amounts remitted for purposes of IC 4-10-23;
and
(ii) the motorsports admissions fees that have been
remitted under IC 6-8-14;
(C) the amount and terms of outstanding debt issued by the
authority under this chapter; and
(D) the status, economic impact, and viability of the
qualified motorsports facility.
(2) Before November 1, 2023, submit a copy of the review
conducted under subdivision (1) to the budget committee and to
the legislative council in an electronic format under IC 5-14-6.
As added by P.L.233-2013, SEC.5.
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.