2016 Indiana Code TITLE 36. LOCAL GOVERNMENT ARTICLE 7.5. NORTHWEST INDIANA REGIONAL DEVELOPMENT AUTHORITY CHAPTER 3. DEVELOPMENT AUTHORITY POWERS AND DUTIES
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IC 36-7.5-3
Chapter 3. Development Authority Powers and Duties
IC 36-7.5-3-1
Duties
Sec. 1. The development authority shall do the following:
(1) Subject to section 1.5 of this chapter, assist in the
coordination of local efforts concerning projects.
(2) Assist a commuter transportation district, an airport
authority, the Lake Michigan marina and shoreline development
commission, a regional transportation authority, and a regional
bus authority in coordinating regional transportation and
economic development efforts.
(3) Subject to section 1.5 of this chapter, fund projects as
provided in this article.
(4) Fund bus services (including fixed route services and
flexible or demand-responsive services) and projects related to
bus services and bus terminals, stations, or facilities.
As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006,
SEC.59; P.L.197-2011, SEC.151; P.L.192-2015, SEC.11.
IC 36-7.5-3-1.5
Expenditure of money to fund economic development projects;
requirements; submission of funding proposals to budget
committee
Sec. 1.5. (a) This section applies to revenue received by the
authority to the extent that the revenue has not been pledged or
otherwise obligated to pay bonds or leases entered into before July
1, 2015.
(b) The authority may expend money received under this article
to fund economic development projects only to the extent that:
(1) the development board finds that the economic development
project is a destination based economic development project
evaluated under IC 36-7.5-2-1(4) or is consistent with:
(A) a duty imposed upon the development authority under
section 1(2) or 1(4) of this chapter; or
(B) the Marquette Plan; and
(2) funding the project is reviewed by the state budget
committee under subsection (c).
(c) The development board shall submit to the state budget
committee for review and comment any proposal to fund an
economic development project (including any destination based
economic development project) under this article. The state budget
committee shall review any proposal received under this subsection
and may request that the authority appear at a public meeting of the
state budget committee concerning the funding proposal.
As added by P.L.192-2015, SEC.12. Amended by P.L.204-2016,
SEC.38.
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IC 36-7.5-3-2
Powers
Sec. 2. (a) The development authority may do any of the
following:
(1) Finance, improve, construct, reconstruct, renovate,
purchase, lease, acquire, and equip land and projects located in
an eligible county or eligible municipality.
(2) Lease land or a project to an eligible political subdivision.
(3) Finance and construct additional improvements to projects
or other capital improvements owned by the development
authority and lease them to or for the benefit of an eligible
political subdivision.
(4) Acquire land or all or a portion of one (1) or more projects
from an eligible political subdivision by purchase or lease and
lease the land or projects back to the eligible political
subdivision, with any additional improvements that may be
made to the land or projects.
(5) Acquire all or a portion of one (1) or more projects from an
eligible political subdivision by purchase or lease to fund or
refund indebtedness incurred on account of the projects to
enable the eligible political subdivision to make a savings in
debt service obligations or lease rental obligations or to obtain
relief from covenants that the eligible political subdivision
considers to be unduly burdensome.
(6) Make loans, loan guarantees, and grants or provide other
financial assistance to or on behalf of the following:
(A) A commuter transportation district.
(B) An airport authority or airport development authority.
(C) The Lake Michigan marina and shoreline development
commission.
(D) A regional bus authority. A loan, loan guarantee, grant,
or other financial assistance under this clause may be used
by a regional bus authority for acquiring, improving,
operating, maintaining, financing, and supporting the
following:
(i) Bus services (including fixed route services and
flexible or demand-responsive services) that are a
component of a public transportation system.
(ii) Bus terminals, stations, or facilities or other regional
bus authority projects.
(E) A regional transportation authority.
(F) A member municipality that is eligible to make an
appointment to the development board under
IC 36-7.5-2-3(b)(2) and that has pledged admissions tax
revenue for a bond anticipation note after March 31, 2014,
and before June 30, 2015. However, a loan made to such a
member municipality before June 30, 2016, under this clause
must have a term of not more than ten (10) years, must
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require annual level debt service payments, and must have a
market based interest rate. If a member municipality defaults
on the repayment of a loan made under this clause, the
development authority shall notify the treasurer of state of
the default and the treasurer of state shall:
(i) withhold from any funds held for distribution to the
municipality under IC 4-33-12, or IC 4-33-13 an amount
sufficient to cure the default; and
(ii) pay that amount to the development authority.
(7) Provide funding to assist a railroad that is providing
commuter transportation services in an eligible county or
eligible municipality.
(8) Provide funding to assist an airport authority located in an
eligible county or eligible municipality in the construction,
reconstruction, renovation, purchase, lease, acquisition, and
equipping of an airport facility or airport project.
(9) Provide funding to assist in the development of an
intermodal facility to facilitate the interchange and movement
of freight.
(10) Provide funding to assist the Lake Michigan marina and
shoreline development commission in carrying out the purposes
of IC 36-7-13.5.
(11) Provide funding for economic development projects in an
eligible county or eligible municipality.
(12) Hold, use, lease, rent, purchase, acquire, and dispose of by
purchase, exchange, gift, bequest, grant, condemnation, lease,
or sublease, on the terms and conditions determined by the
development authority, any real or personal property located in
an eligible county or eligible municipality.
(13) After giving notice, enter upon any lots or lands for the
purpose of surveying or examining them to determine the
location of a project.
(14) Make or enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this article.
(15) Sue, be sued, plead, and be impleaded.
(16) Design, order, contract for, and construct, reconstruct, and
renovate a project or improvements to a project.
(17) Appoint an executive director and employ appraisers, real
estate experts, engineers, architects, surveyors, attorneys,
accountants, auditors, clerks, construction managers, and any
consultants or employees that are necessary or desired by the
development authority in exercising its powers or carrying out
its duties under this article.
(18) Accept loans, grants, and other forms of financial
assistance from the federal government, the state government,
a political subdivision, or any other public or private source.
(19) Use the development authority's funds to match federal
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grants or make loans, loan guarantees, or grants to carry out the
development authority's powers and duties under this article.
(20) Except as prohibited by law, take any action necessary to
carry out this article.
(b) If the development authority is unable to agree with the
owners, lessees, or occupants of any real property selected for the
purposes of this article, the development authority may proceed
under IC 32-24-1 to procure the condemnation of the property. The
development authority may not institute a proceeding until it has
adopted a resolution that:
(1) describes the real property sought to be acquired and the
purpose for which the real property is to be used;
(2) declares that the public interest and necessity require the
acquisition by the development authority of the property
involved; and
(3) sets out any other facts that the development authority
considers necessary or pertinent.
The resolution is conclusive evidence of the public necessity of the
proposed acquisition.
As added by P.L.214-2005, SEC.73. Amended by P.L.47-2006,
SEC.60; P.L.182-2009(ss), SEC.424; P.L.197-2011, SEC.152;
P.L.204-2016, SEC.39.
IC 36-7.5-3-3
Reports
Sec. 3. The development authority shall before November 1 of
each year issue a report to the legislative council, the budget
committee, and the governor concerning the operations and activities
of the development authority during the preceding state fiscal year.
The report to the legislative council must be in an electronic format
under IC 5-14-6.
As added by P.L.214-2005, SEC.73.
IC 36-7.5-3-4
Development plan
Sec. 4. (a) The development authority shall prepare a
comprehensive strategic development plan that includes detailed
information concerning the following:
(1) The proposed projects to be undertaken or financed by the
development authority.
(2) The following information for each project included under
subdivision (1):
(A) Timeline and budget.
(B) The return on investment.
(C) The projected or expected need for an ongoing subsidy.
(D) Any projected or expected federal matching funds.
(b) The development authority shall before January 1, 2008,
submit the comprehensive strategic development plan for review by
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the budget committee and approval by the director of the office of
management and budget.
As added by P.L.214-2005, SEC.73.
IC 36-7.5-3-5 Version a
Grant program for extending the Chicago, South Shore and South
Bend Railway
Note: This version of section effective until 1-1-2017. See also
following version of this section, effective 1-1-2017.
Sec. 5. (a) There is established a grant program to provide state
matching grants for construction projects extending the Chicago,
South Shore, and South Bend Railway.
(b) To participate in the grant program, the development authority
must prepare an update to the comprehensive strategic development
plan prepared under section 4 of this chapter. The update must
include detailed information concerning the following:
(1) The proposed projects to be undertaken by the development
authority to extend the Chicago, South Shore, and South Bend
Railway using grants made under this section.
(2) The commitments being made by the development authority
and political subdivisions in exchange for receiving grants
under this section.
(3) The following information for each project included under
subdivision (1):
(A) The location of each project.
(B) A timeline and budget, including milestones that the
development authority commits to achieving by the time
specified.
(C) The expected return on investment.
(D) Any projected or expected federal and local matching
funds.
(c) To receive a matching grant under this section, the
development authority must adopt an authorizing resolution and
submit the updated plan along with a grant application to the Indiana
finance authority for approval, after review by the budget committee.
(d) A grant may not be approved under this section unless the
Indiana finance authority finds all of the following:
(1) The development authority commits to matching the
biennial appropriations provided from the state general fund to
the northwest Indiana regional development authority commuter
rail construction fund for the term of the grant project. The
funds used to match these biennial appropriations must be funds
received by the development authority under IC 36-7.5-4-1 and
IC 36-7.5-4-2.
(2) The development authority can demonstrate an annual return
on investment that, within twenty (20) years after the first grant
is made for the projects, is at least twice the annualized amount
of the grant requested. The return on investment must be
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measured by the annual amount of incremental state fiscal year
increases to state gross retail and use taxes and state income
taxes that are projected to be collected as a direct result of the
projects, as determined by the Indiana finance authority.
Projections to determine the return on investment must be
provided in detail by the development authority and shall be
evaluated by the office of management and budget.
(e) If projects that will be financed are approved under this
section, the Indiana finance authority may, after review by the budget
committee, approve a grant, comprised of a series of annual grants,
not to exceed thirty (30) years, that is consistent with the financing
requirements for the approved projects. If the Indiana finance
authority approves and makes a grant under this section, the general
assembly covenants that it will not:
(1) repeal or amend this section in a manner that would
adversely affect owners of outstanding bonds, or payment of
any lease rentals, secured by grants made under this section; or
(2) in any way impair the rights of owners of bonds of the
development authority, or the owners of bonds secured by lease
rentals, secured by grants made under this section.
The budget agency shall allot the appropriation for the duration of
the grants that are needed to complete the approved projects.
(f) If the Indiana finance authority approves and makes a grant
under this section, the development authority shall in July of each
year through 2045 submit an annual progress report to the Indiana
finance authority.
(g) The following must be deposited each year in the northwest
Indiana regional development authority commuter rail construction
fund established by section 6 of this chapter:
(1) Money that is granted to the development authority by the
state under this section during the year.
(2) Money that is committed by the development authority
under this section for the year.
(3) Money that is committed by a political subdivision from
county economic development income tax under IC 6-3.5-7. In
the case of a political subdivision in Porter County,
notwithstanding IC 6-3.5-7-13.1(b)(5), the money that is
committed by the political subdivision from county economic
development income tax shall be paid from tax revenue that is
in excess of the first three million five hundred thousand dollars
($3,500,000) that results each year from the tax rate increase
described in IC 6-3.5-7-13.1(b)(4). Any remaining tax revenue
that:
(A) is in excess of the first three million five hundred
thousand dollars ($3,500,000) that results each year from the
tax rate increase described in IC 6-3.5-7-13.1(b)(4); and
(B) is not committed by a political subdivision under this
subdivision;
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shall be used for the purposes set forth in IC 6-3.5-7-13.1(b)(5).
As added by P.L.213-2015, SEC.265.
IC 36-7.5-3-5 Version b
Grant program for extending the Chicago, South Shore, and South
Bend Railway
Note: This version of section effective 1-1-2017. See also
preceding version of this section, effective until 1-1-2017.
Sec. 5. (a) There is established a grant program to provide state
matching grants for construction projects extending the Chicago,
South Shore, and South Bend Railway.
(b) To participate in the grant program, the development authority
must prepare an update to the comprehensive strategic development
plan prepared under section 4 of this chapter. The update must
include detailed information concerning the following:
(1) The proposed projects to be undertaken by the development
authority to extend the Chicago, South Shore, and South Bend
Railway using grants made under this section.
(2) The commitments being made by the development authority
and political subdivisions in exchange for receiving grants
under this section.
(3) The following information for each project included under
subdivision (1):
(A) The location of each project.
(B) A timeline and budget, including milestones that the
development authority commits to achieving by the time
specified.
(C) The expected return on investment.
(D) Any projected or expected federal and local matching
funds.
(c) To receive a matching grant under this section, the
development authority must adopt an authorizing resolution and
submit the updated plan along with a grant application to the Indiana
finance authority for approval, after review by the budget committee.
(d) A grant may not be approved under this section unless the
Indiana finance authority finds all of the following:
(1) The development authority commits to matching the
biennial appropriations provided from the state general fund to
the northwest Indiana regional development authority commuter
rail construction fund for the term of the grant project. The
funds used to match these biennial appropriations must be funds
received by the development authority under IC 36-7.5-4-1 and
IC 36-7.5-4-2.
(2) The development authority can demonstrate an annual return
on investment that, within twenty (20) years after the first grant
is made for the projects, is at least twice the annualized amount
of the grant requested. The return on investment must be
measured by the annual amount of incremental state fiscal year
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increases to state gross retail and use taxes and state income
taxes that are projected to be collected as a direct result of the
projects, as determined by the Indiana finance authority.
Projections to determine the return on investment must be
provided in detail by the development authority and shall be
evaluated by the office of management and budget.
(e) If projects that will be financed are approved under this
section, the Indiana finance authority may, after review by the budget
committee, approve a grant, comprised of a series of annual grants,
not to exceed thirty (30) years, that is consistent with the financing
requirements for the approved projects. If the Indiana finance
authority approves and makes a grant under this section, the general
assembly covenants that it will not:
(1) repeal or amend this section in a manner that would
adversely affect owners of outstanding bonds, or payment of
any lease rentals, secured by grants made under this section; or
(2) in any way impair the rights of owners of bonds of the
development authority, or the owners of bonds secured by lease
rentals, secured by grants made under this section.
The budget agency shall allot the appropriation for the duration of
the grants that are needed to complete the approved projects.
(f) If the Indiana finance authority approves and makes a grant
under this section, the development authority shall in July of each
year through 2045 submit an annual progress report to the Indiana
finance authority.
(g) The following must be deposited each year in the northwest
Indiana regional development authority commuter rail construction
fund established by section 6 of this chapter:
(1) Money that is granted to the development authority by the
state under this section during the year.
(2) Money that is committed by the development authority
under this section for the year.
(3) Money that is committed by a political subdivision to
economic development purposes under IC 6-3.6-6.
(4) In the case of a political subdivision in Porter County, the
money that is committed by the political subdivision to
economic development purposes under IC 6-3.6-6 from the
local income tax shall be paid from tax revenue that is in excess
of the first three million five hundred thousand dollars
($3,500,000) that is required to be transferred under
IC 6-3.6-11-6(d)(2). Any remaining tax revenue that:
(A) is in excess of the first three million five hundred
thousand dollars ($3,500,000) each year that is required to
be transferred under IC 6-3.6-11-6(d)(2); and
(B) is not committed by a political subdivision under this
subdivision;
shall be used as required by IC 6-3.6-11-6(d)(3).
As added by P.L.213-2015, SEC.265. Amended by P.L.197-2016,
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SEC.140.
IC 36-7.5-3-5.4
Northwest Indiana plan; goals for employment and retention of
employees for work on development projects; reporting
requirements
Sec. 5.4. (a) For purposes of this section, "northwest Indiana plan"
refers to the activities of the Indiana plan for equal employment in its
northwest Indiana region.
(b) Subject to subsection (c), the development authority shall set
a goal to achieve employment and retention of employees from
certain northwest Indiana cities for work on development authority
projects. The goal must be to attain, by not later than January 1,
2020, a workforce for each project that consists of at least twenty
percent (20%) of employees who are individuals who reside in cities
that:
(1) are within the boundaries of the development authority; and
(2) have an unemployment rate that exceeds the state
unemployment rate by more than twenty percent (20%).
(c) The goal set forth in subsection (b) applies:
(1) to development authority investments of state and local
funds on capital projects that require construction or
demolition; and
(2) unless attainment of the goal is inconsistent with any federal
or state law or regulation.
(d) The development authority shall before November 1 of each
year issue a report to the legislative council, the budget committee,
and the governor concerning the operations and activities of the
development authority during the preceding state fiscal year as
indicated in section 3 of this chapter. In addition, the development
authority shall report on progress toward meeting the goal set forth
in subsection (b) for the previous year and report any obstacles to
achieving the goal set forth in subsection (b) and the use of the
northwest Indiana plan in the report to the legislative council. The
report to the legislative council must be in an electronic format under
IC 5-14-6.
As added by P.L.192-2015, SEC.13.
IC 36-7.5-3-6 Version a
Northwest Indiana regional development authority commuter rail
construction fund; establishment; uses
Note: This version of section effective until 1-1-2017. See also
following version of this section, effective 1-1-2017.
Sec. 6. (a) As used in this section, "fund" refers to the northwest
Indiana regional development authority commuter rail construction
fund established by subsection (b).
(b) The northwest Indiana regional development authority
commuter rail construction fund is established within the treasury of
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the development authority as a restricted fund for the purpose of
holding money to be used to provide matching grants for projects
that:
(1) are related to the extension of the Chicago, South Shore, and
South Bend Railway; and
(2) are approved by the development authority under this
section.
(c) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Contributions received by the development authority under
IC 36-7.5-4-1 and IC 36-7.5-4-2.
(3) Contributions of county economic development income tax
revenue received by the fund in accordance with section 5 of
this chapter.
(4) Federal grants.
(5) Gifts.
(d) The development authority shall administer the fund.
(e) Money in the fund that is not needed to satisfy the obligations
of the fund may be invested in the manner that other public money
may be invested. Interest or other investment returns received on
investments of money in the fund becomes part of the fund.
(f) Money in the fund may be disbursed from the fund only for the
following purposes:
(1) To pay debt service on bonds issued to fund construction
projects extending the Chicago, South Shore, and South Bend
Railway.
(2) To provide matching grants in accordance with the
requirements of this section.
(3) To pay the expenses of the development authority in
administering the fund.
(4) To return money to the entity that contributed the money to
correct an error in the contribution amount or because the
money is no longer needed for the purpose for which the money
was contributed.
As added by P.L.213-2015, SEC.266.
IC 36-7.5-3-6 Version b
Northwest Indiana regional development authority commuter rail
construction fund; establishment; uses
Note: This version of section effective 1-1-2017. See also
preceding version of this section, effective until 1-1-2017.
Sec. 6. (a) As used in this section, "fund" refers to the northwest
Indiana regional development authority commuter rail construction
fund established by subsection (b).
(b) The northwest Indiana regional development authority
commuter rail construction fund is established within the treasury of
the development authority as a restricted fund for the purpose of
holding money to be used to provide matching grants for projects
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that:
(1) are related to the extension of the Chicago, South Shore, and
South Bend Railway; and
(2) are approved by the development authority under this
section.
(c) The fund consists of the following:
(1) Appropriations by the general assembly.
(2) Contributions received by the development authority under
IC 36-7.5-4-1 and IC 36-7.5-4-2.
(3) Contributions of the local income tax revenue received by
the fund in accordance with section 5 of this chapter.
(4) Federal grants.
(5) Gifts.
(d) The development authority shall administer the fund.
(e) Money in the fund that is not needed to satisfy the obligations
of the fund may be invested in the manner that other public money
may be invested. Interest or other investment returns received on
investments of money in the fund becomes part of the fund.
(f) Money in the fund may be disbursed from the fund only for the
following purposes:
(1) To pay debt service on bonds issued to fund construction
projects extending the Chicago, South Shore, and South Bend
Railway.
(2) To provide matching grants in accordance with the
requirements of this section.
(3) To pay the expenses of the development authority in
administering the fund.
(4) To return money to the entity that contributed the money to
correct an error in the contribution amount or because the
money is no longer needed for the purpose for which the money
was contributed.
As added by P.L.213-2015, SEC.266. Amended by P.L.197-2016,
SEC.141.
Indiana Code 2016
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