Citations Affected: IC 36-7.
Synopsis: Borrowing by CRED districts. Authorizes the state board of
finance to make an interest free loan of up to $10,000,000 from the
state general fund to the advisory commission on industrial
development of a city that established a community revitalization
enhancement district (CRED) and that meets certain other conditions.
Provides that an advisory commission on industrial development may
use the loan proceeds for the acquisition of land, buildings, and
structures in the CRED and for the demolition, removal, renovation,
rehabilitation, and enlargement of buildings and structures, and site
and infrastructure improvements in the district.
Effective: July 1, 2004.
January 12, 2004, read first time and referred to Committee on Finance.
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development and to make an appropriation.
SECTION 1. IC 36-7-13-15, AS AMENDED BY P.L.224-2003,
SECTION 241, IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2004]: Sec. 15. (a) If an advisory commission
on industrial development designates a district under this chapter or the
legislative body of a county or municipality adopts an ordinance
designating a district under section 10.5 of this chapter, the treasurer
of state shall establish an incremental tax financing fund for the
district. The fund shall be administered by the treasurer of state. Money
in the fund does not revert to the state general fund at the end of a state
(b) Subject to subsection (c), the following amounts shall be deposited during each state fiscal year in the incremental tax financing fund established for the district under subsection (a):
(1) The aggregate amount of state gross retail and use taxes that are remitted under IC 6-2.5 by businesses operating in the district, until the amount of state gross retail and use taxes deposited equals the gross retail incremental amount for the district.
Sec. 3. As used in this chapter, "qualified city" means a city that meets the following conditions:
(1) A district was established in the city under IC 36-7-13 before July 1, 2002.
(2) Obsolete buildings containing at least two million (2,000,000) square feet of interior floor space are located in the district described in subdivision (1).
(3) The obsolete buildings described in subdivision (2) are significant obstacles to redevelopment in the city.
Sec. 4. Before January 1, 2005, the advisory commission on industrial development of a qualified city may apply to the board for a loan from the state general fund. The board may make a loan from the state general fund to the advisory commission on industrial development of the qualified city for the purposes described in section 8 of this chapter.
Sec. 5. (a) The board shall determine the terms of a loan made under this chapter. The board and the advisory commission on industrial development of the qualified city shall enter into a written agreement governing the terms and conditions of the loan.
(b) Interest may not be charged on the loan.
(c) The loan must be repaid not later than ten (10) years after the date on which the loan is made.
(d) The amount of the loan may not exceed ten million dollars ($10,000,000).
(e) Except as provided in section 7 of this chapter, the loan shall be repaid only from income tax incremental amounts and gross retail incremental amounts collected in the district described in section 3(1) of this chapter and deposited in the incremental tax financing fund established for the district under IC 36-7-13-15.
Sec. 6. (a) Whenever the board receives a payment on a loan made under this chapter, the board shall deposit the amount paid in the state general fund.
(b) An advisory commission on industrial development may repay a loan made under this chapter before the time required under section 5 of this chapter.
Sec. 7. If the income tax incremental amounts and gross retail incremental amounts deposited in the incremental tax financing fund established for the district are insufficient to repay the entire amount of a loan under this chapter, the board may offset the amount of a delinquent payment on the loan from property tax replacement credit distributions or homestead credit distributions
otherwise due to the qualified city.
Sec. 8. An advisory commission on industrial development may use the proceeds of a loan under this chapter for expenses related to the following purposes in the district described in section 3(1) of this chapter:
(1) The acquisition of land, buildings, and structures, including professional fees that are related to the acquisition.
(2) Demolition, removal, renovation, rehabilitation, and enlargement of buildings and structures.
(3) Site and infrastructure improvements.
Sec. 9. There is appropriated to the board from the state general fund an amount sufficient to make the loan authorized by this chapter.