SOURCE: IC 36-7-14.5-12.5; (05)IN1250.1.1. -->
SECTION 1. IC 36-7-14.5-12.5 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 12.5. (a) This
section applies only to an authority in a county having a United States
government military base that is scheduled for closing or is completely
or partially inactive or closed.
(b) Except as otherwise provided, the legislative body of a
county described in subsection (a) may adopt an ordinance
providing that the jurisdiction of an authority includes the entire
In order to accomplish the purposes set forth in section 11(b)
of this chapter, an authority may create an economic development area:
(1) by following the procedures set forth in IC 36-7-14-41 for the
establishment of an economic development area by a
redevelopment commission; and
(2) with the same effect as if the economic development area was
created by a redevelopment commission.
An authority may
include in an economic development
area created under this section any area
that was declared a blighted
area, an urban renewal area, or an economic development area under
IC 36-7-14. within the jurisdiction of the authority.
(c) In order to accomplish the purposes set forth in section 11(b) of
this chapter, an authority may do the following in a manner that serves
an economic development area created under this section:
(1) Acquire by purchase, exchange, gift, grant, condemnation, or
lease, or any combination of methods, any personal property or
interest in real property needed for the redevelopment of
economic development areas located within the corporate
boundaries of the unit.
(2) Hold, use, sell (by conveyance by deed, land sale contract, or
other instrument), exchange, lease, rent, or otherwise dispose of
property acquired for use in the redevelopment of economic
development areas on the terms and conditions that the authority
considers best for the unit and the unit's inhabitants.
(3) Sell, lease, or grant interests in all or part of the real property
acquired for redevelopment purposes to any other department of
the unit or to any other governmental agency for public ways,
levees, sewerage, parks, playgrounds, schools, and other public
purposes on any terms that may be agreed on.
(4) Clear real property acquired for redevelopment purposes.
(5) Repair and maintain structures acquired for redevelopment
(6) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment purposes.
(7) Survey or examine any land to determine whether the land
should be included within an economic development area to be
acquired for redevelopment purposes and to determine the value
of that land.
(8) Appear before any other department or agency of the unit, or
before any other governmental agency in respect to any matter
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any economic development area within the jurisdiction of
(9) Institute or defend in the name of the unit any civil action, but
all actions against the authority must be brought in the circuit or
superior court of the county where the authority is located.
(10) Use any legal or equitable remedy that is necessary or
considered proper to protect and enforce the rights of and perform
the duties of the authority.
(11) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit subject to the same
conditions and procedures that apply to the exercise of the power
of eminent domain by a redevelopment commission under
(12) Appoint an executive director, appraisers, real estate experts,
engineers, architects, surveyors, and attorneys.
(13) Appoint clerks, guards, laborers, and other employees the
authority considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(14) Prescribe the duties and regulate the compensation of
employees of the authority.
(15) Provide a pension and retirement system for employees of
the authority by using the public employees' retirement fund or a
retirement plan approved by the United States Department of
Housing and Urban Development.
(16) Discharge and appoint successors to employees of the
authority subject to subdivision (13).
(17) Rent offices for use of the department or authority, or accept
the use of offices furnished by the unit.
(18) Equip the offices of the authority with the necessary
furniture, furnishings, equipment, records, and supplies.
(19) Design, order, contract for, and construct, reconstruct,
improve, or renovate the following:
(A) Any local public improvement or structure that is
necessary for redevelopment purposes or economic
development within the corporate boundaries of the unit.
(B) Any structure that enhances development or economic
(20) Contract for the construction, extension, or improvement of
pedestrian skyways (as defined in IC 36-7-14-12.2(c)).
(21) Accept loans, grants, and other forms of financial assistance
from, or contract with, the federal government, the state
government, a municipal corporation, a special taxing district, a
foundation, or any other source.
(22) Make and enter into all contracts and agreements necessary
or incidental to the performance of the duties of the authority and
the execution of the powers of the authority under this chapter.
(23) Take any action necessary to implement the purpose of the
(24) Provide financial assistance, in the manner that best serves
the purposes set forth in section 11(b) of this chapter, including
grants and loans, to enable private enterprise to develop,
redevelop, and reuse military base property or otherwise enable
private enterprise to provide social and economic benefits to the
citizens of the unit.
Except as otherwise provided, an authority may exercise a power
under this subsection or any other power granted to the authority
under IC 36-7-14 or this chapter throughout or in any area that is
within the jurisdiction of the authority as specified in an ordinance
adopted by the legislative body of the county in which the authority
(d) An authority may designate all or a portion of an economic
development area created under this section as an allocation area by
following the procedures set forth in IC 36-7-14-39 for the
establishment of an allocation area by a redevelopment commission.
The allocation provision may modify the definition of "property taxes"
under IC 36-7-14-39(a) to include taxes imposed under IC 6-1.1 on the
depreciable personal property located and taxable on the site of
operations of designated taxpayers in accordance with the procedures
applicable to a commission under IC 36-7-14-39.3. IC 36-7-14-39.3
applies to such a modification. An allocation area established by an
authority under this section is a special taxing district authorized by the
general assembly to enable the unit to provide special benefits to
taxpayers in the allocation area by promoting economic development
that is of public use and benefit. For allocation areas established for an
economic development area created under this section after June 30,
1997, and to the expanded portion of an allocation area for an
economic development area that was established before June 30, 1997,
and that is expanded under this section after June 30, 1997, 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, must be allocated. All of the
provisions of IC 36-7-14-39, IC 36-7-14-39.1, and IC 36-7-14-39.5
apply to an allocation area created under this section, except that the
authority shall be vested with the rights and duties of a commission as
referenced in those sections, and except that, notwithstanding
IC 36-7-14-39(b)(2), property tax proceeds paid into the allocation
fund may be used by the authority only to do one (1) or more of the
(1) Pay the principal of and interest and redemption premium on
any obligations incurred by the special taxing district or any other
entity for the purpose of financing or refinancing military base
reuse activities in or serving or benefitting that allocation area.
(2) Establish, augment, or restore the debt service reserve for
obligations payable solely or in part from allocated tax proceeds
in that allocation area or from other revenues of the authority
(including lease rental revenues).
(3) Make payments on leases payable solely or in part from
allocated tax proceeds in that allocation area.
(4) Reimburse any other governmental body for expenditures
made by it for local public improvements or structures in or
serving or benefitting that allocation area.
(5) Pay all or a portion of a property tax replacement credit to
taxpayers in an allocation area as determined by the authority.
This credit equals the amount determined under the following
STEPS for each taxpayer in a taxing district (as defined in
IC 6-1.1-1-20) that contains all or part of the allocation area:
STEP ONE: Determine that part of the sum of the amounts
under IC 6-1.1-21-2(g)(1)(A), IC 6-1.1-21-2(g)(2),
IC 6-1.1-21-2(g)(3), IC 6-1.1-21-2(g)(4), and
IC 6-1.1-21-2(g)(5) 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 that is attributable
to the taxing district; by
(B) the STEP ONE sum.
STEP THREE: Multiply:
(A) the STEP TWO quotient; by
(B) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2) levied in the taxing district that have been
allocated during that year to an allocation fund under this
If not all the taxpayers in an allocation area receive the credit in
full, each taxpayer in the allocation area is entitled to receive the
same proportion of the credit. A taxpayer may not receive a credit
under this section and a credit under IC 36-7-14-39.5 in the same
(6) Pay expenses incurred by the authority for local public
improvements or structures that are in the allocation area or
serving or benefiting the allocation area.
(7) Reimburse public and private entities for expenses incurred in
training employees of industrial facilities that are located:
(A) in the allocation area; and
(B) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
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 clause (B). The reimbursements under this
subdivision 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 allocation fund may not be used for
operating expenses of the authority.
(e) In addition to other methods of raising money for property
acquisition, redevelopment, or economic development activities in or
directly serving or benefitting an economic development area created
by an authority under this section, and in anticipation of the taxes
allocated under subsection (d), other revenues of the authority, or any
combination of these sources, the authority may, by resolution, issue
the bonds of the special taxing district in the name of the unit. Bonds
issued under this section may be issued in any amount without
limitation. The following apply if such a resolution is adopted:
(1) The authority shall certify a copy of the resolution authorizing
the bonds to the municipal or county fiscal officer, 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.
(2) The bonds must be executed by the appropriate officer of the
unit and attested by the unit's fiscal officer.
(3) The bonds are exempt from taxation for all purposes.
(4) Bonds issued under this section may be sold at public sale in
accordance with IC 5-1-11 or at a negotiated sale.
(5) The bonds are not a corporate obligation of the unit but are an
indebtedness of the taxing district. The bonds and interest are
payable, as set forth in the bond resolution of the authority:
(A) from the tax proceeds allocated under subsection (d);
(B) from other revenues available to the authority; or
(C) from a combination of the methods stated in clauses (A)
(6) Proceeds from the sale of 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 issuance.
(7) Laws relating to the filing of petitions requesting the issuance
of bonds and the right of taxpayers to remonstrate against the
issuance of bonds do not apply to bonds issued under this section.
(8) If a debt service reserve is created from the proceeds of bonds,
the debt service reserve may be used to pay principal and interest
on the bonds as provided in the bond resolution.
(9) If bonds are issued under this chapter that are payable solely
or in part from revenues to the authority from a project or
projects, the authority 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. 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 authority. The authority
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 authority that are
payable solely from revenues of the authority shall contain a
statement to that effect in the form of bond.
(f) Notwithstanding section 8(a) of this chapter, an ordinance
adopted under section 11(b) of this chapter may provide, or be
amended to provide, that the board of directors of the authority shall be
composed of not fewer than three (3) nor more than
seven (7) eleven
members, who must be residents of the unit appointed by the
executive of the unit.
(g) The acquisition of real and personal property by an authority
under this section is not subject to the provisions of IC 5-22,
IC 36-1-10.5, IC 36-7-14-19, or any other statutes governing the
purchase of property by public bodies or their agencies.
(h) An authority may negotiate for the sale, lease, or other
disposition of real and personal property without complying with the
provisions of IC 5-22-22, IC 36-1-11, IC 36-7-14-22, or any other
statute governing the disposition of public property.
(i) Notwithstanding any other law, utility services provided within
an economic development area established under this section are
subject to regulation by the appropriate regulatory agencies unless the
utility service is provided by a utility that provides utility service solely
within the geographic boundaries of an existing or a closed military
installation, in which case the utility service is not subject to regulation
for purposes of rate making, regulation, service delivery, or issuance of
bonds or other forms of indebtedness. However, this exemption from
regulation does not apply to utility service if the service is generated,
treated, or produced outside the boundaries of the existing or closed
SOURCE: ; (05)IN1250.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] (a) A nonprofit
corporation established to encourage, initiate, and coordinate
economic development of a county described in
IC 36-7-14.5-12.5(a) may convey or otherwise transfer any or all
of the nonprofit corporation's assets and liabilities to an authority
described in IC 36-7-14.5-12.5(a).
(b) This SECTION expires June 30, 2008.
SOURCE: ; (05)IN1250.1.3. -->
SECTION 3. [EFFECTIVE UPON PASSAGE] (a) An authority
described in IC 36-7-14.5-12.5(a) may change its name to recognize
that the authority's jurisdiction under IC 36-7-14.5-12.5, as
amended by this act, may include the entire county in which the
authority was established. A change in an authority's name under
this SECTION does not affect the powers and duties of the
authority under IC 36-7-14, IC 36-7-14.5, or any other statute.
(b) This SECTION expires June 30, 2008.