Citations Affected: IC 36-7-26.
Synopsis: Sales tax increment finance. Authorizes an economic
development project district (district) in Warrick County. Requires a
resolution establishing a district in Warrick County to be ratified by the
county fiscal body and board of county commissioners. Provides that
if a district is approved by the state board of finance, the district must
be approved by ordinance by the county fiscal body. Increases the
maximum term of bonds and leases for a district from 20 to 25 years.
Specifies the permitted uses of the sales tax increment that may be
captured within the district. Exempts a district in Warrick County from
a statute that: (1) requires that tax increment financing must be
maximized in a community before the state board of finance may
approve a proposed district; and (2) prohibits property tax abatement
in a district.
Effective: July 1, 2010.
January 5, 2010, read first time and referred to Committee on Ways and Means.
A BILL FOR AN ACT to amend the Indiana Code concerning
economic development.
conditions in certain areas of certain cities are stagnant or deteriorating.
(b) Present economic conditions in such areas are beyond remedy
and control by existing regulatory processes because of the substantial
public financial commitments necessary to encourage significant
increases in economic activities in such areas.
(c) Economic development of certain reclaimed coal land near
the Blue Grass Fish and Wildlife Area and Interstate Highway 164
is vital for a county described in section 1(5) of this chapter.
(c) (d) Encouraging economic development in these areas will:
(1) attract new businesses and encourage existing business to
remain or expand;
(2) increase temporary and permanent employment opportunities
and private sector investment;
(3) protect and increase state and local tax bases; and
(4) encourage overall economic growth in Indiana.
(d) (e) Redevelopment and stimulation of economic development
benefit the health and welfare of the people of Indiana, are public uses
and purposes for which the public money may be spent, and are of
public utility and benefit.
(e) (f) Economic development in such areas can be accomplished
only by a coordinated effort of local and state governments.
(f) (g) This chapter shall be liberally construed to carry out the
purposes of this chapter and to provide the county described in
section 1(5) of this chapter and cities with maximum flexibility to
accomplish those purposes.
submit the resolution to the county fiscal body and the county
executive for ratification and then shall submit the resolution to the
board for approval. In submitting the resolution to the board, the
commission shall deliver to the board:
(1) the data required under section 14 of this chapter;
(2) the information concerning the proposed redevelopment
and economic development of the proposed district; and
(3) the proposed use of the revenues to be received under
section 23 of this chapter.
This information may be modified periodically after the initial
submission. The commission shall provide to the board any
additional information that the board requests.
(b) (c) Upon adoption of a resolution designating a district under
section 15 of this chapter, and upon approval of the resolution by the
board under subsection (a), the commission shall publish (in
accordance with IC 5-3-1) notice of the adoption and purport purpose
of the resolution and of the hearing to be held. The notice must provide
a general description of the boundaries of the district and state that
information concerning the district can be inspected at the
commission's office. The notice must also contain a date when the
commission will hold a hearing to receive and hear remonstrances and
other testimony from persons interested in or affected by the
establishment of the district. All affected persons, including all persons
or entities owning property or doing business in the district, shall be
considered notified of the pendency of the hearing and of subsequent
acts, hearings, adjournments, and resolutions of the commission by the
notice given under this section.
(d) The approval of the board under subsection (b) is final and
conclusive.
from the fund to the commission, to finance a local public improvement
under IC 36-7-14-25.1 or may make lease rental payments for a local
public improvement under IC 36-7-14-25.2 and IC 36-7-14-25.3. The
term of any bonds issued under this section may not exceed twenty (20)
twenty-five (25) years, nor may the term of any lease agreement
entered into under this section exceed twenty (20) twenty-five (25)
years after the date the local public improvement is available for
use. The commission shall transmit to the board a transcript of the
proceedings with respect to the issuance of the bonds or the execution
and delivery of a lease agreement as contemplated by this section. The
transcript must include a debt service or lease rental schedule setting
forth all payments required in connection with the bonds or the lease
rentals.
(b) On January 15 of each year, the commission shall remit to the
treasurer of state the money disbursed from the fund that is credited to
the net increment account that exceeds the amount needed to pay debt
service or lease rentals and to establish and maintain a debt service
reserve under this chapter in the prior year and before May 31 of that
year. Amounts remitted under this subsection shall be deposited by the
auditor of state as other gross retail and use taxes are deposited.
(c) The commission in a city described in section 1(2) of this
chapter may distribute money from the fund only for the following:
(1) Road, interchange, and right-of-way improvements.
(2) Acquisition costs of a commercial retail facility and for real
property acquisition costs in furtherance of the road, interchange,
and right-of-way improvements.
(3) Demolition of commercial property and any related expenses
incurred before or after the demolition of the commercial
property.
(4) For physical improvements or alterations of property that
enhance the commercial viability of the district.
(d) The commission in a city described in section 1(3) of this
chapter may distribute money from the fund only for the following
purposes:
(1) For road, interchange, and right-of-way improvements and for
real property acquisition costs in furtherance of the road,
interchange, and right-of-way improvements.
(2) For the demolition of commercial property and any related
expenses incurred before or after the demolition of the
commercial property.
(e) The commission in a city described in section 1(4) of this
chapter may distribute money from the fund only for the following
purposes:
(1) For:
(A) the acquisition, demolition, and renovation of property;
and
(B) site preparation and financing;
related to the development of housing in the district.
(2) For physical improvements or alterations of property that
enhance the commercial viability of the district.
(f) The commission in a county described in section 1(5) of this
chapter may distribute money from the fund for the following
district project costs associated with the development or
redevelopment of the district:
(1) The total cost of acquisition of all land, rights-of-way, and
other property to be acquired, developed, or redeveloped for
the project.
(2) Site preparation, including utilities and infrastructure.
(3) Costs associated with the construction or establishment of
a museum and education complex and a multisport athletic
complex that are owned or leased by:
(A) the county described in section 1(5) of this chapter;
(B) the commission;
(C) an authority (as defined in IC 36-7-14.5-2);
(D) a leasing body (as defined in IC 5-1-1-1); or
(E) one (1) or more entities that are exempt from income
taxation under Section 501(c)(3) of the Internal Revenue
Code.
(4) Road, interchange, and right-of-way improvements.
(5) Public parking facilities.
(6) All reasonable and necessary architectural, engineering,
legal, financing, accounting, advertising, bond discount, and
supervisory expenses related to the acquisition and
development or redevelopment of the property or the issuance
of bonds.
(7) For any bonds issued by an entity to which money from
the fund may be pledged under subsection (a), debt service,
lease payments, capitalized interest, or debt service reserve
for the bonds to the extent the commission determines that a
reserve is reasonably required.