Citations Affected: IC 36-7.
Synopsis: Redevelopment commissions and authorities. Provides that
a redevelopment commission may not enter into any obligation payable
from public funds without first obtaining the approval of the legislative
or fiscal body of the unit that established the commission. Provides an
exception if the obligation is for the acquisition of real property and the
payments are for three years or less or the purchase price is less than
$5,000,000. Specifies that the approving ordinance or resolution must
include certain items. Provides that a redevelopment commission and
a department of redevelopment are subject to oversight by the
legislative body of the unit, including review by the legislative body of
annual budgets. Specifies that a redevelopment commission and a
department of redevelopment are subject to the same laws, rules, and
ordinances of a general nature that apply to all other commissions or
departments of the unit. Specifies that a redevelopment commission, a
department of redevelopment, and a redevelopment authority are
subject to audit by the state board of accounts and covered by the
public meeting and public records laws. Requires a redevelopment
commission to provide to the legislative body of the unit at a public
meeting all the information supporting the action the redevelopment
commission proposes to take regarding the sale, transfer, or other
disposition of property. Provides that if the amount of excess assessed
value determined by the commission is expected to generate more than
200% of the amount of allocated tax proceeds necessary to carry out
the commission's plan, a determination of the amount of the excess
available to other taxing units by the commission must be approved by
the legislative body of the unit. Permits the legislative body of the unit
Effective: July 1, 2013.
January 8, 2013, read first time and referred to Committee on Local Government.
to modify the commission's determination with respect to the amount
of excess assessed value. Requires the treasurer of a redevelopment
commission outside Indianapolis and the secretary-treasurer of a
redevelopment authority outside Indianapolis to report quarterly to the
fiscal officer of the unit that established the commission or authority.
Provides that the Indianapolis controller is the fiscal officer of the
redevelopment commission and redevelopment authority in
Indianapolis. Authorizes the Indianapolis controller to obtain financial
services on a contractual basis.
A BILL FOR AN ACT to amend the Indiana Code concerning local
government.
development areas:
(1) are public and governmental functions that cannot be
accomplished through the ordinary operations of private
enterprise because of:
(A) the necessity for requiring the proper use of the land so as
to best serve the interests of the county and its citizens; and
(B) the costs of these projects;
(2) will:
(A) benefit the public health, safety, morals, and welfare;
(B) increase the economic well-being of the unit and the state;
and
(C) serve to protect and increase property values in the unit
and the state; and
(3) are public uses and purposes for which public money may be
spent and private property may be acquired.
(b) This section and sections 41 and 43 of this chapter shall be
liberally construed to carry out the purposes of this section.
(c) Except as provided in subsection (d), a redevelopment
commission may not enter into any obligation payable from public
funds without first obtaining the approval, by ordinance or
resolution, of the legislative body of the unit.
(d) A redevelopment commission is not required to obtain the
approval of the legislative body of the unit under this section if:
(1) the obligation is for the acquisition of real property under
this chapter; and
(2) the agreement to acquire the real property requires the
redevelopment commission to:
(A) make payments for the real property to be acquired for
a term of three (3) years or less; or
(B) purchase the real property for a cost of less than five
million dollars ($5,000,000).
A redevelopment commission may not enter into an obligation
payable from public funds, other than an obligation described in
this subsection, unless the redevelopment commission first obtains
the approval of the legislative body of the unit as provided in
subsection (c).
(e) The approving ordinance or resolution of a legislative body
under subsection (c) must include the following:
(1) The maximum amount of the obligation.
(2) The maximum interest rate or rates, any provisions for
redemption before maturity, and any provisions for the
payment of capitalized interest associated with the obligation.
(3) The maximum term of the obligation.
commission. Notwithstanding any other provision of this chapter, the
treasurer has charge over and is responsible for the administration,
investment, and disbursement of all funds and accounts of the
redevelopment commission in accordance with the requirements of this
chapter. However, the treasurer may not perform any duties of the
fiscal officer or any other officer of the unit that are prescribed by
section 24 of this chapter or by any provisions of this chapter that
pertain to the issuance and sale of bonds, notes, or warrants of the
special taxing district. The treasurer shall report quarterly to the
fiscal officer of the unit.
(c) The redevelopment commissioners may adopt the rules and
bylaws they consider necessary for the proper conduct of their
proceedings, the carrying out of their duties, and the safeguarding of
the money and property placed in their custody by this chapter. In
addition to the annual meeting, the commissioners may, by resolution
or in accordance with their rules and bylaws, prescribe the date and
manner of notice of other regular or special meetings.
(d) This subsection does not apply to a county redevelopment
commission that consists of seven (7) members. Three (3) of the
redevelopment commissioners constitute a quorum, and the
concurrence of three (3) commissioners is necessary to authorize any
action.
(e) This subsection applies only to a county redevelopment
commission that consists of seven (7) members. Four (4) of the
redevelopment commissioners constitute a quorum, and the
concurrence of four (4) commissioners is necessary to authorize any
action.
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) Enter on or into, inspect, investigate, and assess real property
and structures acquired or to be acquired for redevelopment
purposes to determine the existence, source, nature, and extent of
any environmental contamination, including the following:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(6) Remediate environmental contamination, including the
following, found on any real property or structures acquired for
redevelopment purposes:
(A) Hazardous substances.
(B) Petroleum.
(C) Other pollutants.
(7) Repair and maintain structures acquired for redevelopment
purposes.
(8) Remodel, rebuild, enlarge, or make major structural
improvements on structures acquired for redevelopment purposes.
(9) Survey or examine any land to determine whether it should be
included within an area needing redevelopment to be acquired for
redevelopment purposes and to determine the value of that land.
(10) Appear before any other department or agency of the unit, or
before any other governmental agency in respect to any matter
affecting:
(A) real property acquired or being acquired for
redevelopment purposes; or
(B) any area needing redevelopment within the jurisdiction of
the commissioners.
(11) Institute or defend in the name of the unit any civil action.
(12) 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 department of redevelopment.
(13) Exercise the power of eminent domain in the name of and
within the corporate boundaries of the unit in the manner
prescribed by section 20 of this chapter.
(14) Appoint an executive director, appraisers, real estate experts,
engineers, architects, surveyors, and attorneys.
(15) Appoint clerks, guards, laborers, and other employees the
commission considers advisable, except that those appointments
must be made in accordance with the merit system of the unit if
such a system exists.
(16) Prescribe the duties and regulate the compensation of
employees of the department of redevelopment.
(17) Provide a pension and retirement system for employees of
the department of redevelopment by using the Indiana public
employees' retirement fund or a retirement plan approved by the
United States Department of Housing and Urban Development.
(18) Discharge and appoint successors to employees of the
department of redevelopment subject to subdivision (15).
(19) Rent offices for use of the department of redevelopment, or
accept the use of offices furnished by the unit.
(20) Equip the offices of the department of redevelopment with
the necessary furniture, furnishings, equipment, records, and
supplies.
(21) Expend, on behalf of the special taxing district, all or any
part of the money of the special taxing district.
(22) Contract for the construction of:
(A) local public improvements (as defined in IC 36-7-14.5-6)
or structures that are necessary for redevelopment of areas
needing redevelopment or economic development within the
corporate boundaries of the unit; or
(B) any structure that enhances development or economic
development.
(23) Contract for the construction, extension, or improvement of
pedestrian skyways.
(24) Accept loans, grants, and other forms of financial assistance
from the federal government, the state government, a municipal
corporation, a special taxing district, a foundation, or any other
source.
(25) Provide financial assistance (including grants and loans) to
enable individuals and families to purchase or lease residential
units within the district. However, financial assistance may be
provided only to individuals and families whose income is at or
below the unit's median income for individuals and families,
respectively.
(26) Provide financial assistance (including grants and loans) to
neighborhood development corporations to permit them to:
(A) provide financial assistance for the purposes described in
subdivision (25); or
(B) construct, rehabilitate, or repair commercial property
within the district.
(27) Require as a condition of financial assistance to the owner of
a multiple unit residential structure that any of the units leased by
the owner must be leased:
(A) for a period to be determined by the commission, which
may not be less than five (5) years;
(B) to families whose income does not exceed eighty percent
(80%) of the unit's median income for families; and
(C) at an affordable rate.
(b) Conditions imposed by the commission under subsection (a)(27)
remain in force throughout the period determined under subsection
(a)(27)(A), even if the owner sells, leases, or conveys the property. The
subsequent owner or lessee is bound by the conditions for the
remainder of the period.
(c) As used in this section, "pedestrian skyway" means a pedestrian
walkway within or outside of the public right-of-way and through and
above public or private property and buildings, including all structural
supports required to connect skyways to buildings or buildings under
construction. Pedestrian skyways constructed, extended, or improved
over or through public or private property constitute public property
and public improvements, constitute a public use and purpose, and do
not require vacation of any public way or other property.
(d) All powers that may be exercised under this chapter by the
redevelopment commission may also be exercised by the
redevelopment commission in carrying out its duties and purposes
under IC 36-7-14.5. However, if a power pertains to issuing bonds
or incurring an obligation, the exercise of the power must first be
specifically approved by the fiscal or legislative body of the unit,
whichever applies.
commission, the amount of funds on hand at the close of the calendar
year, and other information necessary to disclose the activities of the
commissioners and the results obtained.
(c) The report of the commissioners of a county redevelopment
commission must show all the information required by subsection (b),
plus the names of any commissioners appointed to or removed from
office during the preceding calendar year.
(d) A copy of each report filed under this section must be submitted
to the department of local government finance in an electronic format
under IC 5-14-6.
(e) A redevelopment commission and a department of
redevelopment are subject to the same laws, rules, and ordinances
of a general nature that apply to all other commissions or
departments of the unit.
may authorize the payment of a nominal fee to bind an option and as a
part of the consideration for conveyance may agree to pay the expense
incident to the conveyance and determination of the title of the
property. Payment for the property purchased shall be made when and
as directed by the commission but only on delivery of proper
instruments conveying the title or interest of the owner to the "City
(Town or County) of ______________ for the use and benefit of its
department of redevelopment". Notwithstanding the other provisions
of this subsection, any agreement by the commission to:
(1) make payments for the property to be purchased for a
term exceeding three (3) years; or
(2) pay a purchase price for the property that exceeds five
million dollars ($5,000,000);
is subject to the prior approval of the legislative body of the unit.
(d) All real property and interests in real property acquired by the
redevelopment commission are free and clear of all liens, assessments,
and other governmental charges except for current property taxes,
which shall be prorated to the date of acquisition.
(e) Notwithstanding subsections (a) through (d), the redevelopment
commission may, before the time referred to in this section, accept gifts
of property needed for the redevelopment of redevelopment project
areas if the property is free and clear of all liens other than taxes,
assessments, and other governmental charges. The commission may,
before the time referred to in this section, take options on or contract
for the acquisition of property needed for the redevelopment of
redevelopment project areas if the options and contracts are not binding
on the commission or the district until the time referred to in this
section and until money is available to pay the consideration set out in
the options or contracts.
urban renewal project area.
(3) Parcels of property secured from the county under
IC 6-1.1-25-9(e) that were acquired by the county under
IC 6-1.1-24 and IC 6-1.1-25.
(4) Real property donated or transferred to the commission to be
held and disposed of under this section.
However, this section does not apply to property acquired under section
32.5 of this chapter.
(b) The commission may do the following to or for real property
described in subsection (a):
(1) Examine, classify, manage, protect, insure, and maintain the
property.
(2) Eliminate deficiencies (including environmental deficiencies),
carry out repairs, remove structures, and make improvements.
(3) Control the use of the property.
(4) Lease the property.
(5) Use any powers under section 12.2 of this chapter in relation
to the property.
(c) The commission may enter into contracts to carry out part or all
of the functions described in subsection (b).
(d) The commission may extinguish all delinquent taxes, special
assessments, and penalties relative to real property donated to the
commission to be held and disposed of under this section. The
commission shall provide the county auditor with a list of the real
property on which delinquent taxes, special assessments, and penalties
are extinguished under this subsection.
(e) Subject to the prior approval by the legislative body of the
unit, real property described in subsection (a) may be sold, exchanged,
transferred, granted, donated, or otherwise disposed of in any of the
following ways:
(1) In accordance with section 22, 22.2, 22.6, or 22.7 of this
chapter.
(2) In accordance with the provisions authorizing an urban
homesteading program under IC 36-7-17.
The commission shall provide to the legislative body of the unit at
a public meeting all the information supporting the action the
commission proposes to take under this subsection, including any
terms and conditions to which the commission would have to agree
to carry out the action.
(f) In disposing of real property under subsection (e), the
commission may:
(1) group together properties for disposition in a manner that will
best serve the interest of the community, from the standpoint of
both human and economic welfare; and
(2) group together nearby or similar properties to facilitate
convenient disposition.
the bonds as provided in the bond resolution.
(n) Any amount remaining in the debt service reserve after all of the
bonds of the issue for which the debt service reserve was established
have matured shall be:
(1) deposited in the allocation fund established under section
39(b)(3) of this chapter; and
(2) to the extent permitted by law, transferred to the county or
municipality that established the department of redevelopment for
use in reducing the county's or municipality's property tax levies
for debt service.
(o) If bonds are issued under this chapter that are payable solely or
in part from revenues to the redevelopment commission from a project
or projects, the redevelopment commission 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, but may not convey or
mortgage any project or parts of a project. 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 redevelopment commission. The redevelopment
commission 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 redevelopment commission
that are payable solely from revenues of the commission shall contain
a statement to that effect in the form of bond.
(p) If the total principal amount of bonds authorized by a resolution
of the redevelopment commission adopted before July 1, 2008, is equal
to or greater than three million dollars ($3,000,000), the bonds may not
be issued without the approval, by resolution, of the legislative body of
the unit. Bonds authorized in any principal amount by a resolution of
the redevelopment commission adopted after June 30, 2008, may not
be issued without the approval of the legislative body of the unit.
the lease is unnecessary or unwise or that the payments provided for in
the lease are not fair and reasonable, as the case may be.
(e) Upon the filing of the petition, the county auditor shall
immediately certify a copy of it, together with such other data as may
be necessary in order to present the questions involved, to the
department of local government finance. Upon receipt of the certified
petition and information, the department of local government finance
shall fix a time and place for a hearing in the redevelopment district,
which must be not less than five (5) or more than thirty (30) days after
the time is fixed. Notice of the hearing shall be given by the department
of local government finance to the members of the fiscal body, to the
redevelopment commission, and to the first fifty (50) petitioners on the
petition by a letter signed by the commissioner or deputy commissioner
of the department and enclosed with fully prepaid postage sent to those
persons at their usual place of residence, at least five (5) days before
the date of the hearing. The decision of the department of local
government finance on the appeal, upon the necessity for the execution
of the lease, and as to whether the payments under it are fair and
reasonable, is final.
(f) A redevelopment commission entering into a lease payable from
allocated taxes under section 39 of this chapter or other available funds
of the redevelopment commission may:
(1) pledge the revenue to make payments under the lease pursuant
to IC 5-1-14-4; and
(2) establish a special fund to make the payments.
(g) Lease rentals may be limited to money in the special fund so that
the obligations of the redevelopment commission to make the lease
rental payments are not considered debt of the unit or the district for
purposes of the Constitution of the State of Indiana.
(h) Except as provided in this section, no approvals of any
governmental body or agency are required before the redevelopment
commission enters into a lease under this section.
(i) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be brought within
thirty (30) days after the publication of the notice of the execution and
approval of the lease. However, if the lease is payable in whole or in
part from tax levies and an appeal has been taken to the department of
local government finance, an action to contest the validity or enjoin the
performance must be brought within thirty (30) days after the decision
of the department.
(j) If a redevelopment commission exercises an option to buy a
leased facility from a lessor, the redevelopment commission may
subsequently sell the leased facility, without regard to any other statute,
to the lessor at the end of the lease term at a price set forth in the lease
or at fair market value established at the time of the sale by the
redevelopment commission through auction, appraisal, or arms length
negotiation. If the facility is sold at auction, after appraisal, or through
negotiation, the redevelopment commission shall conduct a hearing
after public notice in accordance with IC 5-3-1 before the sale. Any
action to contest the sale must be brought within fifteen (15) days of
the hearing.
of bonds and interest or to make lease payments shall be deposited with
the depository or depositories for other public funds of the unit in
accordance with IC 5-13, unless they are invested under IC 5-13-9.
(d) If there are no outstanding bonds that are payable solely or in
part from tax proceeds allocated under section 39(b)(3) of this chapter
and that were issued to pay costs of redevelopment in an allocation area
that is located wholly or in part in the special taxing district, then all
proceeds from the sale or leasing of property in the allocation area
under section 22 of this chapter shall be paid into the redevelopment
district bond fund and become a part of that fund. In arriving at the tax
levy for any year, the redevelopment commission shall take into
account the amount of the proceeds deposited under this subsection and
remaining on hand.
(e) The tax levies provided for in this section are reviewable by
other bodies vested by law with the authority to ascertain that the levies
are sufficient to raise the amount that, with other amounts available, is
sufficient to meet the payments under the lease payable from the levy
of taxes.
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 39.3 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A declaratory resolution adopted under section 15 of this chapter
on or before the allocation deadline determined under subsection (i)
may include a provision with respect to the allocation and distribution
of property taxes for the purposes and in the manner provided in this
section. A declaratory resolution previously adopted may include an
allocation provision by the amendment of that declaratory resolution on
or before the allocation deadline determined under subsection (i) in
accordance with the procedures required for its original adoption. A
declaratory resolution or an amendment that establishes an allocation
provision after June 30, 1995, must specify an expiration date for the
allocation provision. For an allocation area established before July 1,
2008, the expiration date may not be more than thirty (30) years after
the date on which the allocation provision is established. For an
allocation area established after June 30, 2008, the expiration date may
not be more than twenty-five (25) years after the date on which the first
obligation was incurred to pay principal and interest on bonds or lease
rentals on leases payable from tax increment revenues. However, with
respect to bonds or other obligations that were issued before July 1,
2008, if any of the bonds or other obligations that were scheduled when
issued to mature before the specified expiration date and that are
payable only from allocated tax proceeds with respect to the allocation
area remain outstanding as of the expiration date, the allocation
provision does not expire until all of the bonds or other obligations are
no longer outstanding. The allocation provision may apply to all or part
of the redevelopment project area. The allocation provision must
require that any property taxes subsequently levied by or for the benefit
of any public body entitled to a distribution of property taxes on taxable
property in the allocation area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into an allocation fund for that allocation area that
may be used by the redevelopment district only to do one (1) or
more of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds which are incurred
by the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 27 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
unit to pay for local public improvements that are physically
located in or physically connected to that allocation area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 25.2 of this
chapter.
(G) Reimburse the unit for expenditures made by it for local
public improvements (which include buildings, parking
facilities, and other items described in section 25.1(a) of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) For property taxes first due and payable before January 1,
2009, pay all or a part of a property tax replacement credit to
taxpayers in an allocation area as determined by the
redevelopment commission. 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) (before their repeal) that is attributable to
the taxing district.
STEP TWO: Divide:
(i) that part of each county's eligible property tax
replacement amount (as defined in IC 6-1.1-21-2 (before its
repeal)) for that year as determined under IC 6-1.1-21-4
(before its repeal) that is attributable to the taxing district;
by
(ii) the STEP ONE sum.
STEP THREE: Multiply:
(i) the STEP TWO quotient; times
(ii) the total amount of the taxpayer's taxes (as defined in
IC 6-1.1-21-2 (before its repeal)) levied in the taxing district
that have been allocated during that year to an allocation
fund under this section.
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 section
39.5 of this chapter (before its repeal) in the same year.
(J) Pay expenses incurred by the redevelopment commission
for local public improvements that are in the allocation area or
serving the allocation area. Public improvements include
buildings, parking facilities, and other items described in
section 25.1(a) of this chapter.
(K) Reimburse public and private entities for expenses
incurred in training employees of industrial facilities that are
located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
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 this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(L) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (K), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
The allocation fund may not be used for operating expenses of the
commission.
(4) Except as provided in subsection (g), before July 15 of each
year, the commission shall do the following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area, will
exceed the amount of assessed value needed to produce the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3), plus
the amount necessary for other purposes described in
subdivision (3).
(B) Provide a written notice to the county auditor, the fiscal
body of the county or municipality that established the
department of redevelopment, and the officers who are
authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
of assessed value to the respective taxing units under this
subdivision if to do so would endanger the interests of the
holders of bonds described in subdivision (3) or lessors under
section 25.3 of this chapter.
(C) If the amount of excess assessed value determined by
the commission is expected to generate more than two
hundred percent (200%) of the amount of allocated tax
proceeds necessary to make, when due, principal and
interest payments on bonds described in subdivision (3),
plus the amount necessary for other purposes described in
subdivision (3), the commission shall submit to the
legislative body of the unit its determination of the excess
assessed value that the commission proposes to allocate to
the respective taxing units in the manner prescribed in
subdivision (1). The legislative body of the unit may
approve the commission's determination or modify the
amount of the excess assessed value that will be allocated
to the respective taxing units in the manner prescribed in
subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the declaratory resolution is the
lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).
(e) Notwithstanding any other law, each assessor shall, upon
petition of the redevelopment commission, reassess the taxable
property situated upon or in, or added to, the allocation area, effective
on the next assessment date after the petition.
(f) Notwithstanding any other law, the assessed value of all taxable
property in the allocation area, for purposes of tax limitation, property
tax replacement, and formulation of the budget, tax rate, and tax levy
for each political subdivision in which the property is located is the
lesser of:
(1) the assessed value of the property as valued without regard to
this section; or
(2) the base assessed value.
(g) If any part of the allocation area is located in an enterprise zone
created under IC 5-28-15, the unit that designated the allocation area
shall create funds as specified in this subsection. A unit that has
obligations, bonds, or leases payable from allocated tax proceeds under
subsection (b)(3) shall establish an allocation fund for the purposes
specified in subsection (b)(3) and a special zone fund. Such a unit
shall, until the end of the enterprise zone phase out period, deposit each
year in the special zone fund any amount in the allocation fund derived
from property tax proceeds in excess of those described in subsection
(b)(1) and (b)(2) from property located in the enterprise zone that
exceeds the amount sufficient for the purposes specified in subsection
(b)(3) for the year. The amount sufficient for purposes specified in
subsection (b)(3) for the year shall be determined based on the pro rata
portion of such current property tax proceeds from the part of the
enterprise zone that is within the allocation area as compared to all
such current property tax proceeds derived from the allocation area. A
unit that has no obligations, bonds, or leases payable from allocated tax
proceeds under subsection (b)(3) shall establish a special zone fund
and deposit all the property tax proceeds in excess of those described
in subsection (b)(1) and (b)(2) in the fund derived from property tax
proceeds in excess of those described in subsection (b)(1) and (b)(2)
from property located in the enterprise zone. The unit that creates the
special zone fund shall use the fund (based on the recommendations of
the urban enterprise association) for programs in job training, job
enrichment, and basic skill development that are designed to benefit
residents and employers in the enterprise zone or other purposes
specified in subsection (b)(3), except that where reference is made in
subsection (b)(3) to allocation area it shall refer for purposes of
payments from the special zone fund only to that part of the allocation
area that is also located in the enterprise zone. Those programs shall
reserve at least one-half (1/2) of their enrollment in any session for
residents of the enterprise zone.
(h) The state board of accounts and department of local government
finance shall make the rules and prescribe the forms and procedures
that they consider expedient for the implementation of this chapter.
After each general reassessment of real property in an area under
IC 6-1.1-4-4 and after each reassessment in an area under a
reassessment plan prepared under IC 6-1.1-4-4.2, the department of
local government finance shall adjust the base assessed value one (1)
time to neutralize any effect of the reassessment of the real property in
the area on the property tax proceeds allocated to the redevelopment
district under this section. After each annual adjustment under
IC 6-1.1-4-4.5, the department of local government finance shall adjust
the base assessed value one (1) time to neutralize any effect of the
annual adjustment on the property tax proceeds allocated to the
redevelopment district under this section. However, the adjustments
under this subsection may not include the effect of property tax
abatements under IC 6-1.1-12.1, and these adjustments may not
produce less property tax proceeds allocable to the redevelopment
district under subsection (b)(3) than would otherwise have been
received if the general reassessment, the reassessment under the
reassessment plan, or the annual adjustment had not occurred. The
department of local government finance may prescribe procedures for
county and township officials to follow to assist the department in
making the adjustments.
(i) The allocation deadline referred to in subsection (b) is
determined in the following manner:
construction, or both, of local public improvements, or the cost of
refunding or refinancing outstanding bonds, for which the bonds are
issued. The cost may include:
(1) planning and development of the local public improvements
and all related buildings, facilities, structures, and improvements;
(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 local public improvements that
are necessary or desirable to make the local public improvements
suitable for use and operations;
(4) architectural, engineering, consultant, and attorney fees;
(5) incidental expenses in connection with the issuance and sale
of bonds;
(6) reserves for principal and interest;
(7) interest during construction and for a period thereafter
determined by the board, but in no event to exceed five (5) years;
(8) financial advisory fees;
(9) insurance during construction;
(10) municipal 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, and interest on, the
bonds being refunded or refinanced.
section and approved by the fiscal body of the unit is valid and
binding in accordance with IC 5-1-14-4 from the time that the pledge
or assignment is made, against all persons whether they have notice of
the lien or not. Any trust indenture by which a pledge is created or an
assignment need not be filed or recorded. The lien is perfected against
third parties in accordance with IC 5-1-14-4.
commission may except from acquisition any real property in the area
if it finds that such an acquisition is not necessary under the
redevelopment plan. Appraisals made under this section are for the
information of the commission and are not open for public inspection.
(c) Negotiations for the purchase of property may be carried on
directly by the commission, by its employees, or by expert negotiators
employed for that purpose. The commission shall adopt a standard
form of option for use in negotiations, but no option, contract, or
understanding relative to the purchase of real property is binding on the
commission until approved and accepted by the commission in writing.
The commission may authorize the payment of a nominal fee to bind
an option, and as a part of the consideration for conveyance may agree
to pay the expense incident to the conveyance and determination of the
title of the property. Payment for the property purchased shall be made
when and as directed by the commission, but only on delivery of proper
instruments conveying the title or interest of the owner to "City of
__________ for the use and benefit of its Department of Metropolitan
Development". Notwithstanding the other provisions of this
subsection, any agreement by the commission to make payments
for the property purchased over a term exceeding five (5) years is
subject to the prior approval of the legislative body of the unit.
(d) Notwithstanding subsections (a) through (c), the commission
may, before the time referred to in this section, accept gifts of property
needed for the redevelopment of redevelopment project areas. The
commission may, before the time referred to in this section, take
options on or contract for the acquisition of property needed for the
redevelopment of redevelopment project areas if the options and
contracts are not binding on the commission or the redevelopment
district until the time referred to in this section and until money is
available to pay the consideration set out in the options or contracts.
(e) Section 15(a) through 15(h) of this chapter does not apply to
exchanges of real property (or interests in real property) in connection
with the acquisition of real property (or interests in real property) under
this section. In acquiring real property (or interests in real property)
under this section the commission may, as an alternative to offering
payment of money as specified in subsection (b), offer for the real
property (or interest in real property) that the commission desires to
acquire:
(1) exchange of real property or interests in real property owned
by the redevelopment district;
(2) exchange of real property or interests in real property owned
by the redevelopment district, along with the payment of money
by the commission; or
(3) exchange of real property or interests in real property owned
by the redevelopment district along with the payment of money by
the owner of the real property or interests in real property that the
commission desires to acquire.
The commission shall have the fair market value of the real property or
interests in real property owned by the redevelopment district appraised
as specified in section 15(b) of this chapter. The appraisers may not
also appraise the value of the real property or interests in real property
to be acquired by the redevelopment district. The commission shall
establish the nature of the offer to the owner based on the difference
between the average of the two (2) appraisals of the fair market value
of the real property or interests in real property to be acquired by the
commission and the average of the appraisals of fair market value of
the real property or interests in real property to be exchanged by the
commission.
resolution, as adjusted under subsection (h); plus
(B) to the extent that it is not included in clause (A), 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 after the
effective date of the allocation provision.
(3) If:
(A) an allocation provision adopted before June 30, 1995, in
a declaratory resolution or an amendment to a declaratory
resolution establishing a redevelopment project area expires
after June 30, 1997; and
(B) after June 30, 1997, a new allocation provision is included
in an amendment to the declaratory resolution;
the net assessed value of all the property as finally determined for
the assessment date immediately preceding the effective date of
the allocation provision adopted after June 30, 1997, as adjusted
under subsection (h).
(4) Except as provided in subdivision (5), for all other allocation
areas, the net assessed value of all the property as finally
determined for the assessment date immediately preceding the
effective date of the allocation provision of the declaratory
resolution, as adjusted under subsection (h).
(5) If an allocation area established in an economic development
area before July 1, 1995, is expanded after June 30, 1995, the
definition in subdivision (1) applies to the expanded part of the
area added after June 30, 1995.
(6) If an allocation area established in a redevelopment project
area before July 1, 1997, is expanded after June 30, 1997, the
definition in subdivision (2) applies to the expanded part of the
area added after June 30, 1997.
Except as provided in section 26.2 of this chapter, "property taxes"
means taxes imposed under IC 6-1.1 on real property. However, upon
approval by a resolution of the redevelopment commission adopted
before June 1, 1987, "property taxes" also includes taxes imposed
under IC 6-1.1 on depreciable personal property. If a redevelopment
commission adopted before June 1, 1987, a resolution to include within
the definition of property taxes taxes imposed under IC 6-1.1 on
depreciable personal property that has a useful life in excess of eight
(8) years, the commission may by resolution determine the percentage
of taxes imposed under IC 6-1.1 on all depreciable personal property
that will be included within the definition of property taxes. However,
the percentage included must not exceed twenty-five percent (25%) of
the taxes imposed under IC 6-1.1 on all depreciable personal property.
(b) A resolution adopted under section 8 of this chapter on or before
the allocation deadline determined under subsection (i) may include a
provision with respect to the allocation and distribution of property
taxes for the purposes and in the manner provided in this section. A
resolution previously adopted may include an allocation provision by
the amendment of that resolution on or before the allocation deadline
determined under subsection (i) in accordance with the procedures
required for its original adoption. A declaratory resolution or an
amendment that establishes an allocation provision after June 30, 1995,
must specify an expiration date for the allocation provision. For an
allocation area established before July 1, 2008, the expiration date may
not be more than thirty (30) years after the date on which the allocation
provision is established. For an allocation area established after June
30, 2008, the expiration date may not be more than twenty-five (25)
years after the date on which the first obligation was incurred to pay
principal and interest on bonds or lease rentals on leases payable from
tax increment revenues. However, with respect to bonds or other
obligations that were issued before July 1, 2008, if any of the bonds or
other obligations that were scheduled when issued to mature before the
specified expiration date and that are payable only from allocated tax
proceeds with respect to the allocation area remain outstanding as of
the expiration date, the allocation provision does not expire until all of
the bonds or other obligations are no longer outstanding. The allocation
provision may apply to all or part of the redevelopment project area.
The allocation provision must require that any property taxes
subsequently levied by or for the benefit of any public body entitled to
a distribution of property taxes on taxable property in the allocation
area be allocated and distributed as follows:
(1) Except as otherwise provided in this section, the proceeds of
the taxes attributable to the lesser of:
(A) the assessed value of the property for the assessment date
with respect to which the allocation and distribution is made;
or
(B) the base assessed value;
shall be allocated to and, when collected, paid into the funds of
the respective taxing units.
(2) The excess of the proceeds of the property taxes imposed for
the assessment date with respect to which the allocation and
distribution is made that are attributable to taxes imposed after
being approved by the voters in a referendum or local public
question conducted after April 30, 2010, not otherwise included
in subdivision (1) shall be allocated to and, when collected, paid
into the funds of the taxing unit for which the referendum or local
public question was conducted.
(3) Except as otherwise provided in this section, property tax
proceeds in excess of those described in subdivisions (1) and (2)
shall be allocated to the redevelopment district and, when
collected, paid into a special fund for that allocation area that may
be used by the redevelopment district only to do one (1) or more
of the following:
(A) Pay the principal of and interest on any obligations
payable solely from allocated tax proceeds that are incurred by
the redevelopment district for the purpose of financing or
refinancing the redevelopment of that allocation area.
(B) Establish, augment, or restore the debt service reserve for
bonds payable solely or in part from allocated tax proceeds in
that allocation area.
(C) Pay the principal of and interest on bonds payable from
allocated tax proceeds in that allocation area and from the
special tax levied under section 19 of this chapter.
(D) Pay the principal of and interest on bonds issued by the
consolidated city to pay for local public improvements that are
physically located in or physically connected to that allocation
area.
(E) Pay premiums on the redemption before maturity of bonds
payable solely or in part from allocated tax proceeds in that
allocation area.
(F) Make payments on leases payable from allocated tax
proceeds in that allocation area under section 17.1 of this
chapter.
(G) Reimburse the consolidated city for expenditures for local
public improvements (which include buildings, parking
facilities, and other items set forth in section 17 of this
chapter) that are physically located in or physically connected
to that allocation area.
(H) Reimburse the unit for rentals paid by it for a building or
parking facility that is physically located in or physically
connected to that allocation area under any lease entered into
under IC 36-1-10.
(I) Reimburse public and private entities for expenses incurred
in training employees of industrial facilities that are located:
(i) in the allocation area; and
(ii) on a parcel of real property that has been classified as
industrial property under the rules of the department of local
government finance.
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 this clause. The
reimbursements under this clause must be made within three
(3) years after the date on which the investments that are the
basis for the increment financing are made.
(J) Pay the costs of carrying out an eligible efficiency project
(as defined in IC 36-9-41-1.5) within the unit that established
the redevelopment commission. However, property tax
proceeds may be used under this clause to pay the costs of
carrying out an eligible efficiency project only if those
property tax proceeds exceed the amount necessary to do the
following:
(i) Make, when due, any payments required under clauses
(A) through (I), including any payments of principal and
interest on bonds and other obligations payable under this
subdivision, any payments of premiums under this
subdivision on the redemption before maturity of bonds, and
any payments on leases payable under this subdivision.
(ii) Make any reimbursements required under this
subdivision.
(iii) Pay any expenses required under this subdivision.
(iv) Establish, augment, or restore any debt service reserve
under this subdivision.
The special fund may not be used for operating expenses of the
commission.
(4) Before July 15 of each year, the commission shall do the
following:
(A) Determine the amount, if any, by which the assessed value
of the taxable property in the allocation area for the most
recent assessment date minus the base assessed value, when
multiplied by the estimated tax rate of the allocation area will
exceed the amount of assessed value needed to provide the
property taxes necessary to make, when due, principal and
interest payments on bonds described in subdivision (3) plus
the amount necessary for other purposes described in
subdivision (3) and subsection (g).
(B) Provide a written notice to the county auditor, the
legislative body of the consolidated city, and the officers who
are authorized to fix budgets, tax rates, and tax levies under
IC 6-1.1-17-5 for each of the other taxing units that is wholly
or partly located within the allocation area. The notice must:
(i) state the amount, if any, of excess assessed value that the
commission has determined may be allocated to the
respective taxing units in the manner prescribed in
subdivision (1); or
(ii) state that the commission has determined that there is no
excess assessed value that may be allocated to the respective
taxing units in the manner prescribed in subdivision (1).
The county auditor shall allocate to the respective taxing units
the amount, if any, of excess assessed value determined by the
commission. The commission may not authorize an allocation
to the respective taxing units under this subdivision if to do so
would endanger the interests of the holders of bonds described
in subdivision (3).
(C) If the amount of excess assessed value determined by
the commission is expected to generate more than two
hundred percent (200%) of the amount of allocated tax
proceeds necessary to make, when due, principal and
interest payments on bonds described in subdivision (3),
plus the amount necessary for other purposes described in
subdivision (3) and subsection (g), the commission shall
submit to the legislative body of the unit the commission's
determination of the excess assessed value that the
commission proposes to allocate to the respective taxing
units in the manner prescribed in subdivision (1). The
legislative body of the unit may approve the commission's
determination or modify the amount of the excess assessed
value that will be allocated to the respective taxing units in
the manner prescribed in subdivision (1).
(c) For the purpose of allocating taxes levied by or for any taxing
unit or units, the assessed value of taxable property in a territory in the
allocation area that is annexed by any taxing unit after the effective
date of the allocation provision of the resolution is the lesser of:
(1) the assessed value of the property for the assessment date with
respect to which the allocation and distribution is made; or
(2) the base assessed value.
(d) Property tax proceeds allocable to the redevelopment district
under subsection (b)(3) may, subject to subsection (b)(4), be
irrevocably pledged by the redevelopment district for payment as set
forth in subsection (b)(3).