CHAPTER 4. LEASE OF EXISTING SCHOOL BUILDING
IC 20-47-4
Chapter 4. Lease of Existing School Building
IC 20-47-4-1
Application
Sec. 1. This chapter applies to the lease by a school corporation
of an existing school building or improved school building under
IC 20-47-2 or IC 20-47-3.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-2
"Existing school building"
Sec. 2. As used in this chapter, "existing school building":
(1) includes a:
(A) school building; or
(B) building that after acquisition will be used as a school
building; and
(2) may include more than one (1) building.
The term does not include a portable or relocatable building or
classroom.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-3
"Improved school building"
Sec. 3. As used in this chapter, "improved school building" means
an existing school building as improved, renovated, remodeled, or
expanded by a lessor corporation.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-4
"School building"
Sec. 4. As used in this chapter, "school building" has the meaning
set forth in IC 20-47-2-4 or IC 20-47-3-2.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-5
Powers; lessor corporation; acquisition and financing of existing
or improved school building
Sec. 5. A lessor corporation qualified or formed to acquire a site,
erect a school building on the site, and lease the school building to
a school corporation under IC 20-47-2 or IC 20-47-3 may:
(1) be qualified or formed to acquire, improve, or expand an
existing school building;
(2) acquire, improve, or expand an existing school building;
(3) finance an existing school building or improved school
building; and
(4) lease an existing school building or improved school
building to a school corporation under applicable law.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-6
Powers; acquisition and financing of existing school building;
compliance with other laws
Sec. 6. (a) A lessor corporation may acquire and finance an
existing school building, other than as provided in section 5 of this
chapter, and lease the existing school building to a school
corporation. A school corporation shall comply with:
(1) IC 20-47-2 or IC 20-47-3;
(2) the petition and remonstrance provisions under IC 6-1.1-20
(if required); and
(3) the local public question provisions under IC 6-1.1-20 (if
required).
(b) A lease made under this section may provide for the payment
of lease rentals by the school corporation for the use of the existing
school building.
(c) Lease rental payments made under the lease do not constitute
a debt of the school corporation for purposes of the Constitution of
the State of Indiana.
(d) A new school building may be substituted for the existing
school building under the lease if the substitution was included in the
notices given under IC 20-47-2, IC 20-47-3, and IC 6-1.1-20. A new
school building must be substituted for the existing school building
upon completion of the new school building.
As added by P.L.2-2006, SEC.170. Amended by P.L.146-2008,
SEC.521.
IC 20-47-4-7
Limitation on payment of legal or other professional fee
Sec. 7. A school corporation may not pay a legal or other
professional fee as the result of an exchange or a substitution under
section 5 or 6 of this chapter.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-8
Compliance with other laws
Sec. 8. (a) Except as provided in subsection (b), the lease or
contract of lease of an existing school building or improved school
building to a school corporation as authorized by this chapter must
comply with all applicable terms of IC 20-47-2 or IC 20-47-3,
including:
(1) the notice of hearing on the lease;
(2) public hearing;
(3) notice of execution of lease; and
(4) the submission of plans and specifications for the
improvement or expansion of the existing school building for
approval by the state agencies designated in IC 20-47-2 or
IC 20-47-3 or otherwise required by law or rule.
(b) If a school corporation is occupying and using an existing
school building during the renovation, remodeling, or expansion of
the building, the lease or contract of lease may provide for the
payment of lease rental by the school corporation for the use of the
building during renovation, remodeling, or expansion.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-9
Sales price; compliance with other laws
Sec. 9. The sale price of an existing school building must be
determined under the provisions of IC 20-47-2 or IC 20-47-3 relating
to the sale of land to a lessor corporation. Except as provided in this
section, IC 20-26-7 and any other law relating to the sale of the
property of school corporations or other public property do not apply
to the sale of an existing school building to a lessor corporation
under this chapter.
As added by P.L.2-2006, SEC.170.
IC 20-47-4-10
Deposit of proceeds from sale
Sec. 10. A school corporation that sells an existing school
building under section 6 of this chapter shall deposit the proceeds of
the sale in the school corporation's capital projects fund and use the
proceeds only for:
(1) new construction of school buildings;
(2) related site acquisition; and
(3) related site development.
However, any amount of the proceeds of the sale that are not used for
a purpose described in subdivisions (1) through (3) within one (1)
year after the school corporation receives the proceeds must be
transferred to the school corporation's debt service fund.
As added by P.L.2-2006, SEC.170.