CHAPTER 7. REVENUE PRODUCING PROPERTY; FINANCING AGREEMENTS WITH A DEVELOPER OR USER
IC 21-35-7
Chapter 7. Revenue Producing Property; Financing Agreements
With a Developer or User
IC 21-35-7-1
Purpose
Sec. 1. It is found and declared that:
(1) there is a need for the development of various facilities to
properly service the various campuses of state educational
institutions;
(2) an additional and alternative method for developing and
financing facilities should be provided; and
(3) facilities would provide additional employment
opportunities and would otherwise fulfill the public purposes
set forth in IC 36-7-12.
This chapter applies to any state educational institution.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-2
Applicability of chapter
Sec. 2. This chapter applies to buildings and equipment located on
or immediately adjacent to a campus of a state educational
institution, the primary purpose of which is to make available or
provide:
(1) offstreet parking;
(2) alternative transportation systems;
(3) office space;
(4) convenience, retail, and service establishments;
(5) bookstores;
(6) research;
(7) outpatient and extended care;
(8) food service;
(9) temporary lodging quarters or similar structures used by
students, faculty, staff, patients, or visitors; or
(10) housing used by students in connection with hospitals or
health care units.
The term does not include undergraduate dormitories.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-3
Supplemental effect of chapter
Sec. 3. This chapter is supplemental to other laws pertaining to
state educational institutions and does not repeal any other laws or
impair any other powers or responsibilities granted to state
educational institutions.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-4
Power of state educational institutions to acquire real and personal
property
Sec. 4. In addition to any other powers that a state educational
institution has, the board of trustees of a state educational institution
may:
(1) enter into agreements concerning and to acquire by:
(A) gift;
(B) purchase; or
(C) lease;
land or interests in land and personal property needed for the
purposes of this chapter;
(2) purchase, lease as lessee or lessor, construct, remodel,
rebuild, enlarge, or substantially improve property;
(3) enter into financing agreements, including leasing land or
property to users or developers, subject to this chapter; and
(4) enter into agreements with users or developers to allow
users or developers to wholly or partially construct and manage
property.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-5
Adoption of resolution to develop property
Sec. 5. If the board of trustees of a state educational institution
determines that it is desirable to develop property under this chapter,
the board of trustees shall adopt a resolution finding that:
(1) the property is needed to adequately furnish services to the
students, faculty, staff, patients in hospitals or health care units
operated by the state educational institution, or visitors to
hospitals or health care units operated by the state educational
institution; and
(2) the services are not now being adequately furnished by
others in the immediate area of the campus.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-6
Resolution; contents
Sec. 6. The resolution under section 5 of this chapter must provide
that the plans and specifications for the property and for the
development and management of the property shall be approved by
the board of trustees.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-7
Requirements for management and operation of property
Sec. 7. If the management and operation of the property are to be
by a developer or user, the specifications for the property must
require that the property will be generally available to the students,
faculty, staff, patients in hospitals or health care units, and visitors
to hospitals or health care units, without discrimination and at
reasonable charges. These charges shall be reviewed and revised
periodically by the board of trustees of the state educational
institution to assure that the charges are at all times
nondiscriminatory and reasonable.
As added by P.L.2-2007, SEC.276. Amended by P.L.3-2008,
SEC.144.
IC 21-35-7-8
Proposals for the development, use, and management of property
Sec. 8. The board of trustees of a state educational institution shall
take action to invite proposals for the development, use, and
management, if applicable, of property to provide open and
competitive proposals.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-9
Award for the development, use, and management of property;
considerations
Sec. 9. In making an award for the development, use, and
management, if applicable, of property, the board of trustees of a
state educational institution may consider:
(1) the experience and financial ability of a developer or user;
(2) the plans and specifications for the property;
(3) the size and cost of the property;
(4) payments to be made to or from the state educational
institution;
(5) the method of financing and the terms and conditions of any
proposed financing agreement; and
(6) any other factors of benefit to the state educational
institution.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-10
Award for the development, use, and management of property;
approval by budget agency and governor
Sec. 10. An award for the development, use, and management, if
applicable, of property is not final until:
(1) approved by the governor and the budget agency, with the
recommendation of the budget committee; and
(2) the notice is provided as specified in section 11 of this
chapter.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-11
Notice of determination to make an award
Sec. 11. (a) A notice of the determination to make an award for
the development, use, and management, if applicable, of property
that briefly describes:
(1) the property;
(2) the purpose of the property; and
(3) the principal terms of any financing agreement;
shall be published under this section.
(b) The notice under subsection (a) shall be published in:
(1) two (2) newspapers of general circulation in Indianapolis;
(2) one (1) newspaper of general circulation in the city where
the property is to be located; and
(3) one (1) newspaper of general circulation in the city where
the principal campus of the state educational institution is
located.
(c) The notice under subsection (a) must be published once each
week for two (2) successive weeks.
(d) An action to contest the validity of any financing agreement
may not be commenced more than thirty (30) days following the last
publication under this section of notice of the determination to make
an award.
As added by P.L.2-2007, SEC.276.
IC 21-35-7-12
Tax exemption
Sec. 12. All payments received by a state educational institution
under a financing agreement authorized by this chapter are exempt
from all taxation.
As added by P.L.2-2007, SEC.276.