CHAPTER 13. COUNTY BUILDING AUTHORITY
IC 36-9-13
Chapter 13. County Building Authority
IC 36-9-13-1
Application of chapter; "eligible entities" defined
Sec. 1. This chapter applies to all counties and to the following
municipal corporations in each county:
(1) Municipalities.
(2) Townships.
(3) School Corporations.
(4) Health and hospital corporations.
The municipal corporations to which this chapter applies are referred
to as "eligible entities" in this chapter.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-2
Governing bodies
Sec. 2. For purposes of this chapter, the following are considered
the governing bodies of their respective eligible entities:
(1) Board of commissioners, for a county not subject to
IC 36-2-3.5 or IC 36-3-1.
(2) County council, for a county subject to IC 36-2-3.5.
(3) City-county council, for a consolidated city or county
having a consolidated city.
(4) Common council, for a city other than a consolidated city.
(5) Town council, for a town.
(6) Trustee and township board, for a civil or school township.
(7) Board of school trustees, board of school commissioners, or
school board, for a school corporation.
(8) Board of trustees, for a health and hospital corporation.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1982,
P.L.33, SEC.47; P.L.8-1987, SEC.84; P.L.8-1989, SEC.99.
IC 36-9-13-3
"Government building" defined
Sec. 3. (a) As used in this chapter, "government building" means
all or part of any structure used for:
(1) governmental and public activities;
(2) the detention of prisoners;
(3) hospitals; or
(4) city markets.
(b) For purposes of this chapter, "government building" includes:
(1) the land used in conjunction with such a structure; and
(2) the equipment, facilities, appurtenances, materials, and
supplies that the board of directors of the building authority
considers necessary or convenient to make such a structure and
land suitable for use under this chapter, including:
(A) heating and air conditioning facilities;
(B) sewage disposal facilities;
(C) landscaping;
(D) walks;
(E) drives; and
(F) parking facilities.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.28.
IC 36-9-13-3.5
"System" defined
Sec. 3.5. As used in this chapter, "system" means any of the
following:
(1) A computer (as defined in IC 36-8-15-4).
(2) A communications system (as defined in IC 36-8-15-3(1)).
(3) Mobile or remote equipment that is coordinated by or linked
with a computer or communication system.
(4) Upon the request of:
(A) the fiscal body of an eligible entity having a fiscal body;
or
(B) the governing body of an eligible entity not having a
fiscal body;
security services provided by human or nonhuman means.
As added by P.L.37-1988, SEC.29. Amended by P.L.270-1993,
SEC.1.
IC 36-9-13-4
Building authorities; authorization; purposes
Sec. 4. A county may establish a separate municipal corporation
to be known as the "__________ building authority" (including the
name of the county seat and county) for the purpose of:
(1) acquiring land; and
(2) financing, acquiring, improving, constructing,
reconstructing, renovating, equipping, and operating
government buildings and systems;
and leasing them to eligible entities.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.188, SEC.5; P.L.37-1988, SEC.30.
IC 36-9-13-5
Procedure for establishment of authority; notice and hearing
Sec. 5. (a) Whenever the county auditor receives a notice that:
(1) is signed by the presiding officers of the county executive,
the county fiscal body, and the municipal fiscal body of the
county seat;
(2) states that those bodies have agreed to hold a public hearing
on and consider the creation of a county building authority; and
(3) fixes a time and place for that hearing;
he shall give notice by publication of the hearing. The notice shall be
published in accordance with IC 5-3-1, and must set out the time,
place, and purpose of the hearing.
(b) The members of the executive of the county and the fiscal
bodies of the county and county seat shall meet at the time and place
fixed in the notice. The presiding officers of each of the three (3)
bodies shall elect one (1) of their number to preside as chairman at
the hearing, another as vice chairman, and another as secretary.
(c) All interested citizens and taxpayers of the county may appear
and are entitled to be heard at the hearing.
(d) The authority shall be established if, within sixty (60) days
after the hearing, a concurrent resolution declaring a need for the
authority is agreed upon and separately adopted by the county
executive and county and municipal fiscal bodies.
(e) A copy of the concurrent resolution that is certified by
affidavits of the county auditor and municipal clerk showing the date
of adoption of the resolution by the three (3) bodies must be filed in
the office of the recorder of the county for recording in the
miscellaneous records. The certified and recorded copy of the
resolution is admissible in evidence in any action or proceeding as
proof of the establishment of the authority.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.45, SEC.46.
IC 36-9-13-6
Trustees; appointment; terms of office; oaths
Sec. 6. (a) Within sixty (60) days after the adoption of the
concurrent resolution under section 5 of this chapter, a board of
building authority trustees shall be appointed. The board consists of
five (5) trustees who are appointed in the following manner and for
the following initial terms:
(1) One (1) appointed by the municipal fiscal body of the
county seat, for a term of one (1) year.
(2) One (1) appointed by the county fiscal body, for a term of
two (2) years.
(3) One (1) appointed by the county executive, for a term of
three (3) years.
(4) One (1) appointed by the municipal executive of the county
seat, for a term of four (4) years.
(5) One (1) appointed by the county executive, for a term of
four (4) years.
(b) A person may be appointed as a trustee only if he:
(1) is at least thirty (30) years of age;
(2) has been a resident of the county for five (5) years
immediately preceding his appointment; and
(3) is not an officer or employee of an eligible entity.
(c) The names of all persons appointed under subsection (a) shall
be transmitted in writing to the circuit court for the county at least
ten (10) days before the end of the sixty (60) day period. The court
shall mail a notice of appointment to each trustee immediately after
the sixty (60) day period.
(d) Before entering upon his duties, each trustee shall take and
subscribe an oath of office (in the usual form), which shall be
endorsed upon his certificate of appointment. The certificate shall be
promptly filed with the county clerk.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.7-1983,
SEC.39.
IC 36-9-13-7
Trustees; appointment of successors
Sec. 7. (a) As the term of a trustee expires, his successor shall be
appointed by the same appointing authority, for a term of four (4)
years.
(b) A trustee holds over after the expiration of his term until his
successor is appointed and qualified.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-8
Trustees; failure to qualify; vacancies
Sec. 8. If a person appointed as a trustee:
(1) fails to qualify within ten (10) days after notice of his
appointment is mailed to him; or
(2) qualifies but then dies, resigns, vacates his office because he
is no longer a resident of the county, or is removed from office
under section 18 of this chapter;
a new trustee shall be appointed by the same appointing authority for
the remainder of the vacated term.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-9
Trustees; meetings to elect officers and appoint board of directors
Sec. 9. (a) The first trustees of the building authority shall, within
thirty (30) days after their appointment, meet at a time and place
designated by the circuit court for the county for the purpose of
electing officers. The trustees shall elect from among themselves a
president, a vice president, and a secretary. Each of these officers
shall serve from the day of his election until the first Monday in
January after his election, and holds over until his successor is
elected and qualified.
(b) At the meeting under this section, the trustees shall also
appoint the first board of directors of the building authority, in the
manner prescribed by section 11 of this chapter.
(c) After appointing the first board of directors of the building
authority, the trustees shall meet on the first Monday in January of
each year for the purpose of:
(1) electing officers;
(2) appointing the directors of the building authority; and
(3) performing any other duties under this chapter.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-10
Trustees; adoption of rules; records; additional meetings
Sec. 10. (a) The trustees may adopt rules and bylaws governing
their procedure.
(b) The proceedings of the trustees shall be recorded in a book
provided for that purpose.
(c) In addition to their meetings under section 9 of this chapter,
the trustees may hold regular and special meetings as often as is
necessary to perform their duties under this chapter.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-11
Board of directors; appointment; terms of office; qualifications;
oaths
Sec. 11. (a) A county building authority is under the control of a
board of directors. This board consists of five (5) directors, who shall
be appointed by a majority vote of the building authority trustees.
Each of the original directors shall serve from the date of his
appointment until the first day of February in the second year after
his appointment, and until his successor is appointed and has
qualified.
(b) A person may be appointed as a director only if he:
(1) is at least thirty (30) years of age;
(2) has been a resident of the county five (5) years immediately
preceding his appointment; and
(3) is not an officer or employee of an eligible entity.
(c) Before entering upon his duties, each director shall take and
subscribe an oath of office (in the usual form), which shall be
endorsed upon his certificate of appointment. The certificate shall be
promptly filed with the county clerk.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-12
Directors; appointment of successors
Sec. 12. As the term of a director expires, his successor shall be
appointed by a majority vote of the trustees. The new director shall
serve for one (1) year from the first day of February after his
appointment, and until his successor is appointed and qualified.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-13
Directors; vacancies
Sec. 13. If a vacancy occurs on the board of directors, the trustees
shall, by a majority vote, appoint a new director to serve the
remainder of the term.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-14
Directors; meetings to elect officers
Sec. 14. (a) The first directors of a building authority shall, within
thirty (30) days after their appointment, meet for the purpose of
electing officers. They shall elect from among themselves a
president, a vice president, a secretary, and a treasurer. Each of these
officers shall perform the duties usually pertaining to his office, and
shall serve from the date of his election until his successor is elected
and qualified.
(b) After the meeting under subsection (a), the directors shall meet
on the first Monday in February of each year for the purpose of
electing officers.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-15
Directors; additional meetings
Sec. 15. In addition to their meetings under section 14 of this
chapter, the directors may hold the regular and special meetings they
consider necessary. The directors may fix the times of these meetings
and the notices required for meetings by resolution or under their
rules and bylaws.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-16
Directors; adoption of rules; quorum; approval of actions
Sec. 16. (a) The directors may adopt the rules and bylaws they
consider necessary for the proper conduct of their proceedings, the
performance of their duties, and the safeguarding of the funds and
property of the building authority.
(b) A majority of the directors constitutes a quorum, and the
concurrence of a majority of the directors is necessary to authorize
any action by the directors.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-17
Trustees and directors; actions resulting in vacation of office
Sec. 17. A trustee or director who:
(1) ceases to be a resident of the county; or
(2) becomes an officer or employee of an eligible entity;
vacates his office.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-18
Removal of trustees
Sec. 18. (a) A person seeking the removal of a trustee for:
(1) neglect of duty;
(2) incompetence;
(3) inability to perform his duties; or
(4) any other good cause;
may file a complaint in the circuit or superior court for the county in
which the building authority is located. The complaint must set forth
the charges preferred. The action shall be placed on the court's
advanced calendar, and the court shall try the action in the same
manner as other civil cases, without a jury. If the charges are
sustained, the court shall declare the trustee's office vacant.
(b) The trustees may summarily remove a director from office at
any time.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-19
Compensation of trustees and directors
Sec. 19. A trustee or director is not entitled to a salary but is
entitled to reimbursement for expenses necessarily incurred in the
performance of his duties.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-20
Trustees and directors; conflicts of interest
Sec. 20. A trustee or director may not have any pecuniary interest
in any contract, employment, purchase, or sale made under this
chapter. Any such transaction in which a trustee or director has a
pecuniary interest is void.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-21
Preliminary expenses
Sec. 21. All necessary preliminary expenses that must be paid by
the board of directors of a building authority before the issuance and
delivery of bonds or the negotiation of a loan under this chapter,
including expenses incurred in:
(1) making surveys;
(2) estimating costs and receipts;
(3) employing engineers, architects, or consultants;
(4) giving notices; and
(5) taking options;
may be paid out of money provided by the county and county seat,
or either of them, from money on hand or derived from taxes levied
for that purpose. The fund or funds from which the payments are
made shall be fully reimbursed by the board out of the first proceeds
of the sale of bonds or the loan negotiated by the authority before any
other disbursements are made from those proceeds. The amount
advanced to pay preliminary expenses under this section is a first
charge against the proceeds resulting from the sale of the bonds or
the negotiation of the loan until that amount has been repaid.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.31.
IC 36-9-13-22
Powers and duties of board of directors
Sec. 22. (a) Except as provided in subsection (b), the board of
directors of a building authority, acting in the name of the authority,
may:
(1) finance, improve, construct, reconstruct, renovate, purchase,
lease, acquire, equip, operate, maintain, and manage land,
government buildings, or systems for the joint or separate use
of one (1) or more eligible entities;
(2) lease all or part of land, government buildings, or systems
to eligible entities;
(3) govern, manage, regulate, operate, improve, reconstruct,
renovate, repair, and maintain any land, government building,
or system acquired or financed under this chapter;
(4) sue, be sued, plead, and be impleaded, but all actions against
the authority must be brought in the circuit court for the county
in which the authority is located;
(5) condemn, appropriate, lease, rent, purchase, and hold any
real or personal property needed or considered useful in
connection with government buildings or systems regardless of
whether that property is then held for a governmental or public
use;
(6) acquire real or personal property by gift, devise, or bequest
and hold, use, or dispose of that property for the purposes
authorized by this chapter;
(7) enter upon any lots or lands for the purpose of surveying or
examining them to determine the location of a government
building;
(8) design, order, contract for, and construct, reconstruct,
renovate, and maintain land, government buildings, or systems
and perform any work that is necessary or desirable to improve
the grounds, premises, and systems under its control;
(9) determine, allocate, and adjust space in government
buildings to be used by any eligible entity;
(10) construct, reconstruct, renovate, maintain, and operate
auditoriums, public meeting places, and parking facilities in
conjunction with or as a part of government buildings;
(11) collect all money that is due on account of the operation,
maintenance, or management of, or otherwise related to, land,
government buildings, or systems, and expend that money for
proper purposes;
(12) let concessions for the operation of restaurants, cafeterias,
public telephones, news and cigar stands, and vending
machines;
(13) employ the managers, superintendents, architects,
engineers, consultants, attorneys, auditors, clerks, foremen,
custodians, and other employees or independent contractors
necessary for the proper operation of land, government
buildings, or systems and fix the compensation of those
employees or independent contractors, but a contract of
employment may not be made for a period of more than four (4)
years although it may be extended or renewed from time to
time;
(14) make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this chapter;
(15) provide coverage for its employees under IC 22-3 and
IC 22-4; and
(16) accept grants and contributions for any purpose specified
in this subsection.
(b) The building authority in a county having a consolidated city
may not purchase, construct, acquire, finance, or lease any land,
government building, or system for use by an eligible entity other
than the consolidated city or county, unless that action is first
approved by:
(1) the city-county legislative body; and
(2) the governing body of the eligible entity involved.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.188, SEC.6; P.L.37-1988, SEC.32.
IC 36-9-13-22.5
Management contract; terms; annual budget; tax levy
Sec. 22.5. The authority may operate, maintain, and manage all or
any part of a government building or system for the benefit of an
eligible entity under a management contract entered into for a period
of not more than forty (40) years. The management contract may
contain any terms agreed to by the authority and the eligible entity,
including a covenant of the eligible entity to pay the authority a
monthly fee for costs of operation and maintenance of the
government building or system pursuant to the annual budget
submitted to the governing body by the authority in accordance with
the management contract. The annual budget may contain funds for
a working balance and funds for a reserve account for nonrecurring
general maintenance, improvement, or replacement costs as provided
in the management contract. The eligible entity may enter into the
contract through adoption of an ordinance, an order, or a resolution
of the entity's governing body or, in the case of a city, a resolution of
the board that is responsible for the government building or system.
No other approvals of the management contract are required. To the
extent provision for payment from other available revenues has not
been made and subject to the provisions of the management contract
for cancellation or termination, the governing body of the eligible
entity that executes a management contract shall annually levy a tax
sufficient to produce each year the necessary money with which to
pay the management fee required by the budget submitted by the
authority. These levies may be reviewed by other bodies vested by
law with that power to determine that the annual levies are sufficient
to raise the amount required to meet the management fee under the
contract.
As added by P.L.35-1990, SEC.64.
IC 36-9-13-23
Lease of land, government buildings, or systems to eligible entity
by authority; authorization
Sec. 23. (a) An eligible entity may lease land or any part of a
government building or system from a building authority, and the
authority may lease land or any part of a government building or
system to an eligible entity. An eligible entity that enters into such a
lease may sublease part of the leased premises to other eligible
entities. Such a lease or sublease may not be entered into for a period
of more than forty (40) years.
(b) An eligible entity may, in anticipation of:
(1) the construction or purchase of government buildings,
including the necessary equipment and appurtenances; or
(2) the purchase of land;
enter into a lease with a building authority before the construction or
purchase. Such a lease must require the payment of lease rental by
the lessee or lessees to begin when the building or land has been
acquired or completed and is ready for occupancy, but not before that
time.
(c) Whenever property is to be acquired and reconstructed or
renovated under this chapter, an eligible entity may, in anticipation
of the acquisition, enter into a lease with a building authority, upon
such terms and conditions as may be agreed upon, including:
(1) provisions for the lessee to continue to operate the property
until completion of the reconstruction or renovation; and
(2) provisions for the payment of a lease rental by the lessee for
the use of the property while it is being reconstructed or
renovated.
(d) An eligible entity may, in anticipation of the acquisition of a
system, enter into a lease with the building authority before the
completion of the acquisition. Such a lease must require the payment
of lease rental by the lessee or lessees to begin when acquisition of
the system, or a discrete, functional part of the system, has been
completed and is ready for use, but not before that time. An opinion
or report of an independent expert that the system, or a discrete,
functional part of the system, is complete and ready for use is
conclusive and binding on all parties and on all taxpayers of an
eligible entity.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.188, SEC.7; P.L.37-1988, SEC.33.
IC 36-9-13-24
Leases; options to renew
Sec. 24. A lease under section 23 of this chapter may provide the
eligible entity that is the lessee with an option to renew the lease for
the same term or a shorter term, on the conditions provided in the
lease.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-25
Leases; options to purchase; authorization of bond issue to pay
purchase price
Sec. 25. (a) A lease under section 23 of this chapter may give one
(1) or more of the lessees acting jointly or severally an option to
purchase before the expiration of the term of the lease:
(1) on the date or dates in each year that are fixed by the lease;
and
(2) at a price to be computed by a method set forth in the lease.
However, such a lease may not provide, or be construed to provide,
that an eligible entity is under an obligation to purchase the leased
government building or system or is under an obligation respecting
any creditors or bondholders of the authority.
(b) An eligible entity that exercises an option to purchase may
issue general obligation bonds for the purpose of obtaining enough
money to pay the purchase price or its proportionate share of the
purchase price. The bonds shall be authorized, issued, and sold in the
manner prescribed by law for the authorization, issuance, and sale of
bonds of the eligible entity for other purposes.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.34.
IC 36-9-13-26
Construction or purchase of building or acquisition of system to be
leased; submission of plans and specifications
Sec. 26. (a) A building authority proposing to build or purchase
and remodel a government building for lease to an eligible entity
must submit the plans, specifications, and estimates for the building
or remodeling to the lessee or lessees before the execution of the
lease. The plans and specifications must also be submitted to the
state department of health, state fire marshal, and any other state
agencies designated by law to pass on plans and specifications for
public buildings.
(b) A building authority proposing to acquire a system may enter
into a lease without submitting plans, designs, or specifications to
any eligible entity, government body, or agency. However, before the
execution of the lease, the building authority must submit to the
lessee or lessees an estimate of the cost and a detailed description of
the system.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.35; P.L.2-1992, SEC.893.
IC 36-9-13-27
Leases; notice and hearing; execution
Sec. 27. (a) When a building authority and an eligible entity have
agreed upon the terms and conditions of a proposed lease under
section 23 of this chapter, a notice of a public hearing to be held in
the county by the governing body of the eligible entity shall be given
by publication to all interested persons. The notice of the hearing
shall be published in accordance with IC 5-3-1. The notice must
name the day, place, and hour of the hearing, and set forth a brief
summary of the principal terms of the lease agreed upon, including
the character of the property to be leased, the location of the property
to be leased if the property is a government building, the estimated
lease rental to be paid, and the number of years the lease is to be in
effect.
(b) The proposed lease, a detailed description of the government
building or system, and any drawings, plans, specifications, and
estimates that are available for the government building or system
shall be kept open for inspection by the public after the notice is
published and at the hearing.
(c) At the hearing, all interested persons are entitled to be heard
upon the necessity for the execution of the lease and whether the
basis for the determination of the lease rental is fair and reasonable.
The hearing may be adjourned to a later date or dates, with the place
and date of the continued hearing to be fixed before adjournment.
(d) Following the hearing, the governing body may approve the
proposed lease in substantially final form and authorize the execution
of the lease within parameters established by the authority at the time
the proposed lease is approved, as originally agreed upon or with any
modifications that the authority agrees to. The governing body may
rely on the testimony of independent experts as to the fairness and
reasonableness of the lease. Such an authorization must be by
resolution or ordinance entered in the official records of the
governing body. The lease must be executed on behalf of the eligible
entity by the officer or officers authorized by law to execute
contracts on behalf of that entity, and on behalf of the authority by
the president or vice president and the secretary of its board of
directors.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.45, SEC.47; P.L.37-1988, SEC.36; P.L.35-1990, SEC.65.
IC 36-9-13-28
Leases; notice of approval; objections by taxpayers; petitions;
notice and hearing; limitations on actions and appeals
Sec. 28. (a) If the terms and conditions of a proposed lease are
approved under section 27 of this chapter, notice of the approval of
the lease shall be given on behalf of the eligible entity by publication
in accordance with IC 5-3-1. Ten (10) or more taxpayers in the
eligible entity:
(1) whose tax rate will be affected by the proposed lease; and
(2) who are of the opinion that there is no necessity for the
lease, or that the method of determining the lease rental is not
fair and reasonable;
may file a petition in the office of the county auditor within thirty
(30) days after publication of notice of the approval of the lease. The
petition must set forth their objections to the lease and facts showing
that the lease is unnecessary or unwise, or that the method of
determining the lease rental is not fair and reasonable.
(b) Upon the filing of a petition under subsection (a), the county
auditor shall immediately certify a copy of it, together with any other
data necessary to present the questions involved, to the department
of local government finance. Not less than five (5) nor more than
fifteen (15) days after receipt of the certified petition and data, the
department of local government finance shall fix a time and place in
the county for the hearing of the matter. The department of local
government finance shall give notice of the hearing to the eligible
entity and to the first ten (10) petitioners on the petition by registered
mail, at least five (5) days before the date of the hearing.
(c) The decision of the department of local government finance on
a petition under this section is final.
(d) An action to contest the validity of the lease or to enjoin the
performance of any of its terms and conditions must be instituted
within thirty (30) days after publication of notice of the approval of
the lease, or if an appeal has been taken to the department of local
government finance, within thirty (30) days after the decision of the
department.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.45, SEC.48; P.L.35-1990, SEC.66; P.L.90-2002, SEC.510.
IC 36-9-13-29
Sale or lease of land or government building by eligible entity to
authority; authorization; procedure
Sec. 29. (a) An eligible entity that wants to have all or part of a
government building constructed, reconstructed, or renovated on land
owned or to be acquired by it may:
(1) sell that land or building to a building authority; or
(2) lease the land or building to the authority for the same
period of years that the eligible entity proposes to lease all or
part of the building, and may grant an option to the authority to
purchase the land or building within six (6) months after the
expiration of the lease on the building if the eligible entity does
not exercise an option to purchase the land or building within
the terms of the lease.
If the option price of the land or building is not fixed in the lease,
then the price to be paid for the land or building under the option
shall be determined by an appraisal by one (1) disinterested
freeholder residing in the county and two (2) disinterested appraisers
licensed under IC 25-34.1, who must be residents of Indiana, and
who shall be appointed by the circuit court for the county. One (1) of
the appraisers appointed under this subsection must reside not more
than fifty (50) miles from the land.
(b) A sale or lease of land or a building under this section must be
authorized by resolution or ordinance of the governing body of the
eligible entity, which shall be entered in the official records of the
governing body. This authorization must be given concurrently with
the authorization by the eligible entity of a lease of the building, or
part of it, to be constructed, reconstructed, or renovated wholly or in
part on the land.
(c) The deed, in the case of a sale of the land, or the lease, must
be executed on behalf of the eligible entity by the officer or officers
authorized by law to execute contracts on behalf of the entity, and on
behalf of the authority by the president or vice president and
secretary of its board of directors.
(d) Before the sale of any land or building under this section, a
petition must be filed with the circuit court of the county requesting
the appointment of:
(1) one (1) appraiser who must be a resident of the eligible
entity selling the land or building and a disinterested freeholder;
and
(2) two (2) disinterested appraisers licensed under IC 25-34.1;
who are residents of Indiana. One (1) of the appraisers described
under subdivision (2) must reside not more than fifty (50) miles from
the land or building. The appraisers shall fix the fair market value of
the land or building and report their decision within three (3) weeks
after their appointment. The eligible entity may then sell the land or
building to the authority for an amount not less than the fair market
value fixed by the appraisers, which amount may be paid from
proceeds of bonds of the authority.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.188, SEC.8; P.L.113-2006, SEC.21.
IC 36-9-13-30
Revenue bonds
Sec. 30. (a) For the purpose of obtaining money to pay the cost of:
(1) acquiring or constructing government buildings;
(2) acquiring land;
(3) acquiring systems;
(4) improving, reconstructing, or renovating government
buildings, systems, or land;
(5) repaying any advances for preliminary expenses made to the
building authority by an eligible entity;
(6) purchasing plans, designs, programs, and devices for
governmental buildings or systems; or
(7) refinancing any loan made under section 31 of this chapter;
the board of directors of a building authority may issue revenue
bonds of the authority.
(b) The bonds are payable solely from the income and revenues
of the particular government buildings, systems, or land for which
the bonds were issued.
(c) The bonds must be authorized by resolution of the board. The
bonds:
(1) bear interest payable semiannually; and
(2) mature serially, either annually or semiannually, at times
determined by the resolution authorizing the bonds.
However, the maturities of the bonds may not extend over a period
longer than the period of the lease of the government buildings,
systems, or land for which the bonds are issued.
(d) The bonds may, and all bonds maturing after five (5) years
from date of issuance shall, be made redeemable before maturity at
the option of the board of directors of the building authority. Such a
redemption must be at the par value of the bonds, together with the
premiums, and under the terms and conditions fixed by the resolution
authorizing the issuance of the bonds.
(e) The principal and interest of the bonds may be made payable
in any lawful medium.
(f) The resolution authorizing the issuance of the bonds must:
(1) determine the form of the bonds, including the interest
coupons (if any) to be attached to them;
(2) fix the denomination or denominations of the bonds; and
(3) fix the place or places of payment of the principal and
interest of the bonds, which must be at a state or national bank
or trust company within Indiana and may also be at one (1) or
more state or national banks or trust companies outside Indiana.
(g) The bonds are negotiable instruments under IC 26-1.
(h) The resolution authorizing the issuance of the bonds may
provide for the registration of any of the bonds in the name of the
owner as to principal alone.
(i) The bonds shall be executed by the president of the board of
directors, the corporate seal of the authority shall be affixed to the
bonds and attested by the secretary of the board, and the interest
coupons (if any) attached to the bonds shall be executed by placing
the facsimile signature of the treasurer of the board on them.
(j) The bonds may be sold at a private sale, a negotiated sale, or
a public sale.
(k) If the bonds are sold at a public sale, notice of the sale of the
bonds shall be published in accordance with IC 5-3-1.
(l) The board of directors shall sell the bonds at public sale, for
not less than their par value. The board shall award the bonds to the
highest bidder, as determined by computing the total interest on the
bonds from the date of sale to the dates of maturity and deducting
from that amount the premium bid, if any. Any premium received
from the sale of the bonds shall be used solely for the payment of
principal and interest on the bonds. If the bonds are not sold on the
date fixed for the sale, then the sale may be continued from day to
day until a satisfactory bid has been received.
(m) The board of directors may issue temporary bonds, with or
without coupons. These bonds, which must be issued in the manner
prescribed by this section, may be exchanged for the bonds that are
subsequently issued.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.45, SEC.49; Acts 1981, P.L.188, SEC.9; P.L.37-1988, SEC.37;
P.L.173-2003, SEC.39.
IC 36-9-13-31
Loans
Sec. 31. (a) In lieu of authorizing and selling bonds under section
30 of this chapter, the board of directors of a building authority may
adopt a resolution authorizing the negotiation of a loan or loans for
the purpose of obtaining the required money.
(b) The resolution authorizing the loan must set out:
(1) the total amount of the loan desired;
(2) the approximate dates on which money will be required, and
the amounts of the money that will be required on those dates;
and
(3) any terms, conditions, and restrictions concerning the
proposed loan or the submission of proposals that the board
considers advisable.
(c) Before the consideration of proposals for such a loan, a notice
shall be published in accordance with IC 5-3-1. The notice must set
out:
(1) the amount and purpose of the proposed loan;
(2) a brief summary of other provisions of the resolution; and
(3) the time and place where proposals will be considered.
(d) The board of directors may accept the proposal it considers
most advantageous to the authority.
As added by Acts 1981, P.L.309, SEC.86. Amended by Acts 1981,
P.L.45, SEC.50.
IC 36-9-13-32
Trust indentures securing bonds or loans
Sec. 32. (a) The board of directors of a building authority may
secure bonds issued under section 30 of this chapter or loans made
under section 31 of this chapter by a trust indenture between the
authority and a corporate trustee, which may be any trust company
or national or state bank within Indiana that has trust powers.
(b) The trust indenture may:
(1) mortgage or grant a security interest in all or part of the
land, systems, or government buildings for which the bonds are
issued or loan is made;
(2) contain reasonable and proper provisions for protecting and
enforcing the rights and remedies of the bondholders or lenders,
including covenants setting forth the duties of the authority and
board concerning:
(A) the construction, operation, extension, remodeling,
repair, maintenance, and insurance of the government
buildings or systems; and
(B) the custody, safeguarding, and application of all money
received or to be received by the authority on account of the
government buildings or systems financed by the bonds or
loan;
(3) set forth the rights and remedies of the bondholders or
lenders and trustee; and
(4) restrict the individual right of action of bondholders or
lenders.
(c) Except as otherwise provided by this chapter, the board of
directors may, by resolution or in the trust indenture, specify:
(1) the officer, board, or depository to which the proceeds of the
bonds or loan shall be paid; and
(2) the method of disbursing those proceeds.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.38.
IC 36-9-13-33
Proceeds; application; liens
Sec. 33. (a) The proceeds of any bonds issued under section 30 of
this chapter or of any loans made under section 31 of this chapter
shall first be applied to the reimbursement of all amounts advanced
for preliminary expenses under section 21 of this chapter. The
proceeds shall then be applied solely to the payment of the costs for
which the bonds are issued or the loan is negotiated, including
incidental expenses and interest during construction or acquisition.
(b) The bondholders under section 30 of this chapter, lenders
under section 31 of this chapter, or trustees under section 32 of this
chapter have a lien upon the proceeds of the bonds or the loan until
those proceeds are applied in the manner prescribed by this section.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.39.
IC 36-9-13-34
Tax levy to pay lease rentals
Sec. 34. (a) Except as provided by subsection (d), an eligible
entity that executes a lease under this chapter shall annually levy a
tax sufficient to produce each year the necessary money with which
to pay the lease rental required by the lease. These levies may be
reviewed by other bodies vested by law with that authority, in order
to determine that the levies are sufficient to raise the amount required
to meet the rental under the lease.
(b) The first tax levy shall be made at the first annual tax levy
period following the date of the execution of the lease. However, if
the lease was entered into in anticipation of the purchase of land,
construction or purchase of a government building, or acquisition of
a system, the first tax levy shall be made at the first annual tax levy
period immediately before the date fixed in the lease for the
beginning of the lease rental. The first annual levy shall be made in
an amount sufficient to pay the estimated amount of the first annual
lease rental to be made under the lease.
(c) The annual lease rental shall be paid to the authority
semiannally, following settlements for tax collections.
(d) If a consolidated city executes a lease agreement for all or part
of any land, government building, or system, and its use and benefit
is for a certain special service district within the consolidated city,
the authority may determine that the annual tax required under
subsection (a) shall be levied by the special service district benefited
by the lease agreement.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.40.
IC 36-9-13-35
Review of annual budget
Sec. 35. The annual operating budget of a building authority is
subject to review by the county board of tax adjustment and then by
the department of local government finance as in the case of other
political subdivisions.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.90-2002,
SEC.511; P.L.224-2007, SEC.134; P.L.146-2008, SEC.790.
IC 36-9-13-36
Property and revenues; tax exemption
Sec. 36. All the property and revenues of a building authority are
exempt from taxation for all purposes.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-37
Bonds and other securities; tax exemption
Sec. 37. All the bonds and other securities issued by a building
authority, including the interest on them, are exempt from taxation
for all purposes.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-38
Handling of funds; employees' bonds
Sec. 38. (a) Except as otherwise provided in this chapter, all
money coming into possession of the building authority shall be
deposited, held, and secured in accordance with the general statutes
concerning the handling of public funds. The handling and
expenditure of money coming into possession of the authority is
subject to audit and supervision by the state board of accounts.
(b) Any employee of the building authority authorized to receive,
disburse, or in any other way handle money or negotiable securities
of the authority shall execute a bond payable to the state, with surety
to consist of a surety or guaranty corporation qualified to do business
in Indiana. The bond must be in an amount determined by the board
of directors of the authority and must be conditioned upon the
faithful performance of the employee's duties and the accounting for
all money and property that may come into his hands or under his
control. The cost of the bond shall be paid by the authority.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-39
Procedure for awarding contracts
Sec. 39. (a) All contracts let by a building authority for the
construction and equipment of a government building must be let in
accordance with the general statutes concerning public contracts.
(b) All contracts let by a building authority for the acquisition of
a system may be entered into in accordance with the general statutes
concerning similar contracts.
As added by Acts 1981, P.L.309, SEC.86. Amended by P.L.37-1988,
SEC.41.
IC 36-9-13-40
Public records
Sec. 40. The records of a building authority are public records.
As added by Acts 1981, P.L.309, SEC.86.
IC 36-9-13-41
Dissolution of authority
Sec. 41. (a) This section does not apply to a county having a
consolidated city.
(b) The county fiscal body and the municipal fiscal body of the
county seat may by concurrent resolution dissolve a building
authority. They may consider dissolving the building authority at any
time, but they shall consider dissolving the building authority when
they are presented with a petition signed by twenty percent (20%) of
the registered voters residing in the county or thirty-five percent
(35%) of the registered voters residing in the county seat.
(c) The concurrent resolution must provide a plan for paying any
obligations, including bonds, of the building authority and for the
disposition of the funds and property of the building authority.
As added by Acts 1981, P.L.309, SEC.86.