Leases; terms; public hearing; approval; execution; notice; action
contesting validity; purchase of leased facility
Sec. 21. (a) A unit may enter into a lease with a leasing body (as
defined in IC 5-1-1-1) of any property that could be financed with the
proceeds of bonds issued under this chapter with a lessor for a term
not to exceed fifty (50) years, and the lease may provide for
payments from revenues under this chapter, any other revenue
available to the unit, or any combination of these sources.
(b) A lease may provide that payments by the unit to the lessor are
required only to the extent and only for the period that the lessor is
able to provide the leased facilities in accordance with the lease. The
terms of each lease must be based upon the value of the facilities
leased and may not create a debt of the unit for purposes of the
Constitution of the State of Indiana.
(c) A lease may be entered into by the executive of the unit only
after a public hearing at which all interested parties are provided the
opportunity to be heard. After the public hearing, the executive may
approve the execution of the lease on behalf of the unit if the
executive finds that the service to be provided throughout the term
of the lease will serve the public purpose of the unit and is in the best
interests of its residents. Any lease approved by the executive must
also be approved by an ordinance of the fiscal body of the unit.
(d) Upon execution of a lease providing for payments by the unit
in whole or in part from taxes under this chapter and upon approval
of the lease by the unit's fiscal body, the executive of the unit shall
publish notice of the execution of the lease and its approval in
accordance with IC 5-3-1.
(e) Except as provided in this section, no approvals of any
governmental body or agency are required before the unit enters into
a lease under this section.
(f) 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.
(g) If a unit exercises an option to buy a leased facility from a
lessor, the unit 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 executive of the unit through auction,
appraisal, or arms length negotiation. If the facility is sold at auction,
after appraisal, or through negotiation, the unit 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.
As added by P.L.380-1987(ss), SEC.6. Amended by P.L.28-1993,
SEC.10; P.L.99-1995, SEC.4.
Last modified: May 28, 2006