Sec. 13. (a) Before a lease may be entered into, both the capital improvement board and the executive of the county must find that the lease rental provided for is fair and reasonable.

     (b) A lease of capital improvements from the authority to the capital improvement board:

Terms Used In Indiana Code 36-10-9.1-13

  • authority: refers to the county convention and recreational facilities authority created by this chapter. See Indiana Code 36-10-9.1-2
  • board: refers to the board of directors of the authority. See Indiana Code 36-10-9.1-3
  • capital improvement board: refers to the capital improvement board of managers created by IC 36-10-9. See Indiana Code 36-10-9.1-5
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(1) may not have a term exceeding forty (40) years;

(2) may not require payment of lease rental for a newly constructed capital improvement or for improvements to an existing capital improvement until the capital improvement or improvements thereto have been completed and are ready for occupancy;

(3) may contain provisions:

(A) allowing the capital improvement board to continue to operate an existing capital improvement until completion of the improvements, reconstruction, or renovation; and

(B) requiring payment of lease rentals for an existing capital improvement being used, reconstructed, or renovated;

(4) may contain an option to renew the lease for the same or shorter term on the conditions provided in the lease;

(5) must contain an option for the capital improvement board to purchase the capital improvement upon the terms stated in the lease during the term of the lease for a price equal to the amount required to pay all indebtedness incurred on account of the capital improvement, including indebtedness incurred for the refunding of that indebtedness;

(6) may be entered into before acquisition or construction of a capital improvement;

(7) must be approved by the executive of the county;

(8) may provide that the capital improvement board shall agree to:

(A) pay all taxes and assessments thereon;

(B) maintain insurance thereon for the benefit of the authority; and

(C) assume responsibility for utilities, repairs, alterations, and any costs of operation; and

(9) subject to IC 36-10-9-11, may provide that the lease rental payments by the capital improvement board shall be made from any one (1) or more of the following sources:

(A) Proceeds of one (1) or more of the excise taxes as defined in IC 36-10-9.

(B) Net revenues of the capital improvement.

(C) Any other funds available to the capital improvement board.

As added by P.L.82-1985, SEC.12.

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