Bill Text: IN SB0272 | 2010 | Regular Session | Introduced
Bill Title: Gary airport authority.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2010-01-12 - Senator Kenley added as second author [SB0272 Detail]
Download: Indiana-2010-SB0272-Introduced.html
Citations Affected: IC 5-23-1-1; IC 8-22-3; IC 36-7.5-4-1.
Synopsis: Gary airport authority. Requires the airport authority
established by the city of Gary to use the procedures set forth in
IC 5-23 (concerning BOT agreements and operating agreements) when
selecting a person with whom to enter into a lease, management
agreement, or other contract for use, management, operation,
construction, expansion, financing, and other activities with respect to
the airport facilities for a period not to exceed 99 years (current law
exempts the airport authority from complying with IC 5-23 when
entering into a lease, management agreement, or other contract under
any part of the local airport authority statute). Provides that the airport
authority established by the city of Gary shall, to the extent permitted
by federal law or any grant agreement, distribute to the northwest
Indiana regional development authority any payments received under
certain leases, management agreements, or other contracts under which
the lessee or other operator agrees to lease, manage, or operate all or
part of the airport facilities (current law requires distributions from
such payments to the city of Gary). Deletes a legislative finding of fact
concerning the city of Gary and its airport authority. Makes conforming
changes.
Effective: Upon passage.
January 11, 2010, read first time and referred to Committee on Appropriations.
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A BILL FOR AN ACT to amend the Indiana Code concerning
transportation.
(1) The state.
(2) A political subdivision in a county containing a consolidated city.
(3) A political subdivision in a county where:
(A) the legislative body of the political subdivision; or
(B) if the political subdivision does not have a legislative body, the fiscal body of the political subdivision;
adopts the provisions of this article by resolution or ordinance.
(4) The board of the airport authority established by the city of Gary, if required by IC 8-22-3-11(20)(A).
chapter, including the following:
(1) As a municipal corporation, to sue and be sued in its own
name.
(2) To have all the powers and duties conferred by statute upon
boards of aviation commissioners. The board supersedes all
boards of aviation commissioners within the district. The board
has exclusive jurisdiction within the district.
(3) To protect all property owned or managed by the board.
(4) To adopt an annual budget and levy taxes in accordance with
this chapter.
(A) The board may not levy taxes on property in excess of the
following rate schedule, except as provided in sections 17 and
25 of this chapter:
Total Assessed Rate Per $100 Of
Property Valuation Assessed Valuation
$300 million or less $0.10
More than $300 million
but not more than $450 million $0.0833
More than $450 million
but not more than $600 million $0.0667
More than $600 million
but not more than $900 million $0.05
More than $900 million $0.0333
(B) Clause (A) does not apply to an authority that was
established under IC 19-6-2 or IC 19-6-3 (before their repeal
on April 1, 1980).
(C) The board of an authority that was established under
IC 19-6-3 (before its repeal on April 1, 1980) may levy taxes
on property not in excess of six and sixty-seven hundredths
cents ($0.0667) on each one hundred dollars ($100) of
assessed valuation.
(5) To incur indebtedness in the name of the authority in
accordance with this chapter.
(6) To adopt administrative procedures, rules, and regulations.
(7) To acquire property, real, personal, or mixed, by deed,
purchase, lease, condemnation, or otherwise and dispose of it for
use or in connection with or for administrative purposes of the
airport; to receive gifts, donations, bequests, and public trusts and
to agree to conditions and terms accompanying them and to bind
the authority to carry them out; to receive and administer federal
or state aid; and to erect buildings or structures that may be
needed to administer and carry out this chapter.
(8) To determine matters of policy regarding internal organization and operating procedures not specifically provided for otherwise.
(9) To adopt a schedule of reasonable charges and to collect them from all users of facilities and services within the district.
(10) To purchase supplies, materials, and equipment to carry out the duties and functions of the board in accordance with procedures adopted by the board.
(11) To employ personnel that are necessary to carry out the duties, functions, and powers of the board.
(12) To establish an employee pension plan. The board may, upon due investigation, authorize and begin a fair and reasonable pension or retirement plan and program for personnel, the cost to be borne by either the authority or by the employee or by both, as the board determines. If the authority was established under IC 19-6-2 (before its repeal on April 1, 1980), the entire cost must be borne by the authority, and ordinances creating the plan or making changes in it must be approved by the mayor of the city. The plan may be administered and funded by a trust fund or by insurance purchased from an insurance company licensed to do business in Indiana or by a combination of them. The board may also include in the plan provisions for life insurance, disability insurance, or both.
(13) To sell surplus real or personal property in accordance with law. If the board negotiates an agreement to sell trees situated in woods or forest areas owned by the board, the trees are considered to be personal property of the board for severance or sale.
(14) To adopt and use a seal.
(15) To acquire, establish, construct, improve, equip, maintain, control, lease, and regulate municipal airports, landing fields, and other air navigation facilities, either inside or outside the district; to acquire by lease (with or without the option to purchase) airports, landing fields, or navigation facilities, and any structures, equipment, or related improvements; and to erect, install, construct, and maintain at the airport or airports facilities for the servicing of aircraft and for the comfort and accommodation of air travelers and the public. The Indiana department of transportation must grant its approval before land may be purchased for the establishment of an airport or landing field and before an airport or landing field may be established.
(16) To fix and determine exclusively the uses to which the airport lands may be put. All uses must be necessary or desirable to the airport or the aviation industry and must be compatible with
the uses of the surrounding lands as far as practicable.
(17) To elect a secretary from its membership, or to employ a
secretary, an airport director, superintendents, managers, a
treasurer, engineers, surveyors, attorneys, clerks, guards,
mechanics, laborers, and all employees the board considers
expedient, and to prescribe and assign their respective duties and
authorities and to fix and regulate the compensation to be paid to
the persons employed by it in accordance with the authority's
appropriations. All employees shall be selected irrespective of
their political affiliations.
(18) To make all rules and regulations, consistent with laws
regarding air commerce, for the management and control of its
airports, landing fields, air navigation facilities, and other
property under its control.
(19) To acquire by lease the use of an airport or landing field for
aircraft pending the acquisition and improvement of an airport or
landing field.
(20) To manage and operate airports, landing fields, and other air
navigation facilities acquired or maintained by an authority; to
lease all or part of an airport, landing field, or any buildings or
other structures, and to fix, charge, and collect rentals, tolls, fees,
and charges to be paid for the use of the whole or a part of the
airports, landing fields, or other air navigation facilities by aircraft
landing there and for the servicing of the aircraft; to construct
public recreational facilities that will not interfere with air
operational facilities; to fix, charge, and collect fees for public
admissions and privileges; and to make contracts for the operation
and management of the airports, landing fields, and other air
navigation facilities; and to provide for the use, management, and
operation of the air navigation facilities through lessees, its own
employees, or otherwise. Contracts or leases for the maintenance,
operation, or use of the airport or any part of it may be made for
a term not exceeding fifteen (15) years and may be extended for
similar terms of years, except that any parcels of the land of the
airport may be leased for any use connected with the operation
and convenience of the airport for an initial term not exceeding
forty (40) years and may be extended for a period not to exceed
ten (10) years. If a person whose character, experience, and
financial responsibility have been determined satisfactory by the
board offers to erect a permanent structure that facilitates and is
consistent with the operation, use, and purpose of the airport on
land belonging to the airport, a lease may be entered into for a
period not to exceed ninety-nine (99) years. However, the board
must pass an ordinance to enter into such a lease, The board may
not grant an exclusive right for the use of a landing area under its
jurisdiction. However, this does not prevent the making of leases
in accordance with other provisions of this chapter. All contracts,
and leases, are subject to restrictions and conditions that the board
prescribes. The authority may lease its property and facilities for
any commercial or industrial use it considers necessary and
proper, including the use of providing airport motel facilities. For
the airport authority established by the city of Gary, the board
may approve a lease, management agreement, or other contract:
(A) with a person:
(i) who is selected by the board using the procedures under
IC 36-1-9.5; set forth in IC 5-23; and
(ii) whose character, experience, and financial responsibility
have been determined satisfactory by the board; and
(B) to use, plan, design, acquire, construct, reconstruct,
improve, extend, expand, lease, operate, repair, manage,
maintain, or finance all or any part of the airport and its
landing fields, air navigation facilities, and other buildings and
structures for a period not to exceed ninety-nine (99) years.
However, the board must pass an ordinance to enter into such
a lease, management agreement, or other contract. All
contracts, leases, and management agreements are subject to
restrictions and conditions that the board prescribes. The
authority may lease its property and facilities for any
commercial or industrial use it considers necessary and proper,
including the use of providing airport motel facilities. A lease,
management agreement, or other contract entered into under
this section or any other provision of this chapter may be
entered into without complying with IC 5-23.
(21) To sell machinery, equipment, or material that is not required
for aviation purposes. The proceeds shall be deposited with the
treasurer of the authority.
(22) To negotiate and execute contracts for sale or purchase,
lease, personal services, materials, supplies, equipment, or any
other transaction or business relative to an airport under the
board's control and operation. However, whenever the board
determines to sell part or all of aviation lands, buildings, or
improvements owned by the authority, the sale must be in
accordance with law.
(23) To vacate all or parts of roads, highways, streets, or alleys,
whether inside or outside the district, in the manner provided by
statute.
(24) To annex lands to itself if the lands are owned by the
authority or are streets, roads, or other public ways.
(25) To approve any state, county, city, or other highway, road,
street or other public way, railroad, power line, or other
right-of-way to be laid out or opened across an airport or in such
proximity as to affect the safe operation of the airport.
(26) To construct drainage and sanitary sewers with connections
and outlets as are necessary for the proper drainage and
maintenance of an airport or landing field acquired or maintained
under this chapter, including the necessary buildings and
improvements and for the public use of them in the same manner
that the authority may construct sewers and drains. However, with
respect to the construction of drains and sanitary sewers beyond
the boundaries of the airport or landing field, the board shall
proceed in the same manner as private owners of property and
may institute proceedings and negotiate with the departments,
bodies, and officers of an eligible entity to secure the proper
orders and approvals; and to order a public utility or public
service corporation or other person to remove or to install in
underground conduits wires, cables, and power lines passing
through or over the airport or landing field or along the borders or
within a reasonable distance that may be determined to be
necessary for the safety of operations, upon payment to the utility
or other person of due compensation for the expense of the
removal or reinstallation. The board must consent before any
franchise may be granted by state or local authorities for the
construction of or maintenance of railway, telephone, telegraph,
electric power, pipe, or conduit line upon, over, or through land
under the control of the board or within a reasonable distance of
land that is necessary for the safety of operation. The board must
also consent before overhead electric power lines carrying a
voltage of more than four thousand four hundred (4,400) volts and
having poles, standards, or supports over thirty (30) feet in height
within one-half (1/2) mile of a landing area acquired or
maintained under this chapter may be installed.
(27) To contract with any other state agency or instrumentality or
any political subdivision for the rendition of services, the rental
or use of equipment or facilities, or the joint purchase and use of
equipment or facilities that are necessary for the operation,
maintenance, or construction of an airport operated under this
chapter.
(28) To provide air transportation in furtherance of the duties and
responsibilities of the board.
(29) To promote or encourage aviation-related trade or commerce
at the airports that it operates.
(1) before or at the same time;
(2) in the same manner; and
(3) with notice;
as provided by the statutes relating to the preparation of budgets by eligible entities. The budget is subject to the same review by the county tax adjustment board and the department of local government finance as exists under the general statutes relating to budgets of eligible entities.
(b) If the eligible entity that established the authority is a county, city, or town, the fiscal body of that entity may review and modify the authority's operating and maintenance budget and the tax levy to meet it, in the same manner as the budgets and tax levies of executive departments of that entity are reviewed and modified. This power includes the power to reduce any item of salary.
(c) Whenever a tax levy is required to finance the budget of an authority that was established by a city or town, the fiscal body of the county also may review the budget and tax levy of the authority, unless the district:
(1) lies wholly within, or coincides with, the boundaries of a city or town;
(2) is not the recipient of funds from a county-wide tax levy made specifically for the operating and maintenance budget for that authority; and
(3) was established by the fiscal body of the city or town, acting independently.
However, the budget and tax levy of the authority are subject to review or modification by the fiscal body of the city or town with which it shares territory, in the same manner as the budgets and tax levies of the executive departments of that city or town are reviewed or modified.
(d) If an authority was established by another eligible entity or by two (2) or more eligible entities acting jointly, its operating and maintenance budget and the tax levy to meet it is subject to review and modification by the same body that reviews and modifies the budget of each of those entities in the same manner as the budgets and tax levies of those entities, including reduction of any item of salary.
(e) This subsection applies only to the airport authority established by the city of Gary.
economic development potential of the city of Gary, the
Gary/Chicago International Airport, and the Lake Michigan
shoreline.
(3) The powers and responsibilities provided to the airport
authority established by the city of Gary by subsection (e) and the
other provisions of this chapter are appropriate and necessary to
carry out the public purposes of encouraging economic
development and further facilitating the provision of air
transportation services and economic development projects in the
city of Gary.
(4) The exercise of the powers and responsibilities granted to the
airport authority established by the city of Gary by subsection (e)
and the other provisions of this chapter is critical to economic
development not only in the city of Gary, but throughout
northwest Indiana, and is a public purpose.
(5) Economic development benefits the health and welfare of the
people of Indiana, is a public use and purpose for which public
money may be spent, and is of public utility and benefit.
(b) The development authority fund consists of the following:
(1) Riverboat admissions tax revenue, riverboat wagering tax revenue, or riverboat incentive payments received by a city or county described in IC 36-7.5-2-3(b) and transferred by the county or city to the fund.
(2) County economic development income tax revenue received under IC 6-3.5-7 by a county or city and transferred by the county or city to the fund.
(3) Amounts distributed under IC 8-15-2-14.7.
(4) Food and beverage tax revenue deposited in the fund under IC 6-9-36-8.
(5) Funds received from the federal government.
(6) Appropriations to the fund by the general assembly.
(7) Other local revenue appropriated to the fund by a political subdivision.
(8) Gifts, donations, and grants to the fund.
(9) Amounts distributed under IC 8-22-3-23(e).
(c) The development authority shall establish a development authority fund. The development board shall establish and administer a general account, a lease rental account, and such other accounts in the
fund as are necessary or appropriate to carry out the powers and duties
of the development authority. Except as otherwise provided by law or
agreement with holders of any obligations of the development
authority, all money transferred to the development authority fund
under subsection (b)(1), (b)(2), and (b)(4) shall be deposited in the
lease rental account and used only for the payment of or to secure the
payment of obligations of an eligible political subdivision under a lease
entered into by an eligible political subdivision and the development
authority under this chapter. However, any money deposited in the
lease rental account and not used for the purposes of this subsection
shall be returned by the treasurer of the development authority to the
respective counties and cities that contributed the money to the
development authority.
(d) If the amount of money transferred to the development authority
fund under subsection (b)(1), (b)(2), and (b)(4) for deposit in the lease
rental account in any one (1) calendar year is greater than an amount
equal to:
(1) one and twenty-five hundredths (1.25); multiplied by
(2) the total of the highest annual debt service on any bonds then
outstanding to their final maturity date, which have been issued
under this article and are not secured by a lease, plus the highest
annual lease payments on any leases to their final maturity, which
are then in effect under this article;
all or a portion of the excess may instead be deposited in the general
account.
(e) Except as otherwise provided by law or agreement with the
holders of obligations of the development authority, all other money
and revenues of the development authority may be deposited in the
general account or the lease rental account at the discretion of the
development board. Money on deposit in the lease rental account may
be used only to make rental payments on leases entered into by the
development authority under this article. Money on deposit in the
general account may be used for any purpose authorized by this article.
(f) The development authority fund shall be administered by the
development authority.
(g) Money in the development authority fund shall be used by the
development authority to carry out this article and does not revert to
any other fund.
