HANDBOOK FOR INDIANA REDEVELOPMENT COMMISSION MEMBERS AND THEIR ATTORNEYS JUNE 2017 PREPARED BY: Thomas A. Pitman Barnes & Thornburg LLP [email protected] (317) 231-6420 Note: These materials are intended for information only and are not to be considered legal advice. INTENTIONALLY LEFT BLANK Table of Contents Page INTRODUCTION ............................................................................................................................... 1 Pratical Pointers ........................................................................................................................ 1 Frequently Used Terms............................................................................................................. 1 CHAPTER 1. REDEVELOPMENT COMMISSION – CREATION AND MEMBERSHIP ............................................... 9 Selection of Members ............................................................................................................... 9 Non-Voting School Board Advisor .......................................................................................... 9 Residency and Age Requirement............................................................................................ 10 Oath of Office and Bond......................................................................................................... 10 Prohibition against Holding Two Lucrative Offices............................................................... 10 Conflicts of Interest................................................................................................................. 10 Term of Service....................................................................................................................... 10 Removal of Members.............................................................................................................. 11 County Redevelopment Commissions May Have Seven Voting Members ........................... 11 CHAPTER 2. MEETINGS OF REDEVELOPMENT COMMISSIONS; OFFICERS ..................................................... 13 Initial Organizational Meeting................................................................................................ 13 Annual Meeting ...................................................................................................................... 13 Other Meetings........................................................................................................................ 13 Election of Officers................................................................................................................. 13 Role of Unit’s Fiscal Officer................................................................................................... 13 Public Notices of Meetings..................................................................................................... 13 Rules and By-laws .................................................................................................................. 14 Quorum Requirement.............................................................................................................. 14 Voting Requirements .............................................................................................................. 14 Meetings That Include Participation by Electronic Means..................................................... 14 Guidance Relating to the Position of Executive Director of the Redevelopment Commission ............................................................................................ 15 HANDBOOK FOR INDIANA REDEVELOPMENT COMMISSION MEMBERS AND THEIR ATTORNEYS PAGE i Table of Contents (continued) Page CHAPTER 3. JURISDICTION OF REDEVELOPMENT COMMISSION .................................................................... 17 In General................................................................................................................................ 17 Effect of Annexation by City or Town on County Redevelopment Commission Jurisdiction.............................................................................................................................. 17 Effect of Creation of Redevelopment Commission by City or Town on County Redevelopment Commission Jurisdiction............................................................................... 17 Legislative Body Oversight of Redevelopment Commission and Its Annual Budget............ 18 Legislative or Fiscal Body Approval Required for Various Redevelopment Commission Actions..................................................................................... 18 Authorization of Short-Term Borrowing of Redevelopment Funds by Related Governmental Unit with Approval of Redevelopment Commission...................................... 18 CHAPTER 4. DUTIES OF REDEVELOPMENT COMMISSIONS.............................................................................. 19 General Duties ........................................................................................................................ 19 Contracts Greater than $50,000 .............................................................................................. 19 CHAPTER 5. ANNUAL NOTICE AND REPORTING REQUIREMENTS OF REDEVELOPMENT COMMISSIONS ...... 21 April 1 Report ......................................................................................................................... 21 April 15 Report ....................................................................................................................... 21 2017 Legislative Changes................................................................................................. 22 June 15 Report ........................................................................................................................ 22 August 1 Report ...................................................................................................................... 23 Reassessment .......................................................................................................................... 23 “Trending” .............................................................................................................................. 23 CHAPTER 6. GENERAL POWERS OF REDEVELOPMENT COMMISSIONS........................................................... 25 Acquisition of Property........................................................................................................... 25 Disposition of Property........................................................................................................... 25 Holding and Using Property ................................................................................................... 25 Clearance of Property ............................................................................................................. 25 Remediation of Property......................................................................................................... 25 HANDBOOK FOR INDIANA REDEVELOPMENT COMMISSION MEMBERS AND THEIR ATTORNEYS PAGE ii Table of Contents (continued) Page Repair and Improvement of Property ..................................................................................... 25 Eminent Domain ..................................................................................................................... 25 Provision of Financial Assistance for Purchase or Lease of Residential Housing ................. 25 Provision of Financial Assistance to Neighborhood Development Corporations .................. 26 Tax Levy for General Expenses.............................................................................................. 26 Issuance of Tax Warrants........................................................................................................ 26 Urban Renewal Projects.......................................................................................................... 26 Neighborhood Development Programs................................................................................... 26 Best Practices for Redevelopment Commissions ................................................................... 26 CHAPTER 7. CREATION OF AN “ECONOMIC DEVELOPMENT AREA” .............................................................. 29 “Economic Development Area” or “Area Needing Redevelopment” .................................... 29 Procedural Steps...................................................................................................................... 29 CHAPTER 8. TIF ALLOCATION AREAS............................................................................................................. 33 Background............................................................................................................................. 33 Difference between TIF Allocation Area and Economic Development Area ........................ 35 Procedures for Designation of Part or All of an Economic Development Area as a TIF Allocation Area......................................................................................................... 35 Concept of “Tax Increment”................................................................................................... 35 Concept of Base Assessment Date.......................................................................................... 36 Concept of “Restoring the Base” ............................................................................................ 36 Administration