Sec. 16. (a) A county that is not a member of the development authority, along with municipalities within the county, may financially participate in the mainline double tracking project and receive the same benefits a member would receive under this chapter. To financially participate, a county may become an associate member of the development authority or a cash participant. The county fiscal body must adopt a resolution to make the county a financial participant. The resolution must specify whether the county is choosing to be an associate member of the development authority or a cash participant. If the county chooses to be a cash participant, the resolution must specify whether the county will make a cash payment to the development authority for the county's share of the local part of the state and local cost of the project or will commit to making debt service payments annually for the life of the bonds used to finance the rail project.
(b) The following apply to an associate member county:
(1) The county is not a full member of the development authority.
(2) The executive of the largest municipality in the county may appoint an individual to serve as a nonvoting member on the development authority board.
(3) The county agrees to pay two million five hundred thousand dollars ($2,500,000) annually to the development authority to cover the following expenses:
(A) The county's share of the cost of the rail project under the final financing plan agreed to by the development authority and the Indiana finance authority, estimated to be one million five hundred thousand dollars ($1,500,000) in annual debt service.
(B) A debt service coverage ratio of one hundred thirty-three percent (133%).
(C) A reserve of five hundred thousand dollars ($500,000) for administrative and issuance costs.
(4) The county must pledge revenue for the membership payment from only property tax revenue or local income tax revenue, or both.
(c) The following apply to a cash participant county:
(1) The county is not an associate or a full member of the development authority.
(2) The county is not entitled to appoint an individual to serve as a voting or nonvoting member on the development authority board.
(3) The county shall make either a cash payment to the development authority for the county's share of the local portion of the state and local cost of the project or shall commit to making debt service payments annually for the life of the bonds.
(4) If the cash payment option is chosen, within one hundred twenty (120) days after the rail project is approved for federal funding and the final financing plan is agreed to by the development authority and the Indiana finance authority, the county shall pay to the development authority or the Indiana finance authority the amount of the county's share of the rail project's cost, estimated to be eighteen million two hundred fifty thousand dollars ($18,250,000).
(5) If the annual debt service payments for the life of the bonds option is chosen, before December 31 of each year, the county shall pay to the development authority or the Indiana finance authority the amount of the county's annual share of the project's cost under the final financing plan negotiated by the development authority and the Indiana finance authority, estimated to be two million dollars ($2,000,000) annually, to cover the following expenses:
(A) An estimated one million five hundred thousand dollars ($1,500,000) in annual debt service.
(B) A debt service coverage ratio of one hundred thirty-three percent (133%).
The county must pledge revenue for the debt service payment from only property tax revenue or local income tax revenue, or both.
(6) The property tax and local income tax incremental revenues from a district located in a political subdivision shall be distributed by the county auditor to the political subdivision's redevelopment commission.
(7) Money in a fund of a redevelopment commission established by a county or municipality that is not otherwise committed for other purposes may be used to make payments required by this subsection.
(d) The following apply to a county that is an associate member of the development authority or a cash participant county:
(1) The Indiana finance authority shall conduct pre-financing verification of an associate member county or a cash participant county to pay for the rail project.
(2) By becoming an associate member county or a cash participant county, the county agrees to a state intercept provision that will remain in force for the life of the state bonds used to fund the rail project construction.
(3) The amount attributable to any debt service coverage reserve provided by a county shall be returned to the county at the end of the first ten (10) year period less the issuance and administrative costs incurred by the development authority and the Indiana finance authority.
(4) The property tax increment revenue and local income tax increment revenue within a district shall be used by the development authority or redevelopment commission or both, in the case of a district located in an associate member county, only to fund development projects within that district.
(5) Each year, the development authority or the Indiana finance authority shall reconcile the total actual costs of the rail project compared to the total costs of the rail project used to determine a county's payments under this section. To the extent the total actual costs of the rail project are less than the total rail project costs used to determine payment amounts, the development authority or the Indiana finance authority shall distribute twenty-five percent (25%) of the total amount to the county. To the extent the total actual rail project costs are greater than the total rail project costs used to determine payment amounts, the county shall pay to the development authority or the Indiana finance authority twenty-five percent (25%) of the total amount.
(6) The state shall capture state sales tax revenue and state income tax revenue within the district for the duration of the district's existence.
(e) The development authority shall report annually to the budget agency and to all the members and participating counties on the amount of the issuance costs and administrative costs incurred in the preceding year.
As added by P.L.248-2017, SEC.10.
Structure Indiana Code
Article 7.5. Northwest Indiana Regional Development Authority
Chapter 4.5. Rail Transit Development Districts
36-7.5-4.5-0.5. "Associate Member"
36-7.5-4.5-1. "Base Assessed Value"
36-7.5-4.5-2.5. "Cash Participant"
36-7.5-4.5-5. "Development Project"
36-7.5-4.5-7. "Gross Retail Tax Base Period Amount"
36-7.5-4.5-8. "Gross Retail Tax Increment Revenue"
36-7.5-4.5-9. "Local Income Tax Base Period Amount"
36-7.5-4.5-10. "Local Income Tax Increment Revenue"
36-7.5-4.5-11. "Property Tax Increment Revenue"
36-7.5-4.5-13. "State Income Tax Base Period Amount"
36-7.5-4.5-14. "State Income Tax Increment Revenue"
36-7.5-4.5-15. "Rail Transit Development Corridor"; Establishment; Geographic Area
36-7.5-4.5-17. Transit Development District; Establishment; Conditions; Geographic Area
36-7.5-4.5-19. Steering Committee; Establishment; Members; Meetings; Duties
36-7.5-4.5-23. Funding of Development Projects Within a Transit Development District; Uses
36-7.5-4.5-28. Certification and Distributions From Transit Development District Account
36-7.5-4.5-29. Expenses; Liabilities; Obligations
36-7.5-4.5-30. Chapter Broadly Construed
36-7.5-4.5-31. Distribution of Remaining Money Upon Completion