AGO 2003-08.

• Case Date: August 27, 2003
• Court: Indiana

Indiana Attorney General Opinions 2003. AGO 2003-08. August 27, 2003OPINION NO. 2003-8The Honorable Ralph Ayres Indiana House of RepresentativesIndiana State HouseIndianapolis, Indiana 46204 RE: Redevelopment Commission's Acquisition and Disposition of PropertyDear Representative Ayres: This letter responds to your request for an opinion on the following question: Is a redevelopment commission of a unit (county, city or town), created pursuant to Indiana Code section 36-7-14-3, separate from such unit, and therefore able to acquire and dispose of property and appropriate non-property tax revenues for purposes of redevelopment or economic development within the boundaries of the unit, without the approval of the legislative body of that unit? BRIEF ANSWER Although initially established by a unit of government, a redevelopment commission created pursuant to Ind. Code § 36-7-14-3 is a special taxing district and a political subdivision, and not merely an agency of the unit. Redevelopment commissions have been granted broad powers by the General Assembly regarding acquisition and disposition of property, issuance of bonds for redevelopment, and the general conduct of business. Ind. Code § chapter 36-7-14 contains comprehensive and detailed sections governing the powers of a redevelopment commission, its acquisition and disposition of property, and the various mechanisms available for funding its activities. While approval of the fiscal or legislative body of the establishing unit is required for some transactions, other transactions do not require such approval. ANALYSIS A redevelopment commission is established by a unit of local government and funded in part by a special benefits tax:

(a) A unit may establish a department of redevelopment controlled by a board of five (5) members to be known as "__________ Redevelopment Commission", designating the name of the municipality or county.

(b) . . . [A]ll of the territory within the corporate boundaries of a municipality constitutes a taxing district for the purpose of levying and collecting special benefit taxes for redevelopment purposes as provided in this chapter. . . . [A]ll of the territory in a county, except that within a municipality that has a redevelopment commission, constitutes a taxing district for a county. (c) All of the taxable property within a taxing district is considered to be benefited by redevelopment projects carried out under this chapter to the extent of the special taxes levied under this chapter Ind. Code § 36-7-14-3. Once established,

redevelopment commissions constitute special taxing districts and are not independent municipal corporations subject to Indiana constitutional debt limitations.

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