Sec. 12. (a) Before a lease may be entered into, the authority must find that the lease rental provided for is fair and reasonable.

     (b) A lease of an airport project from the development authority to the authority:

(1) must comply with IC 8-22-3.6;

(2) may not require payment of lease rental for a newly constructed airport project or for improvements to an existing airport project except to the extent that the airport project or improvements to the project have been completed and are ready for occupancy or use;

(3) may contain provisions:

(A) allowing the authority to continue to operate an existing airport project until completion of the improvements, reconstruction, or renovation; and

(B) requiring payment of lease rentals for an existing airport project 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 authority to purchase the airport project 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 airport project, including indebtedness incurred for the refunding of that indebtedness;

(6) may be entered into before acquisition or construction of an airport project;

(7) may provide that the authority shall agree to:

(A) pay all taxes and assessments on the project;

(B) maintain insurance on the project for the benefit of the development authority; and

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

(8) may provide that the lease rental payments by the authority shall be made from any one (1) or more of the sources set forth in IC 8-22-3.6.

As added by P.L.108-1993, SEC.11.