Sec. 3.7. (a) As used in this section, “development area” means a redevelopment project area, economic development area, or urban renewal project area established under this chapter.

     (b) The jurisdiction and control over a development area established by the redevelopment commission of a first municipality may be transferred from that redevelopment commission to the redevelopment commission of a second, adjacent municipality if:

(1) the owners of one hundred percent (100%) of the real property in the development area consent to the transfer;

(2) the fiscal body of the first municipality and the fiscal body of the second, adjacent municipality:

(A) adopt or have adopted:

(i) substantially similar ordinances; or

(ii) an interlocal agreement;

consenting to the transfer of the jurisdiction and control over the development area; and

(B) agree or have agreed to transfer the geographic territory comprising the development area from the first municipality to the second, adjacent municipality through disannexation, interlocal agreement, or any other legal means;

(3) no tax increment from an allocation area within the development area has been pledged for the payment of bonds or the payment of lease rentals; and

(4) either the first municipality or the second, adjacent municipality has before the date of the transfer completed a reorganization under IC 36-1.5.

     (c) If the requirements of subsection (b) are satisfied:

(1) the jurisdiction and control over the development area is transferred without any other action required from the fiscal bodies, the redevelopment commissions, or the plan commissions of the municipalities or from any other state or local entity;

(2) the development area is thereafter part of the territory that is under the jurisdiction and control of the redevelopment commission of the second, adjacent municipality;

(3) the development area or the redevelopment plan may be altered or amended by the second, adjacent municipality and the redevelopment commission of the second, adjacent municipality as otherwise provided in this chapter; and

(4) any property taxes collected within the development area that were payable to the first municipality, to any taxing district of the first municipality, or to the redevelopment commission of the first municipality shall after the transfer be payable to the second, adjacent municipality, to the taxing districts of the second, adjacent municipality, or to the redevelopment commission of the second, adjacent municipality, as appropriate.

     (d) If, before January 1, 2013, the redevelopment commission of the first municipality has entered into an agreement to reimburse a person or political subdivision for infrastructure improvements from tax increments from an allocation area within the development area, the obligation to make the reimbursement is transferred to the redevelopment commission of the second, adjacent municipality upon the effective date of the transfer of the jurisdiction and control over the development area.

     (e) The authority to transfer the jurisdiction and control over a development area as provided in this section expires December 31, 2013.

As added by P.L.255-2013, SEC.15.