SB2823 EngrossedLRB099 18928 NHT 43316 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
55-22 as follows:
 
6    (105 ILCS 5/5-22)  (from Ch. 122, par. 5-22)
7    Sec. 5-22. Sales of school sites, buildings or other real
8estate. When, in the opinion of the school board, a school
9site, or portion thereof, building, or site with building
10thereon, or any other real estate of the district, has become
11unnecessary, or unsuitable, or inconvenient for a school, or
12unnecessary for the uses of the district, the school board, by
13a resolution adopted by at least two-thirds of the board
14members, may sell or direct that the property be sold in the
15manner provided in the Local Government Property Transfer Act,
16or in the manner herein provided or, in the case of a structure
17constructed or renovated by students as part of a curricular
18program, may engage the services of a licensed real estate
19broker to sell the property for a commission not to exceed 7%,
20contingent on the public listing of the property on a multiple
21listing service for a minimum of 14 calendar days and the sale
22of the property within 120 days.
23    Unless legal title to the land is held by the school board,

 

 

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1the school board shall forthwith notify the trustees of schools
2or other school officials having legal title to such land of
3the terms upon which they desire the property to be sold. If
4the property is to be sold to another unit of local government
5or school district, the school board, trustees of schools, or
6other school officials having legal title to the land shall
7proceed in the manner provided in the Local Government Property
8Transfer Act. In all other cases, except if the property is to
9be sold to a tenant that has leased the property for 10 or more
10years and that tenant is a non-profit agency, the school board,
11trustees of schools, or other school officials having legal
12title to the land shall, within 60 days after adoption of the
13resolution (if the school board holds legal title to the land),
14or within 60 days after the trustees of school or other school
15officials having legal title receive the notice (if the school
16board does not hold legal title to the land), sell the property
17at public sale, by auction or sealed bids, after first giving
18notice of the time, place, and terms thereof by notice
19published once each week for 3 successive weeks prior to the
20date of the sale if sale is by auction, or prior to the final
21date of acceptance of bids if sale is by sealed bids, in a
22newspaper published in the district or, if no such newspaper is
23published in the district, then in a newspaper published in the
24county and having a general circulation in the district;
25however, if territory containing a school site, building, or
26site with building thereon, is detached from the school

 

 

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1district of which it is a part after proceedings have been
2commenced under this Section for the sale of that school site,
3building, or site with building thereon, but before the sale is
4held, then the school board, trustees of schools, or other
5school officials having legal title shall not advertise or sell
6that school site, building, or site with building thereon,
7pursuant to those proceedings. The notices may be in the
8following form:
9
NOTICE OF SALE
10    Notice is hereby given that on (insert date), the (here
11insert title of the school board, trustees of school, or other
12school officials holding legal title) of (county) (Township No.
13...., Range No. .... P.M. ....) will sell at public sale (use
14applicable alternative) (at ......... (state location of sale
15which shall be within the district), at .... ..M.,) (by taking
16sealed bids which shall be accepted until .... ..M., on (insert
17date), at (here insert location where bids will be accepted
18which shall be within the district) which bids will be opened
19at .... ..M. on (insert date) at (here insert location where
20bids will be opened which shall be within the district)) the
21following described property: (here describe the property),
22which sale will be made on the following terms to-wit: (here
23insert terms of sale)
24
....
25
....
26
....

 

 

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1
(Here insert title of school
2
officials holding legal title)

 
3    For purposes of determining "terms of sale" under this
4Section, the General Assembly declares by this clarifying and
5amendatory Act of 1983 that "terms of sale" are not limited to
6sales for cash only but include contracts for deed, mortgages,
7and such other seller financed terms as may be specified by the
8school board.
9    If a school board specifies a reasonable minimum selling
10price and that price is not met or if no bids are received, the
11school board may adopt a resolution determining or directing
12that the services of a licensed real estate broker be engaged
13to sell the property for a commission not to exceed 7%,
14contingent on the sale of the property within 120 days. If
15legal title to the property is not held by the school board,
16the trustees of schools or other school officials having legal
17title shall, upon receipt of the resolution, engage the
18services of a licensed real estate broker as directed in the
19resolution. The board may accept a written offer equal to or
20greater than the established minimum selling price for the
21described property. The services of a licensed real estate
22broker may be utilized to seek a buyer. If the board lowers the
23minimum selling price on the described property, the public
24sale procedures set forth in this Section must be followed. The
25board may raise the minimum selling price without repeating the

 

 

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1public sale procedures.
2    In the case of a sale of property to a tenant that has
3leased the property for 10 or more years and that is a
4non-profit agency, an appraisal is required prior to the sale.
5If the non-profit agency purchases the property for less than
6the appraised value and subsequently sells the property, the
7agency may retain only a percentage of the profits that is
8proportional to the percentage of the appraisal, plus any
9improvements made by the agency while the agency was the owner,
10that the agency paid in the initial sale. The remaining portion
11of the profits made by the non-profit agency shall revert to
12the school district.
13    The deed of conveyance shall be executed by the president
14and clerk or secretary of the school board, trustees of
15schools, or other school officials having legal title to the
16land, and the proceeds paid to the school treasurer for the
17benefit of the district; provided, that the proceeds of any
18such sale on the island of Kaskaskia shall be paid to the State
19Treasurer for the use of the district and shall be disbursed by
20him in the same manner as income from the Kaskaskia Commons
21permanent school fund. The school board shall use the proceeds
22from the sale first to pay the principal and interest on any
23outstanding bonds on the property being sold, and after all
24such bonds have been retired, the remaining proceeds from the
25sale next shall be used by the school board to meet any urgent
26district needs as determined under Sections 2-3.12 and 17-2.11

 

 

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1and then for any other authorized purpose and for deposit into
2any district fund. But whenever the school board of any school
3district determines that any schoolhouse site with or without a
4building thereon is of no further use to the district, and
5agrees with the school board of any other school district
6within the boundaries of which the site is situated, upon the
7sale thereof to that district, and agrees upon the price to be
8paid therefor, and the site is selected by the purchasing
9district in the manner required by law, then after the payment
10of the compensation the school board, township trustees, or
11other school officials having legal title to the land of the
12schools shall, by proper instrument in writing, convey the
13legal title of the site to the school board of the purchasing
14district, or to the trustees of schools for the use of the
15purchasing district, in accordance with law. The provisions of
16this Section shall not apply to any sale made pursuant to
17Section 5-23 or Section 5-24 or Section 32-4.
18(Source: P.A. 91-357, eff. 7-29-99; 92-365, eff. 8-15-01.)