Public Act 099-0794
 
SB2823 EnrolledLRB099 18928 NHT 43316 b

    AN ACT concerning education.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The School Code is amended by changing Section
5-22 as follows:
 
    (105 ILCS 5/5-22)  (from Ch. 122, par. 5-22)
    Sec. 5-22. Sales of school sites, buildings or other real
estate. When, in the opinion of the school board, a school
site, or portion thereof, building, or site with building
thereon, or any other real estate of the district, has become
unnecessary, or unsuitable, or inconvenient for a school, or
unnecessary for the uses of the district, the school board, by
a resolution adopted by at least two-thirds of the board
members, may sell or direct that the property be sold in the
manner provided in the Local Government Property Transfer Act,
or in the manner herein provided or, in the case of residential
property constructed or renovated by students as part of a
curricular program, may engage the services of a licensed real
estate broker to sell the property for a commission not to
exceed 7%, contingent on the public listing of the property on
a multiple listing service for a minimum of 14 calendar days
and the sale of the property within 120 days.
    Unless legal title to the land is held by the school board,
the school board shall forthwith notify the trustees of schools
or other school officials having legal title to such land of
the terms upon which they desire the property to be sold. If
the property is to be sold to another unit of local government
or school district, the school board, trustees of schools, or
other school officials having legal title to the land shall
proceed in the manner provided in the Local Government Property
Transfer Act. In all other cases, except if the property is to
be sold to a tenant that has leased the property for 10 or more
years and that tenant is a non-profit agency, the school board,
trustees of schools, or other school officials having legal
title to the land shall, within 60 days after adoption of the
resolution (if the school board holds legal title to the land),
or within 60 days after the trustees of school or other school
officials having legal title receive the notice (if the school
board does not hold legal title to the land), sell the property
at public sale, by auction or sealed bids, after first giving
notice of the time, place, and terms thereof by notice
published once each week for 3 successive weeks prior to the
date of the sale if sale is by auction, or prior to the final
date of acceptance of bids if sale is by sealed bids, in a
newspaper published in the district or, if no such newspaper is
published in the district, then in a newspaper published in the
county and having a general circulation in the district;
however, if territory containing a school site, building, or
site with building thereon, is detached from the school
district of which it is a part after proceedings have been
commenced under this Section for the sale of that school site,
building, or site with building thereon, but before the sale is
held, then the school board, trustees of schools, or other
school officials having legal title shall not advertise or sell
that school site, building, or site with building thereon,
pursuant to those proceedings. The notices may be in the
following form:
NOTICE OF SALE
    Notice is hereby given that on (insert date), the (here
insert title of the school board, trustees of school, or other
school officials holding legal title) of (county) (Township No.
...., Range No. .... P.M. ....) will sell at public sale (use
applicable alternative) (at ......... (state location of sale
which shall be within the district), at .... ..M.,) (by taking
sealed bids which shall be accepted until .... ..M., on (insert
date), at (here insert location where bids will be accepted
which shall be within the district) which bids will be opened
at .... ..M. on (insert date) at (here insert location where
bids will be opened which shall be within the district)) the
following described property: (here describe the property),
which sale will be made on the following terms to-wit: (here
insert terms of sale)
....
....
....
(Here insert title of school
officials holding legal title)

 
    For purposes of determining "terms of sale" under this
Section, the General Assembly declares by this clarifying and
amendatory Act of 1983 that "terms of sale" are not limited to
sales for cash only but include contracts for deed, mortgages,
and such other seller financed terms as may be specified by the
school board.
    If a school board specifies a reasonable minimum selling
price and that price is not met or if no bids are received, the
school board may adopt a resolution determining or directing
that the services of a licensed real estate broker be engaged
to sell the property for a commission not to exceed 7%,
contingent on the sale of the property within 120 days. If
legal title to the property is not held by the school board,
the trustees of schools or other school officials having legal
title shall, upon receipt of the resolution, engage the
services of a licensed real estate broker as directed in the
resolution. The board may accept a written offer equal to or
greater than the established minimum selling price for the
described property. The services of a licensed real estate
broker may be utilized to seek a buyer. If the board lowers the
minimum selling price on the described property, the public
sale procedures set forth in this Section must be followed. The
board may raise the minimum selling price without repeating the
public sale procedures.
    In the case of a sale of property to a tenant that has
leased the property for 10 or more years and that is a
non-profit agency, an appraisal is required prior to the sale.
If the non-profit agency purchases the property for less than
the appraised value and subsequently sells the property, the
agency may retain only a percentage of the profits that is
proportional to the percentage of the appraisal, plus any
improvements made by the agency while the agency was the owner,
that the agency paid in the initial sale. The remaining portion
of the profits made by the non-profit agency shall revert to
the school district.
    The deed of conveyance shall be executed by the president
and clerk or secretary of the school board, trustees of
schools, or other school officials having legal title to the
land, and the proceeds paid to the school treasurer for the
benefit of the district; provided, that the proceeds of any
such sale on the island of Kaskaskia shall be paid to the State
Treasurer for the use of the district and shall be disbursed by
him in the same manner as income from the Kaskaskia Commons
permanent school fund. The school board shall use the proceeds
from the sale first to pay the principal and interest on any
outstanding bonds on the property being sold, and after all
such bonds have been retired, the remaining proceeds from the
sale next shall be used by the school board to meet any urgent
district needs as determined under Sections 2-3.12 and 17-2.11
and then for any other authorized purpose and for deposit into
any district fund. But whenever the school board of any school
district determines that any schoolhouse site with or without a
building thereon is of no further use to the district, and
agrees with the school board of any other school district
within the boundaries of which the site is situated, upon the
sale thereof to that district, and agrees upon the price to be
paid therefor, and the site is selected by the purchasing
district in the manner required by law, then after the payment
of the compensation the school board, township trustees, or
other school officials having legal title to the land of the
schools shall, by proper instrument in writing, convey the
legal title of the site to the school board of the purchasing
district, or to the trustees of schools for the use of the
purchasing district, in accordance with law. The provisions of
this Section shall not apply to any sale made pursuant to
Section 5-23 or Section 5-24 or Section 32-4.
(Source: P.A. 91-357, eff. 7-29-99; 92-365, eff. 8-15-01.)