(105 ILCS 5/34-21) (from Ch. 122, par. 34-21)
Sec. 34-21.
Rentals and leases - Sale of real estate - Engagement of
real estate broker - Indirect and participating ownership interest -
Conveyance, payment and disclosure.
(a) The board may:
(1) enter into leases as lessee of buildings, rooms |
| and grounds for the use of schools or for the purpose of school administration; or
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(2) enter into leases as lessor of property held by a
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| city in trust for the use and benefit of schools for a term of not longer than 99 years from the date of the granting of the lease, but it shall not make or renew any lease for a term longer than 10 years nor alter the provisions of any lease whose unexpired term may exceed 10 years without the vote of 2/3 of the full membership of the board. The board may, in the case of such a lease, receive consideration in whole or in part in the form of an ownership interest in the entity leasing the property from the board, or in its assignee, or a participating interest in the revenues, profits or gains from the development, use, sublease or assignment of such property or interest therein; provided, however, that the board shall not make any further contribution to the capital of such entity. Furthermore, there shall be no diminution thereafter in the value of the board's interest in the entity or participating interest as a result of any subsequent capital contributions by any entity or other capital changes.
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(b) The board may sell real estate, or interest therein, held by a city
in trust for the use and benefit of the schools subject to the provisions
of this Section and approval by the board ordered by a vote of not less
than 2/3 of its full membership, if the board determines (i) that such real
estate has become unnecessary, unsuitable or inconvenient for the use of
schools or for the purpose of school administration, (ii) that
such real estate has become inappropriate or
unprofitable for the purpose of deriving revenue to support the board's
authorized purposes, or (iii) that, in the reasonable judgment of the
board, a sale would constitute the best available use or disposition of
such real estate for the purpose of deriving revenue to support the board's
authorized purposes.
(1) Any sale of such real estate having a fair market
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| value of $25,000 or more shall be made in accordance with the following procedures:
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(A) Notice of intended sale shall be published
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| once each week for 3 consecutive weeks in a daily or weekly newspaper published in the city.
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(B) The first such notice shall be published not
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| less than 30 days before the day provided for the opening of bids with respect to the intended sale.
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(C) The notice shall contain pertinent
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| information on the real estate available for sale, including the location of the real estate, a description of the property, the purpose for which it is used, any other terms for the sale of the real estate as determined by the board, and the dates on which bids will be opened, and on which bids will be considered, and the notice shall advertise for bids for such real estate. The notice may contain a minimum sale price.
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(D) The board may:
(i) accept the highest responsible bid
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| determined to be in the best interest of the board; or
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(ii) reject any and all bids; or
(iii) if there is more than one responsible
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| bid, negotiate separately with the 2 highest and best among such responsible bids and, upon tentative agreement with one or both bidders, one or both of such bids may be submitted to the board for acceptance of one or rejection of both. Such negotiations may not result in a diminution of the terms of the sale of the real estate and must result in an agreement which is, in the reasonable judgment of the board, equal to or higher in value than the highest responsible bid.
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The board may receive consideration for the sale of
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| such real estate, in whole or in part, in the form of an ownership interest in the entity acquiring title to the property by such sale, or in its assignee, or a participating interest in the revenues, profits or gains from the development, use, sale, lease or assignment of such property or interest therein; provided, however, that the board shall not make any further contribution to the capital of such entity. The present value of the ownership or participating interest to be received by the board shall, in the reasonable judgement of the board, be at least as great as the value of the highest responsible cash bid for such property or the agreed cash price and terms of sale negotiated pursuant to this subsection, if any, whichever is higher. Furthermore, there shall be no diminution thereafter in the value of the board's interest in the entity or its participating interest in the property as a result of any subsequent capital contributions by any entity or other capital changes.
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(2) Any sale of such real estate having a fair market
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| value of less than $25,000 may be negotiated and shall not require notice or competitive bids.
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(3) Any sale of such real estate having a fair market
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| value of more than $25,000 which has been continuously leased by the same entity and used as a school attendance center for at least 10 years may be negotiated and shall not require notice or competitive bids.
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(c) The board may engage the services of a licensed real estate broker
at a fair and reasonable commission in any case involving the sale or lease
of real estate when by resolution the board determines such services to
be in the best interest of the board; provided, however, that the commission
to be paid may not exceed in the case of sale 7% of the sale price, and in
the case of lease 7% of the first year's rent and 2% of the base rent of
each lease year thereafter not to exceed 4 years. The above stated maximum
ceilings on commissions may be raised by not less than a 3/4 vote of the
board's full membership. Payment of the commission shall be contingent
upon conveyance in accordance with the provisions of this Section and within
a reasonable period of time thereafter as determined by the board at the
time of the engagement of the real estate broker.
(d) (1) Conveyance of real estate held in trust by the city for the use
and benefit of schools shall be by action of the city council in its capacity
as trustee upon notice by the board pursuant to resolution that a sale of
real estate, or interest therein, has been made in accordance with the
provisions of this Section.
(2) Payment in consideration of a transfer of real estate, or interest
therein, may be accepted by the board in cash, a combination of cash and
securities or in another form described in subsections (a) or
(b) of this Section. In any case where an instrument is accepted as part
payment, the debt shall be adequately secured by mortgage, trust deed, or if by
contract by retention of title, on the property transferred and any such
security interest shall not be released until the debt is fully paid. Payments
made after the date of sale shall include interest on the outstanding balance
computed from the date of sale to the date of payment at rates to be determined
by the board.
(3) The board may not consummate any transaction involving the transfer
of real estate, or interest therein, provided for in this Section in which
there may be an undisclosed principal. Any conveyance of title or other
interest in real estate in violation hereof shall be void and any consideration
received by the board prior to the discovery of such violation shall be
retained as liquidated damages.
(Source: P.A. 87-1168.)
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(105 ILCS 5/34-21.1) (from Ch. 122, par. 34-21.1)
Sec. 34-21.1. Additional powers. In addition to other powers and
authority now possessed by it, the board shall have power:
(1) To lease from any public building commission |
| created pursuant to the provisions of the Public Building Commission Act, approved July 5, 1955, as heretofore or hereafter amended or from any individuals, partnerships or corporations, any real or personal property for the purpose of securing space for its school purposes or office or other space for its administrative functions for a period of time not exceeding 40 years.
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(2) To pay for the use of this leased property in
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| accordance with the terms of the lease and with the provisions of the Public Building Commission Act, approved July 5, 1955, as heretofore or hereafter amended.
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(3) Such lease may be entered into without making a
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| previous appropriation for the expense thereby incurred; provided, however, that if the board undertakes to pay all or any part of the costs of operating and maintaining the property of a public building commission as authorized in subparagraph (4) of this Section, such expenses of operation and maintenance shall be included in the annual budget of such board annually during the term of such undertaking.
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(4) In addition, the board may undertake, either in
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| the lease with a public building commission or by separate agreement or contract with a public building commission, to pay all or any part of the costs of maintaining and operating the property of a public building commission for any period of time not exceeding 40 years.
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(5) To enter into agreements, including lease and
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| lease purchase agreements having a term not longer than 40 years from the date on which such agreements are entered into, with private sector individuals, partnerships, or corporations for the construction of school buildings, school administrative offices, site development, and school support facilities. The board shall maintain exclusive possession of all schools, school administrative offices, and school facilities which it is occupying or acquiring pursuant to any such lease or lease purchase agreement, and in addition shall have and exercise complete control over the education program conducted at such schools, offices and facilities. The board's contribution under any such agreement shall be limited to the use of the real estate and existing improvements on a rental basis which shall be exempt from any form of leasehold tax or assessment, but the interests of the board may be subordinated to the interests of a mortgage holder or holders acquired as security for additional improvements made on the property.
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(6) To make payments on a lease or lease purchase
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| agreement entered into pursuant to subparagraph (5) of this Section with an individual, partnership, or a corporation for school buildings, school administrative offices, and school support facilities constructed by such individual, partnership, or corporation.
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(7) To purchase the interests of an individual,
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| partnership, or corporation pursuant to any lease or lease purchase agreement entered into by the board pursuant to subparagraph (5) of this Section, and to assume or retire any outstanding debt or obligation relating to such lease or lease purchase agreement for any school building, school administrative office, or school support facility.
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(8) Subject to the provisions of subparagraph (9) of
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| this Section, to enter into agreements, including lease and lease purchase agreements, having a term not longer than 40 years from the date on which such agreements are entered into for the provision of school buildings and related property and facilities for an agricultural science school. The enrollment in such school shall be limited to 720 students, and no less than 50% of the total number of enrollment positions in each incoming class must be reserved for students who live within proximity to the school. "Proximity to the school" means all areas within the existing city limits of Chicago located south of 87th Street (8700 South) and west of Wood Street (1800 West). In addition to the other authorizations in this paragraph (8), a maximum of 80 additional students may be enrolled in the agricultural science school's significantly modified curriculum for diverse learners, commonly known as the special education cluster program. Under such agreements the board shall have exclusive possession of all such school buildings and related property and facilities which it is occupying or acquiring pursuant to any such agreements, and in addition shall have and exercise complete control over the educational program conducted at such school. Under such agreements the board also may lease to another party to such agreement real estate and existing improvements which are appropriate and available for use as part of the necessary school buildings and related property and facilities for an agricultural science school. Any interest created by such a lease shall be exempt from any form of leasehold tax or assessment, and the interests of the board as owner or lessor of property covered by such a lease may be subordinated to the interests of a mortgage holder or holders acquired as security for additional improvements made on the property. In addition, but subject to the provisions of subparagraph (9) of this Section, the board is authorized: (i) to pay for the use of school buildings and related property and facilities for an agricultural science school as provided for in an agreement entered into pursuant to this subparagraph (8) and to enter into any such agreement without making a previous appropriation for the expense thereby incurred; and (ii) to enter into agreements to purchase any ownership interests in any school buildings and related property and facilities subject to any agreement entered into by the board pursuant to this subparagraph (8) and to assume or retire any outstanding debt or obligation relating to such school buildings and related property and facilities.
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(9) Notwithstanding the provisions of subparagraph
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| (8) of this Section or any other law, the board shall not at any time on or after the effective date of this amendatory Act of 1991 enter into any new lease or lease purchase agreement, or amend or modify any existing lease, lease purchase or other agreement entered into pursuant to subparagraph (8), covering all or any part of the property or facilities, consisting of 78.85 acres more or less, heretofore purchased or otherwise acquired by the board for an agricultural science school; nor shall the board enter into any agreement on or after the effective date of this amendatory Act of 1991 to sell, lease, transfer or otherwise convey all or any part of the property so purchased or acquired, nor any of the school buildings or related facilities thereon, but the same shall be held, used, occupied and maintained by the board solely for the purpose of conducting and operating an agricultural science school. The board shall not, on or after the effective date of this amendatory Act of 1991, enter into any contracts or agreements for the construction, alteration or modification of any new or existing school buildings or related facilities or structural improvements on any part of the 78.85 acres purchased or otherwise acquired by the board for agricultural science school purposes, excepting only those contracts or agreements that are entered into by the board for the construction, alteration or modification of such school buildings, related facilities or structural improvements that on the effective date of this amendatory Act of 1991 are either located upon, under construction upon or scheduled under existing plans and specifications to be constructed upon a parcel of land, consisting of 17.45 acres more or less and measuring approximately 880 feet along its northerly and southerly boundaries and 864 feet along its easterly and westerly boundaries, located in the northeast part of the 78.85 acres. Nothing in this subparagraph (9) shall be deemed or construed to alter, modify, impair or otherwise affect the terms and provisions of, nor the rights and obligations of the parties under any agreement or contract made and entered into by the board prior to the effective date of this amendatory Act (i) for the acquisition, lease or lease purchase of, or for the construction, alteration or modification of any school buildings, related facilities or structural improvements upon all or any part of the 78.85 acres purchased or acquired by the board for agricultural science school purposes, or (ii) for the lease by the board of an irregularly shaped parcel, consisting of 23.19 acres more or less, of that 78.85 acres for park board purposes.
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(Source: P.A. 100-399, eff. 1-1-18 .)
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(105 ILCS 5/34-21.3) (from Ch. 122, par. 34-21.3)
Sec. 34-21.3. Contracts. The board shall by record vote let all
contracts (other than those excepted
by Section 10-20.21 of this Code) for supplies, materials,
or work and contracts with private carriers for transportation
of pupils involving an expenditure in excess of $35,000 or a lower amount as required by board policy by competitive
bidding as provided in Section 10-20.21 of this Code.
The board may delegate to the general superintendent of schools, by
resolution, the authority to approve contracts in amounts of $35,000 or
less.
For a period of one year from and after the expiration or other termination
of his or her term of office as a member of the board: (i) the former board
member shall not be eligible for employment nor be employed by the board, a
local school council, an attendance center, or any other
subdivision or agent of the board or the school district governed by the board,
and (ii) neither the board nor the chief purchasing officer shall let or
delegate
authority to let any contract for
services, employment, or other work to the former board member or to any
corporation,
partnership, association, sole proprietorship, or other entity other than
publicly traded companies from which the
former board member receives an annual income, dividends, or other compensation
in excess of $1,500. Any contract that is entered into by or under a
delegation of authority from the board or the chief purchasing officer shall
contain a
provision stating that
the contract is not legally binding on the board if entered into in violation
of the provisions of this paragraph.
In addition, the State Board of Education, in consultation with the board,
shall (i) review existing conflict of interest and disclosure laws or
regulations that are applicable to the executive officers and governing boards
of school districts organized under this Article and school districts
generally, (ii) determine what additional disclosure and conflict of interest
provisions would enhance the reputation and fiscal integrity of the board and
the procedure under which contracts for goods and services are let, and (iii)
develop appropriate reporting forms and procedures applicable to the executive
officers, governing board, and other officials of the school district.
(Source: P.A. 103-8, eff. 1-1-24 .)
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(105 ILCS 5/34-21.6) (from Ch. 122, par. 34-21.6)
Sec. 34-21.6. Waiver of fees and fines. (a) The board shall waive all fees and any fines for the loss of school property assessed by the district
on children whose parents are unable to afford them, including but not limited
to: (1) children living in households that meet the free |
| lunch or breakfast eligibility guidelines established by the federal government pursuant to Section 1758 of the federal Richard B. Russell National School Lunch Act (42 U.S.C. 1758; 7 CFR 245 et seq.) and students whose parents are veterans or active duty military personnel with income at or below 200% of the federal poverty level, subject to verification as set forth in subsection (b) of this Section; and
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(2) homeless children and youths as defined in
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| Section 11434a of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a).
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Notice of waiver availability shall be given to parents or guardians with every bill for fees or fines. The board shall develop written
policies and procedures implementing this Section in accordance with
regulations promulgated by the State Board of Education.
(b) If the board participates in a federally funded, school-based child nutrition program and uses a student's application for, eligibility for, or participation in the federally funded, school-based child nutrition program (42 U.S.C. 1758; 7 245 et seq.) as the basis for waiving fees assessed by the district, then the board must follow the verification requirements of the federally funded, school-based child nutrition program (42 U.S.C. 1758; 7 CFR 245.6a).
If the board establishes a process for the determination of eligibility for waiver of all fees assessed by the district that is completely independent of the criteria listed in subsection (b), the board may provide for waiver verification no more often than once every academic year. Information obtained during the independent waiver verification process indicating that the student does not meet free lunch or breakfast eligibility guidelines may be used to deny the waiver of the student's fees or fines for the loss of school property, provided that any information obtained through this independent process for determining or verifying eligibility for fee waivers shall not be used to determine or verify eligibility for any federally funded, school-based child nutrition program.
This subsection shall not preclude children from obtaining waivers at any point during the academic year.
(Source: P.A. 102-805, eff. 1-1-23; 102-1032, eff. 5-27-22; 103-154, eff. 6-30-23.)
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