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| [ Introduced ] | [ Engrossed ] | [ House Amendment 001 ] |
92_SB0487enr SB487 Enrolled LRB9206266NTsb 1 AN ACT concerning schools. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The School Code is amended by changing 5 Sections 5-22 and 32-4 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 8 estate. When in the opinion of the school board, a school 9 site, or portion thereof, building, or site with building 10 thereon, or any other real estate of the district, has become 11 unnecessary or unsuitable or inconvenient for a school, or 12 unnecessary for the uses of the district, the school board, 13 by a resolution adopted by at least two-thirds of the board 14 members, may sell or direct that the property be sold in the 15 manner provided in the Local Government Property Transfer 16 Act, or in the manner herein provided. Unless legal title to 17 the land is held by the school board, the school board shall 18 forthwith notify the trustees of schools or other school 19 officials having legal title to such land of the terms upon 20 which they desire the property to be sold. If the property is 21 to be sold to another unit of local government or school 22 district, the school board, trustees of schools, or other 23 school officials having legal title to the land shall proceed 24 in the manner provided in the Local Government Property 25 Transfer Act. In all other cases, except if the property is 26 to be sold to a tenant that has leased the property for 10 or 27 more years and that tenant is a non-profit agency, the school 28 board, trustees of schools, or other school officials having 29 legal title to the land shall, within 60 days after adoption 30 of the resolution (if the school board holds legal title to 31 the land), or within 60 days after the trustees of school or SB487 Enrolled -2- LRB9206266NTsb 1 other school officials having legal title receive the notice 2 (if the school board does not hold legal title to the land), 3 sell the property at public sale, by auction or sealed bids, 4 after first giving notice of the time, place, and terms 5 thereof by notice published once each week for 3 successive 6 weeks prior to the date of the sale if sale is by auction, or 7 prior to the final date of acceptance of bids if sale is by 8 sealed bids, in a newspaper published in the district or, if 9 no such newspaper is published in the district, then in a 10 newspaper published in the county and having a general 11 circulation in the district; however, if territory containing 12 a school site, building, or site with building thereon, is 13 detached from the school district of which it is a part after 14 proceedings have been commenced under this Section for the 15 sale of that school site, building, or site with building 16 thereon, but before the sale is held, then the school board, 17 trustees of schools, or other school officials having legal 18 title shall not advertise or sell that school site, building, 19 or site with building thereon, pursuant to those proceedings. 20 The notices may be in the following form: 21 NOTICE OF SALE 22 Notice is hereby given that on (insert date), the (here 23 insert title of the school board, trustees of school, or 24 other school officials holding legal title) of (county) 25 (Township No. ...., Range No. .... P.M. ....) will sell at 26 public sale (use applicable alternative) (at ......... (state 27 location of sale which shall be within the district), at .... 28 ..M.,) (by taking sealed bids which shall be accepted until 29 .... ..M., on (insert date), at (here insert location where 30 bids will be accepted which shall be within the district) 31 which bids will be opened at .... ..M. on (insert date) at 32 (here insert location where bids will be opened which shall 33 be within the district)) the following described property: 34 (here describe the property), which sale will be made on the SB487 Enrolled -3- LRB9206266NTsb 1 following terms to-wit: (here insert terms of sale) 2 .... 3 .... 4 .... 5 (Here insert title of school 6 officials holding legal title) 7 For purposes of determining "terms of sale" under this 8 Section, the General Assembly declares by this clarifying and 9 amendatory Act of 1983 that "terms of sale" are not limited 10 to sales for cash only but include contracts for deed, 11 mortgages, and such other seller financed terms as may be 12 specified by the school board. 13 If a school board specifies a reasonable minimum selling 14 price and that price is not met or if no bids are received, 15 the school board may adopt a resolution determining or 16 directing that the services of a licensed real estate broker 17 be engaged to sell the property for a commission not to 18 exceed 7%, contingent on the sale of the property within 120 19 days. If legal title to the property is not held by the 20 school board, the trustees of schools or other school 21 officials having legal title shall, upon receipt of the 22 resolution, engage the services of a licensed real estate 23 broker as directed in the resolution. The board may accept a 24 written offer equal to or greater than the established 25 minimum selling price for the described property. The 26 services of a licensed real estate broker may be utilized to 27 seek a buyer. If the board lowers the minimum selling price 28 on the described property, the public sale procedures set 29 forth in this Section must be followed. The board may raise 30 the minimum selling price without repeating the public sale 31 procedures. 32 In the case of a sale of property to a tenant that has 33 leased the property for 10 or more years and that is a 34 non-profit agency, an appraisal is required prior to the SB487 Enrolled -4- LRB9206266NTsb 1 sale. If the non-profit agency purchases the property for 2 less than the appraised value and subsequently sells the 3 property, the agency may retain only a percentage of the 4 profits that is proportional to the percentage of the 5 appraisal, plus any improvements made by the agency while the 6 agency was the owner, that the agency paid in the initial 7 sale. The remaining portion of the profits made by the 8 non-profit agency shall revert to the school district. 9 The deed of conveyance shall be executed by the president 10 and clerk or secretary of the school board, trustees of 11 schools, or other school officials having legal title to the 12 land, and the proceeds paid to the school treasurer for the 13 benefit of the district; provided, that the proceeds of any 14 such sale on the island of Kaskaskia shall be paid to the 15 State Treasurer for the use of the district and shall be 16 disbursed by him in the same manner as income from the 17 Kaskaskia Commons permanent school fund. The school board 18 shall use the proceeds from the sale first to pay the 19 principal and interest on any outstanding bonds on the 20 property being sold, and after all such bonds have been 21 retired, the remaining proceeds from the sale next shall be 22 used by the school board to meet any urgent district needs as 23 determined under Sections 2-3.12 and 17-2.11 and then for any 24 other authorized purpose and for deposit into any district 25 fund. But whenever the school board of any school district 26 determines that any schoolhouse site with or without a 27 building thereon is of no further use to the district, and 28 agrees with the school board of any other school district 29 within the boundaries of which the site is situated, upon the 30 sale thereof to that district, and agrees upon the price to 31 be paid therefor, and the site is selected by the purchasing 32 district in the manner required by law, then after the 33 payment of the compensation the school board, township 34 trustees, or other school officials having legal title to the SB487 Enrolled -5- LRB9206266NTsb 1 land of the schools shall, by proper instrument in writing, 2 convey the legal title of the site to the school board of the 3 purchasing district, or to the trustees of schools for the 4 use of the purchasing district, in accordance with law. The 5 provisions of this Section shall not apply to any sale made 6 pursuant to Section 5-23 or Section 5-24 or Section 32-4. 7 (Source: P.A. 91-357, eff. 7-29-99.) 8 (105 ILCS 5/32-4) (from Ch. 122, par. 32-4) 9 Sec. 32-4. Powers of board. 10 The board of inspectors referred to in Section 32-2.11 11 may, in addition to the powers conferred upon it by special 12 law and the applicable provisions of this Act, employ 13 teachers, janitors and such other employees as it deems 14 necessary and fix the amount of their compensation; buy or 15 lease sites for schoolhouses, with the necessary grounds; 16 build, erect, lease or purchase buildings suitable for school 17 purposes; repair and improve buildings and furnish them with 18 the necessary supplies, fixtures, apparatus, libraries and 19 fuel; and may lease school property, when not needed for 20 school purposes, for a term of not longer than 99 years from 21 the date of the granting of the lease. All such leases shall 22 provide for revaluation privileges at least once in every 20 23 years. 24 In case the school board and the lessee cannot agree on 25 revaluation and a new rent, the same shall be determined in 26 the following manner: 3 arbitrators shall be appointed, 1 by 27 the school board, 1 by the lessee, and 1 by the arbitrators 28 appointed by the school board and the lessee. The 3 29 arbitrators, or a majority of them, shall fix and determine 30 the revaluation and the new rent and their decision or a 31 decision of a majority of them shall be final. 32 When, in the opinion of the school board, a school site, 33 building, or site with building thereon, or any other real SB487 Enrolled -6- LRB9206266NTsb 1 estate of the district, has become unnecessary or unsuitable 2 or inconvenient for a school, or unnecessary for the uses of 3 the district and the school board decides to sell the same, 4 unless the property is to be sold to a tenant that has leased 5 the property for 10 or more years and that tenant is a 6 non-profit agency, the school boarditshall give notice of 7 the sale stating the time and place the sale is to be held, 8 the terms of the sale and a description of the property to be 9 sold. The notice shall be published in a newspaper of general 10 circulation published in the district, or if none, in the 11 county in which the district is situated, such notice to be 12 published once each week for 3 successive weeks, and the 13 first publication to be at least 30 days prior to the day the 14 sale is to be held. Unless the school board holds legal title 15 to the property, the school board shall notify the trustees 16 of schools of the terms upon which the school board desires 17 the property to be conveyed. The school board or trustees of 18 schools holding legal title to the property shall convey the 19 property in accordance with the terms fixed by the school 20 board. The deed of conveyance shall be executed by the 21 president and secretary or clerk of the school board or 22 trustees of the school holding legal title to the property 23 and the proceeds if any shall be paid to the school treasurer 24 for the benefit of the district. 25 In the case of a sale of property to a tenant that has 26 leased the property for 10 or more years and that is a 27 non-profit agency, an appraisal is required prior to the 28 sale. If the non-profit agency purchases the property for 29 less than the appraised value and subsequently sells the 30 property, the agency may retain only a percentage of the 31 profits that is proportional to the percentage of the 32 appraisal, plus any improvements made by the agency while the 33 agency was the owner, that the agency paid in the initial 34 sale. The remaining portion of the profits made by the SB487 Enrolled -7- LRB9206266NTsb 1 non-profit agency shall revert to the school district. 2 (Source: P.A. 88-155.) 3 Section 99. Effective date. This Act takes effect upon 4 becoming law.