SB0990 EngrossedLRB103 05409 RJT 50428 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, 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 residential
17property constructed or renovated by students as part of a
18curricular program, may engage the services of a licensed real
19estate broker to sell the property for a commission not to
20exceed 7%, contingent on the public listing of the property on
21a multiple listing service for a minimum of 14 calendar days
22and the sale of 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
2schools or other school officials having legal title to such
3land of the terms upon which they desire the property to be
4sold. If the property is to be sold to another unit of local
5government or school district, the school board, trustees of
6schools, or other school officials having legal title to the
7land shall proceed in the manner provided in the Local
8Government Property Transfer Act. In all other cases, except
9if the property is to be sold to a tenant that has leased the
10property for 10 or more years and that tenant is a non-profit
11agency, the school board, trustees of schools, or other school
12officials having legal title to the land shall, within 60 days
13after adoption of the resolution (if the school board holds
14legal title to the land), or within 60 days after the trustees
15of school or other school officials having legal title receive
16the notice (if the school board does not hold legal title to
17the land), sell the property at public sale, by auction or
18sealed bids, after first giving notice of the time, place, and
19terms thereof by notice published once each week for 3
20successive weeks prior to the date of the sale if sale is by
21auction, or prior to the final date of acceptance of bids if
22sale is by sealed bids, in a newspaper published in the
23district or, if no such newspaper is published in the
24district, then in a newspaper published in the county and
25having a general circulation in the district; however, if
26territory containing a school site, building, or site with

 

 

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

 

 

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1
....
2
(Here insert title of school
3
officials holding legal title)

 
4    For purposes of determining "terms of sale" under this
5Section, the General Assembly declares by this clarifying and
6amendatory Act of 1983 that "terms of sale" are not limited to
7sales for cash only but include contracts for deed, mortgages,
8and such other seller financed terms as may be specified by the
9school board.
10    If a school board specifies a reasonable minimum selling
11price and that price is not met or if no bids are received, the
12school board may adopt a resolution determining or directing
13that the services of a licensed real estate broker be engaged
14to sell the property for a commission not to exceed 7%,
15contingent on the sale of the property within 120 days. If
16legal title to the property is not held by the school board,
17the trustees of schools or other school officials having legal
18title shall, upon receipt of the resolution, engage the
19services of a licensed real estate broker as directed in the
20resolution. The board may accept a written offer equal to or
21greater than the established minimum selling price for the
22described property. The services of a licensed real estate
23broker may be utilized to seek a buyer. If the board lowers the
24minimum selling price on the described property, the public
25sale procedures set forth in this Section must be followed.

 

 

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1The board may raise the minimum selling price without
2repeating the public sale procedures.
3    If a school board decides to sell property under this
4Section or direct the property to be sold in the manner
5provided in the Local Government Property Transfer Act or in
6the manner herein provided or engage a broker under this
7Section, the school board shall obtain a minimum of 3
8appraisals of the property at the property's current zoning.
9The appraisals shall be conducted by a appraiser certified by
10the Department of Financial and Professional Regulation.
11    If a school board decides to sell property under this
12Section or direct the property to be sold in the manner
13provided in the Local Government Property Transfer Act or in
14the manner herein provided or engage a broker under this
15Section, the school board shall offer the municipality,
16township, and park district in which the property is located
17the option to purchase the property being sold at the
18property's median appraised value from the required 3
19appraisals under this Section before the property is otherwise
20offered for sale. A municipality, township, or park district
21that purchases property under this Section may do so with
22other units of local government.
23    In the case of a sale of property to a tenant that has
24leased the property for 10 or more years and that is a
25non-profit agency, an appraisal is required prior to the sale.
26If the non-profit agency purchases the property for less than

 

 

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1the appraised value and subsequently sells the property, the
2agency may retain only a percentage of the profits that is
3proportional to the percentage of the appraisal, plus any
4improvements made by the agency while the agency was the
5owner, that the agency paid in the initial sale. The remaining
6portion of the profits made by the non-profit agency shall
7revert to the school district.
8    The deed of conveyance shall be executed by the president
9and clerk or secretary of the school board, trustees of
10schools, or other school officials having legal title to the
11land, and the proceeds paid to the school treasurer for the
12benefit of the district. The school board shall use the
13proceeds from the sale first to pay the principal and interest
14on any outstanding bonds on the property being sold, and after
15all such bonds have been retired, the remaining proceeds from
16the sale next shall be used by the school board to meet any
17urgent district needs as determined under Sections 2-3.12 and
1817-2.11 and then for any other authorized purpose and for
19deposit into any district fund. But whenever the school board
20of any school district determines that any schoolhouse site
21with or without a building thereon is of no further use to the
22district, and agrees with the school board of any other school
23district within the boundaries of which the site is situated,
24upon the sale thereof to that district, and agrees upon the
25price to be paid therefor, and the site is selected by the
26purchasing district in the manner required by law, then after

 

 

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1the payment of the compensation the school board, township
2trustees, or other school officials having legal title to the
3land of the schools shall, by proper instrument in writing,
4convey the legal title of the site to the school board of the
5purchasing district, or to the trustees of schools for the use
6of the purchasing district, in accordance with law. The
7provisions of this Section shall not apply to any sale made
8pursuant to Section 5-23 or Section 5-24 or Section 32-4.
9(Source: P.A. 99-794, eff. 1-1-17; 100-963, eff. 1-1-19.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.