Rep. Kelly M. Burke

Filed: 5/8/2023

 

 


 

 


 
10300SB0990ham001LRB103 05409 RJT 61524 a

1
AMENDMENT TO SENATE BILL 990

2    AMENDMENT NO. ______. Amend Senate Bill 990 by replacing
3everything after the enacting clause with the following:
 
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

 

 

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1property constructed or renovated by students as part of a
2curricular program, may engage the services of a licensed real
3estate broker to sell the property for a commission not to
4exceed 7%, contingent on the public listing of the property on
5a multiple listing service for a minimum of 14 calendar days
6and the sale of the property within 120 days.
7    Unless legal title to the land is held by the school board,
8the school board shall forthwith notify the trustees of
9schools or other school officials having legal title to such
10land of the terms upon which they desire the property to be
11sold. If the property is to be sold to another unit of local
12government or school district, the school board, trustees of
13schools, or other school officials having legal title to the
14land shall proceed in the manner provided in the Local
15Government Property Transfer Act. In all other cases, except
16if the property is to be sold to a tenant that has leased the
17property for 10 or more years and that tenant is a non-profit
18agency, the school board, trustees of schools, or other school
19officials having legal title to the land shall, within 60 days
20after adoption of the resolution (if the school board holds
21legal title to the land), or within 60 days after the trustees
22of school or other school officials having legal title receive
23the notice (if the school board does not hold legal title to
24the land), sell the property at public sale, by auction or
25sealed bids, after first giving notice of the time, place, and
26terms thereof by notice published once each week for 3

 

 

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

 

 

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1be opened at .... ..M. on (insert date) at (here insert
2location where bids will be opened which shall be within the
3district)) the following described property: (here describe
4the property), which sale will be made on the following terms
5to-wit: (here insert terms of sale)
6
....
7
....
8
....
9
(Here insert title of school
10
officials holding legal title)

 
11    For purposes of determining "terms of sale" under this
12Section, the General Assembly declares by this clarifying and
13amendatory Act of 1983 that "terms of sale" are not limited to
14sales for cash only but include contracts for deed, mortgages,
15and such other seller financed terms as may be specified by the
16school board.
17    If a school board specifies a reasonable minimum selling
18price and that price is not met or if no bids are received, the
19school board may adopt a resolution determining or directing
20that the services of a licensed real estate broker be engaged
21to sell the property for a commission not to exceed 7%,
22contingent on the sale of the property within 120 days. If
23legal title to the property is not held by the school board,
24the trustees of schools or other school officials having legal
25title shall, upon receipt of the resolution, engage the

 

 

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1services of a licensed real estate broker as directed in the
2resolution. The board may accept a written offer equal to or
3greater than the established minimum selling price for the
4described property. The services of a licensed real estate
5broker may be utilized to seek a buyer. If the board lowers the
6minimum selling price on the described property, the public
7sale procedures set forth in this Section must be followed.
8The board may raise the minimum selling price without
9repeating the public sale procedures.
10    If a school board decides to sell property that is over 5
11acres to a non-governmental entity under this Section or in a
12manner herein provided or engages a broker under this Section,
13the school board shall notify (i) the municipality in which
14the property is located if the property is located within a
15municipality or (ii) the township in which the property is
16located if the property is not located in a municipality of the
17intent to sell the property. Upon notification, the
18municipality or township shall have 60 days to pass a
19resolution expressing the municipality's or township's
20interest in entering into formal negotiations with the purpose
21of potentially purchasing the property from the school board.
22Once a resolution is passed by the municipality or township
23expressing interest in purchasing the property, the school
24board shall obtain 2 appraisals of the property at either the
25property's current zoning classification or at a zoning
26classification mutually agreed upon by the school board and

 

 

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1the municipality or township. The 2 appraisals shall be
2conducted by an appraiser certified by the Department of
3Financial and Professional Regulation. The school board shall
4provide the municipality or township with a copy of the 2
5appraisals and shall offer the municipality or township the
6option to purchase the property for the average appraised
7value of the 2 appraisals. The municipality or township shall
8have 60 days after receiving the 2 appraisals to accept the
9offer of the school board to purchase the property and to begin
10negotiations to close on the sale of the property. A
11municipality or township that purchases property under this
12Section may do so with other units of local government, and the
13property must be owned by a public entity and used for a
14governmental purpose for at least 10 years. If the
15municipality or township declines to purchase the property
16under this Section, the school board may then sell the
17property to a private entity.
18    Notwithstanding any other provision of this Section, no
19school board is prohibited from exercising its rights seeking
20to reclassify or rezone its property in a manner consistent
21with the proper municipal or county zoning authority.
22    In the case of a sale of property to a tenant that has
23leased the property for 10 or more years and that is a
24non-profit agency, an appraisal is required prior to the sale.
25If the non-profit agency purchases the property for less than
26the appraised value and subsequently sells the property, the

 

 

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1agency may retain only a percentage of the profits that is
2proportional to the percentage of the appraisal, plus any
3improvements made by the agency while the agency was the
4owner, that the agency paid in the initial sale. The remaining
5portion of the profits made by the non-profit agency shall
6revert to the school district.
7    The deed of conveyance shall be executed by the president
8and clerk or secretary of the school board, trustees of
9schools, or other school officials having legal title to the
10land, and the proceeds paid to the school treasurer for the
11benefit of the district. The school board shall use the
12proceeds from the sale first to pay the principal and interest
13on any outstanding bonds on the property being sold, and after
14all such bonds have been retired, the remaining proceeds from
15the sale next shall be used by the school board to meet any
16urgent district needs as determined under Sections 2-3.12 and
1717-2.11 and then for any other authorized purpose and for
18deposit into any district fund. But whenever the school board
19of any school district determines that any schoolhouse site
20with or without a building thereon is of no further use to the
21district, and agrees with the school board of any other school
22district within the boundaries of which the site is situated,
23upon the sale thereof to that district, and agrees upon the
24price to be paid therefor, and the site is selected by the
25purchasing district in the manner required by law, then after
26the payment of the compensation the school board, township

 

 

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