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.)