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Public Act 099-0794
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| SB2823 Enrolled | LRB099 18928 NHT 43316 b |
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AN ACT concerning education.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The School Code is amended by changing Section |
5-22 as follows:
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(105 ILCS 5/5-22) (from Ch. 122, par. 5-22)
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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, |
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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
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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 |
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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:
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NOTICE OF SALE
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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
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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)
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....
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....
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....
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(Here insert title of school
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officials holding legal title)
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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.
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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%,
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contingent on the sale of the property within 120 days. If |
legal title to the
property is not held by the school board,
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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
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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 |
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public sale procedures.
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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
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proportional to the percentage of the appraisal,
plus any |
improvements made by the agency while the agency was the
owner,
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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.
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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
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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
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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 |
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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
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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
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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.
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(Source: P.A. 91-357, eff. 7-29-99; 92-365, eff. 8-15-01.)
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