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Public Act 92-0365
SB487 Enrolled LRB9206266NTsb
AN ACT concerning schools.
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
Sections 5-22 and 32-4 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. 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.)
(105 ILCS 5/32-4) (from Ch. 122, par. 32-4)
Sec. 32-4. Powers of board.
The board of inspectors referred to in Section 32-2.11
may, in addition to the powers conferred upon it by special
law and the applicable provisions of this Act, employ
teachers, janitors and such other employees as it deems
necessary and fix the amount of their compensation; buy or
lease sites for schoolhouses, with the necessary grounds;
build, erect, lease or purchase buildings suitable for school
purposes; repair and improve buildings and furnish them with
the necessary supplies, fixtures, apparatus, libraries and
fuel; and may lease school property, when not needed for
school purposes, for a term of not longer than 99 years from
the date of the granting of the lease. All such leases shall
provide for revaluation privileges at least once in every 20
years.
In case the school board and the lessee cannot agree on
revaluation and a new rent, the same shall be determined in
the following manner: 3 arbitrators shall be appointed, 1 by
the school board, 1 by the lessee, and 1 by the arbitrators
appointed by the school board and the lessee. The 3
arbitrators, or a majority of them, shall fix and determine
the revaluation and the new rent and their decision or a
decision of a majority of them shall be final.
When, in the opinion of the school board, a school site,
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 and the school board decides to sell the same,
unless 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 it shall give notice of
the sale stating the time and place the sale is to be held,
the terms of the sale and a description of the property to be
sold. The notice shall be published in a newspaper of general
circulation published in the district, or if none, in the
county in which the district is situated, such notice to be
published once each week for 3 successive weeks, and the
first publication to be at least 30 days prior to the day the
sale is to be held. Unless the school board holds legal title
to the property, the school board shall notify the trustees
of schools of the terms upon which the school board desires
the property to be conveyed. The school board or trustees of
schools holding legal title to the property shall convey the
property in accordance with the terms fixed by the school
board. The deed of conveyance shall be executed by the
president and secretary or clerk of the school board or
trustees of the school holding legal title to the property
and the proceeds if any shall be paid to the school treasurer
for the benefit of the district.
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.
(Source: P.A. 88-155.)
Section 99. Effective date. This Act takes effect upon
becoming law.
Passed in the General Assembly May 22, 2001.
Approved August 15, 2001.
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