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92nd General Assembly

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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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