Bill Text: IL SB0990 | 2023-2024 | 103rd General Assembly | Engrossed

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Bill Title: Amends the Trustees of Schools Article of the School Code. In the provisions concerning the sale of school sites, buildings, or other real estate, provides that if a school board decides to sell property under these provisions or direct the property to be sold in the manner provided in the Local Government Property Transfer Act or in the manner provided under the provisions or engage a broker, the school board shall obtain a minimum of 3 appraisals of the property at the property's current zoning. Provides that the appraisals shall be conducted by an appraiser certified by the Department of Financial and Professional Regulation. Provides that if a school board decides to sell property under the provisions or direct the property to be sold in the manner provided in the Local Government Property Transfer Act or in the manner provided under the provisions or engage a broker, the school board shall offer the municipality, township, and park district in which the property is located the option to purchase the property being sold at the property's median appraised value from the required 3 appraisals before the property is otherwise offered for sale. Provides that a municipality, township, or park district that purchases property may do so with other units of local government. Effective immediately.

Spectrum: Slight Partisan Bill (Democrat 5-2)

Status: (Engrossed) 2023-05-31 - House Floor Amendment No. 1 Rule 19(c) / Re-referred to Rules Committee [SB0990 Detail]

Download: Illinois-2023-SB0990-Engrossed.html

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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, 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 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

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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)
....
....

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....
(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.

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The board may raise the minimum selling price without
repeating the public sale procedures.
If a school board decides to sell property under this
Section or direct the property to be sold in the manner
provided in the Local Government Property Transfer Act or in
the manner herein provided or engage a broker under this
Section, the school board shall obtain a minimum of 3
appraisals of the property at the property's current zoning.
The appraisals shall be conducted by a appraiser certified by
the Department of Financial and Professional Regulation.
If a school board decides to sell property under this
Section or direct the property to be sold in the manner
provided in the Local Government Property Transfer Act or in
the manner herein provided or engage a broker under this
Section, the school board shall offer the municipality,
township, and park district in which the property is located
the option to purchase the property being sold at the
property's median appraised value from the required 3
appraisals under this Section before the property is otherwise
offered for sale. A municipality, township, or park district
that purchases property under this Section may do so with
other units of local government.
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

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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. 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

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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. 99-794, eff. 1-1-17; 100-963, eff. 1-1-19.)