[Adopted 2-5-2019 by Ord. No. 2019-01]
For the purpose of this section, the following definitions shall apply:
- DISPOSAL or DISPOSE
- The sale, lease, exchange or donation of real property.
- A tenancy in real property granting the right of possession for a specified term for consideration, and shall not include a permit, license, or franchise to use Village-owned or controlled real property or public right-of-way.
- REAL PROPERTY
- Any interest in real property owned by the Village within or outside the corporate limits of the Village.
Real property qualifying for the procedure established in this section shall be classified as follows:
Substandard undeveloped property. Parcels with no structures thereon which are not of minimum buildable size for the zone in which located, and parcels that do not meet the Village's existing development ordinances.
Standard undeveloped property. Parcels with no structures thereon which are of minimum or greater buildable size for the zone in which located.
Developed property. Parcels of any size with structures thereon.
Real property owned by the Village shall be disposed of as provided in this chapter unless another procedure is specified in the Municipal Code or approved by the Village Board.
Any property disposed of through a direct negotiation with a development invidual or entity shall be exempted from the provisions of this article.
Before disposing of any real property under this chapter, the Village shall find that the property is not needed for public use or that the public interest may be furthered by disposal of such real property.
In determining whether to dispose of real property, the Village in its discretion may consider whether to establish certain requirements as conditions of the transaction, such as requiring the property be developed to a certain standard by a specified date, that the property not be placed in tax-exempt status, and other conditions the Village may deem appropriate.
Whenever a particular parcel or parcels is proposed for sale by the Village, or purchase inquiry is made, and the property is classified as substandard undeveloped property, the matters shall be set on the regular Village Board agenda. Except as otherwise provided in this section, notice of the agenda item shall be given to all property owners within 250 feet of the parcel's boundary line and to any parties who have inquired about the purchase. If the Village has issued a request for bids seeking purchasers of the property and provided the request for bids to property owners within 250 feet of the parcel's boundary line and to those who have inquired about purchasing the property, notice need only be provided to those who have submitted a bid proposal. The Village Board shall determine whether it will offer the property for sale.
If the Village Board decides to sell the property, it will direct the Village Administrator or his or her designee to take further action to sell the property. The Village Board may authorize the Village Administrator or his or her designee to publicize as appropriate, determine the existence of interested prospective purchasers, and negotiate for the sale of the property. Nothing in this section shall preclude the Village Administrator or his or her designee from taking preliminary actions, including publicizing a possible sale, determining the existence of interested prospective purchasers, and issuing a request for bids prior to the Village Board's decision, so long as the Village does not enter into a binding agreement without Village Board authorization.
The Village Board shall have the final authority to approve or disapprove the final terms of the sale. The Village Board may preapprove terms and the agreement form at the meeting in which it determines to sell the property. If the Village Board does not preapprove terms and the agreement form at its initial meeting or if alternate terms or agreement form are proposed, the Village Board shall at a later regularly scheduled Council meeting consider approval of the terms and agreement form.
Whenever a particular parcel or parcels is proposed for sale by the Village or a purchase inquiry is made and the property is classified as standard undeveloped property or developed property, the matter shall be for a public hearing before the Village Board.
Notice of said hearing shall be published not less than once a week in a newspaper of general circulation in the Village for two successive weeks prior to the hearing, and shall describe the property for sale.
Prior to the sale of a parcel under this section, an appraisal of the property shall be conducted. At the discretion of the Village Board, such an appraisal may be ordered prior to or after the hearing. The appraisal may be made available to the public at the hearing at the discretion of the Village Board.
Public testimony shall be solicited at the hearing to determine if a sale of any parcel is in the public interest, and the property is not needed for public use.
After the hearing, the Village Board shall determine whether it will offer the property for sale and what the minimum acceptable terms shall be.
If an offer to sell is authorized by the Village Board, the Village Board shall decide whether to sell the property to the highest bidder at a public sale, by sealed bid, or directly to the purchase inquirer on terms established by the Village Board. A notice advertising the public sale or solicited sealed bids shall be published at least once in a newspaper of general circulation in the Village, and said notice shall be published at least two weeks prior to the sale or bid deadline date. The notice shall describe the property to be sold, the minimum acceptable terms of sale, and, if applicable, the person designated to receive bids, the last date bids will be received, and the date, time and place that bids will be opened.
If one or more bids are received at or above the minimum acceptable terms, the highest bid shall be accepted and the Village Administrator or designee shall complete the sale.
If no acceptable bids are received on a particular parcel, the following options shall apply:
The Village Board may alter or keep the same minimum terms as established under Subsection E of this section and direct staff to hold another sale, or
After the expiration of the period set out in Subsection H above, the property shall be removed from the market. Any decision to sell a piece of property once it has been removed from the market shall require the entire procedure set forth in this section to be repeated. The Village Board may, however, decide whether or not an additional appraisal is necessary.
When real property is determined by the Village Administrator to be suitable for tenant occupancy and that occupancy is consistent with the public purpose for which it was acquired or not be needed for the public purpose for which it was acquired for up to three years, the Village Board may lease any or all part of it to another for a term not to exceed three years. The Village Board may require additional lease terms and conditions consistent with the public health, safety and welfare.
When real property is determined by the Village Administrator to be suitable for agricultural usage, the Village Board may lease any or all part of it to another for a term not to exceed three years. The Village Board may require additional lease terms and conditions consistent with the public health, safety and welfare.
No employee of the Village of Hobart may enter into a purchase or rental agreement under this article.
No member of the Village Board, whether individually or as a member of any entity in which said member has a financial involvement, may enter into a purchase or rental agreement with the Village Board, unless the all of the following provisions are satisfied: