36-1480. Disposal of property in redevelopment
project area
A. A municipality may sell, lease, exchange or otherwise transfer real property or
any interest in the property in a redevelopment project area to any redeveloper for
residential, recreational, commercial, industrial or other uses or for public use in
accordance with the redevelopment plan, subject to covenants, conditions and restrictions
as it deems to be in the public interest or to carry out the purposes of this article.
The sale, lease, exchange or other transfer, and any related agreement may be made only
after, or subject to, the approval of the redevelopment plan by the local governing
body. Real property shall be sold, leased or transferred at its fair value for uses in
accordance with the redevelopment plan even though the fair value may be less than the
cost of acquiring and preparing the property for redevelopment. In determining the fair
value of real property for uses in accordance with the redevelopment plan, a municipality
shall take into account and give consideration to the uses and purposes required by the
plan, the restrictions upon, and the covenants, conditions and obligations assumed by the
redeveloper of the property, the objectives of the redevelopment plan for the prevention
of the recurrence of slum or blighted areas, and other matters the municipality specifies
as being appropriate.
B. Sale, lease, exchange or other transfer of real property or any interest of the
property shall not be made until after public advertising for bids has been made for at
least thirty days in a newspaper of general circulation within the municipality and the
posting of notices in three or more public places within the municipality. If there is
no newspaper within the corporate limits of the municipality, the municipality shall post
in three or more public places within the municipality, notices for bidders for the
property proposed to be sold.
C. Prior to the consideration of any redevelopment contract proposal, the
municipality shall publish the notice at least once a week for two consecutive weeks in a
newspaper having a general circulation in the area of operation, invite proposals from
and make all pertinent information available to, private redevelopers or any persons
interested in carrying out the redevelopment of a slum or blighted area, or any part of a
slum or blighted area, which the local governing body has declared to be in need of
redevelopment. The notice shall identify the slum or blighted area, and shall state where
any further information available may be obtained. The municipality shall consider all
redevelopment proposals and the financial, technical and legal ability of the prospective
redevelopers to carry out their proposals and may negotiate with any redevelopers for
proposals for the purchase or lease of any real property in the redevelopment project
area. The municipality, with the approval of the local governing body, may accept
redevelopment contract proposals it deems to be in the public interest and in furtherance
of the purposes of this article and may execute the redevelopment contracts in accordance
with the provisions of subsection A and deliver deeds, leases and other instruments and
take all steps necessary to effectuate the redevelopment contracts. In its discretion,
the municipality may, without regard to the provisions of this subsection, dispose of
real property in a redevelopment project area to private redevelopers for redevelopment
under the reasonable competitive bidding procedures as it prescribes, subject to the
provisions of subsection A.
D. A municipality may temporarily operate and maintain real property in a
redevelopment project area pending the disposition of the property for redevelopment,
without regard to the provisions of subsections A, B and C, for uses and purposes deemed
desirable even though not in conformity with the redevelopment plan. If the real property
is not disposed of for redevelopment within one year, the municipality, immediately upon
expiration of the one year period, shall remove or demolish all buildings thereon.
|