17-4750. Sale, lease or transfer of property in urban renewal area; owner of property preference to purchase.
17-4750
17-4750. Sale, lease or transfer of property in urban renewal area;
owner of property preference to purchase.
(a) A municipality may sell, lease or otherwise transfer real property
or any interest therein acquired by it, and may enter into contracts with
respect thereto, in an urban renewal area for residential, recreational,
commercial, industrial or other uses or for public use, or may retain such
property or interest for public use, in accordance with the urban renewal
plan, subject to such covenants, conditions and restrictions, including
covenants running with the land (and including the incorporation by
reference therein of the provisions of an urban renewal plan or any part
thereof), as it may deem to be in the public interest or necessary to carry
out the purposes of this act: Provided, That such sale, lease, other
transfer, or retention, and any agreement relating thereto, may be made
only after the approval of the urban renewal plan by the local governing
body. The purchasers or lessees and their successors and assigns shall be
obligated to devote such real property only to the uses specified in the
urban renewal plan, and may be obligated to comply with such other
requirements as the municipality may determine to be in the public
interest, including the obligation to begin within a reasonable time any
improvements on such real property required by the urban renewal plan. Such
real property or interest shall be sold, leased, otherwise transferred, or
retained at not less than its fair value for uses in accordance with the
urban renewal plan. In determining the fair value of real property for uses
in accordance with the urban renewal plan, a municipality shall take into
account and give consideration to the uses provided in such plan; the
restrictions upon, and covenants, conditions and obligations assumed by the
purchaser or lessee or by the municipality retaining the property; and the
objectives of such plan for the prevention of the recurrence of slum or
blighted areas. The municipality in any instrument of conveyance to a
private purchaser or lessee may provide that such purchaser or lessee shall
be without power to sell, lease or otherwise transfer the real property
without the prior written consent of the municipality until he has
completed the construction of any and all improvements which he has
obligated himself to construct thereon. Real property acquired by a
municipality which, in accordance with the provisions of the urban renewal
plan, is to be transferred, shall be transferred as rapidly as feasible in
the public interest consistent with the carrying out of the provisions of
the urban renewal plan. The inclusion in any such contract or conveyance to
a purchaser or lessee of any such covenants, restrictions or conditions
(including the incorporation by reference therein of the provisions of an
urban renewal plan or any part thereof) shall not prevent the filing of
such contract or conveyance in the office of the register of deeds of the
county in such manner as to afford actual or constructive notice thereof.
(b) A municipality may dispose of real property in an urban renewal area
to private persons only under such reasonable competitive bidding
procedures as it shall prescribe or as hereinafter provided in this
subsection: Provided, however, Any person or persons who singly or
together were the owners of any real property in an urban renewal area,
which property was acquired by a municipality by condemnation, purchase or
otherwise, shall have a preference to purchase such property subject to the
provisions of subsection (a) of this section but without compliance with
the provisions of this subsection (b), and the municipality shall accept
any proposal for such a purchase if it deems it to be in the public
interest and in furtherance of the purposes of this act and if such bid is
equal to or greater than other bids received. A municipality may, by public
notice by publication once each week for two consecutive weeks in a
newspaper having general circulation in the community, prior to the
execution of any contract to sell, lease or otherwise transfer real
property and prior to the delivery of any instrument of conveyance with
respect thereto under the provisions of this section, invite proposals from
and make available all pertinent information to private redevelopers or any
persons interested in undertaking to redevelop or rehabilitate an urban
renewal area, or any part thereof. Such notice shall identify the area, or
portion thereof, and shall state that such further information as is
available may be obtained at such office as shall be designated in said
notice. The municipality shall consider all such redevelopment of
rehabilitation proposals and the financial and legal ability of the persons
making such proposals to carry them out, and may negotiate with any persons
for proposals for the purchase, lease or other transfer of any real
property acquired by the municipality in the urban renewal area. The
municipality may accept such proposal as it deems to be in the public
interest and in furtherance of the purposes of this act: Provided,
That a notification of intention to accept such proposal shall be filed
with the governing body not less than thirty (30) days prior to any such
acceptance. Thereafter, the municipality may execute such contract in
accordance with the provisions of subsection (a) and deliver deeds, leases
and other instruments and take all steps necessary to effectuate such
contract.
(c) A municipality may temporarily operate and maintain real property
acquired in an urban renewal area pending the disposition of the property
for redevelopment, without regard to the provisions of subsection (a)
above, for such uses and purposes as may be deemed desirable even though
not in conformity with the urban renewal plan.
History: L. 1955, ch. 86, § 9; L. 1968, ch. 230, §
1; July 1.