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 propertyor any interest therein acquired by it, and may enter into contracts withrespect thereto, in an urban renewal area for residential, recreational,commercial, industrial or other uses or for public use, or may retain suchproperty or interest for public use, in accordance with the urban renewalplan, subject to such covenants, conditions and restrictions, includingcovenants running with the land (and including the incorporation byreference therein of the provisions of an urban renewal plan or any partthereof), as it may deem to be in the public interest or necessary to carryout the purposes of this act: Provided, That such sale, lease, othertransfer, or retention, and any agreement relating thereto, may be madeonly after the approval of the urban renewal plan by the local governingbody. The purchasers or lessees and their successors and assigns shall beobligated to devote such real property only to the uses specified in theurban renewal plan, and may be obligated to comply with such otherrequirements as the municipality may determine to be in the publicinterest, including the obligation to begin within a reasonable time anyimprovements on such real property required by the urban renewal plan. Suchreal property or interest shall be sold, leased, otherwise transferred, orretained at not less than its fair value for uses in accordance with theurban renewal plan. In determining the fair value of real property for usesin accordance with the urban renewal plan, a municipality shall take intoaccount and give consideration to the uses provided in such plan; therestrictions upon, and covenants, conditions and obligations assumed by thepurchaser or lessee or by the municipality retaining the property; and theobjectives of such plan for the prevention of the recurrence of slum orblighted areas. The municipality in any instrument of conveyance to aprivate purchaser or lessee may provide that such purchaser or lessee shallbe without power to sell, lease or otherwise transfer the real propertywithout the prior written consent of the municipality until he hascompleted the construction of any and all improvements which he hasobligated himself to construct thereon. Real property acquired by amunicipality which, in accordance with the provisions of the urban renewalplan, is to be transferred, shall be transferred as rapidly as feasible inthe public interest consistent with the carrying out of the provisions ofthe urban renewal plan. The inclusion in any such contract or conveyance toa purchaser or lessee of any such covenants, restrictions or conditions(including the incorporation by reference therein of the provisions of anurban renewal plan or any part thereof) shall not prevent the filing ofsuch contract or conveyance in the office of the register of deeds of thecounty in such manner as to afford actual or constructive notice thereof.

      (b)   A municipality may dispose of real property in an urban renewal areato private persons only under such reasonable competitive biddingprocedures as it shall prescribe or as hereinafter provided in thissubsection: Provided, however, Any person or persons who singly ortogether were the owners of any real property in an urban renewal area,which property was acquired by a municipality by condemnation, purchase orotherwise, shall have a preference to purchase such property subject to theprovisions of subsection (a) of this section but without compliance withthe provisions of this subsection (b), and the municipality shall acceptany proposal for such a purchase if it deems it to be in the publicinterest and in furtherance of the purposes of this act and if such bid isequal to or greater than other bids received. A municipality may, by publicnotice by publication once each week for two consecutive weeks in anewspaper having general circulation in the community, prior to theexecution of any contract to sell, lease or otherwise transfer realproperty and prior to the delivery of any instrument of conveyance withrespect thereto under the provisions of this section, invite proposals fromand make available all pertinent information to private redevelopers or anypersons interested in undertaking to redevelop or rehabilitate an urbanrenewal area, or any part thereof. Such notice shall identify the area, orportion thereof, and shall state that such further information as isavailable may be obtained at such office as shall be designated in saidnotice. The municipality shall consider all such redevelopment ofrehabilitation proposals and the financial and legal ability of the personsmaking such proposals to carry them out, and may negotiate with any personsfor proposals for the purchase, lease or other transfer of any realproperty acquired by the municipality in the urban renewal area. Themunicipality may accept such proposal as it deems to be in the publicinterest and in furtherance of the purposes of this act: Provided,That a notification of intention to accept such proposal shall be filedwith the governing body not less than thirty (30) days prior to any suchacceptance. Thereafter, the municipality may execute such contract inaccordance with the provisions of subsection (a) and deliver deeds, leasesand other instruments and take all steps necessary to effectuate suchcontract.

      (c)   A municipality may temporarily operate and maintain real propertyacquired in an urban renewal area pending the disposition of the propertyfor redevelopment, without regard to the provisions of subsection (a)above, for such uses and purposes as may be deemed desirable even thoughnot in conformity with the urban renewal plan.

      History:   L. 1955, ch. 86, § 9; L. 1968, ch. 230, §1; July 1.