Bill Text: IL HB5205 | 2021-2022 | 102nd General Assembly | Chaptered


Bill Title: Amends the Illinois Highway Code. Allows the Department of Transportation to sell land, dedications, easements, access rights, or any interest in the real estate that it holds, or other properties acquired but no longer needed for highway purposes for fair market value (rather than for less than the appraised value). Provides that the fair market value may be based on one or more appraisals. Provides that the Department shall justify a sale below the fair market value. Provides that the Department shall develop a policy to assign a monetary value of all considerations. Provides for the order of priority in which the Department shall offer the real property. Makes other changes.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Passed) 2022-05-27 - Public Act . . . . . . . . . 102-0974 [HB5205 Detail]

Download: Illinois-2021-HB5205-Chaptered.html



Public Act 102-0974
HB5205 EnrolledLRB102 25108 RAM 34370 b
AN ACT concerning property.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Highway Code is amended by
changing Section 4-508 as follows:
(605 ILCS 5/4-508) (from Ch. 121, par. 4-508)
Sec. 4-508. (a) Except as provided in paragraphs (c) and
(d) of this Section, and subject to the written approval of the
Governor and, if required by federal law or regulation, the
Federal Highway Administration, the Department may dispose of,
by public sale, at auction or by sealed bids, any land,
dedications, easements, access rights, or any interest in the
real estate that it holds, rights or other properties, real or
personal, acquired for but no longer needed for highway
purposes or remnants acquired under the provisions of Section
4-501. Such , provided that no such sale may be made at for
less than the fair market appraised value of such land,
rights, or property, as determined by the Department. The fair
market value of the land, rights, or property may be based on
one or more appraisals completed by a qualified appraiser
approved by the Department or a valuation waiver prepared by
the Department. A sale below the fair market value, as
established by this Section, shall be justified, in writing,
by Department staff, which shall include consideration of all
relevant information, including, but not limited to, findings
regarding the best interests of the Department, other public
benefits such as divestment of liabilities, or changed
circumstances. The Department shall develop a policy to assign
a monetary value of all such considerations in valuation
determinations. An appraisal may be paid for by any interested
party. The form of the conveyance or release shall be in a form
approved by the Department.
(b) Except as provided in paragraphs (c) and (d) of this
Section, and subject to the written approval of the Governor,
the Department may exchange any land, rights or property no
longer needed for highway purposes or remnants acquired under
the provisions of Section 4-501 of this Code for equivalent
interests in land, rights or property needed for highway
purposes. Where such interests are not of equivalent value
cash may be paid or received for the difference in value.
(c) If at the time any property previously determined by
the Department to be needed for highway purposes is declared
excess and no longer needed for the Department's such
purposes, and before making the property available for public
sale as provided in subsection (a), the Department shall offer
that real property as follows:
(1) To the person from whom such real property was
acquired that still owns and has continuously owned land
adjacent to or abutting such real property since the
acquisition by the Department, the Department before
making any disposition of that property shall first offer
the property, in writing, for the fair market that
property to the person from whom such property was
acquired at the current appraised value of the property.
If the Department's offer to such a person is accepted, in
writing, within 60 days of the date of the written offer,
the Department, subject to the written approval of the
Governor, is authorized to dispose of such property to
that person the person from whom such property was
acquired upon payment of the appraised value. If the offer
is not accepted, in writing, within 60 days of the date of
the written offer, all rights under this paragraph shall
terminate.
(2) If the option in paragraph (1) does not exist or an
offer is made and not accepted, or a sale otherwise is not
consummated, the Department shall offer, in writing, at
the value determined by the Department, the real property
declared excess to the local municipality in which the
property is situated and located, or, if the property is
situated and located in an unincorporated area, to the
county and township, if applicable, in which the property
is situated and located. If a letter of intent to accept
the offer is received by the Department, in writing,
within 15 days of the date of the offer, the local
governmental entity shall have 45 days from the date on
the offer to accept the offer formally by resolution of
its governing body. If the offer is formally accepted
within 45 days of the date of the written offer, the
Department, subject to the written approval of the
Governor, is authorized to convey the property to the
governing body upon payment of the value stated in the
offer and may include a reversion for failure to continue
public ownership and use if conveyed for less than fair
market value. If a timely letter of intent to accept and a
formal acceptance is received from a county and a
township, the county shall be given priority. If a letter
of intent is not received within 15 days of the offer, all
rights under this paragraph shall terminate. If the letter
of intent is received within the 15 days, but the formal
acceptance is not received within 45 days of the date of
the written offer, all rights under this paragraph shall
terminate. If the unit of local government does not tender
the funds in the full amount of the accepted offer within
90 days of the date of the offer, all rights under this
paragraph shall terminate. If a county fails to tender the
funds in the full amount of the written accepted offer and
a township tenders the full amount of a timely accepted
offer within 15 days of the county's failure to timely
tender, the Department shall sell the land, rights, or
property to the township. The Department shall have the
right to revoke, in writing, any offer made under this
paragraph at any time before the funds in the full amount
of the offer are tendered to the Department.
(3) If the option in paragraph (1) or (2) does not
exist or a sale is not otherwise consummated, the
Department shall offer, in writing, at fair market value,
the real property declared excess to an adjacent or
abutting property owner if the property owner is the only
reasonable party as determined by the Department. If the
Department's offer is accepted by the property owner, in
writing, within 60 days of the date of the written offer,
the Department, subject to the written approval of the
Governor, is authorized to convey the property to the
property owner upon payment of the fair market value. If
the offer is not accepted, in writing, within 60 days of
the date of the written offer, all rights under this
paragraph shall terminate.
(d) If the Department enters into or currently has a
written contract with another highway authority for the
transfer of jurisdiction of any highway or portion thereof,
the Department is authorized to convey, subject to the written
approval of the Governor, without compensation, any land,
dedications, easements, access rights, or any interest in the
real estate that it holds to that specific highway or portion
thereof to the highway authority that is accepting or has
accepted jurisdiction. However, no part of the transferred
property can be vacated or disposed of without the approval of
the Department, which may require compensation for non-public
use.
(e) Except as provided in paragraph (c) of this Section,
if the Department obtains or obtained fee simple title to, or
any lesser interest, in any land, right, or other property and
must comply with subdivision (f)(3) of Section 6 of Title I of
the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460
l-8(f)(3)), the Historic Bridge Program established under
Title 23, United States Code, Section 144, subsection (o) (23
U.S.C. 144(o)), the National Historic Preservation Act (16
U.S.C. Sec. 470), the Interagency Wetland Policy Act of 1989,
or the Illinois State Agency Historic Resources Preservation
Act, the Department, subject to the written approval of the
Governor and concurrence of the grantee, is authorized to
convey the title or interest in the land, right, or other
property to another governmental agency, or a not-for-profit
organization that will use the property for purposes
consistent with the appropriate law.
The Department may retain rights to protect the public
interest.
(Source: P.A. 95-331, eff. 8-21-07.)
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