Bill Text: MS SB2312 | 2023 | Regular Session | Enrolled
Bill Title: County-owned real estate; establish competitive bidding process for lease or sale.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2023-03-14 - Approved by Governor [SB2312 Detail]
Download: Mississippi-2023-SB2312-Enrolled.html
MISSISSIPPI LEGISLATURE
2023 Regular Session
To: County Affairs; Accountability, Efficiency, Transparency
By: Senator(s) Johnson
Senate Bill 2312
(As Sent to Governor)
AN ACT TO AMEND SECTION 19-7-3, MISSISSIPPI CODE OF 1972, TO ESTABLISH A COMPETITIVE BIDDING PROCESS WITH RIGHT OF FIRST REFUSAL FOR THE LEASE OR SALE OF COUNTY-OWNED PROPERTY; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 19-7-3, Mississippi Code of 1972, is amended as follows:
19-7-3. (1) In case any of the real estate belonging to the county shall cease to be used for county purposes, the board of supervisors may sell, convey or lease the same on such terms as the board may elect and may, in addition, exchange the same for real estate belonging to any other political subdivision located within the county. In case of a sale on a credit, the county shall have a lien on the same for the purchase money, as against all persons, until paid and may enforce the lien as in such cases provided by law. The deed of conveyance in such cases shall be executed in the name of the county by the president of the board of supervisors, pursuant to an order of the board entered on its minutes.
(2) (a) Before any lease,
deed or conveyance is executed, the board shall publish at least once each week
for three (3) consecutive weeks, in a public newspaper of the county in which
the land is located, or if no newspaper be published in said county then in a
newspaper having general circulation therein, the intention to lease or sell,
as the case may be, the county-owned land and to accept sealed competitive bids
for the leasing or sale. The board shall thereafter accept bids for the lease
or sale * * *.
The board, at its option, may reject all bids or accept the highest and best
bid received in response to the advertisement, or the board may hold an auction
among those who submitted bids in response to the advertisement. If the board elects
to hold an auction, no bidder shall be granted any preference. The opening bid
at the auction shall be the highest bid received in response to the advertisement.
(b) The board of supervisors of any county may contract for the professional services of a Mississippi-licensed real estate broker to assist in the marketing and sale or lease of the property for a reasonable commission, consistent with or lower than the market rate, for services rendered to be paid from the sale or lease proceeds.
(3) (a) During the final year of an existing lease of any real estate belonging to the county, the board shall notify the holder of the existing lease if the board intends to re-lease the property after advertising for bids or holding an auction in the same manner as provided in subsection (2) of this section. If the board receives an acceptable bid in response to the advertisement and elects not to hold an auction among those submitting bids, then the holder of the existing lease may submit a second bid in an amount not less than five percent (5%) of the highest acceptable bid received if the holder of the existing lease: (i) submitted a bid in response to the advertisement; and (ii) constructed or made improvements on the leasehold premises after receiving approval of the board during the term of the existing lease.
(b) If the holder of the existing lease elects to submit a second bid, the board shall hold an auction among those who submitted bids in response to the advertisement. The opening bid at the auction shall be the second bid of the holder of the existing lease. However, no leaseholder may submit a second bid if: (i) any rent, taxes or other payment required under the lease are past due; or (ii) the holder of the lease is otherwise in default of any term or provision of the lease and such default has not been corrected or cured to the satisfaction of the board after more than thirty (30) days' notice to the leaseholder of the default.
(c) If an auction is held, the auction may be conducted at the meeting at which bids are opened or at a subsequent regular or special meeting. The board shall announce the time and place of the auction at the meeting at which bids are opened, and no further notice of the auction is required.
( * * *4) Whenever the board of supervisors
shall find and determine, by resolution duly and lawfully adopted and spread
upon its minutes (a) that any county-owned property is no longer needed for
county or related purposes and is not to be used in the operation of the
county, (b) that the sale of the property in the manner otherwise provided by
law is not necessary or desirable for the financial welfare of the county, and (c)
that the use of the county property for the purpose for which it is to be sold,
conveyed or leased will promote and foster the development and improvement of
the community in which it is located and the civic, social, educational, cultural,
moral, economic or industrial welfare thereof, the board of supervisors of such
county shall be authorized and empowered, in its discretion, to sell, convey,
lease, or otherwise dispose of same for any of the purposes set forth herein.
( * * *5) (a) In addition to such authority
as is otherwise granted under this section, the board of supervisors, in its
discretion, may sell, lease, or otherwise convey property to any person or
legal entity without public notice, without having to advertise for and accept
competitive bids and without appraisal, with or without consideration, and on
such terms and conditions as the parties may agree if the board of supervisors
finds and determines, by resolution duly and lawfully adopted and spread upon
its official minutes:
(i) That the subject property is real property acquired by the county:
1. By reason of a tax sale;
2. Because the property was abandoned or blighted; or
3. In a proceeding to satisfy a county lien against the property;
(ii) That the subject property is blighted and is located in a blighted area;
(iii) That the subject property is not needed for governmental or related purposes and is not to be used in the operation of the county;
(iv) That the sale of the property in the manner otherwise provided by law is not necessary or desirable for the financial welfare of the county; and
(v) That the use of the property for the purpose for which it is to be conveyed will promote and foster the development and improvement of the community in which it is located or the civic, social, educational, cultural, moral, economic or industrial welfare thereof; the purpose for which the property is conveyed shall be stated.
(b) All costs associated with a conveyance under this subsection shall be paid by the person or entity to whom the conveyance is made.
(c) Any deed or instrument of conveyance executed pursuant to the authority granted under this subsection shall contain a clause of reverter providing that title to the property will revert to the county if the person or entity to whom the property is conveyed does not fulfill the purpose for which the property was conveyed and satisfy all conditions imposed on the conveyance within two (2) years of the date of the conveyance.
(d) In any such deed or instrument of conveyance, the county shall retain all mineral rights that it owns, together with the right of ingress and egress to remove same.
( * * *6) Nothing contained in this section
shall be construed to prohibit, restrict or to prescribe conditions with regard
to the authority granted under Section 17-25-3 or Section 57-75-37.
SECTION 2. This act shall take effect and be in force from and after July 1, 2023.
