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.