99.1021. Disposal of real property.

Disposal of real property.

99.1021. Real property which is acquired by a municipality orauthority in a development project area may be disposed of as follows:

(1) Within a development project area, the authority may sell, lease,exchange, or otherwise transfer real property, including land,improvements, and fixtures, or any interest therein, to any developerselected for a development project, or any portion thereof, in accordancewith the development plan, subject to such covenants, conditions, andrestrictions as may be deemed to be in the public interest or to carry outthe purposes of sections 99.1000 to 99.1060. Such real property shall besold, leased, or transferred at its fair market value for uses inaccordance with the development plan; provided that such fair market valuemay be less than the cost of such property to the municipality orauthority. In determining the fair market value of real property for usesin accordance with a development plan, the municipality or authority shalltake into account and give consideration to the uses and purposes requiredby the development plan; the restrictions upon, and the covenants,conditions, and obligations assumed by the developer of such property; theobjectives of the development plan; and such other matters as themunicipality or authority shall specify as being appropriate. In fixingrental and sale prices, a municipality or authority shall giveconsideration to appraisals of the property for such uses made by expertsemployed by the municipality or authority;

(2) The municipality or authority shall, by public notice publishedin a newspaper having a general circulation in a development area, prior toselecting one or more developers for any development project, or anyportion thereof, invite proposals from, and make available all pertinentinformation to, private developers or any persons interested in undertakingthe development of such development project, or any portion thereof. Suchnotice shall be published at least once each week during the two weekspreceding the selection of a developer, shall identify the area of thedevelopment project or development projects, or any portion thereof, forwhich one or more developers are to be selected, and shall state that suchfurther information as it is available may be obtained at the office of themunicipality or authority. The municipality or authority shall considerall proposals and the financial and legal ability of the prospectivedevelopers to carry out their proposals. The municipality or authority maynegotiate and enter into one or more contracts with any developer selectedfor the development of any such area for the development of such area bysuch developer in accordance with a development plan or for the sale orlease of any real property to any such developer in any such area for thepurpose of developing such property in accordance with the developmentplan. The municipality or authority may enter into any such contract as itdeems to be in the public interest and in furtherance of the purposes ofsections 99.1000 to 99.1060; provided that the municipality or authorityhas, not less than ten days prior thereto, notified the governing body inwriting of its intention to enter into such contract. Thereafter, themunicipality or authority may execute such contract in accordance with theprovisions of subdivision (1) of this section and deliver deeds, leases,and other instruments and take all steps necessary to effectuate suchcontract. In its discretion, the municipality or authority may, inaccordance with the provisions of this subdivision, dispose of any realproperty in an area selected for a development project, or any portionthereof, to private developers for development under such reasonablecompetitive bidding procedures as it shall prescribe, subject to theprovisions of subdivision (1) of this section;

(3) In carrying out a development project, the authority may:

(a) Convey to the municipality such real property as, in accordancewith the development plan, is to be dedicated as public right-of-way forstreets, sidewalks, alleys, or other public ways, this power beingadditional to and not limiting any and all other powers of conveyance ofproperty to municipalities expressed, generally or otherwise, in sections99.1000 to 99.1060;

(b) Grant servitudes, easements, and rights-of-way for publicutilities, sewers, streets, and other similar facilities, in accordancewith the development plan; and

(c) Convey to the municipality or other appropriate public body suchreal property as, in accordance with the development plan, is to be usedfor parks, schools, public buildings, facilities, or other public purposes;

(4) The municipality or authority may operate and maintain realproperty in the development area pending the disposition or development ofthe property in accordance with a development plan, without regard to theprovisions of subdivisions (1) and (2) of this section, for such uses andpurposes as may be deemed desirable even though not in conformity with thedevelopment plan.

(L. 2003 H.B. 289)