DFL, Sale of Buildings and Land

The Orleans Parish School Board may sell, lease or otherwise dispose of, at public or private sale, for cash or on terms of credit, any school site, building, facility, or other immovable property which is not used and, in the judgment of the School Board, is not needed in the operation of any school or schools within the district. Any such sale, lease, or disposal of such school property shall be on such terms and conditions and for such consideration as the School Board shall prescribe in accordance with state law.

Whenever the School Board determines that any school site, building, facility, or other immovable property under its control is no longer needed for school purposes and that the best interest of the School Board would be served by the sale of such lands, the School Board shall have authority to dispose of such lands at public auction, under sealed bids, or by a licensed real estate broker.

The School Board may obtain appraisals from up to three (3) Louisiana state-licensed commercial real estate appraisers to ascertain the current value of the property. The appraisals shall be obtained within six (6) months prior to conducting the sale of the property.

The utilization of all school facilities shall be reviewed annually by the Superintendent and appropriate staff. Student enrollment patterns shall be analyzed in terms of school membership, demographic trends, transportation patterns and distances, and program requirements. Should the annual evaluation of a school facility or demographic statistics indicate the potential need for closing a given school site, a comprehensive closing study shall be conducted by the Superintendent and appropriate staff for consideration by the School Board.

It is the policy of the Orleans Parish School Board that before a property is declared to be surplus, the property shall meet the following criteria:

Prior to property being recommended to the School Board for declaration as surplus, the Superintendent or his/her designee shall provide the School Board with evidence of the following research and activities through the proper School Board Committee:

Upon the declaration of the property as surplus, the School Board shall make said property available to chartering groups for lease or purchase, pursuant to procedures to be established by the Superintendent. If no chartering group desires to lease or purchase the property, the School Board may authorize the Superintendent to proceed with a public sale, lease, or exchange of the property. In accordance with state statutory provisions, all public property must be appraised prior to sale. All sales of surplus public property must be advertised to the public and must be by public auction or sealed bid, except as otherwise provided in the Exceptions, below.

Real estate that has been declared as no longer needed for public school purposes shall be disposed of as outlined below:

At least one (1) real estate appraisal shall be obtained reflecting the fair market value.
Advertisement for public auction or sealed bids shall be published in the School Board’s official journal on at least three (3) separate days for at least thirty (30) calendar days prior to the date the land is to be offered for sale, or as otherwise provided for in state law.
Public Auction – If sold at public auction, the property shall be sold on the date named in the advertisement, at the School Board office, between the hours of 11:00 a.m. and 4:00 p.m., to the last and highest bidder, upon such terms and conditions as the School Board shall determine. If the highest bid received is not equal to or greater than the required minimum bid, the sale shall be cancelled, and no bid shall be accepted.
Sealed Bid – If sold under sealed bid, the property shall be sold on the date named in the advertisement, and the bids shall be opened in the offices of the School Board at the hour designated in the advertisement. The property shall be sold to the highest bidder upon such terms and conditions as the School Board shall determine. The School Board shall reserve the right to reject any and all bids, and all bids shall be rejected if the highest bid received is not equal to or greater than the required minimum bid.

The first time the School Board offers a particular property for sale, the minimum bid considered for approval shall be at least eighty-five percent (85%) of the appraised value of the property.
If the School Board fails to sell the property because the maximum bid received was not equal to or greater than the minimum bid in item A. above, the School Board may make a second effort to sell the property. The minimum bid for a second effort to sell the same property shall be at least eighty percent (80%) of the appraised value.
If the School Board has twice failed to sell property because the maximum bid received was not equal to or greater than the minimum bid provided above, there shall be no minimum bid at the third effort to sell the property, and the School Board may sell the property to the highest bidder.

In lieu of public auction or sealed bids, and when it is in the best interest of the School Board, the School Board may contract for the services of a licensed real estate broker to conduct the sale of the property. The licensed commercial real estate broker shall be selected utilizing a request for quotes/qualifications process based on the following minimum qualifications:

Licensed within the State of Louisiana;
Ability to provide substantial real estate-related analytical data and financial information; and
Well-established local and regional business relationships and partnerships to promote effective business solutions.

The term of the contract shall not exceed six (6) months. A minimum sale price and a time period within which the sale is to occur shall be specified by the School Board as conditions of the contract. Payment to the real estate broker for conducting the sale shall not exceed five percent (5%) of the sale price and shall be contingent upon completion of the sale in accordance with the terms and conditions of the contract. The School Board shall have the right to cancel the contract at any time for any reason prior to the sale and conduct the sale as otherwise provided by law.
No member or immediate family, as defined in La. Rev. Stat. Ann. §42:1102, of the School Board or legislature shall perform the services of appraiser or real estate broker authorized by this Section.

The deed evidencing act of sale executed by the President of the School Board shall be full and complete evidence of the sale, shall convey a good and valid title to the property sold, and shall have the force and effect of a notarial act.

The following are exceptions to the advertisement and public bid requirements for the disposal of School Board property:

The Orleans Parish School Board shall conduct all elections to authorize the sale of sixteenth section land and the funds realized from the sale of such land, after deduction for necessary expenses connected with such elections, shall be promptly forwarded to the state auditor. These funds shall be credited to the general school funds of the School Board.

Revenues derived from the sale of any school site, building, facility, or other immovable property shall be deposited in a specially designated Capital Improvements Fund for the acquisition, design, renovation, repair, construction, furnishing, or equipping of School Board property.