Westtown, Pennsylvania Development News

Township Outlines Statutory Process for Selling Municipal Real Property

The Board of Supervisors received an overview of the statutory process for the sale of township-owned real property, as prepared by township staff in consultation with the township solicitor. The process is regulated under section 1503 of the Second-Class Township Code, requiring competitive sales for properties over $6,000 through public advertisements, sealed bids, or public auction. Conditions of sale can be established by the board, including facade easements and bid restrictions. Advertisement notices must be published at least once, not less than three days before bid opening or public auction, typically in local daily papers and on the township website. The Board of Supervisors must award the sale at a public meeting or auction, conditioned upon full payment within 60 days. The board retains the right to reject bids below fair market value and can set a minimum bid. If public auction or bidding fails, the township can pursue a private sale, potentially after two failed public auction attempts. Exceptions exist for transfers to specific government or non-profit organizations focused on affordable housing, historic preservation, environmental, or conservation efforts, which are exempt from advertising and bidding requirements. The general process involves declaring property surplus, authorizing an appraisal, considering sale conditions (like facade easements), public advertisement, auction/bid opening, award of sale, and settlement. Appraisals are recommended for establishing minimum bids. The sale of Darlington Inn was used as a specific example, detailing steps like declaring surplus, appraisal, evaluating potential facade easements with consultant input, obtaining updated appraisals, and deciding on granting easements before or as a condition of sale. Incentives like waivers from land development processes or design criteria can also be offered. The final award is to the highest responsible bidder, followed by a closing process including deed execution and recording.