The Department of Planning and Development (DPD) makes City-owned real estate available for purchase and redevelopment through several programs, and developers working with the Department of Housing may find the following programs useful.
The Negotiated Sale program enables qualified individuals or entities to purchase vacant or improved properties that are owned by the City. The value of the property is established by a market value appraisal prepared by an independent appraiser that's hired and compensated by the City. Any property purchased through a negotiated sale requires a good faith deposit and a detailed project budget. The program is intended for larger and more complex developments and projects that request City financial assistance. Development are guided by a Redevelopment Agreement (RDA) approved by City Council.
Requests for Proposals (RFPs)
DPD issues RFPs that identify goals and objectives for specific City-owned properties. Each RFP describes the type of development being sought, any financial incentives being offered, the offering price, and instructions for submitting responsive proposals. RFPs are posted on DPD’s website and announced through a public notice published in the Sun-Times.
A sealed bid sale offers City-owned land to any person or entity through a competive bid process. The program is intended for the development of small, market-rate projects that do not require City assistance. Upon receipt of an independent appraisal, the CIty places an advertisement in a local newspaper notifying the public of the sale for a minimum bid equal to the land’s appraised value. Bids are accepted for 30 days and the land is sold to the highest bidder.
Negotiated Sale for Open Space or Parking
City-owned land is made available to adjacent or nearby property owners for use as parking or open space. An appraisal determines the sales price. The purchaser must complete an open space project within six months or a parking lot within one year of closing.
Third-party brokers are sometimes used to help facilitate the sale of select City-owned properties. The broker will market a property in advance of a public notice being placed in a local newspaper.