City-Owned Properties Available for Sale

The City of Galesburg has a number of lots which the City Council has determined are not necessary, appropriate or in the best interests of the City. These properties are offered for sale subject to conditions and restrictions on future use which the City may deem necessary and proper. The Request for Bid document includes two options for submitting a bid. The first option is a Development Plan bid. One example of this type of bid is using the city-owned property as additional yard area. The person submitting the bid must own the land that is adjacent to the vacant city-owned lot for a yard expansion. The purpose of the Development Plan bid is for the City to have more control over the proposed use of the property. The bidder submits detailed information on their plans for the property, which must take place within two years of purchasing the property. If the plan is not followed, the City has recourse by being able to take back ownership of the property from the bidder and the bidder forfeits 50% of their purchase price. A Development Plan bid option offers the City Council the ability to determine the best bid based upon the development proposed and not just the price. The second option is a No Development Plan bid. Using this option, a person can purchase a property without submitting plans for future redevelopment of the property. The bid document also includes a five-year reversion agreement for properties (i.e. if the City has to spend monies to fix a nuisance issue on a No Development Plan property during the first five years after ownership is transferred, the ownership of the property will revert back to the City). Sale of any of the properties would eliminate the need for City maintenance of the properties (i.e. weed mowing); and at the same time place the properties back on the property tax roll. Any proceeds from the sale are deposited in the Property Redevelopment Fund to allow continued funding for future foreclosures.