Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 124 - Corporate Powers
Section 12402.1 - City property and affairs

(a) General rule.--In exercising its discretion to make decisions that further the public interest under terms it deems most beneficial to the city, council may, subject to any restrictions, limitations or exceptions stated in this chapter:
(1) Purchase, hold, use and manage real and personal property.
(2) Exchange personal property.
(3) Lease, sell and convey real and personal property owned by the city.
(4) Make contracts and do all other acts respecting city property and affairs as council may deem conducive to the public interest and necessary to the exercise of the city's corporate and administrative powers.
(b) Sales of real estate.--
(1) No real estate owned by the city may be sold except upon approval of council by resolution, and no real estate owned by the city may be sold for a consideration in excess of $6,000, except to the highest bidder after due notice by advertisement for bids or advertisement of a public auction in one newspaper of general circulation in the city.
(2) The advertisement shall be published once not less than 10 days prior to the date fixed for the opening of bids or public auction, and the date for opening bids or public auction shall be announced in the advertisement.
(3) The award of contracts shall be made only by public announcement at a regular or special meeting of council or at the public auction.
(4) All bids shall be accepted on the condition that payment of the purchase price in full shall be made within 60 days of the acceptance of bids.
(5) Council may reject all bids which it deems to be less than the fair market value of the real property.
(6) In the case of a public auction, council may establish a minimum bid based on the fair market value of the real property.
(7) If no compliant bids are received after advertisement, the applicable procedures in the act of October 27, 1979 (P.L.241, No.78), entitled "An act authorizing political subdivisions, municipality authorities and transportation authorities to enter into contracts for the purchase of goods and the sale of real and personal property where no bids are received," shall be followed.
(8) Real estate owned by a city may be sold at a consideration of $6,000 or less without advertisement or competitive bidding only after council estimates the value of the real estate upon receipt of an appraisal by a qualified real estate appraiser. Prior to selling real estate valued at $6,000 or less without advertisement or competitive bidding, council shall make a public announcement of the council's intention to sell the real estate at a regular or special meeting of council at least 30 days prior to the sale.
(9) (i) This section shall not apply if council exercises its authority to exchange real property of the city for real property of equal or greater value, provided that the property being acquired by the city is to be used for municipal purposes.
(ii) If council chooses to exercise its power of real property exchange pursuant to this section, it shall be by resolution adopted by council.
(iii) Notice of the resolution, including a description of the properties to be exchanged, shall be published once in one newspaper of general circulation not more than 60 days nor fewer than seven days prior to adoption.
(c) Sale of personal property.--
(1) No personal property of the city shall be disposed of, by sale or otherwise, except upon approval of council by resolution.
(2) Council shall estimate the sale value of the entire lot to be disposed of.
(3) If council estimates the sale value to be less than $2,000, council may sell the property, in whole or in part, for the best price or prices obtainable.
(4) If council estimates the sale value to be $2,000 or more, the entire lot shall be advertised for sale in at least one newspaper of general circulation in accordance with the provisions of section 10109 (relating to publication of notices), and sale of the property advertised shall be made to the best responsible bidder.
(5) The bids shall not be opened until at least 10 days after the newspaper advertisement is published.
(6) The provisions of this subsection shall not be mandatory where personal property of the city is to be traded in or exchanged for other personal property.
(7) Council may sell any personal property of the city at auction pursuant to subsection (d) but shall observe the same notice requirements as contained in this subsection.
(d) Online or electronic auction of personal property.--In regards to the sale of personal property of the city, an auction may be conducted by means of an online or electronic auction sale subject to the following:
(1) Bids shall be accepted electronically at the time and in the manner designated in the advertisement pursuant to the notice requirements in subsection (c).
(2) Each bidder shall have the capability to view the bidder's bid rank or the high bid price.
(3) Bidders may increase their bid prices during the electronic auction.
(4) The record of the electronic auction shall be available for public inspection.
(5) The purchase price shall be paid by the high bidder immediately or at a reasonable time after the conclusion of the electronic auction, as determined by council.
(6) In the event that shipping costs are incurred, they shall be paid by the high bidder.
(7) A city that has complied with the advertising requirements of subsection (c) may provide additional public notice of the sale by bid or auction in any manner deemed appropriate by council.
(8) The newspaper advertisement for electronic auction sales authorized in this section shall include the Internet address or means of accessing the electronic auction and the date, time and duration of the electronic auction.
(e) Nonapplicability.--Any requirement for advertising for bids and sale to the highest bidder imposed by this part or by a city pursuant to this section shall not apply where real or personal property of the city is sold to the following, provided that, when any real property is no longer used for the purpose of the conveyance, the real property shall revert to the city:
(1) The Federal Government, the Commonwealth, a municipality, home rule municipality, institution district or school district.
(2) A volunteer fire company, volunteer ambulance service or volunteer rescue squad located within the city or providing emergency services in the city.
(3) A municipal authority, a housing authority created pursuant to the act of May 28, 1937 (P.L.955, No.265), known as the Housing Authorities Law, an urban redevelopment authority created pursuant to the act of May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment Law, a parking authority created under 53 Pa.C.S. Ch. 55 (relating to parking authorities) or under the former act of June 5, 1947 (P.L.458, No.208), known as the Parking Authority Law, or a port authority created pursuant to the act of December 6, 1972 (P.L.1392, No.298), known as the Third Class City Port Authority Act.
(4) A nonprofit corporation engaged in community industrial development.
(5) A nonprofit corporation organized as a public library.
(6) A nonprofit medical service corporation.
(7) A nonprofit housing corporation.
(8) A nonprofit museum or historical organization.
(f) Nominal consideration acceptable.--When real or personal property is sold pursuant to subsection (e)(5), (6) or (7), the city may accept nominal consideration as it shall deem appropriate.
(Oct. 24, 2018, P.L.919, No.150, eff. 60 days; Feb. 5, 2020, P.L.6, No.4, eff. 60 days)

2020 Amendment. Act 4 amended subsec. (b)(1) and (8).
2018 Amendment. Act 150 amended subsec. (c).
Cross References. Section 12402.1 is referred to in sections 11901, 12546 of this title.

Structure Pennsylvania Consolidated & Unconsolidated Statutes