In Re: Private Sale of Prop. by Millcreek Twp. SD (majority)Annotate this Case
This discretionary appeal addressed the role of a court following a school district’s decision to conduct a private sale of an unused or unnecessary school building pursuant to section 7-707(3) of the Pennsylvania Public School Code of 1949. Ridgefield Elementary School (“Ridgefield”) sat on 7.9 acres of land (the “Property”), which contained the school, a playground, a parking lot and open greenspace. Ridgefield was located in Millcreek Township (the “Township”) and was in an R-1 single- family residential zoning district. In 2013, the Millcreek Township School District (the “School District”) closed Ridgefield, partitioned the Property into three lots, and tried to sell the Property through a sealed bid process, but it received no bids. In July 2014, the School District listed the Property for sale. Two offers were made on the property; in 2015, the School District petitioned the trial court for approval of the private sale of Lot 1 of the Property. After review, the Pennsylvania Supreme Court concluded a trial court’s involvement in such cases is limited to either approving or disapproving the sale. The statute required a determination of whether the petition for private sale contains the requisite information and was adequately supported by the opinions of two disinterested individuals who are familiar with the real estate in the geographic area, have viewed the property for sale, and concluded that the proposed sale price “is a fair and reasonable one and in their opinion a better price than could be obtained at public sale.” The statute does not require, and thus courts may not consider, whether the sale serves the public interest. Here, the Commonwealth Court based its decision on an erroneous interpretation of section 7-707(3) and the prior decisions of the Supreme Court. Therefore, the Court reversed the decision of the Commonwealth Court and remanded the case for further proceedings.