(a) As used in this section, "abutting landowner" means an owner of property that:

1. (1) touches, borders on, or is contiguous to the property that is the subject of sale; and

2. (2) does not constitute a:

   1. (A) public easement; or
   2. (B) public right-of-way.

(b) As used in this section, "offering price" means the appraised value of real property plus all costs associated with the sale, including:

1. (1) appraisal fees;
2. (2) title insurance;
3. (3) recording fees; and
4. (4) advertising costs.

(c) The disposing agent may proceed under this section if either of the following applies:

1. (1) The assessed value of a tract of real property to be sold is less than:

   1. (A) except as provided in clause (B) and subsection (i), fifteen thousand dollars ($15,000); or

   2. (B) an amount greater than fifteen thousand dollars ($15,000) that is specified in an ordinance or a resolution adopted by the fiscal body of the political subdivision under subsection (i);

      based on the most recent assessment of the tract or of the tract of which it was a part before it was acquired.

2. (2) If the property has not been assessed and the property was previously part of a public right-of-way.

(d) The disposing agent may determine that:

1. (1) the highest and best use of the tract is sale to an abutting landowner;
2. (2) the cost to the public of maintaining the tract equals or exceeds the estimated fair market value of the tract; or
3. (3) it is economically unjustifiable to sell the tract under section 4 of this chapter.

(e) After the disposing agent makes a determination under subsection (d), the disposing agent shall publish a notice in accordance with IC 5-3-1 identifying the tracts intended for sale by legal description and, if possible, by key number and street address. The notice may be published solely on the political subdivision's official website (as defined in IC 5-3-5-2 ) in accordance with IC 5-3-5 . The notice must also include the offering price, a deadline for receiving offers, and a statement that:

1. (1) the property may not be sold to a person who is ineligible under section 16 of this chapter; and

2. (2) an offer to purchase the property submitted by a trust (as defined in IC 30-4-1-1 (a)) must identify each:

   1. (A) beneficiary of the trust; and

   2. (B) settlor empowered to revoke or modify the trust.

      At the time of publication of notice under this subsection, the disposing agent shall send notice by certified mail to all abutting landowners. This notice shall contain the same information as the published notice.

(h) Notwithstanding subsection (g), if after the deadline for receiving offers as determined in the notice, the disposing agent does not receive from any person other than an abutting landowner an eligible offer to purchase the tract at or in excess of the offering price, the disposing agent shall conduct the negotiation and sale of the tract as follows:

1. (1) If only one (1) abutting landowner makes an eligible offer to purchase the tract, then subject to section 16 of this chapter and without further appraisal or notice, the disposing agent shall offer to negotiate for the sale of the tract with that abutting landowner.
2. (2) If more than one (1) eligible abutting landowner submits an offer to purchase the tract, the other eligible abutting landowners who submit offers shall be informed of the highest offer received and be given an opportunity to submit one (1) additional offer. The tract shall be sold to the eligible abutting landowner who submits the highest offer for the tract and who complies with any requirement under subsection (e)(2).
3. (3) If no eligible abutting landowner submits an offer to purchase the tract, the disposing agent may sell the tract to any person who submits the highest offer for the tract, except a person who is ineligible to purchase the tract under section 16 of this chapter.

(i) The fiscal body of a political subdivision may adopt an ordinance (in the case of a county or municipality) or a resolution (in the case of any other political subdivision) to increase the threshold that applies under subsection (c)(1) to an amount greater than fifteen thousand dollars ($15,000).

[Pre-Local Government Recodification Citation: 18-4-5-6 part.]

As added by Acts 1981, P.L.57, SEC.37. Amended by P.L.47-1983, SEC.5; P.L.332-1985, SEC.1; P.L.333-1985, SEC.1; P.L.60-1988, SEC.27; P.L.336-1989(ss), SEC.47; P.L.165-1994, SEC.4; P.L.170-2003, SEC.17; P.L.188-2011, SEC.4; P.L.28-2017, SEC.2; P.L.146-2024, SEC.7.