Request By:
Honorable Benjamin J. Lookofsky
Graves County Attorney
Graves County Court House
Mayfield, Kentucky 42066
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Walter C. Herdman, Assistant Deputy Attorney General
This is in answer to your letter of July 1 in which you request an opinion concerning the following:
"Graves County has a building which was used for many years as a rest home for the senior citizens. The building is now empty and is no longer used for any purpose at all. The Fiscal Court wants to sell the building and its contents as soon as possible. Please advise if the building and its contents can be sold at either a public absolute auction or sealed bids. We prefer to sell the building and contents at absolute auction, inasmuch as it is our opinion that this method would bring a greater return."
In response to your question we believe that the county can dispose of the building in question by public auction rather than by sealed bids.
KRS 65.010 permits the county to sell and convey any real estate owned by it that is no longer needed for governmental purposes. There is no provision under this statute detailing the manner in which such property may be sold. KRS 424.260 requires bids for contracts for material, supplies, equipment or services made by a county involving an expenditure of more than $2500. However, this statute would not in our opinion apply to the sale of county property. Obviously, as a matter of public policy, such property should be sold in the best interest of the county. Referring to McQuillin, Municipal Corporations, Vol. 10, § 28.45, which in this instance would be equally applicable to counties, we find it stated as a fundamental rule that sales of public property must be openly and fairly conducted; however, unless the applicable law expressly so provides, a municipal corporation is not required to use competitive bidding or otherwise seek the highest obtainable price in selling its property. It is further stated that under some laws a sale of municipal property is required to be made at public auction to the highest bidder.
It would thus appear that the Graves County Fiscal Court could sell the building in question that is no longer required for public purpose at public auction in view of the absence of any applicable provision requiring such sale to be made in a particular manner.