ARIZONA STATE SENATE
Phoenix, Arizona
FINAL
REVISED
Provides the Arizona
Department of Transportation more flexibility in the disposal of real property.
The Arizona Department of
Transportation (ADOT) requested this legislation to facilitate their ability to
dispose of all types of excess real estate.
Currently, ADOT has inventoried approximately $40 million worth of
unutilized property, representing nearly 300 properties. Many of these properties are of significant
dollar value, including buildings and commercial sites. Many more of these properties are small
remnant parcels of minimal value that are difficult to sell and cost ADOT more
to market than they are worth. Current
statute provides methods for disposal of excess property, but ADOT finds the
process inefficient and cumbersome.
S.B. 1272 allows local
agencies or non-profit organizations to use excess property for a public
purpose and allows ADOT to pass on the cost of management and maintenance to
these agencies. This bill also changes
statute to allow appraisals to be valid for one year rather than six months for
recognizing that the appraisal process can take up to several months. ADOT anticipates that this change will save
money in appraisal costs and facilitate dealings with local agencies. This
legislation attempts to address concerns with the excess land disposal process
and provides ADOT more flexibility in the disposal of right-of-way property.
There is no anticipated
fiscal impact to the state general fund associated with this legislation.
1. Allows ADOT to grant an easement for no payment to an agency for property to be used for a specific highway purpose. Requires the agency to bear all liability and costs of maintenance of the property during the period of the easement.
2. Authorizes ADOT to terminate the easement if it is not used for a highway purpose or the ADOT Director determines a highway need for the property.
3. Requires property conveyed to another agency that is not used for a highway purpose to revert back to ADOT.
4. Allows ADOT to acquire property conveyed to an agency that is now needed for a transportation purpose at a cost equal to the amount paid by the agency or fair market value, whichever is less.
5. Authorizes ADOT to convey property by direct sale after a 30-day notice in a newspaper of general circulation for no less than 80 percent of the low appraisal, if ADOT is unable to sell the property for the amount of the lowest appraisal.
6. Requires ADOT to sell the property at public auction if the Director receives more than one offer before the end of the 30-day notice period in an amount that is at least equal to 80 percent of the low appraisal.
7. Allows ADOT to send notice to adjacent property owners stating a range of estimated market value of the property between 80 percent and 100 percent. Adjacent owners may make an offer in that range within 60 days of the notice date. Requires the ADOT Director to establish procedures to dispose of these parcels at the best price the Director may obtain if no offers are received within the 60-day period.
8. Stipulates that right of repurchase expires prior to eight years after the date of recording the deed from the original owner or 90 days after the Director determines that the property is not needed for transportation purposes, if the deed transferring the property was executed before the effective date of this legislation. Provides an original owner or original owner’s heir who has a right to repurchase the option to acquire property to use the right to repurchase or the right of first refusal.
9. Provides the original owner or original owner’s heir with a right of first refusal to acquire property if the property is no longer needed for transportation purpose at a price equal to the current market value of the property. Currently, the original owner can repurchase at the price paid by ADOT plus interest.
10. Reduces the time period that the original owner can accept ADOT’s offer from 90 to 60 days.
11. Enables the ADOT Director to allow local agencies to use and maintain land or improvements for a public purpose that is held for transportation purposes and not currently needed, at fair rental value.
12. Allows the ADOT Director to lease historic property for a public purpose that is held for transportation purposes and not currently needed to nonprofit organizations, state agencies or local agencies at fair rental value.
13. Allows ADOT to reduce the fair rental value by the costs of the maintenance of the land and improvements.
14. Increases the timeframe in which an appraisal for conveyance of property is valid from six to twelve months.
15. Permits ADOT to accept annual or monthly payments for sale of property to local agencies.
16. Increases the dollar amount in which ADOT may sell property to the adjacent property owner without a public auction from $1,000 to $10,000 and allows property to be sold at net value to the adjacent property owner. Currently, property eligible for sale to the adjacent property owner without a public auction must have a market value of $10,000 or less.
17. Allows ADOT to pay a commission rate, determined by the ADOT Director, to a licensed real estate broker whose client purchases property from ADOT.
18. Increases the value of property from $2,500 to $50,000 that may be acquired or sold based on appraisal report and market analysis.
19. Allows ADOT to acquire legal access to landlocked parcels owned by ADOT and property for environmental mitigation and compensation purpose or banking credits in lieu of land acquisition.
20. Requires the State Transportation Board to provide at least 120 days advance notice to affected jurisdictions for the abandonment of new street improvements and reconnections of existing streets.
21. Exempts the State Transportation Board and ADOT from procurement services relating to land titles, appraisals, real property acquisitions, relocation services, property management, facility design and highway construction.
22. Contains definitions.
23. Makes technical and conforming changes.
24. Provides for a general effective date.
Amendments
Adopted by Committee
1. Allows ADOT to convey property to a state agency for a public purpose for reimbursement of ADOT’s expenditures for the property.
2. Specifies that the property leased or allowed to be used by agencies for a minimum cost must be for a public purpose.
3. Allows property to be acquired for environmental mitigation and compensation purpose or banking credits in lieu of land acquisition.
Amendments Adopted by Committee of the Whole
1. Allows ADOT to lease historic property for a public purpose to nonprofit organizations, state agencies or local agencies for fair rental value rather than a minimal cost.
2. Allows ADOT to grant easements to a state or local agency for property to be used for a highway purpose for no payment.
Amendments Adopted by the House of Representatives:
1.
Eliminates
all new provisions dealing with telecommunications lease issues.
2.
Specifies
that the ADOT Director may sell property by direct sale if the property fails
to sell at auction for the low appraisal amount. Requires the property to be advertised for 30 days at a price
that is at least equal to 80 percent of the low appraisal amount. Requires the ADOT Director to hold another
auction, if more than one person makes an offer.
3.
Requires
the ADOT Director to sell notice to adjacent property owners stating a range of
estimated market value of the property between 80 percent and 100 percent. Allows the adjacent owners to make an offer
in that range within 60 days of the notice date. Requires the ADOT Director to establish procedures to dispose of
the parcels at the best price that ADOT is able to obtain if no offers are
received within the 60-day period.
4.
Provides
the original owner the option of using the new right or first refusal in the
bill.
5.
Removes
the exemption for abandonment of new street improvements and reconnections of
existing streets from the four-year notice.
Senate Action House Action
TRANS 2/8/01 DPA 7-0-1-0 TRANS 3/26/01 DPA 8-0-0-2
3rd Read 2/28/01 22-8-0-0 3rd Read 4/2/01 58-0-2-0
Signed by Governor 4/11/01
Chapter 100
Prepared by Senate Staff
April 19, 2001