ARIZONA STATE SENATE
Phoenix, Arizona
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 our 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 general fund associated with this legislation.
1. Allows ADOT to convey property, at no cost, to an agency for a specific highway purpose and allows ADOT to transfer title to the property to the agency before construction.
Requires the sale to become
void and the property to revert back to ADOT if the property is used for
purposes other than transportation.
2. Allows ADOT to sell real property for no less than 75 percent of the lowest appraisal if ADOT is unable to sell the property for the amount of the lowest appraisal.
3. Allows the ADOT Director, through negotiations with adjacent property owners, to acquire legal access to landlocked parcels owned by ADOT.
4. 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 appraised value of the property. Currently, the original owner can repurchase at the price paid by ADOT plus interest.
5. Reduces the time period that the original owner can accept ADOT’s offer from 90 to 60 days.
6. 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, for minimal cost.
7. 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 minimal cost. Requires the state agency that receives property from ADOT to be used for a public purpose to reimburse ADOT for its expenditures for the property.
8. Increases the timeframe in which an appraisal for conveyance of property is valid from six to twelve months.
9. Permits ADOT to accept annual or monthly payments for sale of property to local agencies.
10. 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.
11. Allows ADOT to pay a commission rate, determined by the ADOT Director, to a licensed real estate broker whose client purchases property from ADOT.
12. Increases the value of property from $2,500 to $50,000 that may be acquired or sold based on appraisal report and market analysis.
13. Authorizes the ADOT Director to allow other governmental entities to use ADOT’s access to telecommunications facilities that ADOT leases the use of the areas above or below state highways.
14. Requires ADOT, in cooperation with the Department of Administration and the Government Information Technology Agency, to establish a permitting process for governmental entities requesting access to ADOT’s telecommunications facilities.
15. Limits governmental entities’ access to ADOT’s telecommunications facilities to governmental purposes.
16. Requires governmental entities to cover any costs associated with connection to a telecommunications facility.
17. Allows property to be acquired for environmental mitigation and compensation purpose or banking credits in lieu of land acquisition.
18. Exempts abandonment of new street improvements and returns of existing streets from the four-year notice to affected jurisdictions.
19. Exempts the State Transportation Board and ADOT from procurement services relating to bid requirements, land purchase, sale and condemnation, and disposition of public roadways.
20. Contains definitions.
21. Makes technical and conforming changes.
22. 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.
Senate Action
TRANS 2/8/01 DPA 7-0-1-0
Prepared by Senate Staff
February 8 , 2001