NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

General Services Department/ Property Control

LFC Files

SUMMARY

Synopsis of Bill

Senate Joint Memorial 1 requests the Taxation and Revenue Department (TRD) perform a new appraisal on the value of La Villa Rivera and Marian Hall properties.

Significant Issues

TRD performed the original appraisal in the mid-1980's and the appraisal was updated in 1998. The value was assessed at $8.8 million. Property Control conducted a competitive process to sell the property in late 1998 and received 5 bids. The process was stopped because the City of Santa Fe expressed interest in purchasing the property. According to Property Control , there is still significant interest in the property from other bidders, which indicates the appraised value of $8.8 million accurately reflects "fair market value".

FISCAL IMPLICATIONS

An update of the appraisal of the property might indicate a higher value, which could generate additional revenue for legislative appropriation from the Property Control Reserve Fund.

ADMINISTRATIVE IMPLICATIONS

None for Property Control, TRD would be required to perform an update of a two-year old appraisal.

OTHER SUBSTANTIVE ISSUES

According to Property Control, " TRD will be asked to revisit the appraisal within 6 months prior to finalizing the sale, regardless of the buyer. The chances of a lower appraisal are less likely than a higher appraisal based on the location and sustained condition of the buildings.

RS/njw