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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F I S C A L I M P A C T R E P O R T



SPONSOR: Fidel DATE TYPED: 02/15/00 HB
SHORT TITLE: Acquire Property For State Office Buildings SB 134/aSWMC/aSFC
ANALYST: Carrillo

APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 30,000.0 Non-Recurring State Office Building Bond Fund
See Fiscal Impact Section Non-Recurring Property Control Reserve Fund

(Parenthesis ( ) Indicate Expenditure Decreases)



REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY00 FY01
$ (9,000.0) Recurring Public Building Repair Fund
See Fiscal Impact Section Non-Recurring Property Control Reserve Fund

(Parenthesis ( ) Indicate Revenue Decreases)



Relates to SB135, HB61, HJR14, HB450, HB451

SOURCES OF INFORMATION



General Services Department



SUMMARY



Synopsis of SFC Amendment



The Senate Finance Committee amendment provides for the following:



     Synopsis of SWMC Amendment



The Senate Ways and Means Committee amendment inserts references to other provisions of the bill. The amendment also provides language requiring the purchase of the "PERA Building" to be for a price negotiated with the Public Employees Retirement Association that is at least comparable to the fair market value of the property and building.



Synopsis of Original Bill



Senate Bill 134 authorizes the Property Control Division of the General Services Department to acquire various office buildings and land in Santa Fe County for use as state office buildings. SB 134 contains appropriation and emergency clauses. SB 134 provides for the following, listed in priority order, as funding becomes available in the Property Control Reserve Fund:



The bill authorizes up to $75 million in revenue from bonds to be sold pursuant to the proposed State Office Building Acquisition Act in Senate Bill 135 and House Bill 450.



Significant Issues



The proposed acquisitions in SB 134 represent the recommendations of the Capitol Buildings Planning Commission and is in response to actions requested in House Joint Memorial 43 (Laws 1999).



According to General Services Department staff, this is a major initiative to acquire state-owned office space in Santa Fe to:



The Capitol Buildings Planning commission was created in 1997 with members from the legislative, executive and judicial branches to recommend short-term and long-range solutions to state agency housing requirements in Santa Fe.



FISCAL IMPLICATIONS



SB 134 authorizes up to $75 million in revenue bonds to acquire new office space for state use. This provision in SB 134 is dependent upon HB 450 or SB135 becoming law. SB 135 and HB 450 establish the State Office Building Acquisition Bonding Act.



The General Services Department staff adds the state can provide office space in Santa Fe for state agencies at approximately one-third of the cost of leasing from private entities. The staff from the General Services Department comments the state pays just under $9 million a year to lease privately-owned office space in locations throughout the city of Santa Fe. These lease payments are deposited into the Public Building Repair Fund.



The Property Control Reserve Fund was established in Chapter 58, Laws 1998 as a repository of proceeds from the sale of state-owned properties not suitable for use for state purposes. Senate Joint Resolution 13 (Laws 1998) authorized the sale of the La Villa Rivera Building, Marian Hall, and Cathedral Park. Senate Joint Resolution 16 authorizes the sale of the following five properties: (1) approximately 67 acres located near Cañoncito at Apache Canyon (Santa Fe County); (2) approximately 10 acres located in La Tierra Nueva subdivision (Santa Fe County); (3) approximately 21,300 square fee located at the corner of Third and Lead in Albuquerque (Bernalillo County); (4) approximately one acre located at the Newport industrial park-west in Albuquerque (Bernalillo County); and (5) 5 acres at 1600 East Tilden in Roswell (Chaves County). The proceeds from these sales will be deposited in the Property Control Reserve Fund.



ADMINISTRATIVE IMPLICATIONS



The impact will be included in the Property Control Division as part of its primary mission.



RELATIONSHIP



SB 134 is related to SB 135 and HB 450 (State Office Building Acquisition Bonding Act), House Bill 61 (Property Control Division Operating Expenses) and House Joint Resolution 14 (Sale of the Fort Stanton Facility), and HB 451 (Acquire State Office Buildings).



WJC/njw:gm