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SPONSOR: |
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DATE TYPED: |
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HB |
HJR 30 |
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SHORT TITLE: |
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SB |
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ANALYST: |
Geisler |
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REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
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($250.0) |
Non-Recurring |
Property
Control Reserve Fund |
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(Parenthesis ( ) Indicate Revenue Decreases)
Rehoboth-Red
General
Services Department (GSD)
SUMMARY
Synopsis
of Bill
HJR 30 authorizes the transfer of real property
located in
Significant
Issues
The property in question is the old headquarters
for the New Mexico State Police on Route 66 in the Gallup area. Per GSD, a new state police headquarters was
built in 1999 on land purchased from the Rehoboth-Red Mesa Foundation for
$250,000. That negotiation included an
agreement that the Rehoboth-Red Mesa Foundation purchasing the old headquarters
building and other improvements for $255,000.
This purchase has not been completed.
The Property Control Division (PCD) of the
General Services Department (GSD) holds the title to the property. PCD suggests an amendment to allow a property
exchange for land adjacent to the new State Police building of value equal to
the improvements on the land that will revert to the Rehoboth-Red Mesa
Foundation. (see amendments)
The RRMF
provided the following rationale for the return of the property:
1.
The Warranty Deed for the
property from the Christian Reformed Church Board of Home Missions in 1963
contains the provision “that the parcel of land hereby conveyed be used for
STATE POLICE purposes only and that no other business or subleasing be
permitted.” The building is currently
not being utilized for State Police purposes. Other uses by the state are
problematic considering the deed restrictions.
2.
The RRMF has reason to
believe that the understanding among the parties involved in the original
transaction was that the property was deeded to the State Police of New Mexico
in order to construct a temporary State Police building and that the property
would be returned to the board of Home Missions when the site was no longer
needed. Furthermore, the RRMF believes that the financial remuneration for
the sale was nominal. Thus, the return
of the property would allow the State to honor the undocumented understanding
that surrounded this sale.
3.
The Rehoboth-Red Mesa
Foundation, as a New Mexico non-profit, and the owner of the adjacent property
is in a position to develop the property and bring in jobs and revenue to
McKinley County. The deed restrictions
as well as the purposes of the organization require it to develop property in
ways that are beneficial, not harmful to the community.
FISCAL IMPLICATIONS
Per GSD, a State Police field office was constructed on this site in the
mid-1960s. The building was appraised in
1999 at $255,000 as part of a transaction with Red Mesa Foundation that involved
them selling 3+ acres appraised at $250,000 to PCD on which to locate the new
State Police office in Gallup (authorized in Laws 1998, Chapter 7, Section 10,
Subsection E and Chapter 118, Section 14, Subsection O). At the same time, Red Mesa Foundation was to
purchase the unused building on the property subject to HJR 30. The effect of this prior transaction was to
be cost neutral to both parties.
GSD states that HJR 30 results in a gain for Red Mesa Foundation of
$255,000, and a loss to the State of New Mexico of $250,000.
AMENDMENTS
From GSD:
On page 3, line 8 replace “consideration of one
dollar ($1.00)” with “appraised value” or allow equal value land trade.
GGG/yr:njw