HOUSE BILL 654

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

Al Park

AN ACT

RELATING TO LOCAL GOVERNMENTS; PROVIDING FOR DEVELOPMENT AGREEMENTS BETWEEN A COUNTY OR MUNICIPALITY AND A PERSON OWNING OR CONTROLLING PROPERTY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. DEVELOPMENT AGREEMENTS AUTHORIZED--EFFECT.--

          A. As used in this section:

                (1) "development agreement" means an agreement between a county or municipality and a person who owns or controls real property that establishes development standards that will apply to and govern the development and use of the real property during the term of the agreement; and

                (2) "development standards" means requirements for the development of real property. "Development standards" may include:

                     (a) project elements such as permitted uses, residential densities and nonresidential densities and intensities or building sizes;

                     (b) the amount and payment of impact fees imposed or agreed to in accordance with the Development Fees Act, any reimbursement provisions, other financial contributions by the property owner, inspection fees or dedications;

                     (c) mitigation measures and development conditions;

                     (d) design standards such as maximum heights, setbacks, drainage and water quality requirements, landscaping and other development features that may vary from general standards and may be specific to the development;

                     (e) requirements for affordable housing;

                     (f) parks and open space preservation;

                     (g) phases and timelines for the development;

                     (h) review procedures and standards for implementing decisions; and

                     (i) a build-out period before certain standards apply or expansion is allowed.

           B. The execution of a development agreement is a proper exercise of municipal or county police power and contract authority. After a public hearing on the matter conducted by the governing body of the municipality or county or a designee of the governing body, a municipality or county, by ordinance, may enter into a development agreement with a person having ownership or control of real property within its planning and platting jurisdiction or, in the case of a municipality, real property outside its planning and platting jurisdiction if it is part of a proposed annexation or a utility service agreement.

          C. A development agreement may obligate either party to provide services, infrastructure or other facilities.

          D. During the term of a development agreement:

                (1) except as provided in Paragraph (2) of this subsection, the development agreement governs and is not subject to:

                     (a) an amendment, adopted after the effective date of the agreement, to an existing zoning ordinance or other ordinance or rule affecting the development; or

                      (b) a new zoning ordinance or other ordinance or rule affecting the development adopted after the effective date of the agreement;

                (2) amendments to ordinances or rules and new ordinances or rules affecting the development may be enacted if:

                     (a) they are required by a serious threat to public health and safety; or

                     (b) they do not conflict with development standards or other provisions of the development agreement; and

                (3) the agreement is binding and enforceable on the parties and their successors, including a municipality that assumes jurisdiction through incorporation or annexation of the property subject to the development agreement.

          E. Nothing in a development agreement prevents the municipality or county from denying or conditionally approving a subsequent development application on the basis of existing or new ordinances or rules that do not conflict with the ordinances or rules in place at the time of entering into the development agreement.

          F. A development agreement shall be recorded with the county clerk for the county in which the property subject to the agreement is located.

          G. This section shall not affect the validity of a development agreement, annexation agreement or similar agreement in existence upon the effective date of this section.

          H. Before entering into development agreements pursuant to this section, a municipality or county shall, at a public hearing, adopt an ordinance establishing methods and procedures for implementing the provisions of this section.

- 4 -