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AN ACT

RELATING TO LAND USE BY THE DEPARTMENT OF TRANSPORTATION;

PROVIDING AUTHORITY AND CONDITIONS FOR DISPOSITION AND

DEVELOPMENT OF DEPARTMENT LAND IN CERTAIN SITUATIONS; MAKING

AN APPROPRIATION; DECLARING AN EMERGENCY.

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

Section 1. TEMPORARY PROVISION--DEPARTMENT OF

TRANSPORTATION--AUTHORIZING CONTINUED DEVELOPMENT OF REAL

PROPERTY AT THE GENERAL OFFICE LOCATION--CONDITIONS.--

A. As used in this section:

(1) "city" means the city of Santa Fe;

(2) "contract" means the written, fully

executed lease and acquisition agreement or agreements to

complete the project entered into between the department and

the developer as a result of the request for proposals;

(3) "department" means the department of

transportation or the state transportation commission as

appropriate;

(4) "department facilities" means the

building or buildings designed and constructed to serve as the

general office headquarters of the department in the city,

including parking and related facilities and a multi-modal

facility developed to accommodate train, bus and other forms

of transportation as determined by the department;

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(5) "developer" means the person or

combination of persons entering into the contract with the

department as a result of the request for proposals;

(6) "offeror" means a person or combination

of persons submitting a proposal in response to the request

for proposals;

(7) "project" means the lease of a portion

of the site and the financing, design, development,

construction and operation of the transit oriented

development, and the acquisition of financing, design,

construction and delivery to the department of the department

facilities on the remainder of the site;

(8) "request for proposals" means the

document and any attachments, documents incorporated by

reference or amendments used for soliciting proposals;

(9) "site" means the real estate located at

1120 Cerrillos road, Santa Fe, New Mexico, consisting of

twenty-five and four-tenths acres and currently serving as the

department's general office headquarters, including parking

and related facilities; and

(10) "transit oriented development" means

the financing, design, development and construction of a high-

density, mixed-use, pedestrian-friendly development adjacent

to a transportation hub on the leased portion of the site.

B. The department may enter into a contract for

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the project at the site. The acquisition of the department

facilities shall be exempt from the provisions of the

Procurement Code, but the request for proposals process shall

conform to the extent practicable with the competitive sealed

proposal process in the Procurement Code.

C. The project need not comply but shall be

generally compatible with the city's zoning and land use

policies, including affordable housing and architectural

standards, if any. To the extent the project obtains water or

other services from the city, the terms and conditions of the

use of those services shall be no more stringent than the

city's current laws, rules and policies and shall be pursuant

to a negotiated agreement between the relevant parties. The

developer shall submit its plans for comment by the city,

which shall communicate its recommendations and comments in

writing to the department and developer within thirty days of

receiving the plans. The department and developer shall take

no action on the project in reliance on those plans until they

have received the city's recommendations and comments or until

the thirty-day comment period has expired, whichever comes

first; provided that the city's approval is not required under

this section, and this section does not delegate to the city

authority that it does not otherwise have.

D. The department facilities shall cost no more

than ninety million dollars ($90,000,000). In the financing

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plan for the lease of a portion of the site for the transit

oriented development, the leasehold value for the initial term

of the lease shall be the cost of the department facilities

and related financing costs. In lieu of lease payments to the

department, the developer shall finance, design, construct and

deliver the department facilities at no additional cost to the

department. The initial term of the lease shall be the period

of time that it would take for monthly, fair market value

lease payments to equal the cost of the department facilities,

including financing costs, if the developer was actually

making these payments, subject to provisions for renewal or

extension of the lease as determined by the department.

E. Beginning with a renewal or extension of the

lease immediately following the initial term of the lease, as

provided for in Subsection D of this section, the lease shall

include provisions for the developer to pay to the department

fair market value lease payments in cash or cash equivalent,

at intervals determined by the department, for use and

operation of the transit oriented development. Upon receipt,

the lease payments shall be deposited by the department into

the state road fund.

F. Upon selection of a developer, the department

shall report the selection to the legislative finance

committee and shall report the status of the project to the

committee once a month until the project is complete.

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Section 2. TEMPORARY PROVISION--DEPARTMENT OF

TRANSPORTATION--AUTHORIZING CONTINUED DEVELOPMENT OF REAL

PROPERTY AT THE DISTRICT 5 LOCATION--CONDITIONS.--

A. As used in this section:

(1) "contract" means the written, fully

executed contract and agreement or agreements to complete the

project entered into between the department and the developer

as a result of the request for proposals;

(2) "county" means the county of Santa Fe;

(3) "department" means the department of

transportation or the state transportation commission as

appropriate;

(4) "department facilities" means new

district 5 facilities, a central materials laboratory, a

vehicle maintenance facility, a vehicle fueling facility, a

vehicle storage facility, a vehicle car wash, a signal

laboratory, a sign shop and related facilities at the new

district 5 site;

(5) "developer" means the person or

combination of persons entering into the contract with the

department for the project as a result of the request for

proposals;

(6) "existing district 5 site" means the

district 5 facilities and operations currently located at 7315

Cerrillos road, Santa Fe, New Mexico;

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(7) "new district 5 site" means the real

estate to be obtained within ten miles of the boundaries of

the city of Santa Fe as of July 1, 2006, and the department

facilities located on that real estate;

(8) "offeror" means a person or combination

of persons submitting a proposal in response to the request

for proposals;

(9) "project" means the financing, design,

development and construction on the new district 5 site and

commercial development, or a mix of commercial and residential

development, on the existing district 5 site to fund the new

district 5 site and develop the existing district 5 site to

its highest and best use; and

(10) "request for proposals" means the

document and any attachments, documents incorporated by

reference or amendments used for soliciting proposals for the

project.

B. The department may enter into a contract for

the project at the existing and new district 5 sites. The

developer shall be selected pursuant to the Procurement Code.

C. The project need not comply but shall be

generally compatible with the county's zoning and land use

policies, if any. To the extent the project obtains water or

other services from the county or the city of Santa Fe, the

terms and conditions of the use of those services shall be no

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more stringent than the county's or the city’s current laws,

rules and policies and shall be pursuant to a negotiated

agreement between the relevant parties. The developer shall

submit its plans for comment by the county, which shall

communicate its recommendations and comments in writing to the

department and developer within thirty days of receiving the

plans. The department and developer shall take no action on

the project in reliance on those plans until they have

received the county's recommendations and comments or until

the thirty-day comment period has expired, whichever comes

first; provided that the county's approval is not required

under this section, and this section does not delegate to the

county authority that it does not otherwise have.

D. The department shall require a financing plan

for the project. The financing plan shall state the fair

market value of the existing district 5 site. The financing

plan shall provide that the consideration for the new district

5 site shall be the value of the use, by sale, exchange or

lease, of the existing district 5 site by the developer;

provided that the fair market value of the use of the existing

district 5 site, as capitalized over an appropriate and

financially sound period of time, shall not exceed the fair

market value of the new district 5 site. This period of time,

if the use is by lease, shall be the initial term of the

lease, subject to renewal or extension as determined by the

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department. If that lease is renewed or extended, the

developer shall pay to the department fair market value lease

payments in cash or cash equivalent, at intervals determined

by the department, for use and operation of the existing

district 5 site. Upon receipt, the lease payments shall be

deposited by the department into the state road fund.

E. Once a developer has been selected, the

department shall report the selection and the project

financing plan to the legislative finance committee and then

shall report the status of the project to the committee once a

month until the project is complete.

Section 3. Section 67-3-12 NMSA 1978 (being Laws 1929,

Chapter 110, Section 1, as amended) is amended to read:

"67-3-12. POWERS AND DUTIES.--In addition to the powers

now conferred upon it by law, the state transportation

commission:

A. may declare abandoned and close to public

traffic all grade crossings of railroads by state highways in

cases where grade separations or other adequate crossings are

substituted therefor or where such grade crossings become

unnecessary to the public convenience by reason of changes in

highway locations;

B. may offer and, upon compliance with the

conditions of such offer, pay rewards for information leading

to the arrest and conviction of offenders in cases of theft,

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defacement or destruction of markers or highway signs, lights

or other warning devices placed upon or along highways of this

state under the supervision of the state transportation

commission and for information leading to the arrest and

conviction of offenders or for the return of property in case

of theft or unlawful damaging of property under the control of

the commission. All such rewards when paid shall be paid from

the state road fund upon voucher drawn by the secretary or

other authorized officer or agent of the department;

C. shall prescribe by rule the conditions under

which pipelines, telephone, telegraph and electric

transmission lines and ditches may be placed along, across,

over or under public highways in this state and shall forcibly

remove or cause to be removed pipelines, telephone, telegraph

or electric transmission lines or ditches that may be placed

along, across, over or under such public highways in violation

of such rules and regulations;

D. shall employ an attorney to assist and advise

the state transportation commission and the department in the

discharge of their duties and to appear and represent the

interests of the commission or department in any case before

any court or tribunal in which the official duties, powers,

rights or privileges of the commission or department may be

involved or affected and to pay that attorney the reasonable

value of the attorney's services out of the state road fund;

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E. shall bring and maintain in the name of the

state actions and proceedings deemed necessary by the state

transportation commission for the condemnation of rights of

way for public highways or for the removal or condemnation of

buildings or other improvements that encroach in whole or part

upon the rights of way of public highways or for the

condemnation of gravel pits or other deposits of materials or

supplies suitable for the construction of public highways.

The attorney general of New Mexico shall appear in and

prosecute all such cases on behalf of the state upon request

of the state transportation commission. All such proceedings

shall be conducted in the same manner as other cases for the

condemnation of real property. The damages assessed in

proceedings brought under the provisions of this section shall

be paid out of the state road fund from money furnished for

that purpose by cooperative agreement between the state,

federal government and the county within which the condemned

property is situate or any such governmental bodies or out of

money furnished for the construction of the highway in

connection with which the condemnation is had, by the county

in which the condemned property is situate; provided, however,

that if no such money is available, the damages shall be

advanced on behalf of said counties out of their money in the

state road fund and the state treasurer shall thereafter

reimburse the state road fund for the money advanced out of

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the next installment of money from motor vehicle license fees

accruing to the road fund of the county for which such funds

were so advanced;

F. shall designate in its discretion one of its

employees as acting secretary to act at all times when the

secretary is absent from the state capital. The acting

secretary, when designated, has the right and is hereby given

authority at all times when the secretary is absent from the

state capital to sign all federal project statements, federal

project agreements and federal vouchers with the same force

and effect as if signed by the secretary in person, and the

certificate of the acting secretary attached to any federal

project statement, federal project agreement or federal

voucher to the effect that the secretary was absent from the

state capital at the time that the same was so signed by the

acting secretary shall be conclusive evidence of the truth of

such fact. The acting secretary may also be vested by the

state transportation commission with power and authority to

act for the secretary in such other matters as the state

transportation commission may determine;

G. subject to the provisions of Subsection H of

this section, may conduct, permit or authorize commercial

enterprises or activities on department- or commission-owned

land or land leased to or from the department for the purpose

of providing goods and services to the users of the property

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or facilities on the land, including commercial enterprises or

activities, other than commercial enterprises or activities on

a controlled-access facility conducted, permitted or

authorized pursuant to Section 67-11-9 NMSA 1978. In

furtherance of these commercial enterprises or activities, the

commission may:

(1) authorize the lease of department- or

commission-owned land as it deems necessary, in which case

consideration for the lease shall be payments in cash or cash

equivalent that shall be deposited into the state road fund;

or

(2) authorize the sale or exchange or lease

with in-lieu value consideration of department- or commission-

owned land; provided that the sale or exchange or lease with

in-lieu value shall be subject to the ratification and

approval by joint resolution of the state legislature prior to

the sale or exchange or lease with in-lieu value becoming

effective; and

H. for the purposes of Subsection G of this

section shall:

(1) adopt rules necessary to carry out the

provisions of Subsection G of this section;

(2) prior to initiating any action to

conduct, permit or authorize commercial enterprises or

activities, adopt a rule providing a procedure to involve

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residents of the municipality or county in which the

commercial enterprises or activities are proposed to occur in

the department's planning and decision-making process for the

sole purpose of advising the commission and department on the

feasibility and suitability of the proposed commercial

enterprises or activities;

(3) comply with the Procurement Code in the

acquisition process whenever commercial enterprises or

activities result in the commission or department acquiring

construction, services or tangible personal property, as those

terms are defined in the Procurement Code;

(4) if the commercial enterprises or

activities are to be developed or operated by a private

entity, direct that private entity to:

(a) create its plans to be not

necessarily in compliance but generally compatible with local

zoning and land use policies, including affordable housing and

historic and architectural standards, if any, and, to the

extent the private entity will obtain water or other services

from a local authority, negotiate an agreement between

relevant parties for those services, the terms and conditions

of which shall be no more stringent than the local authority's

then current laws, rules and policies; and

(b) submit its plans to the local

zoning and land use authority for comment. The local

authority shall communicate its recommendations and comments

in writing to the department and private entity within thirty

days of receiving the plans. The department, commission and

private entity shall take no action on the project in reliance

on those plans until they have received the local authority's

recommendations and comments or until the thirty-day comment

period has expired, whichever comes first; provided that the

local authority's approval is not required under this section,

and this section does not delegate to the local authority

power that it does not otherwise have; and

(5) not use the power of eminent domain to

acquire land to be developed or operated by a private entity."

Section 4. EFFECTIVE DATE.--The effective date of the

provisions of Section 3 of this act is July 1, 2006.

Section 5. EMERGENCY.--It is necessary for the public

peace, health and safety that this act take effect

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