Senate Bill text for SB1160

SENATE BILL 1160

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

John T. L. Grubesic

AN ACT

RELATING TO METROPOLITAN REDEVELOPMENT; AMENDING AND REPEALING SECTIONS OF THE METROPOLITAN REDEVELOPMENT CODE; CLARIFYING "SLUM OR BLIGHTED AREA"; AUGMENTING NOTICE; LIMITING THE EXERCISE OF THE POWER OF EMINENT DOMAIN; REPEALING THE URBAN DEVELOPMENT LAW AND THE COMMUNITY DEVELOPMENT LAW.

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

Section 1. Section 3-60A-1 NMSA 1978 (being Laws 1979, Chapter 391, Section 1) is amended to read:

"3-60A-1. SHORT TITLE.--[This act] Chapter 3, Article 60A NMSA 1978 may be cited as the "Metropolitan Redevelopment Code"."

Section 2. Section 3-60A-4 NMSA 1978 (being Laws 1979, Chapter 391, Section 4, as amended) is amended to read:

"3-60A-4. DEFINITIONS.--As used in the Metropolitan Redevelopment Code:

A. "public body" means a municipality, board, commission, authority, district or [any] other political subdivision or public body of the state;

B. "local governing body" means the city council, [or] city commission [of a city, the] or board of trustees of a [town or village] municipality; the council of an incorporated county; or the board of county commissioners of an H class county;

C. "mayor" means the mayor or the [chairman] chair of the [city commission] local governing body or other officer or body having the duties customarily imposed on the head of a municipality;

D. "municipality" means [any] an incorporated city, town or village, whether incorporated under general act, special act or special charter, an incorporated county or an H class county;

E. "clerk" means the clerk or other official of [the] a municipality who is the chief custodian of the official records of the municipality;

F. "federal government" includes the United States of America or [any] an agency or instrumentality, corporate or otherwise, of the United States;

G. "state" means the state of New Mexico;

H. "slum [area" means an area within the area of operation in which numerous buildings, improvements and structures whether residential or nonresidential, which, by reason of its dilapidation, deterioration, age, obsolescence or inadequate provision for ventilation, light, air, sanitation or open spaces, high density of population, overcrowding or the existence of conditions that endanger life or property by fire or other causes, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime and is detrimental to the public health, safety, morals or welfare;

I. "blighted area" means an area within the area of operation other than a slum area that because of the presence of a substantial number of deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility or usefulness, insanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or lack of adequate housing facilities in the area or obsolete or impractical planning and platting or an area where a significant number of commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors substantially impairs or arrests the sound growth and economic health and well-being of a municipality or locale within a municipality or an area that retards the provisions of housing accommodations or constitutes an economic or social burden and is a menace to the public health, safety, morals or welfare in its present condition and use] or blighted area" means an area within the area of operation that is at least seventy-five percent of the area of operation that substantially impairs or arrests the sound growth and economic health and well-being of a municipality and, as currently used in its present condition, is a menace to public health, safety, morals and welfare because of the existence of three or more of the following conditions:

(1) the area is conducive to ill health;

(2) the area facilitates the transmission of disease;

(3) the area contributes to infant mortality;

(4) the area promotes juvenile delinquency or crime;

(5) a substantial number of residential or nonresidential buildings, improvements and structures are dilapidated, deteriorated, aged or obsolete or have inadequate provisions for ventilation, light, air or sanitation;

(6) a predominance of defective or inadequate street layout;

(7) faulty lot layout in relation to size, adequacy, accessibility or usefulness;

(8) obsolete, impractical or improper subdivision;

(9) insanitary or unsafe conditions;

(10) deterioration of site or other improvements;

(11) overcrowding; or

(12) conditions that endanger life or property by fire or other causes;

[J.] I. "metropolitan redevelopment project" or "project" means an activity, undertaking or series of activities or undertakings designed to eliminate [slums] slum or blighted areas in areas designated as metropolitan redevelopment areas and [that] the activity or undertaking conforms to an approved plan for the area for slum or blighted area clearance and redevelopment and rehabilitation; [and conservation

K.] J. "slum or blighted area clearance and redevelopment" means the use of those powers authorized by the Metropolitan Redevelopment Code [for the purpose of eliminating] to eliminate slum or blighted areas and [undertaking] undertake activities authorized by the Metropolitan Redevelopment Code to rejuvenate or revitalize those areas so that the conditions that caused those areas to be designated slum or blighted areas are eliminated;

[L.] K. "rehabilitation" [or "conservation"] means the restoration and renewal of a slum or blighted area or portion thereof in accordance with [any] an approved plan by use of powers granted by the Metropolitan Redevelopment Code;

[M.] L. "metropolitan redevelopment area" means a slum [area] or [a] blighted area [or a combination thereof] that the local governing body so finds and declares and designates as appropriate for a metropolitan redevelopment project;

[N.] M. "metropolitan redevelopment plan" means a plan, as it exists from time to time, for one or more metropolitan redevelopment areas or for a metropolitan redevelopment project, which plan shall:

(1) seek to eliminate the problems created by a slum [area] or blighted area;

(2) conform to the general plan for the municipality as a whole; and

(3) be sufficient to indicate the proposed activities to be carried out in the area, including [but not limited to] any proposals for land acquisition; proposals for demolition and removal of structures; redevelopment; proposals for improvements and rehabilitation [and conservation]; zoning and planning changes; land uses, maximum densities, building restrictions and requirements; and the plan's relationship to definite local objectives respecting land uses, improved traffic patterns and controls, public transportation, public utilities, recreational and community facilities, housing facilities, commercial activities or enterprises, industrial or manufacturing use and other public improvements;

[O.] N. "real property" includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith and every estate, interest, right and use, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise;

[P.] O. "bonds" means any bonds, including refunding bonds, notes, interim certificates, certification of indebtedness, debentures, metropolitan redevelopment bonds or other securities evidencing an obligation and issued under the provisions of the Metropolitan Redevelopment Code or other obligations;

[Q.] P. "obligee" includes [any] a bondholder, agent or trustee for [any] a bondholder or lessor demising to the municipality property used in connection with a metropolitan redevelopment project or any assignee or assignees of such lessor's interest or any part thereof;

[R.] Q. "person" means [any] an individual, firm, partnership, corporation, company, association, joint stock association or body politic or the state or any political subdivision thereof and shall further include any trustee, receiver, assignee or other person acting in a similar representative capacity;

[S.] R. "area of operation" means the area within the corporate limits of the municipality and the area outside of the corporate limits but within five miles of such limits or otherwise on municipally owned property wherever located, except that it shall not include [any] an area that lies within the territorial boundaries of another municipality unless an ordinance has been adopted by the governing body of the other municipality declaring a need therefor;

[T.] S. "board" or "commission" means a board, commission, department, division, office, body or other unit of the municipality designated by the local governing body to perform functions authorized by the Metropolitan Redevelopment Code as directed by the local governing body; and

[U.] T. "public officer" means any person who is in charge of any department or branch of government of the municipality."

Section 3. Section 3-60A-7 NMSA 1978 (being Laws 1979, Chapter 391, Section 7) is amended to read:

"3-60A-7. FINDING OF NECESSITY BY LOCAL GOVERNMENT.--No municipality shall exercise any of the powers conferred upon municipalities by the Redevelopment Law until after its local governing body [shall have] has adopted a resolution finding that:

A. one or more slum [areas] or blighted areas exist in the municipality; and

B. the rehabilitation, [conservation] slum or blighted area clearance and redevelopment or development, or a combination thereof, [of and in such area or] in those areas is necessary in the interest of the public health, safety, morals or welfare of the residents of the municipality."

Section 4. Section 3-60A-8 NMSA 1978 (being Laws 1979, Chapter 391, Section 8) is amended to read:

"3-60A-8. DESIGNATION OF A METROPOLITAN REDEVELOPMENT AREA.--

A. A municipality shall not prepare a metropolitan redevelopment plan for an area unless the local governing body has, by a resolution adopted by a two-thirds' vote of all members of the local governing body in an open meeting, determined the area to be a slum [area] or [a] blighted area [or a combination thereof and designated] and indicated an intent to designate the area as appropriate for a metropolitan redevelopment project. [which resolution may be adopted only after the governing body shall have caused to be published in a newspaper of general circulation within the area of operation of the municipality a notice which shall contain a general description of the area and the date, time and place where the governing body shall hold a public hearing to consider the resolution and a notice that any interested party may appear and speak to the issue of the adoption of the resolution.

B. Such notice shall be published at least twice, and the last publication shall be not less than twenty days before the hearing. The owner of any real property affected by the resolution shall have the right to file in the district court of the county within which the municipality is located, within twenty days after the adoption of the resolution, an action to set aside the determination made by the governing body of the municipality.

C. A municipality shall not acquire real property for a metropolitan redevelopment project unless the local governing body has approved a metropolitan redevelopment plan relating to the metropolitan redevelopment area in which the real property is located.] Upon adoption of a resolution indicating an intent to form a metropolitan redevelopment area, a local governing body shall set a date no sooner than thirty days and no later than sixty days after the adoption of the resolution for a public hearing regarding formation of the area.

B. The clerk of the local governing body shall provide notice of the resolution and hearing described in Subsection A of this section by:

(1) publishing a summary of the resolution and information about the hearing once each week for two consecutive weeks in a newspaper of general circulation in the municipality or county in which the proposed area is located with the last publication date no less than seven days prior to the hearing. The clerk shall obtain an affidavit of publication from the newspaper for each publication date that shall be placed in the official records of the local governing body and shall be conclusive evidence of the publication of notice;

(2) posting a summary of the resolution and information about the hearing in a prominent and conspicuous location on property located within the proposed metropolitan redevelopment area for fourteen days prior to the hearing; and

(3) providing a written summary of the resolution and information about the hearing by United States postal service certified or registered mail, postage prepaid, to all owners of real property within the proposed metropolitan redevelopment area and to all other persons claiming an interest in property within the proposed area who have filed a written request for a copy of this kind of notice within the six months preceding the adoption of the resolution no later than ten days prior to the hearing. The notice described in this paragraph shall also be promptly mailed to a person requesting it at any time after adoption of the resolution. A clerk who is informed of a transfer of ownership of real property within a proposed metropolitan redevelopment area and who obtains the name and address of the transferee shall mail a copy of the resolution summary and information about the hearing to the transferee as soon as practicable after receiving the transferee's name and address. Notice shall not be held invalid for failure of delivery to an addressee.

C. The notice required by this section shall include:

(1) the date, time and place of the hearing;

(2) information regarding alternative methods for submission of objections or comments;

(3) a statement that the formation of a metropolitan redevelopment area is proposed; and

(4) a map showing the boundaries of the proposed metropolitan redevelopment area."

Section 5. Section 3-60A-9 NMSA 1978 (being Laws 1979, Chapter 391, Section 9) is amended to read:

"3-60A-9. PREPARATION OF A METROPOLITAN REDEVELOPMENT PLAN.--

A. When a municipality has complied with the provisions of the Redevelopment Law concerning public hearing and designation of an area as a metropolitan redevelopment area, it may prepare or cause to be prepared a metropolitan redevelopment plan; however, prior to final consideration of the plan by the local governing body, the plan shall be the subject of at least one public hearing held by the mayor or [his] the mayor's designee or the municipal planning commission, at which time comments from the public as a whole can be gathered and considered by the municipality in its preparation of the final plan. The local governing body may hold a public hearing for purposes of approval of the proposed plan, as provided in Subsection B of this section, only after the hearing required by this subsection.

[B. The local governing body shall hold a public hearing on a metropolitan redevelopment plan or substantial modification of an approved plan after public notice thereof by publication in a newspaper having a general circulation in the area of operation of the municipality. The notice shall describe the time, date, place and purpose of the hearing, shall generally identify the area covered by the plan and shall outline the general scope of the metropolitan redevelopment project under consideration. Prior to the public hearing on this matter, notice of the public hearing shall be mailed by first class mail to the owners of real property in the metropolitan redevelopment area. The mailing shall be to the owner's address as shown on the records of the county treasurer. If the notice by first class mail to the owner is returned undelivered, the municipality shall attempt to discover the owner's most recent address and shall remail the notice by certified mail, return receipt requested, to the address.]

B. The clerk of the local governing body shall provide notice of the metropolitan redevelopment plan and hearing described in Subsection A of this section by:

(1) publishing a summary of the plan and information about the hearing once each week for two consecutive weeks in a newspaper of general circulation in the municipality or county affected by the plan with the last publication date no less than seven days prior to the hearing. The clerk shall obtain an affidavit of publication from the newspaper for each publication date that shall be placed in the official records of the local governing body and shall be conclusive evidence of the publication of notice;

(2) posting a summary of the plan and information about the hearing in a prominent and conspicuous location on property located within the area affected by the plan for fourteen days prior to the hearing; and

(3) providing a written summary of the plan and information about the hearing by United States postal service certified or registered mail, postage prepaid, to all owners of real property within the metropolitan redevelopment area affected by the plan and to all other persons claiming an interest in property within the area who have filed a written request for a copy of this kind of notice within the six months preceding the formation of the metropolitan redevelopment area, no later than ten days prior to the hearing. The notice described in this paragraph shall also be promptly mailed to a person requesting it at any time after adoption of the resolution. A clerk who is informed of a transfer of ownership of real property within a metropolitan redevelopment area and who obtains the name and address of the transferee shall mail a copy of the plan summary and information about the hearing to the transferee as soon as practicable after receiving the transferee's name and address. Notice shall not be held invalid for failure of delivery to an addressee.

C. The notice required by this section shall include:

(1) the date, time and place of the hearing;

(2) information regarding alternative methods for submission of objections or comments;

(3) a statement that a metropolitan redevelopment plan is on file with the clerk of the local governing body and may be reviewed upon request; and

(4) a map showing the boundaries of the metropolitan redevelopment area.

[C.] D. Following the public hearing, the local governing body may approve a metropolitan redevelopment plan if it finds that:

(1) the proposed activities will aid in the elimination or prevention of [slum or blight] a slum or blighted area or the conditions [which] that lead to the development of [slum or blight] a slum or blighted area;

(2) a feasible method is included in the plan to provide individuals and families who occupy residential dwellings in the metropolitan redevelopment area and who may be displaced by the proposed activities with decent, safe and sanitary dwelling accommodations within their means and without undue hardship to such individuals and families;

(3) the plan conforms to the general plan for the municipality as a whole; and

(4) the plan affords [maximum] an opportunity consistent with the needs of the community for the rehabilitation or redevelopment of the area by private enterprise or persons and the objectives of the plan justify the proposed activities as public purposes and needs.

E. A municipality shall not acquire real property for a metropolitan redevelopment project unless the local governing body has approved a metropolitan redevelopment plan relating to the metropolitan redevelopment area in which the real property is located.

[D.] F. A metropolitan redevelopment plan may be modified at any time; however, if the plan is modified after the lease or sale by the municipality of real property in the project area, the modification shall be subject to any rights at law or in equity a lessee or purchaser or [his] the lessee's or purchaser's successors in interest may be entitled to assert. Any proposed modification [which] that will substantially change the plan as previously approved by the local governing body shall be subject to the requirements of this section, including the requirement of a public hearing, before it may be approved."

Section 6. Section 3-60A-10 NMSA 1978 (being Laws 1979, Chapter 391, Section 10) is amended to read:

"3-60A-10. POWERS OF MUNICIPALITY.--Every municipality shall have all the powers necessary or convenient to carry out and effectuate the purposes and provisions of the Metropolitan Redevelopment Code, including but not necessarily limited to the following powers:

A. to undertake and carry out metropolitan redevelopment projects within its area of operation, including clearance and redevelopment, rehabilitation [conservation] and development activities and programs; to make, enter into and execute contracts and other agreements and instruments necessary or convenient to the exercise of its powers under the Redevelopment Law; and to disseminate information regarding [slum clearance, prevention of blight] the clearance or prevention of slum or blighted areas and the metropolitan redevelopment projects and areas;

B. to provide, arrange or contract for the furnishing or repair by any public or private person or agency for services, privileges, works, streets, roads, public utilities, public buildings or other facilities for or in connection with a metropolitan redevelopment project; to, within its area of operation, install, acquire, construct, reconstruct, remodel, rehabilitate, maintain and operate streets, utilities, parks, buildings, playgrounds and public buildings, including but not limited to parking facilities, transportation centers, public safety buildings and other public improvements or facilities or improvements for public purposes, as may be required by the municipality, the state or a political subdivision of the state; to agree to any conditions that it may deem reasonable and appropriate [which] that are attached to federal financial assistance and imposed pursuant to federal law, including conditions relating to the determination of prevailing salaries or wages or compliance with federal and state labor standards, compliance with federal property acquisition policy and the provision of relocation assistance in accordance with federal law in the undertaking or carrying out of a metropolitan redevelopment project; and to include in any contract let in connection with the project provisions to fulfill any of these conditions as it may deem reasonable and appropriate. Provided, however, that all purchases of personal property shall be in accordance with the [Public Purchases Act] Procurement Code;

C. within its area of operation, to inspect any building or property in any metropolitan redevelopment area in order to make surveys, appraisals, soundings or test borings and to obtain an order for this purpose from a court of competent jurisdiction in the event inspection is denied by the property owner or occupant to acquire, by purchase, lease, option, gift, grant, bequest, devise, eminent domain or otherwise, any real property or personal property for its administrative or project purposes, together with any improvements thereon; to hold, improve, clear or prepare for redevelopment any such property; to mortgage, pledge, hypothecate or otherwise encumber or dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance; and to enter into any contracts necessary to effectuate the purposes of the Metropolitan Redevelopment Code;

D. to invest any metropolitan redevelopment project funds held in reserve, sinking funds or other project funds [which] that are not required for immediate disbursement in property or securities in which municipalities may legally invest funds subject to their control; to redeem bonds as have been issued pursuant to the Metropolitan Redevelopment Code at the redemption price established [therein] in the bonds or to purchase the bonds at less than redemption price. All bonds so redeemed or purchased shall be canceled;

E. to borrow or lend money subject to those procedures and limitations as may be provided in the constitution of New Mexico or the Municipal Code and to apply for and accept advances, loans, grants, contributions and any other form of financial assistance from the federal government, the state, the county or other public body or from any sources, public or private, for the purposes of the Metropolitan Redevelopment Code; and to give security as may be required and subject to the provisions and limitations of general law except as may otherwise be provided by the Redevelopment Law and to enter into and carry out contracts in connection therewith. A municipality may include in any contract for financial assistance with the federal government for a metropolitan redevelopment project conditions imposed pursuant to federal law [which] that the municipality may deem reasonable or appropriate and [which] that are not inconsistent with the purposes of the Metropolitan Redevelopment Code;

F. within its area of operation, to make all plans necessary for the carrying out of the purposes of the Metropolitan Redevelopment Code and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify and amend the plans. The plans may include without limitation:

(1) a general plan for redevelopment of the metropolitan area as a whole;

(2) redevelopment plans for specific areas;

(3) plans for programs of voluntary or assisted repair and rehabilitation of buildings and improvements;

(4) plans for the enforcement of state and local laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition or removal of buildings and improvements; and

(5) appraisals, title searches, surveys, studies and other preliminary plans and work necessary to prepare for the undertaking of metropolitan redevelopment projects.

The municipality is authorized to develop, test and report methods and techniques and carry out demonstrations and other activities for the prevention and elimination of [slums and urban blight] slum or blighted areas and to pay for, accept and utilize grants of funds from the federal government for such purposes;

G. to prepare plans for the relocation of families displaced from a metropolitan redevelopment area to the extent essential for acquiring possession of and clearing the area or its parts or permit the carrying out of the metropolitan redevelopment project;

H. to appropriate under existing authority the funds and make expenditures necessary to carry out the purposes of the Metropolitan Redevelopment Code and under existing authority to levy taxes and assessments for such purposes; to close, vacate, plan or replan streets, roads, sidewalks, ways or other places; in accordance with applicable law or ordinances, to plan or replan, zone or rezone any part of the municipality or make exceptions from building regulations; and to enter into agreements with a metropolitan redevelopment agency vested with metropolitan redevelopment project powers, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by such municipality pursuant to any of the powers granted by the Redevelopment Law;

I. within its area of operation, to organize, coordinate and direct the administration of the provisions of the Redevelopment Law as they apply to the municipality in order that the objective of remedying slum [areas and] or blighted areas and preventing the causes of [same] those areas within the municipality may be most effectively promoted and achieved and to establish any new office [or offices] of the municipality or to reorganize existing offices as necessary;

J. to acquire real property, in addition to power elsewhere conferred herein, [which] that is appropriate for the preservation or restoration of historic sites; the beautification of urban land; the [conservation] preservation of open spaces, natural resources and scenic areas; the provision of recreational opportunities; or is to be used for public purposes;

K. to engage in any or all of the following activities as part of a metropolitan redevelopment project:

(1) acquisition, construction, reconstruction or installation of public works, facilities and site or other improvements, including but not limited to neighborhood facilities, senior citizen centers, historic properties, utilities, streets, street lights, water and sewer facilities, including connections for residential users, foundations and platforms for air-rights sites, pedestrian malls and walkways, parks, playgrounds and other recreation facilities, flood and drainage facilities, parking facilities, solid waste disposal facilities and fire protection or health facilities which serve designated areas;

(2) special projects directed to the removal of materials and architectural barriers [which] that restrict the mobility and accessibility of elderly and handicapped persons;

(3) provision of public services in the metropolitan redevelopment area [which] that are not otherwise available in the area, including but not limited to the provisions of public services directed to the employment, economic development, crime prevention, child care, health, drug abuse, welfare or recreation needs of the people who reside in the metropolitan redevelopment area;

(4) payment of the nonfederal share of any federal grant-in-aid program to the municipality [which] that will be a part of a metropolitan redevelopment project;

(5) if federal funds are used in the project, to provide for payment of relocation costs and assistance to individuals, families, businesses, organizations and farm operations displaced as a direct result of a metropolitan redevelopment project in accordance with applicable law governing such payment;

(6) payment of reasonable administrative costs and carrying charges related to the planning and execution of plans and projects;

(7) economic and marketing studies to determine the economic condition of an area and to determine the viability of certain economic ventures proposed for the metropolitan redevelopment area;

(8) issuance of bonds, grants or loans as authorized by the Metropolitan Redevelopment Code in accordance with the requirements of that code; and

(9) grants to nonprofit corporations, local development corporations or entities organized under Section 301 (d) of the federal Small Business Investment Act of 1958 for the purposes of carrying out the provisions of the Metropolitan Redevelopment Code;

L. provided that all payments made by the municipality or metropolitan redevelopment agency under the terms of a contract for reconstruction or rehabilitation of private property shall be made from a special fund created for that purpose and shall not be paid directly to [such] the property owner but shall instead be paid to the contractor by the municipality or agency from such fund upon proper authorization of the property owner and notification that the terms of the contract have been fulfilled. However, all such rehabilitation contracts shall be between the property owner and the contractor after a sealed bidding procedure and award of contract approved by the municipality has taken place;

M. the municipality is empowered in a metropolitan redevelopment project, rehabilitation [or conservation] undertaking or activity to exercise the following powers in one or more metropolitan redevelopment areas to include the elimination and prevention of the development or spread of [slums or blight] slum or blighted areas and may involve slum or blighted area clearance and redevelopment in any such area or rehabilitation [or conservation] in any such area or any combination or part thereof in accordance with a metropolitan redevelopment area plan and for undertakings or activities of a municipality in any metropolitan redevelopment area to eliminate the conditions [which] that caused an area to be designated such an area and may include any or all of the following:

(1) acquisition of real property within the metropolitan redevelopment area pursuant to any powers and for purposes enumerated in the Metropolitan Redevelopment Code;

(2) clearing the land, grading the land and replatting the land in accordance with the metropolitan redevelopment plan; installation, construction or reconstruction of roads, streets, gutters, sidewalks, storm drainage facilities, water lines or water supply installations, sewer lines and sewage disposal installations, steam, gas and electric lines and installations, airport facilities and construction of any other needed public facilities or buildings whether on or off the site if deemed necessary by the local governing body to prepare the land in the metropolitan redevelopment area for residential, commercial, industrial and public use in accordance with the metropolitan redevelopment plan; and

(3) making the land available for development by private enterprise or public agencies, including sale, initial leasing, leasing or retention by the municipality itself, at its fair market value for uses in accordance with the metropolitan redevelopment plan for the area;

N. the municipality is empowered in a metropolitan redevelopment area to undertake slum or blighted area clearance and redevelopment [which] that includes:

(1) acquisition of a slum [area] or [a] blighted area or portion thereof;

(2) demolition and removal of buildings and improvements;

(3) installation, construction, reconstruction, maintenance and operation of streets, utilities, storm drainage facilities, curbs and gutters, parks, playgrounds, single- or multi-family dwelling units, buildings, public buildings, including but not limited to parking facilities, transportation centers, safety buildings and other improvements, necessary for carrying out in the area the provisions of an approved plan for the area; and

(4) making the real property available for development or redevelopment by private enterprise or public agencies, including sale, leasing or retention by the municipality itself, [as] at its fair value for uses in accordance with the metropolitan redevelopment area plan; and

O. the municipality is empowered to engage in rehabilitation [or conservation which] that includes the restoration and renewal of a slum or blighted area or portion thereof in accordance with any approved plan, by:

(1) carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements;

(2) acquisition of real property and demolition or removal of buildings and improvements thereon where necessary to eliminate unhealthful, [unsanitary] insanitary or unsafe conditions, lessen or increase density, eliminate obsolete or other uses detrimental to the public welfare or to otherwise remove or prevent the spread of [blight] slum or blighted areas or deterioration or to provide land for needed public facilities;

(3) installation, construction or reconstruction of streets, utilities, parks, playgrounds and other improvements necessary for carrying out in the area the provisions of the Metropolitan Redevelopment Code;

(4) the disposition of any property acquired in such an area, including sale, leasing or retention by the municipality itself, for uses in accordance with such an approved plan;

(5) acquisition of real property in the area [which] that, under a metropolitan redevelopment plan, is to be repaired or rehabilitated;

(6) repair or rehabilitation of structures within the area;

(7) power to resell repaired or rehabilitated property;

(8) acquisition, without regard to any requirement that the area be a slum [or] and blighted area, of air-rights in an area consisting principally of land on which is located a highway, railway, bridge or subway tracks or tunnel entrance or other similar facilities [which] that have a [blighting] negative influence on the surrounding area and over which air-rights sites are to be developed for the elimination of such [blighting] negative influences; and

(9) making loans or grants or authorizing the use of the proceeds of bonds issued pursuant to the Metropolitan Redevelopment Code for the purpose of repairing, remodeling, modifying or otherwise reconstructing a building [or buildings] located in the metropolitan redevelopment area. Such rehabilitation [or conservation] with use of funds expended by authority of the Metropolitan Redevelopment Code or by metropolitan revenue bonds authorized by that code shall be authorized only after approval by the local governing body and after it has been determined that such expenditure is in accordance with the metropolitan redevelopment plan for that area."

Section 7. Section 3-60A-11 NMSA 1978 (being Laws 1979, Chapter 391, Section 11, as amended) is amended to read:

"3-60A-11. ACQUISITION REQUIREMENT--EMINENT DOMAIN.--

A. Whenever acquisition of a fee simple interest in real property is considered pursuant to a metropolitan redevelopment plan involving a slum or blighted area, prior to the initiation of a condemnation action pursuant to Subsection C of this section, and subject to Subsection B of this section, the following shall apply:

(1) the municipality shall make an offer of just compensation to a landowner to acquire a fee simple interest in real property in an amount of money equaling the appraised value plus an additional amount of money that represents:

(a) an incentive to the landowner to negotiate the acquisition in order to avoid further acquisition costs and the costs of condemnation litigation; and

(b) the value of the municipality's entry onto the real property to conduct appraisals and suitability studies and the resulting interference with the owner's use and possession of the property as provided in Section 42A-1-12 NMSA 1978;

(2) the additional amount required in Paragraph (1) of this subsection shall be ten percent of the appraised value;

(3) if the property owner desires another appraisal before deciding whether or not to accept the municipality's offer of just compensation, the municipality shall pay for, but have no substantive control over, an appraisal conducted by a third appraiser agreed upon by an appraiser representing the municipality and an appraiser representing the property owner. The municipality may establish a reasonable deadline for the delivery of the third appraiser's appraisal. The municipality shall revise its offer to the property owner to include the appraised value determined by the third appraiser unless that value is less than the initial offer;

(4) if the metropolitan redevelopment plan includes provision for private interests in a metropolitan redevelopment project and the property owner rejects the offer of an amount of money equal to the appraised value plus an additional amount as provided in Paragraph (1) of this subsection as just compensation for the acquisition of property, the municipality may offer to the owner a participatory interest in the project equal to the percentage of the appraised value of the owner's property to the total appraised value of all property in the project. As used in this paragraph, "participatory interest" includes all the rights, duties and obligations of the owner of the project, including the right to transfer the interest to a third party.

B. Whenever the acquisition of property pursuant to Subsection A of this section involves real property and improvements that have been owned within the same family for ten or more years and the property and improvements are the owner's principal place of residence:

(1) the additional amount described in Paragraph (2) of Subsection A of this section shall be twenty percent. For the purpose of this subsection, "within the same family" means the transfer of real property from or to a parent, spouse, child, stepchild, grandchild, grandparent, sibling, uncle, aunt, niece, nephew or cousin related by blood, marriage or legal process; or

(2) the owner may decline the offer and the real property shall not be acquired either by negotiation or by condemnation.

C. Subject to Subsection D of this section, a municipality [shall have the right to] may acquire by condemnation any interest in real property, including a fee simple [title thereto, which] interest that it may deem necessary for or in connection with a metropolitan redevelopment project under the Redevelopment Law. Subject to the provisions of this section, a municipality may exercise the power of eminent domain in the manner provided by the Eminent Domain Code or, when found appropriate by the local governing body, the special alternative procedure for condemnation of property as provided by Sections 42-2-1 through 42-2-24 NMSA 1978. Property already devoted to a public use may be acquired in like manner. However, no real property belonging to the state or any political subdivision thereof may be acquired without its consent unless in a manner authorized by law.

D. A municipality authorized to condemn real property pursuant to the Metropolitan Redevelopment Code shall not condemn private property for economic development purposes, except for the eradication of a slum or blighted area after the municipality has examined all reasonable alternatives to condemnation and has determined that condemnation is the action of last resort. The determination to proceed with condemnation shall be made by a two-thirds' vote of all members of the governing body in an open meeting.

E. A court may award a property owner litigation expenses, as that term is defined in the Eminent Domain Code, if the award of just compensation in a condemnation proceeding is greater than the offer of just compensation made pursuant to Paragraphs (1) through (3) of Subsection A of this section or greater than an offer of judgment made by the municipality during the condemnation proceeding."

Section 8. Section 3-60A-12 NMSA 1978 (being Laws 1979, Chapter 391, Section 12) is amended to read:

"3-60A-12. DISPOSAL OF PROPERTY.--

A. A municipality may sell, lease or otherwise transfer real property or any interest [therein] in real property acquired by it in a metropolitan redevelopment area and may enter into contracts with respect [thereto] to the real property for residential, commercial, industrial or other uses or for public use or may retain such property or interest for public use in accordance with the metropolitan redevelopment plan, subject to any covenants, conditions and restrictions, including covenants running with the land and including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, as it may deem to be in the public interest or necessary to carry out the purposes of the metropolitan redevelopment plan. The purchasers or lessees and their successors and assigns shall be obligated to devote the real property only to the uses specified in the metropolitan redevelopment plan for a period of years as set out in the sale or lease agreement and may be obligated to comply with other requirements [which] that the municipality may determine to be in the public interest, including the obligation to begin within a reasonable time any improvements on real property required by the metropolitan redevelopment plan. The real property or interest shall be sold, leased, otherwise transferred or retained at not less than its fair value for uses in accordance with the Redevelopment Law as determined by the governing body of the municipality or by the metropolitan redevelopment agency, if so authorized. In determining the fair value of real property for uses in accordance with the metropolitan redevelopment plan, a municipality shall take into account and give consideration to the uses provided in the plan, the restrictions upon and the covenants, conditions and obligations assumed by the purchaser or lessee or by the municipality retaining the property and the objectives of the plan for the prevention of and recurrence of slum or blighted areas. The municipality in any instrument of conveyance to a private purchaser or lessee may provide that the purchaser or lessee shall be without power to sell, lease or otherwise transfer the real property without the prior written consent of the municipality until [he] the purchaser or lessee has completed the construction of any and all improvements [which he has] that the purchaser or lessee is obligated [himself] to construct [thereon] on the real property. Real property acquired by a municipality [which] that, in accordance with the provisions of the metropolitan redevelopment plan, is to be transferred shall be transferred consistent with the carrying out of the provisions of the plan. The inclusion in any contract or conveyance to a purchaser or lessee of covenants, restrictions or conditions, including the incorporation by reference [therein] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, shall not prevent the filing of the contract or conveyance in the land records of the county in a manner as to afford actual or constructive notice thereof.

B. A municipality may dispose of real property in a metropolitan redevelopment area to private persons only in accordance with the procedures set out in this subsection. The municipality shall, prior to entering into any agreement to convey title or an interest in real property, publish a public notice once each week for at least two consecutive weeks of the date, time and place it will receive proposals for the purchase, lease or rental, for development or redevelopment purposes, of the real property or interest [therein] in the real property it intends to dispose of. The public notice shall contain sufficient information to describe the location of the real property, the type of development sought or land use requirement and the selection criteria the municipality will follow during review of proposals and shall state that details may be obtained at the office designated in the notice. The municipality shall consider all proposals submitted in accordance with the public notice and shall only accept proposals it deems in the public interest and meeting the objectives of the metropolitan redevelopment plan after considering the type of development, redevelopment or use proposed and the financial ability of the persons making [such] the proposals to carry them out.

C. If after following the procedures set out in Subsection B of this section a municipality receives no proposals or determines the ones received are not in accordance with the call for proposals or do not meet the objectives of the Metropolitan Redevelopment Code, the municipality may reject any proposals received and then dispose of [such] the real property through reasonable negotiating procedures; provided, however, that negotiated sales, leases or transfers must be reported to the local governing body and approved by that body before [such] the sale, lease or transfer may take effect.

D. A municipality may operate and maintain real property acquired in a metropolitan redevelopment area pending the disposition of the property for development or redevelopment without regard to the provisions of Subsection A of this section for any uses and purposes deemed desirable even though not in conformity with the Redevelopment Law."

Section 9. Section 3-60A-15 NMSA 1978 (being Laws 1979, Chapter 391, Section 15) is amended to read:

"3-60A-15. EXERCISE OF POWERS IN CARRYING OUT PROJECTS.--

A. The local governing body may directly exercise its metropolitan redevelopment project powers or it may, by ordinance if it determines such action to be in the public interest, elect to delegate the exercise of such powers to the metropolitan redevelopment agency created pursuant to the Redevelopment Law. If the local governing body so determines, the agency shall be vested with all of the powers in the same manner as though all the powers were conferred on the agency or authority instead of the municipality.

B. As used in this section, the term "redevelopment project powers" includes any rights, powers, functions and duties of a municipality authorized by the Redevelopment Law except the following, which are reserved [to] for the local governing body to have the power to:

(1) declare an area to be a slum or [a] blighted area [or combination thereof] and to designate the area as appropriate for a redevelopment project;

(2) approve or amend redevelopment plans;

(3) approve a general plan for the municipality as a whole;

(4) make findings of necessity prior to preparation of a metropolitan redevelopment plan as provided in the Redevelopment Law and the findings and determinations required prior to approval of a metropolitan redevelopment plan or project as provided in the Redevelopment Law;

(5) issue general obligation bonds and revenue bonds authorized in the Municipal Code;

(6) approve loans or grants;

(7) approve leases of more than one year's duration;

(8) issue municipal redevelopment bonds;

(9) appropriate funds [to] and levy taxes and assessments; and

(10) exercise the power of eminent domain."

Section 10. REPEAL.--Sections 3-46-1 through 3-46-45, 3-60-1 through 3-60-37 and 3-60A-6 NMSA 1978 (being Laws 1965, Chapter 300, Section 14-47-1, Laws 1971, Chapter 200, Section 2, Laws 1969, Chapter 221, Sections 1 through 20, Laws 1971, Chapter 200, Sections 5 through 7, Laws 1965, Chapter 300, Sections 14-47-3 through 14-47-9, Laws 1969, Chapter 279, Section 1, Laws 1965, Chapter 300, Sections 14-47-10 through 14-47-19, Laws 1971, Chapter 200, Section 22, Laws 1975, Chapter 333, Section 2, Laws 1975, Chapter 341, Sections 1 through 37 and Laws 1979, Chapter 391, Section 6, as amended) are repealed.

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