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

SPONSOR HJC

ORIGINAL DATE

LAST UPDATED

2/10/08

HJR 11/HJCS

SHORT TITLE San Miguel Land Lease

SB

ANALYST Cox

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

REVENUE (dollars in thousands)

Estimated Revenue

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

FY10

$19.4 $0.1 see analysis Recurring

Game

Protection Fund

198

(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Game & Fish Department – GFD

SUMMARY

Synopsis of Bill

The Committee Substitute for House Joint Resolution 11 from the House Judiciary Committee

adds ‘clean-up’ language to the original bill. It deletes “Game and Fish Department" and

replaces with “Game Commission".

A prior amendment, requesting a ‘one time fee’ of twenty five thousand dollars, ($25,000) has

consideration for the granting of a utility easement in San Miguel County, has been ‘stripped

out".

House Joint Resolution 11/HJCS – Page

2

There is again a contemplation that future easement payments might increase over the twenty

five thousand dollar ($25,000) amount.

The intent of the original bill has been preserved in this new committee substitute bill

SIGNIFICANT ISSUES

o

Section 13-6-3 NMSA 1978 requires ratification and approval of any sale, trade or

lease for a period exceeding twenty-five years in duration of real property belonging

to a state agency if the sale, trade or lease is for a consideration of one hundred

thousand dollars ($100,000) or more.

o

The department of game and fish conveys to San Ignacio Joint Venture a

nonexclusive easement for the term of ninety-nine years for the sole and exclusive

purpose of access along and through a non-established existing roadway, including

construction and maintenance of underground utilities within the confines of the

roadway.

o

Such conveyance includes the right to enter upon the real estate hereafter described

within the county of San Miguel to construct, maintain and repair the structures

within the easement and to sub-assign this easement to not more than forty-five

single-family residential lots, provided each sub-assignment is appurtenant only to

each residential lot.

o

The department of game and fish grants access rights to the easement to the lessee

for twenty-five thousand dollars ($25,000) consideration of which five thousand five

hundred thirty-six dollars ten cents ($5,536.10) has already been received and

applied to the sum of the consideration.

o

If San Ignacio Joint Venture or its assignees avail themselves of the right to install

utilities within the easement, additional consideration shall be payable commencing

with the date construction of the utilities begins in an amount set forth in the grant of

easement between the two parties.

o

Because the exact costs associated with the easement cannot be predetermined and

because it is possible that the costs to San Ignacio Joint Venture and the assignees

during the ninety-nine year term of the lease may exceed one hundred thousand

dollars ($100,000) that this lease of an easement comes within the provisions of

Section 13-6-3 NMSA 1978;

It has been determined by the Department of Game and Fish that there will be no significant

impact to wildlife or habitat associated with the easement.

TECHNICAL ISSUES

o

The description of the easement is: "The NW 1/4 of Township 16N, Range 12E,

Section 19, N.M.P.M., San Miguel county, New Mexico and is more specifically an

easement 30 feet in width along the now existing roadway that is approximately

2,525 feet in length as recorded in survey of Homestead entry No. 5665 as filed for

record in the office of the San Miguel county clerk in Plat Book 2, page 193,

as

document 6933.".

PRC/nt