HOUSE BILL 110
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
James Roger Madalena
AN ACT
RELATING TO PROPERTY; AMENDING THE METROPOLITAN REDEVELOPMENT CODE TO ALLOW THE LIMITED USE OF EMINENT DOMAIN TO ACQUIRE VACANT PROPERTY TO CORRECT OBSOLETE OR IMPRACTICAL PLANNING AND PLATTING OF A SUBDIVISION; IMPOSING LIMITATIONS ON THE USE OF EMINENT DOMAIN FOR THE PURPOSES OF A REDEVELOPMENT PLAN.
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. A new section of the Metropolitan Redevelopment Code is enacted to read:
"[NEW MATERIAL] USE OF EMINENT DOMAIN IN BLIGHTED AREAS--LIMITATIONS.--
A. Notwithstanding the provisions of Sections 3-60A-3 and 3-60A-10 NMSA 1978 to the contrary, a municipality may acquire any interest in real property, including fee simple title to the property, in a blighted area by eminent domain if:
(1) the property is located within the boundaries of the municipality on or before July 1, 2011;
(2) the municipality has a population greater than seventy-five thousand according to the most recent federal decennial census;
(3) more than ten thousand vacant or unimproved subdivision lots are located within the municipal boundaries;
(4) the property to be condemned is part of a subdivision platted prior to 1973;
(5) the property to be condemned does not include existing homes, businesses or other habitable structures;
(6) condemnation is necessary to correct obsolete or impractical planning and platting of the subdivision within which the property is located; (7) the property is located in an area that is part of a metropolitan redevelopment plan adopted by the municipality pursuant to the Metropolitan Redevelopment Code;
(8) the municipality, to the greatest feasible extent, affords maximum opportunity for the rehabilitation or redevelopment of the metropolitan redevelopment areas by private enterprise pursuant to the provisions of Section 3-60A-6 NMSA 1978;
(9) in accordance with the provisions of Sections 42A-1-5 and 42A-1-16 NMSA 1978, a condemnee is provided sixty days after written notice by the condemnor of its intent to file a condemnation action in district court to give written notice to the condemnor requesting an appraisal to determine the amount that would constitute just compensation for the taking of the condemnee's property; and
(10) any final judgment of condemnation pursuant to the provisions of this section awarding an amount higher than the appraised value tendered by the municipality or the private enterprise on behalf of the municipality is required to result in an award to the condemnee of all the condemnee's litigation expenses, as that term is used in the Eminent Domain Code.
B. If a municipality is authorized to acquire real property by condemnation pursuant to Subsection A of this section, but the process of redevelopment results in the conditions of Paragraph (3) of Subsection A of this section no longer being met, that municipality may continue to use the power of eminent domain in accordance with the provisions of this section if all other conditions imposed by Subsection A of this section are met.
C. If the metropolitan redevelopment plan includes provisions for private interests in a metropolitan redevelopment project and the property owner rejects the municipality's offer of an amount of money equal to the appraised value of the owner's property as just compensation for acquisition of the 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 in the project. As used in this subsection, "participatory interest" includes all the rights, duties, obligations and risks of the owner of the project, including the right to transfer the interest to a third party. The metropolitan redevelopment plan shall set forth the specific terms and conditions of any included participatory interest rights.
D. After June 30, 2031, a municipality shall not use the provisions of this section to acquire any interest in real property by eminent domain; provided that a metropolitan redevelopment plan action begun before July 1, 2031 pursuant to the provisions of this section but not yet completed may be completed using the powers granted by the provisions of this section."
SECTION 3. Section 42A-1-5 NMSA 1978 (being Laws 1980, Chapter 20, Section 5) is amended to read:
"42A-1-5. APPRAISAL--OFFER.--
A. If the parties are unable to negotiate a settlement, the condemnee may, within twenty-five days after written notice by the condemnor of its intent to file a condemnation action in district court, or within sixty days in the case of a municipality that files a condemnation notice pursuant to the Metropolitan Redevelopment Code, give written notice to the condemnor requesting an appraisal to determine the amount that would constitute just compensation for the taking of the condemnee's property and obtained from:
(1) one appraiser appointed by the condemnor;
(2) one appraiser appointed by the condemnee; and
(3) one appraiser jointly appointed by the appraisers for the condemnor and the condemnee.
B. The condemnee and condemnor shall appoint their respective appraisers within fifteen days after notice has been given by the condemnee to the condemnor pursuant to the provisions of Subsection A of this section, and the third appraiser shall be jointly appointed within fifteen days thereafter.
C. The appraisals shall be in writing and signed by the appraisers. The appraisers shall deliver copies to each party personally or by registered mail or certified mail, return receipt requested.
D. The fees and expenses of the appraisers shall be paid by the appointing parties; provided, however, that the condemnee and condemnor shall share equally in paying the fees and expenses of the jointly appointed appraiser.
E. After receiving a copy of the appraisals provided for pursuant to this section, the condemnor may establish an amount [which] that it believes to be just compensation and may submit to the condemnee an offer to acquire the property for the full amount so established. If the condemnor tenders an offer pursuant to this section, the amount offered for the property shall not be less than the amount of compensation shown by the final common appraisal of the three appraisers, or, if all three appraisers do not agree, the offer shall not be less than the appraisal prepared by the condemnor's appraiser. The condemnee must reject or accept the offer made by the condemnor pursuant to this section within fifteen days after the offer is tendered."
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