37-314

37-314. Conveyance of title to trust lands
suitable for conservation purposes

A. The commissioner may sell or otherwise transfer title to trust lands suitable
for conservation purposes when it is in the best interest of the trust.

B. A sale of trust land under this section shall be:

1. At public auction.

2. Based on one independent appraisal and one independent review appraisal, both of
which may be reviewed by the department, of the fair market value of the trust land that
is being offered. The appraisal shall not take into consideration the conditions or
covenants which may be imposed under subsection C of this section in order to reduce the
appraised value.

3. Consistent with the requirements of the Constitution of Arizona, applicable
provisions of this title and rules adopted by the commissioner.

C. The terms of the sale may include the condition that the conveyance of title is
subject to a covenant that runs with the land and that the land shall be used only for
purposes that are consistent with the conservation of specifically named resources or
public values.

D. The commissioner shall include the applicable conditions under subsection C of
this section in any public notices relating to the sale under this section.

E. If the trust land is sold subject to a lease and the lease is canceled or
modified due to a sale of land under this section and the purchaser and the existing
lessee cannot agree on compensation, the commissioner shall determine the amount of
reasonable compensation for damages sustained by the existing lessee after considering
the following factors:

1. The time remaining in the term of the lease at the time that the lease is
canceled or modified.

2. The actual use of the leased land.

3. The rentals paid during the term of the lease.

4. The actual amount of economic damage to the production unit caused by the
cancellation or modification. In determining the amount of economic damage to the
production unit, the commissioner shall not limit the scope of review to only that
portion of the lands involved in the reclassification but shall take into consideration
the impact of the loss of these lands on the overall production unit, including
situations in which other leased or private lands are necessary and have been leased by
the existing lessee for operation as a production unit.

5. Other factors that the commissioner or the existing lessee determines to be
relevant.

F. The purchaser shall make payments for reimbursement or compensation, or both, as
established in this section to the existing lessee at the time of sale. This section
does not prevent the payment for reimbursement or compensation, or both, from being made
in installments if the existing lessee and purchaser agree to installment payments.

G. If trust lands that are conveyed pursuant to this section are subject to a
current planning permit under article 5.1 of this chapter, the transferee shall reimburse
the holder of the permit as provided by section 37-338.

H. At the time of application the applicant shall post a bond pursuant to section
37-107. The bond is forfeit to this state if no bidder bids at the auction for the sale
of the land.