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Arizona Revised Statutes Title 37. Public Lands § 37-314. Conveyance of title to trust lands suitable for conservation purposes

Current as of January 01, 2025 | Updated by Findlaw Staff

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,  1 the transferee shall reimburse the holder of the permit as provided by § 37-338.

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

1 Section 37-331 et seq.
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Cite this article: FindLaw.com - Arizona Revised Statutes Title 37. Public Lands § 37-314. Conveyance of title to trust lands suitable for conservation purposes - last updated January 01, 2025 | https://codes.findlaw.com/az/title-37-public-lands/az-rev-st-sect-37-314/

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