HOUSE BILL 370
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Thomas E. Swisstack
AN ACT
RELATING TO EMINENT DOMAIN; PROVIDING FOR DISPOSAL OF PROPERTY CONDEMNED PURSUANT TO THE REDEVELOPMENT LAW; PROVIDING FOR JUST COMPENSATION OF CONDEMNED PROPERTY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. 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] of a metropolitan redevelopment plan, 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] of the metropolitan redevelopment plan, 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] of the filing.
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.
E. If property acquired through eminent domain pursuant to the Redevelopment Law has not been substantially improved, it may not be disposed of within five years after condemnation without being offered first to the condemnee at the same price paid to the condemnee by the condemnor or by paying to the condemnee an additional one hundred percent of the value of the original price paid for the property."
Section 2. Section 42A-1-24 NMSA 1978 (being Laws 1981, Chapter 125, Section 20, as amended by Laws 2001, Chapter 10, Section 1 and also by Laws 2001, Chapter 320, Section 1) is amended to read:
"42A-1-24. DETERMINATION OF COMPENSATION AND DAMAGES--INTEREST.--
A. For the purposes of assessing compensation and damages, the right [thereto] to damages shall be deemed to have accrued as of the date the petition is filed, and actual value on that date shall be the measure of compensation for all property taken, and also the basis of damages for property not taken but injuriously affected in cases where such damages are legally recoverable; the amount of the award shall be determined from the evidence and not be limited to any amount alleged in the petition or set forth in the answer.
B. Whenever just compensation shall be ascertained and awarded in [such] the proceeding and established by judgment, the judgment shall include as a part of the just compensation awarded interest at the rate of ten percent a year upon the unpaid portion of the compensation awarded from the date the petition is filed to the date of payment or the date when the proceedings are finally abandoned. The judgment shall not include interest upon the amount represented by funds deposited by the condemnor pursuant to the provisions of Sections 42A-1-19 and 42A-1-22 NMSA 1978.
C. The court shall have the power to direct the payment of delinquent taxes, special assessments and rental or other charges owed out of the amount determined to be just compensation and to make orders as the court deems necessary with respect to encumbrances, liens, rents, insurance and other just and equitable charges.
D. The judgment shall credit against the total amount awarded to the condemnee any payments or deposits paid over to [him] the condemnee made before the date of entry of judgment by the condemnor as compensation for the property taken, including any funds [which] that the condemnee withdrew from the amount deposited by the condemnor pursuant to the provisions of [Section] Sections 42A-1-19 [or] and 42A-1-22 NMSA 1978.
E. If the amount to be credited against the award under Subsection D of this section exceeds the total amount awarded, the court shall require that the condemnee pay the excess to the condemnor.
F. The price paid for similar property by one other than the condemnor may be considered on the question of the value of the property condemned or damaged if there is a finding that there have been no material changes in conditions between the date of the prior sale and the date of taking, that the prior sale was made in a free and open market and that the property is sufficiently similar in the relevant market with respect to situation, usability, improvements and other characteristics.
G. As used in this section, "value" means the fair market value or the price that would be agreed to by a willing and informed seller and buyer, taking into consideration:
(1) the present use of the property and the value for that use;
(2) the value for the highest and best reasonably available use of the property consistent with the metropolitan redevelopment plan pursuant to the Redevelopment Law; and
(3) the machinery, equipment and fixtures forming part of the property to be condemned."
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