ARIZONA HOUSE OF REPRESENTATIVES

HB 2005: municipal economic development; sale; lease

PRIME SPONSOR: Representative Leach, LD 11

BILL STATUS: Local & International Affairs

Abstract

Relating to the sale or lease of municipal land for economic development activities. 

Provisions

1. Permits the governing body of a city or town to sell or lease land or buildings owned or under its control for economic development activities.  (Sec. 1)

2. Prohibits the term of a lease for economic development activities from exceeding 25 years. (Sec. 1)

3. Requires a city or town to:

a. Appoint an experienced appraiser to determine the valuation of any sold or leased land or building valued over $50,000.

i. Stipulates that the appointment of an appraiser is not required if the land or building is estimated and justified by a market analysis to be valued at less than $50,000.

b. Sell or lease land only at a public auction to the highest responsible bidder.

i. Stipulates that the bid must be at least 90% of the valuation, as determined by the appraiser or market analysis and subject to any other terms and conditions prescribed by the municipality.

c. Give notice of a proposed sale or lease of land by publication at least once a week for four consecutive weeks in a newspaper of general circulation within the city or town.

i. States that the notice must state all material conditions of the proposed sale or lease and the day on which the auction will be held.

ii. Stipulates that the public auction must be held no more than 30 days after notice is published. (Sec. 1)

4. Stipulates that a city or town does not have to sell or lease the land at a public auction or provide notice to leases that grant a leasehold interest to a person or entity that:

a. Owned, leased or otherwise possessed the property immediately before purchase or acquisition by the city or town; or

b. Lease property that would expire within four years after the purchase or acquisition by the city or town. (Sec. 1)

5. Requires a lease provided back to the previous owner without an auction or notice to be 90%-100% of the appraised lease valuation or market analysis.  (Sec. 1)

6. Defines economic development activities. (Sec. 1)

7. Includes purpose and applicability statements. (Sec. 2)

Current Law

The governing body of a city or town may appropriate and spend monies in connection with economic development activities.  Economic Development Activities include any project, assistance program including acquisition, improvement, leasing or conveyance of real or personal property that the city or town has found will assist in the creation or retention of jobs or will otherwise improve or enhance the economic welfare of the inhabitants (A.R.S. § 9-500.11).

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Fifty-third Legislature                  HB 2005

Second Regular Session                               Version 1: Local & International Affairs

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