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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
municipal economic development; sale; lease
Purpose
Outlines requirements for a city or town to sell or lease municipal land or buildings for economic development activities.
Background
A city or town may sell and convey all or any part of its real or personal property, regardless of whether the property is devoted exclusively to public use. Before a sale can be made, the city or town must publish an invitation for bids in a newspaper of general circulation and by posting notice in three or more public places in the city or town (A.R.S. § 9-402). Real property of a city or town valued at more than $1,500,000 can only be sold if approved by the voters of the city or town at a special election. If the measure is approved, the governing body of a city or town (governing body) may sell the property at public auction to the highest bidder for cash, reserving the right to reject any and all bids (A.R.S. § 9-403).
A city or town may appropriate and spend public monies for economic development activities. Economic development activities include any project, assistance, undertaking, program or study including acquisition, improvement, leasing or conveyance of real or personnel property that the governing body of the city or town determines will assist in the creation or retention of jobs or otherwise improve or enhance the economic welfare of the inhabitants (A.R.S. § 9-500.11).
Cities, towns and other subdivisions of the state cannot give or loan credit or make any donation or grant to any individual, association or corporation or become a subscriber or shareholder in any company or corporation, unless as authorized by statute for the investment of monies in various state funds (Ariz. Const. art. 9 § 7).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the governing body to appoint an experienced, independent appraiser to determine the valuation of any land or building sold or leased by the city or town for economic development activities.
2. 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.
3. Requires the governing body to make the appraisal report or market analysis available to the public on the governing body's website for four consecutive weeks before executing any sale or lease for economic development activities.
4. Requires the governing body to give notice of a proposed sale or lease in a newspaper of general circulation each week for four consecutive weeks specifying all material conditions of the sale or lease, including the valuation of the land or building.
5. Prohibits a governing body from selling or leasing land or buildings for economic development activities without meeting requirements for public notice and valuation determination.
6. Defines economic development activities.
7. Contains a legislative intent clause.
8. Becomes effective on the general effective date.
Prepared by Senate Research
February 7, 2019
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