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Real Property Disposition

Real Property is defined as the interests, benefits, and rights inherent in the ownership of physical real estate. This includes all land, buildings, site improvements, and other property rights owned by the Board of Education.

This administrative procedure applies to all real property owned by the Board of Education, City of Albuquerque, New Mexico, Municipal School District No. 12, being disposed of by sale, lease, license, exchange, donation, or other means.

All real property disposal transactions shall be initiated by the Property Manager, District Superintendent, or the Board of Education. All real property sale, lease, license, permit, easement, exchange, or other disposal proposals shall be directed to the Property Manager for review and response.

Specific procedures include:

  1. All sales, leases, exchanges of real property owned by the Board of Education, City of Albuquerque, New Mexico, Municipal School District No. 12, shall comply with state statutes and state regulations.
  2. License or permit agreement for a term of two (2) years or more shall be reviewed and approved by the Board of Education.
    1. The Property Manager shall negotiate and recommend license or permit fees, if any, to the Board of Education.
    2. All license or permit agreements should incorporate hold harmless and indemnification language for the protection of the school district.
  3. License or permit agreements for a term of less than two (2) years shall be reviewed and approved by the Property Manager with the concurrence of the Deputy Superintendent for Operations and Instruction.
    1. The Property Manager shall negotiate and approve license or permit fees, if any.
    2. All license or permit agreements should incorporate hold harmless and indemnification language for the protection of the school district.
  4. In exceptional circumstances, lease agreements for a term of less than five (5) years may be negotiated by the Property Manager subject to the review and approval of the Board of Education and the New Mexico State Department of Education
    1. The Property Manager shall negotiate and recommend lease fees to the Board of Education.
    2. All lease agreements should incorporate hold harmless and indemnification language for the protection of the school district.
  5. Leases for a term of five (5) years or more shall be reviewed and approved by the Board of Education, the New Mexico State Department of Education, and the New State Board of Finance.
    1. The Property Manager shall negotiate and recommend lease fees to the Board of Education.
    2. All lease agreements should incorporate hold harmless and indemnification language for the protection of the school district.
  6. All roadway and utility easements shall be reviewed and approved by the Board of Education. The Property Manager shall review and recommend approval of roadway and utility easements subject to the school district’s then current easement application procedure.
  7. All disposals of real property having a current appraised value of more than five thousand dollars ($5,000.00) shall be reviewed and approved by the Board of Education and the New Mexico State Department of Education.
  8. All disposals of real property having a current appraised value of five thousand dollars ($5,000.00) or less shall be reviewed and approved by the Board of Education. In those cases where an individual or business requests such a disposition, sale of the real property shall conform to Board of Education Resolution #8701, Disposal or Small and Uneconomic Property Parcels, dated May 6, 1987.
  9. All disposals of real property having a current appraised value of more than $25,000.00 but less than $100,000.00 or having a lease term of more than five (5) years but less than twenty-five (25) years in duration shall be reviewed and approved by the New Mexico State Department of Education and additionally by the New Mexico State Board of Finance.
  10. The Board of Education may sell, at a private or public sale, exchange, or donate real property to the State of New Mexico, to any of its political subdivisions, or to the federal government if such sale, exchange, or gift is found by the Board of Education to be in the best interests of the public and of the school district subject to the approval of the New Mexico State Department of Education.
  11. The sale of property for nominal consideration (i.e., $1.00 and other consideration) to an individual, business, private enterprise, or not- for-profit organization violates Article IX, Section 14 of the New Mexico State Constitution. However, the property may be leased to not-for-profit organizations for nominal consideration if the school district derives a benefit from allowing the use of the property.
    The lease shall contain a reversion clause for the benefit of the school district. The lessee must obtain adequate insurance coverage on the leased property naming the school district as an additional insured.
  12. The financial consideration received for any real property sale or exchange to an individual, business, private enterprise, or not-for- profit organization must be equal to or higher than the current appraised value of the real property.
  13. The Property Manager shall periodically review the school district’s real property holdings and make recommendations, if necessary, to the Board of Education asking that real property not required for immediate or anticipated future school purposes be declared surplus. Surplus real property will be marketed and disposed of as per the requirements of this administrative procedure.
  14. Surplus real property should be marketed and advertised for sale in a public and competitive basis. Requests for proposals to purchase the subject surplus real property shall be solicited for all proposed sale transactions except those cases where the property is not marketable due to title, topography, or other issues.
    An example is that case where a conflict in title makes the real property unmarketable except to the other claimants to title. In those cases where an exception to the procedure is determined to be prudent, the school administration shall ask for Board of Education review and approval of the proposed disposition.
  15. Prior to advertising surplus real property for sale on a competitive basis, the Board of Education, acting upon the recommendation of the Property Manager, may determine to pre-qualify potential purchasers of the real property. A public and advertised invitation will be forwarded to potential purchasers to submit financial and other information to the school district for its review and evaluation. This initial pre-qualification shall be used by the Board of Education to pre-select and invite specific potential offerors to submit competitive sealed proposals to purchase a surplus real property parcel. Sealed competitive proposals shall respond to the requirements of a specific Request for Proposals document.
  16. The Board of Education may exchange real property for real property subject to New Mexico State Department of Education regulations. Real property exchange transactions are not subject to competitive solicitation procedures.
  17. The requirements of the New Mexico State Procurement Code do not apply to real property disposal transaction.
  18. The Board of Education, City of Albuquerque, New Mexico, Municipal School District No. 12, should not convey all or any interest in real properties subject to general warranty. A typical conveyance shall be by quitclaim deed as per New State Department of Education regulations.
  19. The procedural directive applies to all real property transactions with the exception of those uses authorized by Board of Education Policy K-3, Non-School Use of Buildings and Grounds and governed by APS Procedural Directive, Buildings and Grounds:
    Non-School Use or those street and utility rights of way dedications required by the City of Albuquerque’s subdivision approval ordinance.
  20. All records and documents concerning school district real property transactions shall be maintained by the Property Manager.

Ref.:

NSBA/NEPN Classification: DFA, DN

NSBA EPS Classification: DN

Revised: May 1995
Revised: April 1996
Revised: February 1997
Reviewed: April 1997

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