Albuquerque Public Schools
PD23 Real Property/Land 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, water rights and other property rights owned by the Board of Education.
This administrative procedure applies to all real property owned by the Board of Education of the Albuquerque Municipal School District No. 12, Counties of Bernalillo and Sandoval, New Mexico (“Board of Education”), being disposed of by sale, lease, license, exchange, donation, or other means.
All real property disposal transactions shall be initiated by the Real Estate director, district superintendent, or the Board of Education. All real property sale, lease, license, permit, easement, exchange, or other dispositions shall be directed to the Real Estate director for review and response.
Specific Procedures for Leases, Licenses and Permits:
I. All sales, leases, exchanges, and other agreements dealing with the disposition of real property owned by the Board of Education shall comply with state statutes and state regulations.
II. License or permit agreements for a term of less than two (2) years shall be reviewed and approved by the Real Estate director with the concurrence of the chief operations officer.
A. The Real Estate director shall negotiate and approve license or permit fees, if any.
B. All license or permit agreements should incorporate hold harmless and indemnification language for the protection of the school district.
C. It is permissible to secure the temporary use of real property owned by the district for use by others by license or permit. Generally, license or permits are short term and are revocable by the Owner.
III. License or permit agreement for a term of two (2) years or more shall be reviewed and approved by the Board of Education.
A. The Real Estate director shall negotiate and recommend license or permit fees, if any, to the Board of Education.
B. All license or permit agreements should incorporate hold harmless and indemnification language for the protection of the school district.
IV. Lease agreements for a term of five (5) years or consideration of more than five thousand dollars ($5,000) but less than twenty-five thousand dollars ($25,000) may be negotiated by the Real Estate director subject to the review and approval of the Board of Education and the New Mexico Public Education Department.
A. The Real Estate director shall negotiate and recommend lease fees to the Board of Education.
B. All lease agreements should incorporate hold harmless and indemnification language for the protection of the school district.
V. Leases for a term of five (5) years or more or the consideration of more than twenty-five thousand dollars ($25,000) shall be reviewed and approved by the Board of Education and the State Board of Finance.
A. The Real Estate director shall negotiate and recommend lease fees to the Board of Education.
B. All lease agreements should incorporate hold harmless and indemnification language for the protection of the school district.
C. Leases to state or locally chartered schools are exempt from New Mexico Board of Finance approval.
Specific Procedures for Sales, Exchanges, and Donations:
VI. All roadway and utility easements shall be reviewed and approved by the Board of Education. The Real Estate director shall review and recommend approval of roadway and utility easements.
VII. All dispositions of real property having a current appraised value of less than five thousand dollars ($5,000.00) shall be reviewed and approved by the Board of Education.
VIII. All dispositions of real property having a current appraised value of five thousand dollars ($5,000.00) but less than twenty-five thousand dollars ($25,000.00) shall be reviewed and approved by the Board of Education and New Mexico Public Education Department.
IX. All dispositions of real property having a current appraised value of more than twenty-five thousand dollars ($25,000.00) but less than one-hundred thousand dollars ($100,000.00) or having a lease term of but less than twenty-five (25) years in duration shall be reviewed and approved by the New Mexico State Board of Finance, unless leasing to a locally chartered or state-chartered charter school.
X. 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 Public Education Department, or the New Mexico State Board of Finance if such property has a current appraised value of more than twenty-five thousand dollars ($25,000.00) but less than one-hundred thousand dollars ($100,000.00).
XI. 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.
XII. 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.
XIII. The Real Estate director 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.
XIV. 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.
XV. Prior to advertising surplus real property for sale on a competitive basis, the Board of Education, acting upon the recommendation of the Real Estate director, 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.
XVI. 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.
XVII. The requirements of the New Mexico State Procurement Code do not apply to real property disposal transaction.
XVIII. Board of Education should not convey all or any interest in real properties subject to general warranty. A typical conveyance shall be by quitclaim deed or special warranty as per New State Department of Education regulations.
XIX. The procedural directive applies to all real property transactions with the exception of those uses authorized by Board of Education.
XX. Prior to disposing of current or former school facilities, meeting educational occupancy standards that are no longer being used for other educational purposes (including health clinics, daycare centers, teacher training centers, school district administration functions and other ancillary services related to a school district's functions and operations), they shall first be offered to state or locally chartered charter schools geographically located in the district. Agreements for use by a chartered school may provide for reasonable lease payments and other direct costs.
XXI. All records and documents concerning school district real property transactions shall be maintained by the Real Estate director.
Administrative Position:
- Chief Operations Officer
- Chief Financial Officer
Department Director:
- Director of Real Estate
- Executive Director of Capital Construction
- Executive Director of Capital Master Plan
References:
Legal Ref:
- NMSA 1978, Section 22-5-4
Board Policy Cross Ref:
Procedural Directive Cross Ref:
NSBA/NEPN Classification: DFA, DFB, FE
Revised: May 1995
Revised: April 1996
Revised: February 1997
Reviewed: April 1997
Reviewed: June 2, 2021
Revised: June 11, 2021