SB 95 — METRO REDEVELOPMENT CODE CHANGES

the council of an incorporated county;

or the board of county commissioners of an H class county;

"mayor""clerk" means the mayorclerk or theother chairmanofficial of thea citylocal commissiongovernment orwho otheris officerthe orchief bodycustodian havingof the dutiesofficial customarilyrecords imposedof on the headlocal ofgovernment; a municipality;

"municipality"]"federal B.government" means the United States of America or an agency or instrumentality, corporate or otherwise, of the United States;

"localE. government" means e e 17 [any] an incorporated city, town or village, whether e e n d 18 incorporated under general act, special act or special charter, = = l ] 19 [an incorporated county ] or [an H class] a county or, when the a l r i 20 context requires, the governing body of an incorporated city, t e a t town or village or a county;

m"slum marea" 21means ean darea rwithin ethe 22area [E.]of C.operation in which there are numerous residential or nonresidential buildings, improvements and structures that are dilapidated, deteriorated, aged or obsolete or that have inadequate provision for ventilation, light, air or sanitation or the area lacks open spaces or has a high density of population or overcrowding or there exist in the area conditions that endanger life or property by fire or other causes, and the area is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime and is detrimental to the public health, SB 95 Page 6 safety, morals or welfare;

"clerk"F. means the clerk or other official c e r c 23 of [the municipality ] a local government who is the chief e a n b 24 custodian of the official records of the [municipality ] local u [ government;

.209471.2SA"blighted -area" 7means -an [F.]area D.within the area of operation other than a slum area that substantially impairs or arrests the sound growth and economic health and well-being within the jurisdiction of a local government or a locale within the jurisdiction of a local government because of the presence of a substantial number of deteriorated or deteriorating structures;

"federal government" [includes] means the United States of America or [any ] an agency or instrumentality, corporate or otherwise, of the United States;

[G.

"state" means the state of New Mexico;

H.] E.

"slum area" means an area within the area of 6 operation in which there are numerous residential or nonresidential buildings, improvements and structures [whether residential or nonresidential, which, by reason of its dilapidation, deterioration, age, obsolescence] that are dilapidated, deteriorated, aged or obsolete or that have inadequate provision for ventilation, light, air or sanitation or the area lacks open spaces or has a high density of population or overcrowding or [the existence of] there exist in the area conditions that endanger life or property by fire or other causes, and the area is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency e e 17 or crime and is detrimental to the public health, safety, e e n d 18 morals or welfare;

= = l ] 19 [I.] F.

"blighted area" means an area within the a l r i 20 area of operation other than a slum area that [because of the t e a t presence of a substantial number of deteriorated or m m 21 e d r e 22 deteriorating structures, predominance of defective or c e r c 23 inadequate street layout, faulty lot layout in relation to e a n b 24 size, adequacy, accessibility or usefulness, insanitary or u [ unsafe conditions, deterioration of site or other improvements, .209471.2SA - 8 - diversity of ownership, tax or special assessment delinquency exceeding the fair value of the land, defective or unusual conditions of title, improper subdivision or lack of adequate housing facilities in the area or obsolete or impractical planning and platting or an area where a significant number of 6 commercial or mercantile businesses have closed or significantly reduced their operations due to the economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors] substantially impairs or arrests the sound growth and economic health and well-being [of a municipality] within the jurisdiction of a local government or a locale within [a municipality] the jurisdiction of a local government because of the presence of a substantial number of deteriorated or deteriorating structures;

faulty lot layout in e e 17 relation to size, adequacy, accessibility or usefulness;

e e n d 18 unsanitary or unsafe conditions;

deterioration of site or other = = l ] 19 improvements;

tax or special assessment a l r i 20 delinquency exceeding the fair value of the land;

defective or t e a t unusual conditions of title;

lack of m m 21 e d r e 22 adequate housing facilities in the area;

or obsolete or c e r c 23 impractical planning and platting or an area where a e a n b 24 significant number of commercial or mercantile businesses have u [ closed or significantly reduced their operations due to the .209471.2SA - 9 - economic losses or loss of profit due to operating in the area, low levels of commercial or industrial activity or redevelopment or any combination of such factors;

[J.]SB 95 Page 7 G.

"metropolitan redevelopment project" or "project" means an activity, undertaking or series of activities or undertakings designed to eliminate slums or blighted areas in areas designated as metropolitan redevelopment areas and [that ] the activity or undertaking conforms to an approved plan for the area for slum clearance and redevelopment, rehabilitation and conservation;

[K.] H.

"slum clearance and redevelopment" means the use of those powers authorized by the Metropolitan e e 17 Redevelopment Code [for the purpose of eliminating ] to e e n d 18 eliminate slum areas and [undertaking] undertake activities = = l ] 19 authorized by the Metropolitan Redevelopment Code to rejuvenate a l r i 20 or revitalize those areas so that the conditions that caused t e a t those areas to be designated slum areas are eliminated;

m m 21 e d r e 22 [L.] I.

"rehabilitation" or "conservation" means c e r c 23 the restoration and renewal of a slum or blighted area or e a n b 24 portion thereof in accordance with [any ] an approved plan by u [ use of powers granted by the Metropolitan Redevelopment Code;

.209471.2SA - 10 - [M.] J.

"metropolitan redevelopment area" means a slum area or a blighted area or a combination thereof that the local [governing body ] government so finds and declares and designates as appropriate for a metropolitan redevelopment project;

[N.] K.

"metropolitan redevelopment plan" means a plan, as it exists from time to time, for one or more metropolitan redevelopment areas or for a metropolitan redevelopment SB 95 Page 8 project, which plan shall:

(2) conform to the general plan for the [municipality] local government as a whole;

and (3) be sufficient to indicate the proposed activities to be carried out in the area, including [but not limited to] any proposals for land acquisition;

proposals for e e 17 demolition and removal of structures;

proposals e e n d 18 for improvements, rehabilitation and conservation;

zoning and = = l ] 19 planning changes;

land uses, maximum densities, building a l r i 20 restrictions and requirements;

and the plan's relationship to t e a t definite local objectives respecting land uses, improved m m 21 e d r e 22 traffic patterns and controls, public transportation, public c e r c 23 utilities, recreational and community facilities, housing e a n b 24 facilities, commercial activities or enterprises, industrial or u [ manufacturing use and other public improvements;

.209471.2SA - 11 - [O.] L.

[P.] M.

"bonds" means any bonds, including refunding bonds, notes, interim certificates, certification of SB 95 Page 9 indebtedness, debentures, metropolitan redevelopment bonds or other securities evidencing an obligation and issued under the provisions of the Metropolitan Redevelopment Code or other obligations;

[Q.] N.

"obligee" includes [any] a bondholder, agent or trustee for [any ] a bondholder or lessor demising to the [municipality ] local government property used in connection with a metropolitan redevelopment project or any assignee or e e 17 assignees of such lessor's interest or any part thereof;

e e n d 18 [R.] O.

"person" means [any] an individual, firm, = = l ] 19 partnership, corporation, company, association, joint stock a l r i 20 association or body politic or the state or any political t e a t subdivision thereof and shall further include any trustee, m m 21 e d r e 22 receiver, assignee or other person acting in a similar c e r c 23 representative capacity;

e a n b 24 [S.] P.

"area of operation" means [the] an area u [ within [the corporate limits of the municipality and the area .209471.2SA - 12 - outside of the corporate limits but within five miles of such limits or otherwise on municipally owned property wherever located] a local government's jurisdiction, except that it shall not include [any ] an area that lies within the ] jurisdiction of another [municipality] [territorial boundaries local government unless an ordinance has been adopted by [the governing body of] the other [municipality] local government declaring a need therefor;

[T.] Q.

"board" or "commission" means a board, commission, department, division, office, body or other unit of [the municipality ] a local government designated by the local [governing body ] government to perform functions authorized by the Metropolitan Redevelopment Code as directed by the local [governinggovernment; body;

andSB ]95 government;Page 10 R.

[U.]"public R.officer" means any person who is in charge of any department or branch of government of the local government;

"publicand officer"S. means any person who is in charge of any department or branch of government of the e e 17 [municipality] local government;

and"fair evalue" emeans nthe dnegotiated 18price S.or value of an asset or liability agreed upon by a local government and a private entity." SECTION 5.

"fairSection value"3-60A-6 meansNMSA the1978 negotiated(being priceLaws or1979, valueChapter =391, =Section l6) ]is 19amended ofto anread: asset or liability agreed upon by a local government and a l r i 20 a private entity." t e a t SECTION 5.

Section"3-60A-6. 3-60A-6 NMSA 1978 (being Laws 1979, m m 21 e d r e 22 Chapter 391, Section 6) is amended to read:

cUSE eOF rPRIVATE cENTERPRISE 23AND "3-60A-6.PUBLIC POWERS.--A local government, to the greatest feasible extent, shall afford maximum opportunity for the rehabilitation or redevelopment of the metropolitan redevelopment areas by private enterprise.

USEA OFlocal PRIVATEgovernment ENTERPRISEshall ANDgive PUBLICconsideration POWERS.--Ato ethis aobjective nin bexercising 24its [municipality]powers localprovided government,by to the greatestRedevelopment feasibleLaw, uincluding [ extent, shall afford maximum opportunity for the rehabilitationapproval .209471.2SAof -metropolitan 13redevelopment -plans orconsistent redevelopmentwith of the metropolitangeneral redevelopmentplan areasfor bythe privatelocal enterprise.government;

A [municipality ] local government shall give consideration to this objective in exercising its powers provided by the Redevelopment Law, including the approval of metropolitan redevelopment plans consistent with the general plan for the [municipality ] local government;

[to ] the disposition of any property acquired;

FINDING OF NECESSITY BY LOCAL GOVERNMENT.--No [municipality]SB 95 Page 11 local government shall exercise any of the powers conferred upon [municipalities ] local governments by the e e 17 Redevelopment Law until [after its local governing body shall e e n d 18 have] the local government has adopted a resolution finding = = l ] 19 that:

a l r i 20 A.

one or more slum areas or blighted areas exist t e a t in the [municipality ] local government's jurisdiction;

and m m 21 e d r e 22 B.

the rehabilitation, conservation, slum c e r c 23 clearance, redevelopment or development, or a combination e a n b 24 thereof, of and in such area [or areas ] is necessary in the u [ interest of the public health, safety, morals or welfare of the .209471.2SA - 14 - residents of the [municipality ] local government's jurisdiction." SECTION 7.

A [municipality] local government shall not prepare a metropolitan redevelopment plan for an area unless the [governing body] local government has, by resolution, determined the area to be a slum area or a blighted area or a combination thereof and designated the area as appropriate for a metropolitan redevelopment project, which resolution may be adopted only after the [governing body shall have ] local government has caused to be published in a newspaper of general circulation within the area of operation of the [municipality ] local government a notice [which shall contain] that contains a e e 17 general description of the area and the date, time and place e e n d 18 where the [governing body ] local government shall hold a public =hearing =to lconsider ]SB 1995 hearingPage to12 consider the resolution and a notice that any a l r i 20 interested party may appear and speak to the issue of the t e a t adoption of the resolution.

m m 21 e d r e 22 B.

[Such ] Notice shall be published at least twice, c e r c 23 and the last publication shall be not less than twenty days e a n b 24 before the hearing.

The owner of any real property affected by u [ the resolution [shall have ] has the right to file in the .209471.2SA - 15 - district court of the county within which the [municipality ] local government is located, within twenty days after the adoption of the resolution, an action to set aside the determination made by the [governinglocal bodygovernment. of the municipality ] .

local government C.

A [municipality ] local government shall not acquire real property for a metropolitan redevelopment project unless the local [governing body ] government has approved a metropolitan redevelopment plan relating to the metropolitan redevelopment area in which the real property is located." SECTION 8.

When a [municipality ] local government has complied with the provisions of the Redevelopment Law e e 17 concerning public hearing and designation of an area as a e e n d 18 metropolitan redevelopment area, it may prepare or cause to be = = l ] 19 prepared a metropolitan redevelopment plan;

however, prior to afinal lconsideration rof iSB 2095 finalPage consideration13 of the plan by the local [governing body ] t e a t government, the plan shall be the subject of at least one m m 21 e d r e 22 public hearing held by the [mayor or his designee ] local c e r c 23 government or the [municipal] local government's planning e a n b 24 commission, at which time comments from the public as a whole u [ can be gathered and considered by the [municipality ] local .209471.2SA - 16 - government in its preparation of the final plan.

The local [governing body ] government may hold a public hearing for purposes of approval of the proposed plan, as provided in Subsection B of this section, only after the hearing required by this subsection.

The local [governing body ] government shall hold a public hearing on a metropolitan redevelopment plan or substantial modification of an approved plan after public notice [thereof ] by publication in a newspaper having a general circulation in the area of operation of the [municipality ] local governmentgovernment. .

Prior to the public hearing on this matter, notice of the public hearing shall be mailed by first class mail to the e e 17 owners of real property in the metropolitan redevelopment area.

e e n d 18 The mailing shall be to the owner's address as shown on the = = l ] 19 records of the county treasurer.

If the notice by first class a l r i 20 mail to the owner is returned undelivered, the [municipality ] t e a t local government shall attempt to discover the owner's most m m 21 e d r e 22 recent address and shall SB 95 Page 14 remail the notice by certified mail, c e r c 23 return receipt requested, to the address.

e a n b 24 C.

Following the public hearing, the local u [ [governing body ] government may approve a metropolitan .209471.2SA - 17 - redevelopment plan if it finds that:

(1) the proposed activities will aid in the elimination or prevention of slum or blight or the conditions [which] that lead to the development of slum or blight;

(3) the plan conforms to the general plan for the [municipality as a whole ] local government;

and (4) the plan affords maximum opportunity consistent with the needs of the community for the rehabilitation or redevelopment of the area by private enterprise or persons and the objectives of the plan justify e e 17 the proposed activities as public purposes and needs.

e e n d 18 D.

A metropolitan redevelopment plan may be = = l ] 19 modified at any time;

however, if the plan is modified after a l r i 20 the lease or sale by the [municipality ] local government of treal eproperty ain tSB real95 propertyPage in15 the project area, the modification shall be m m 21 e d r e 22 subject to any rights at law or in equity a lessee or purchaser c e r c 23 or [his] the lessee's or purchaser's successors in interest may e a n b 24 be entitled to assert.

Any proposed modification [which ] that u [ will substantially change the plan as previously approved by .209471.2SA - 18 - the local [governing body ] government shall be subject to the requirements of this section, including the requirement of a public hearing, before it may be approved." SECTION 9.

POWERS OF [MUNICIPALITY ] LOCAL GOVERNMENT.--A [municipality] local government shall have all the powers, other than the power of eminent domain, necessary or convenient to carry out and effectuate the purposes and provisions of the Metropolitan Redevelopment Code, including [but not necessarily limited to] the following powers:

to undertake and carry out metropolitan redevelopment projects within its area of operation, including clearance and redevelopment, rehabilitation, conservation and e e 17 development activities and programs;

to make, enter into and e e n d 18 execute contracts and other agreements and instruments = = l ] 19 necessary or convenient to the exercise of its powers under the a l r i 20 Redevelopment Law;

and to disseminate information regarding t e a t slum clearance, prevention of blight andSB the95 metropolitanPage m16 mand 21the emetropolitan d r e 22 redevelopment projects and areas;

c e r c 23 B.

to provide, arrange or contract for the furnishing e a n b 24 or repair by a public or private person or agency for services, u [ privileges, works, streets, roads, public utilities, public .209471.2SA - 19 - buildings or other facilities for or in connection with a metropolitan redevelopment project;

to, within its area of operation, install, acquire, construct, reconstruct, remodel, rehabilitate, maintain and operate streets, utilities, parks, buildings, playgrounds and public buildings, including [but not limited to] parking facilities, transportation centers, public safety buildings and other public improvements or facilities or improvements for public purposes, as may be required by the [municipality] local government, the state or a political subdivision of the state;

to agree to conditions that it may deem reasonable and appropriate that are attached to federal financial assistance and imposed pursuant to federal law, including conditions relating to the determination of prevailing salaries or wages or compliance with federal and state labor standards, compliance with federal property acquisition policy and the provision of relocation assistance e e 17 in accordance with federal law in the undertaking or carrying e e n d 18 out of a metropolitan redevelopment project;

and to include in = = l ] 19 a contract let in connection with the project provisions to a l r i 20 fulfill these conditions as it may deem reasonable and t e a t appropriate;

provided, however, that all purchasesSB of95 personalPage m17 mpurchases 21of epersonal d r e 22 property shall be in accordance with the Procurement Code;

c e r c 23 C.

within its area of operation, to inspect any e a n b 24 building or property in a metropolitan redevelopment area in u [ order to make surveys, appraisals, soundings or test borings .209471.2SA - 20 - and to obtain an order for this purpose from a court of competent jurisdiction in the event inspection is denied by the property owner or occupant;

to insure or provide for the insurance of real or personal property or operations of the [municipality] local government against risks or hazards, including the power to pay premiums on that insurance;

to invest metropolitan redevelopment project funds held in reserve, sinking funds or other project funds that are e e 17 not required for immediate disbursement in property or e e n d 18 securities in which [municipalities ] local governments may = = l ] 19 legally invest funds subject to their control;

to redeem bonds a l r i 20 as have been issued pursuant to the Metropolitan Redevelopment tCode eat athe tSB Code95 atPage the18 redemption price established in the bonds or to m m 21 e d r e 22 purchase the bonds at less than redemption price.

Bonds so c e r c 23 redeemed or purchased shall be canceled;

e a n b 24 E.

to borrow or lend money subject to those u [ procedures and limitations as may be provided in the .209471.2SA - 21 - constitution of New Mexico or [the Municipal Code ] statutes and to apply for and accept advances, loans, grants, contributions and other forms of financial assistance from the federal government, the state, the county or other public body or from sources, public or private, for the purposes of the Metropolitan Redevelopment Code;

A [municipality ] local government may include in a contract for financial assistance with the federal government for a metropolitan redevelopment project conditions imposed pursuant to federal law that the [municipality] local government may deem reasonable or appropriate and that are not inconsistent with the purposes of the Metropolitan Redevelopment Code;

e e 17 F.

within its area of operation, to make plans e e n d 18 necessary for the carrying out of the purposes of the = = l ] 19 Metropolitan Redevelopment Code and to contract with any a l r i 20 person, public or private, in making and carrying out such t e a t plans and to adopt or approve, modify and amend the plans.

TheSB m95 mPage 2119 eThe d r e 22 plans may include without limitation:

c e r c 23 (1) a general plan for redevelopment of the e a n b 24 [metropolitan] area as a whole;

u [ (2) redevelopment plans for specific areas;

.209471.2SA - 22 - (3) plans for programs of voluntary or assisted repair and rehabilitation of buildings and improvements;

to develop, test and report methods and techniques and carry out demonstrations and other activities for the prevention and elimination of slums and [urban ] blight and to pay for, accept and use grants of funds from the federal government for those purposes;

to prepare plans for the relocation of families e e 17 displaced from a metropolitan redevelopment area to the extent e e n d 18 essential for acquiring possession of and clearing the area or = = l ] 19 its parts or permit the carrying out of the metropolitan a l r i 20 redevelopment project;

tSB e95 aPage t20 I.

to appropriate under existing authority the funds m m 21 e d r e 22 and make expenditures necessary to carry out the purposes of c e r c 23 the Metropolitan Redevelopment Code and under existing e a n b 24 authority to levy taxes and assessments for such purposes;

to u [ close, vacate, plan or replan streets, roads, sidewalks, ways .209471.2SA - 23 - or other places;

in accordance with applicable law or ordinances, to plan or replan, zone or rezone any part [of the municipality] within the jurisdiction of the local government or make exceptions from building regulations;

and to enter into agreements with a metropolitan redevelopment agency vested with metropolitan redevelopment project powers, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by the [municipality] local government pursuant to the powers granted by the Redevelopment Law;

within its area of operation, to organize, coordinate and direct the administration of the provisions of the Redevelopment Law as they apply to the [municipality] local government in order that the objective of remedying slum areas and blighted areas and preventing the causes of those areas ]within the jurisdiction of the local government within the [municipality e e 17 may be most effectively promoted and achieved and to establish e e n d 18 any new office of the [municipality ] local government or to = = l ] 19 reorganize existing offices as necessary;

a l r i 20 K.

to acquire real property that is appropriate for tSB e95 aPage t21 the preservation or restoration of historic sites;

the m m 21 e d r e 22 beautification of urban land;

the conservation of open spaces, c e r c 23 natural resources and scenic areas;

or the provision of e a n b 24 recreational opportunities;

or that is to be used for public u [ purposes;

.209471.2SA - 24 - L.

(1) acquisition, construction, reconstruction or installation of public works, facilities and site or other ] neighborhood improvements, including [butneighborhood not limited to facilities, senior citizen centers, historic properties, utilities, streets, street lights, water and sewer facilities, including connections for residential users, foundations and platforms for air-rights sites, pedestrian malls and walkways, parks, playgrounds and other recreation facilities, flood and drainage facilities, parking facilities, solid waste disposal facilities and fire protection or health facilities that serve designated areas;

e e 17 (3) provision of public services in the e e n d 18 metropolitan redevelopment area that are not otherwise = = l ] 19 available in the area, including [but not limited to ] the a l r i 20 provisions of public services directed to the employment, teconomic edevelopment, aSB t95 economicPage development,22 crime prevention, child care, health, m m 21 e d r e 22 drug abuse, welfare or recreation needs of the people who c e r c 23 reside in the metropolitan redevelopment area;

e a n b 24 (4) payment of the nonfederal share of any u [ federal grant-in-aid program to the [municipality ] local .209471.2SA - 25 - government that will be a part of a metropolitan redevelopment project;

(8) issuance of bonds, grants or loans as e e 17 authorized by the Metropolitan Redevelopment Code in accordance e e n d 18 with the requirements of that code;

and = = l ] 19 (9) grants to nonprofit corporations, local a l r i 20 development corporations or entities organized under Section t e a t 301 (d) of the federal Small Business Investment Act of 1958 mSB m95 21Page e23 d r e 22 for the purposes of carrying out the provisions of the c e r c 23 Metropolitan Redevelopment Code;

e a n b 24 M.

if payments are to be made by the [municipality ] u [ local government or metropolitan redevelopment agency under the .209471.2SA - 26 - terms of a contract for reconstruction or rehabilitation of private property, payments shall be made from a special fund created for that purpose and shall not be paid directly to the property owner but shall instead be paid to the contractor by ]the local government or agency from such fund the [municipality upon proper authorization of the property owner and notification that the terms of the contract have been fulfilled.

However, those rehabilitation contracts shall be between the property owner and the contractor after a sealed bidding procedure and award of contract approved by the [municipality] local government has taken place;

in a metropolitan redevelopment project or rehabilitation or conservation undertaking or activity, to exercise the following powers in one or more metropolitan redevelopment areas to include the elimination and prevention of the development or spread of slums or blight and may involve e e 17 slum clearance and redevelopment in that area or rehabilitation e e n d 18 or conservation in that area or any combination or part of = = l ] 19 those areas in accordance with a metropolitan redevelopment a l r i 20 plan and for undertakings or activities of a [municipality ] t e a t local government in a metropolitan redevelopmentSB area95 toPage m24 mredevelopment 21area eto d r e 22 eliminate the conditions that caused an area to be so c e r c 23 designated and may include the following:

e a n b 24 (1) acquisition of real property within the u [ metropolitan redevelopment area pursuant to any powers and for .209471.2SA - 27 - purposes enumerated in the Metropolitan Redevelopment Code;

installation, construction or reconstruction of roads, streets, gutters, sidewalks, storm drainage facilities, water lines or water supply installations, sewer lines and sewage disposal installations, steam, gas and electric lines and installations, airport facilities and construction of any other needed public facilities or buildings whether on or off the site if deemed necessary by the local [governing body ] government to prepare the land in the metropolitan redevelopment area for residential, commercial, industrial and public use in accordance with the metropolitan redevelopment plan;

and (3) making the land available for development by private enterprise or public agencies, including sale, initial e e 17 leasing, leasing or retention by the [municipality ] local e e n d 18 government itself, at its fair market value for uses in = = l ] 19 accordance with the metropolitan redevelopment plan for the a l r i 20 area;

t e a t O.

the [municipality] local government is empowered min ma 21SB e95 dPage r25 e 22 in a metropolitan redevelopment area to undertake slum c e r c 23 clearance and redevelopment that includes:

e a n b 24 (1) acquisition of a slum area or a blighted u [ area or portion thereof;

.209471.2SA - 28 - (2) demolition and removal of buildings and improvements;

(3) installation, construction, reconstruction, maintenance and operation of streets, utilities, storm drainage ] facilities, curbs and gutters, parks, playgrounds, [single- single-family or multifamily dwelling units, buildings, public buildings, including [but not limited to ] parking facilities, transportation centers, safety buildings and other improvements, necessary for carrying out in the area the provisions of an approved plan for the area;

and (4) making the real property available for development or redevelopment by private enterprise or public agencies, including sale, leasing or retention by the [municipality] local government itself, at its fair value for uses in accordance with the metropolitan redevelopment area plan;

and e e 17 P.

to engage in rehabilitation or conservation that e e n d 18 includes the restoration and renewal of a slum or blighted area = = l ] 19 or portion thereof in accordance with any approved plan, by:

a l r i 20 (1) carrying out plans for a program of t e a t voluntary or compulsory repair and rehabilitation of buildingsSB m95 mPage 2126 ebuildings d r e 22 or other improvements;

c e r c 23 (2) acquisition of real property and demolition e a n b 24 or removal of buildings and improvements thereon where u [ necessary to eliminate unhealthful, unsanitary or unsafe .209471.2SA - 29 - conditions, lessen or increase density, eliminate obsolete or other uses detrimental to the public welfare or to otherwise remove or prevent the spread of blight or deterioration or to provide land for needed public facilities;

(4) the disposition of any property acquired in [such an] the area, including sale, leasing or retention by the [municipality] local government itself, for uses in accordance with [such] an approved plan;

(5) acquisition of real property in the area [which] that, under a plan, is to be repaired or rehabilitated;

e e 17 (7) power to resell repaired or rehabilitated e e n d 18 property;

= = l ] 19 (8) acquisition, without regard to any a l r i 20 requirement that the area be a slum or blighted area, of air-air-rights t e a t rights in an area consisting principally of land on which isSB m95 mPage 2127 eis d r e 22 located a highway, railway, bridge or subway tracks or tunnel c e r c 23 entrance or other similar facilities that have a blighting e a n b 24 influence on the surrounding area and over which air-rights u [ sites are to be developed for the elimination of such blighting .209471.2SA - 30 - influences;

Such rehabilitation or conservation with use of funds expended by authority of the Metropolitan Redevelopment Code or by metropolitan revenue bonds authorized by that code shall be authorized only after approval by the local [governing body ] government and after it has been determined that [such] the expenditure is in accordance with the metropolitan redevelopment plan for that area." SECTION 10.

DISPOSAL OF PROPERTY.-- e e 17 A.

A [municipality] local government may sell, lease e e n d 18 or otherwise transfer real property or any interest [therein ] = = l ] 19 in real property acquired by it in a metropolitan redevelopment a l r i 20 area and may enter into contracts with respect [thereto ] to the t e a t real property for residential, commercial, industrial or other muses mor 21for eSB d95 rPage e28 22 uses or for public use or may retain such property or interest c e r c 23 for public use in accordance with the metropolitan e a n b 24 redevelopment plan, subject to any covenants, conditions and u [ restrictions, including covenants running with the land and .209471.2SA - 31 - including the incorporation by reference [therein ] in the covenants of the provisions of a metropolitan redevelopment plan or any part thereof, 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] local government 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 e e 17 determined by the [governing body of the municipality ] local e e n d 18 government or by the metropolitan redevelopment agency, if so = = l ] 19 authorized.

In determining the fair value of real property for a l r i 20 uses in accordance with the metropolitan redevelopment plan, a t e a t [municipality] local government shall take into account and m m 21 e d r e 22 give consideration to the uses provided in the plan,SB the95 cPage e29 rplan, cthe 23 restrictions upon and the covenants, conditions and obligations e a n b 24 assumed by the purchaser or lessee or by the [municipality ] u [ local government retaining the property and the objectives of .209471.2SA - 32 - the plan for the prevention of and recurrence of slum or blighted areas.

The [municipality] local government 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 ] local government 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 ] local government 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 e e 17 reference [therein ] in the covenants of the provisions of a e e n d 18 metropolitan redevelopment plan or any part thereof, shall not = = l ] 19 prevent the filing of the contract or conveyance in the land a l r i 20 records of the county in a manner as to afford actual or t e a t constructive notice thereof.

m m 21 e d r e 22 B.

A [municipality] local government may dispose of c e r c 23 real property in a metropolitan redevelopment area to private epersons aonly nSB b95 24Page persons30 only in accordance with the procedures set out in this u [ subsection.

The [municipality ] local government shall, prior .209471.2SA - 33 - 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 ] local government will follow during review of proposals and shall state that details may be obtained at the office designated in the notice.

The [municipality] local government 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 e e 17 considering the type of development, redevelopment or use e e n d 18 proposed and the financial ability of the persons making [such ] = = l ] 19 the proposals to carry them out.

a l r i 20 C.

If, after following the procedures set out in t e a t Subsection B of this section, a [municipality ] local government m m 21 e d r e 22 receives no proposals or determines the ones received are not c e r c 23 in accordance with the call for proposals or do not meet the e a n b 24 objectives of the Metropolitan Redevelopment Code, the ulocal [SB [municipality]95 localPage 31 government may reject any proposals .209471.2SA - 34 - received and then dispose of [such ] the real property through reasonable negotiating procedures;

provided, however, that negotiated sales, leases or transfers [must ] shall be reported to the local [governing body ] government and approved [by that body] before [such] the sale, lease or transfer may take 6 effect.

A [municipality] local government 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." SECTION 11.

PROPERTY EXEMPT FROM TAXES AND FROM LEVY AND SALE BY VIRTUE OF AN EXECUTION.-- e e 17 A.

All property of a [municipality ] local government, e e n d 18 including funds, owned or held in fee simple by it for the = = l ] 19 purposes of the Metropolitan Redevelopment Code shall be exempt a l r i 20 from levy and sale by virtue of an execution, and no execution t e a t or other judicial process shall issue against the property nor m m 21 e d r e 22 shall judgment against a [municipality ] local government be a c e r c 23 charge or lien upon the property;

provided, however, that the e a n b 24 provisions of this section shall not apply to or limit the u [ right of obligees to pursue any remedies for the enforcement of .209471.2SA - 35 - any pledge or lien given pursuant to the Redevelopment Law by a [municipality] local government SB 95 Page 32 on its rents, fees, grants, land or revenues from projects.

The property of a [municipality ] local government acquired or held for the purposes of the Metropolitan 6 Redevelopment Code is declared to be public property used for essential public and governmental purposes, and the property shall be exempt from property taxes or assessments of the [municipality] local government, the county, the state or any political subdivision thereof;

provided that the exemption shall terminate when the [municipality ] local government transfers its fee simple interest in the property to a purchaser that is not entitled to the exemption with respect to the property.

Nothing in this subsection authorizes an exemption or deduction from the imposition of the gross receipts and compensating taxes under the Gross Receipts and e e 17 Compensating Tax Act on the gross receipts from the sale of e e n d 18 property to or the use of property by a [municipality ] local = = l ] 19 government or any other person in connection with a a l r i 20 metropolitan redevelopment project created under the t e a t Metropolitan Redevelopment Code." m m 21 e d r e 22 SECTION 12.

Section 3-60A-13.1 NMSA 1978 (being Laws c e r c 23 1985, Chapter 225, Section 2) is amended to read:

e a n b 24 "3-60A-13.1.

PAYMENTS IN LIEU OF PROPERTY TAXES AND u [ ASSESSMENTS.-- .209471.2SA - 36 - A.

If interests in project property are exempt from property taxation and assessments under Subsection B of Section 3-60A-13 NMSA 1978 or Section 7-36-3.1 NMSA 1978, SB 95 Page 33 then during the period extending from the date of acquisition of the ] local government through property by the [municipalitylocal government through December 31 of the year in which the seventh anniversary of that acquisition date occurs, any lessee of the project property or owner of a substantial beneficial interest in the project property, in whose ownership the property would not be exempt from property taxation except for the exemption granted under Section 7-36-3.1 NMSA 1978, shall pay to the county treasurer annually, at the same time property tax payments are due under the Property Tax Code, an amount equal to the sum of:

(1) general property taxes that would have been imposed under Subsection B of Section 7-37-7 NMSA 1978 had it not been exempt and had it been valued at the valuation for e e 17 property taxation purposes that existed in the year immediately e e n d 18 preceding the year of acquisition by the [municipality ] local = = l ] 19 government;

a l r i 20 (2) amounts that would have been imposed under t e a t Subsection C of Section 7-37-7 NMSA 1978 on the project m m 21 e d r e 22 property had it not been exempt and had it been valued at the c e r c 23 valuation for property taxation purposes that existed in the e a n b 24 year immediately preceding the year of acquisition by the u [ [municipality] local government;

and .209471.2SA - 37 - (3) amounts that would have been imposed as benefit assessments on the project property had it not been exempt and had it been valued at the valuation for property SB 95 Page 34 taxation purposes that existed in the year immediately ] local preceding the year of acquisition by the [municipalitylocal government if those benefit assessments are authorized by law and are expressed in mills per dollar or dollars per thousand dollars of net taxable value of property, assessed value of property or similar terms.

The provisions of this section shall apply only to project property acquired by a [municipality ] local government under the provisions of the Metropolitan Redevelopment Code on e e 17 or after January 1, 1986." e e n d 18 SECTION 13.

Section 3-60A-14 NMSA 1978 (being Laws 1979, = = l ] 19 Chapter 391, Section 14) is amended to read:

a l r i 20 "3-60A-14.

COOPERATION BY PUBLIC BODIES.-- t e a t A.

For the purpose of aiding in the planning, m m 21 e d r e 22 undertaking or carrying out of a metropolitan redevelopment c e r c 23 project located within the area in which it is authorized to e a n b 24 act, any public body upon terms with or without consideration u [ may:

.209471.2SA - 38 - (1) dedicate, sell, convey or lease any of its interest in any property or grant easements, licenses or SB 95 Page 35 other rights or privileges [therein ] in the property to a [municipality] local government;

(4) lend, grant or contribute funds to a [municipality] local government;

(5) enter into agreements [which ] that may extend over any period, notwithstanding any provision or rule of law to the contrary, with a [municipality ] local government or other public body respecting action to be taken pursuant to e e 17 any of the powers granted by the Redevelopment Law, including e e n d 18 the furnishing of funds or other assistance in connection with = = l ] 19 metropolitan redevelopment;

or a l r i 20 (6) cause public buildings and public t e a t facilities, including parks and playgrounds, recreational, m m 21 e d r e 22 community, educational, transportation, water, sewer or c e r c 23 drainage facilities or any other works [which ] that it is e a n b 24 otherwise empowered to undertake, to be furnished to the u [ [municipality] local government;

furnish, dedicate, close, .209471.2SA - 39 - vacate, pave, install, grade, regrade, plan or replan streets, roads, sidewalks, ways or other places;

plan or replan, zone or rezone any part SB 95 Page 36 of the public property or make exceptions from building regulations;

and cause administrative and other ] local services to be furnished to the [municipalitylocal government.

If at any time title to or possession of any redevelopment project is held by any public body or governmental agency, other than the [municipality, which ] local government that is authorized by law to engage in the undertaking, carrying out or administration of development projects, including the federal government, the provisions of the agreements referred to in this section shall inure to the benefit of and may be enforced by such public body or governmental agency.

As used in this subsection, the term ["municipality" ] "local government" includes a metropolitan redevelopment agency vested with e e 17 metropolitan redevelopment project powers pursuant to the e e n d 18 provisions of the Metropolitan Redevelopment Code.

= = l ] 19 B.

For the purpose of aiding in the planning, a l r i 20 undertaking or carrying out of the metropolitan redevelopment t e a t project by a redevelopment agencyagency, [hereunder ], a [municipality] m m 21 e d r e 22 local government may, in addition to its other powers and upon c e r c 23 such terms with or without consideration, perform any or all of e a n b 24 the actions or things [which ] that, by the provisions of u [ Subsection A of this section, a public body is authorized to do .209471.2SA - 40 - or perform, including the furnishing of financial and other assistance.

For the purposes of this section or for the purpose of aiding in the planning, undertaking or carrying outSB ]95 Page 37 out of a metropolitan redevelopment project of a [municipality local governmentgovernment, , the [municipality] local government may, in addition to any authority to issue bonds pursuant to the Redevelopment Bonding Law, issue and sell its general obligation or revenue bondsbonds. [authorized in the Municipal Code ].

Any bonds issued by a [municipality ] local government pursuant to this section shall be issued in the manner and within the limitations prescribed by the laws of this state for the issuance and authorization of bonds by [such municipality ] a local government for public purposes generally." SECTION 14.

Section 3-60A-15 NMSA 1978 (being Laws 1979, Chapter 391, Section 15, as amended by Laws 2007, Chapter 329, e e 17 Section 6 and by Laws 2007, Chapter 330, Section 6) is amended e e n d 18 to read:

= = l ] 19 "3-60A-15.

EXERCISE OF POWERS IN CARRYING OUT PROJECTS.-- a l r i 20 A.

[The local governing body ] A local government may t e a t directly exercise its metropolitan redevelopment project powers m m 21 e d r e 22 or it may, by ordinance if it determines such action to be in c e r c 23 the public interest, elect to delegate the exercise of such e a n b 24 powers to the metropolitan redevelopment agency created u [ pursuant to the Redevelopment Law.

If the local [governing .209471.2SA - 41 - body] government so determines, the agency shall be vested with all of the powers in the same manner as though all the powers were conferred on the agency or authority instead of the [municipality] local government.

As used in this section, the term "redevelopment SB 95 Page 38 project powers" includes any rights, powers, functions and duties of a [municipality ] local government authorized by the Redevelopment Law except the following, which are reserved to the local [governing body ] government, the power to:

(3) approve a general plan for the [municipality] local government as a whole;

(4) make findings of necessity prior to e e 17 preparation of a metropolitan redevelopment plan as provided in e e n d 18 the Redevelopment Law and the findings and determinations = = l ] 19 required prior to approval of a metropolitan redevelopment plan a l r i 20 or project as provided in the Redevelopment Law;

t e a t (5) issue general obligation bonds and revenue m m 21 e d r e 22 bonds as authorized [in the Municipal Code] by law;

c e r c 23 (6) approve loans or grants;

e a n b 24 (7) approve leases of more than one year's u [ duration;

.209471.2SA - 42 - (8) issue [municipal ] redevelopment bonds;

SB 95 Page 39 "3-60A-16.

There may be created in each [municipality ] local government a public body to be known as the "metropolitan redevelopment agency".

The metropolitan redevelopment agency shall not transact any business or exercise any powers until the local [governing body ] government has adopted an ordinance creating a metropolitan redevelopment agency and has specified the powers and duties of the agency.

When the metropolitan redevelopment agency has been authorized to transact business and exercise powers, the mayor or manager of the local governmentgovernment, , with the advice and e e 17 consent of the local [governing body] government, shall appoint e e n d 18 a board of commissioners of the redevelopment agency, which = = l ] 19 shall consist of five commissioners.

The commissioners shall a l r i 20 be initially appointed to serve staggered terms as follows from t e a t the date of their appointment:

m m 21 e d r e 22 (1) two members for three-year terms;

c e r c 23 (2) two members for two-year terms;

and e a n b 24 (3) one member for a one-year term.

u [ Thereafter, commissioners shall be appointed for terms of five .209471.2SA - 43 - years each.

A commissioner shall receive no compensation for [his] services but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of ] the commissioner's duties.

Each commissioner shall hold [hisSB office95 untilPage [his40 ]office until the commissioner's successor has been appointed and qualified.

A certificate of the appointment or reappointment of any commissioner shall be filed with the clerk of the [municipality ] local government, and the certificate shall be conclusive evidence of the due and proper appointment of the commissioner.

A commissioner may be removed from office at any time by the mayor or manager of the local governmentgovernment. .

A majority of the appointed commissioners [shall constitute ] constitutes a quorum for the purpose of conducting business and exercising the e e 17 powers of the agency and for all other purposes.

Action may be e e n d 18 taken by the agency upon a vote of a majority of the = = l ] 19 commissioners present at a lawful meeting, unless [in any case ] a l r i 20 the bylaws [shall ] require a larger number.

Any person may be t e a t appointed as commissioner if [he ] the person resides within the m m 21 e d r e 22 area of operation of the agency, which shall be coterminous c e r c 23 with the area of operation of the [municipality ] local e a n b 24 government, and is otherwise eligible for [such] appointment u [ under the Redevelopment Law.

.209471.2SA - 44 - E.

The mayor or manager of the local government shall designate a [chairman ] chair and vice [chairman] chair from among the commissioners.

The commission may employ and determine the qualifications, duties and compensation of an ] other agents executive director, technical experts and [suchother agents and employees, permanent and temporary, as the metropolitan redevelopment SB 95 Page 41 agency may require.

For [such] legal [service] services as the agency may require, the commission may employ or retain for the agency legal counsel and a legal staff.

A metropolitan redevelopment agency shall file annually with the local [governing body ] government a report of its activities for the preceding fiscal year, which report shall include a complete financial statement setting forth its assets, liabilities, income and operating expenses as of the end of [such] the fiscal year." SECTION 16.

Section 3-60A-17 NMSA 1978 (being Laws 1979, e e 17 Chapter 391, Section 17) is amended to read:

e e n d 18 "3-60A-17.

CONFLICT OF INTEREST--MISCONDUCT.--[A.INTEREST--MISCONDUCT.--No public official or employee of a local government or member of any board or commission of a local government and no commissioner or employee of a metropolitan redevelopment agency that has been vested by a local government with metropolitan redevelopment project powers by the Redevelopment Law shall voluntarily acquire any interest, direct or indirect, in any metropolitan redevelopment project of the local government or in any contract or proposed contract in connection with the project.

]Where Nothe =acquisition =is lnot ]voluntary, 19 public official or employee of a [municipality ] local a l r i 20 government or member of any board or commission [thereof] of a t e a t local government and no commissioner or employee of a m m 21 e d r e 22 metropolitan redevelopment agency [which ] that has been vested c e r c 23 by a [municipality ] local government with metropolitan e a n b 24 redevelopment project powers by the Redevelopmentinterest Lawacquired shall ube [immediately voluntarilydisclosed acquire any interest, direct or indirect, in anywriting .209471.2SAto - 45 - [such] metropolitan redevelopment project of the [municipality] local governmentgovernment, orand inthe anydisclosure contractshall orbe proposedentered contractupon inits connectionminutes. with [such ] the project.

WhereIf any such official, commissioner or employee currently owns or controls or owned or controlled within the acquisitionpreceding istwo notyears voluntary,any interest, direct or SB 95 Page 42 indirect, in any property that the interestofficial, acquiredcommissioner shallor employee knows is included or planned to be included in a metropolitan redevelopment project, the official, commissioner or employee shall immediately ]disclose government,this disclosedfact in writing to the local [governinggovernment, body and [such]this the disclosure shall be entered upon itsthe minutes.minutes of the local government, and the official, commissioner or employee shall not participate in any action by the local government affecting the property.

IfAny anydisclosure suchrequired official, commissioner or employee currently owns or controls or owned or controlled within the preceding two years any interest, direct or indirect, in any property [which he] that the official, commissioner or employee knows is included or planned to be includedmade inby a metropolitan redevelopment project, [he ] the official, commissioner or employee shall immediately disclose this factsection in writing to the local [governinggovernment body ] government, and this disclosure shall concurrently be enteredmade uponto thea minutesmetropolitan ofredevelopment theagency [governingthat bodyhas ]been localvested government,with andmetropolitan [anyredevelopment such]project thepowers official, commissioner or e e 17 employee shall not participate in any action by the e e n d 18 [municipality or board or commission thereof ] local governmentgovernment." =SECTION =17. l ] 19 affecting [such] the property.

AnySection disclosure3-60A-18 requiredNMSA to1978 be(being aLaws l1979, rChapter i391, 20Section made18) byis thisamended section to theread: local [governing body ] government t e a t shall concurrently be made to a metropolitan redevelopment m m 21 e d r e 22 agency [which] that has been vested with metropolitan c e r c 23 redevelopment project powers by the [municipality ] local e a n b 24 government." u [ SECTION 17.

Section 3-60A-18 NMSA 1978 (being Laws 1979, .209471.2SA - 46 - Chapter 391, Section 18) is amended to read:

Except as otherwise specifically set forth in Section [15 of the Redevelopment Law ] 3-60A-15 NMSA 1978, the ]local government may delegate its metropolitan local [governing body redevelopment powers in the manner provided for delegation of powers in the Redevelopment Law to a metropolitan redevelopment agency [which] that shall be vested with [such] the powers in the same manner as though the powers were conferred on the agency instead of the [municipality ] local government.

The local [governing body ] government may, in the manner required by state law or municipal charter, provide for [such] ordinances, rules, regulations or by [such] other means it deems proper as are SB 95 Page 43 necessary to implement the Redevelopment Law.

The [municipality ] local government and the agency shall ] be empowered to exercise only those powers authorized by [this e e 17 the Redevelopment Law or otherwise provided by law.

Nothing in e e n d 18 [this] the Redevelopment Law shall be construed to authorize = = l ] 19 the [municipality ] local government to operate an electric or a l r i 20 gas utility." t e a t SECTION 18.

Section 3-60A-19 NMSA 1978 (being Laws 1979, m m 21 e d r e 22 Chapter 391, Section 19) is amended to read:

c e r c 23 "3-60A-19.

TAX INCREMENT LAW--SHORT TITLE.--Sections [19 e a n b 24 through 25 of the Metropolitan Redevelopment Code] 3-60A-19 u [ through 3-60A-24 NMSA 1978 may be cited as the "Tax Increment .209471.2SA - 47 - Law"." SECTION 19.

Effective for tax years beginning on or after January 1, 1980, the local [governing body of a municipality ] government may elect by resolution to use the procedures set forth in the Tax Increment Law for financing metropolitan redevelopment projects.

The tax increment method, for the purpose of financing metropolitan redevelopment projects, is the dedication for further use in metropolitan redevelopment projects of that increase in property tax revenue directly resulting from the increased net taxable value of a parcel of eSB e95 17Page 44 property attributable to its rehabilitation, redevelopment or e e n d 18 other improvement because of its inclusion within an urban = = l ] 19 renewal, community development or metropolitan redevelopment a l r i 20 project." t e a t SECTION 20.

Section 3-60A-21 NMSA 1978 (being Laws 1979, m m 21 e d r e 22 Chapter 391, Section 21, as amended) is amended to read:

c e r c 23 "3-60A-21.

TAX INCREMENT PROCEDURES.--The procedures to e a n b 24 be used in the tax increment method are:

u [ A.

the local [governing body of the municipality ] .209471.2SA - 48 - government shall, at the time after approval of a metropolitan redevelopment project, notify the county assessor and the taxation and revenue department of the taxable parcels of property within the project;

If because of acquisition by the [municipality ] local government the property becomes tax exempt, the county assessor and the taxation and revenue department shall note that fact on their respective records and so notify the county treasurer, but the e e 17 county assessor, the taxation and revenue department and theSB e95 ePage n45 dthe 18 county treasurer shall preserve a record of the net taxable = = l ] 19 value at the time of inclusion of the property within the a l r i 20 metropolitan redevelopment project as the base value for the t e a t purpose of distribution of property tax revenues when the m m 21 e d r e 22 parcel again becomes taxable.

The county assessor is not c e r c 23 required by this section to preserve the new taxable value at e a n b 24 the time of inclusion of the property within the metropolitan u [ redevelopment project as the base value for the purposes of .209471.2SA - 49 - valuation of the property;

if because of acquisition by the [municipality ] local government the property becomes tax exempt, when the parcel again becomes taxable, the local [governing body of the municipality] government shall notify the county assessor and 6 the taxation and revenue department of the parcels of property that because of their rehabilitation or other improvement are to be revalued for property tax purposes.

If no acquisition by the [municipality ] local government occurs, improvement or rehabilitation of property subject to valuation by the assessor shall be reported to the assessor as required by the Property Tax Code, and the new taxable value shall be determined as of January 1 of the tax e e 17 year following the year in which the improvement or e e n d 18 rehabilitation is completed;

=SB =95 lPage ]46 19 D.

current tax rates shall then be applied to the new a l r i 20 taxable value.

The amount by which the revenue received t e a t exceeds that which would have been received by application of m m 21 e d r e 22 the same rates to the base value before inclusion in the c e r c 23 metropolitan redevelopment project shall be credited to the e a n b 24 [municipality] local government and deposited in the u [ metropolitan redevelopment fund.

This transfer shall take .209471.2SA - 50 - place only after the county treasurer has been notified to apply the tax increment method to a specific property included in a metropolitan redevelopment area.

Unless the entire metropolitan redevelopment area is specifically included by the ] local government for purposes of tax increment [municipality financing, the payment by the county treasurer to the [municipality] local government shall be limited to those properties specifically included.

Section 3-60A-22 NMSA 1978 (being Laws 1979, e e 17 Chapter 391, Section 22) is amended to read:

e e n d 18 "3-60A-22.

METROPOLITAN REDEVELOPMENT FUND--CREATION-- =SB =95 lPage ]47 19 DISBURSEMENT.--There is created a "metropolitan redevelopment a l r i 20 fund" for purposes of the Metropolitan Redevelopment Code.

t e a t Money in the metropolitan redevelopment fund shall be disbursed m m 21 e d r e 22 to the [municipality ] local government to be used as other c e r c 23 money is authorized to be used in the Metropolitan e a n b 24 Redevelopment Code." u [ SECTION 22.

Section 3-60A-23 NMSA 1978 (being Laws 1979, .209471.2SA - 51 - Chapter 391, Section 23, as amended) is amended to read:

The property tax increment method shall be applicable only to the units of government participating in property tax revenue derived from [property within a metropolitan redevelopment project and approving the useproperties ofwithin the taxdistrict. increment method for that property and only to the extent of the approval.

An approval may be restricted to certain types or sources of tax revenue] the properties within the district.

A local [governing body of each municipality] government shall request [such] an approval for up to a twenty-twenty-year year period for property included in the tax increment funding.

The governor or [his ] the governor's authorized representative shall approve, partially approve or disapprove the use of the method for state government;

the governing body of each other e e 17 participating unit shall approve, partially approve or e e n d 18 disapprove by ordinance or resolution the use of the method for = = l ] 19 [their] its respective units.

a l r i 20 C.

At the request of a participating unit of t e a t government, made within ten days of receipt of the request by m m 21 e d r e 22 the [municipality ] local government, the [municipality] local c e r c 23 government shall make a presentation to the governor or [his]the egovernor's aauthorized nSB b95 24Page the48 governor's authorized representative and to the governing u [ bodies of all participating units of government, which .209471.2SA - 52 - presentation shall include a description of the metropolitan redevelopment project and the parcels in the project to which the tax increment method will apply and an estimate of the general effect of the project and the application of the tax increment method on property values and tax revenues.

All participating units shall notify the local [governing body of the municipality] government seeking approval within thirty days of receipt of the [municipality's ] local government's request.

For the purpose of financing metropolitan redevelopment projects, in whole or in part, a [municipality ] e e 17 local government may issue tax increment bonds or tax increment e e n d 18 bond anticipation notes that are payable from and secured by = = l ] 19 real property taxes, in whole or in part, allocated to the a l r i 20 metropolitan redevelopment fund pursuant to the provisions of t e a t Sections 3-60A-21 and 3-60A-23 NMSA 1978.

The principal of, m m 21 e d r e 22 premium, if any, and interest on the bonds or notes shall be c e r c 23 payable from and secured by a pledge of such revenues, and the e a n b 24 [municipality] local government shall irrevocably pledge all or u [ part of [such]SB 95 Page 49 the revenues to the payment of the bonds or .209471.2SA - 53 - notes.

The revenues deposited in the metropolitan redevelopment fund or the designated part thereof may thereafter be used only for the payment of the principal of, premium, if any, and interest on the bonds or notes, and a holder of the bonds or notes shall have a first lien against the revenues deposited in the metropolitan redevelopment fund or the designated part thereof for the payment of principal of, premium, if any, and interest on [such ] the bonds or notes.

To increase the security and marketability of the tax increment bonds or notes, the [municipality ] local government may:

(2) provide that the proceeds from the sale of e e 17 real and personal property acquired with the proceeds from the e e n d 18 sale of bonds or notes issued pursuant to the Tax Increment Law = = l ] 19 shall be deposited in the metropolitan redevelopment fund and a l r i 20 used for the purposes of repayment of principal of, premium, if t e a t any, and interest on [such ] the bonds or notes;

and m m 21 e d r e 22 (3) make covenants and do any and all acts not c e r c 23 inconsistent with law as may be necessary, convenient or eSB a95 nPage b50 24 desirable in order to additionally secure the bonds or notes or u [ make the bonds or notes more marketable in the exercise of the .209471.2SA - 54 - discretion of the local [governing body ] government.

Bonds and notes issued pursuant to this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, ] local shall not be general obligations of the [municipalitylocal government, shall be collectible only from the proper pledged revenues and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of tax increment bonds or tax increment bond anticipation notes.

The bonds or notes shall be authorized by an ordinance of the [municipality ] local government;

shall be in ] a denomination or denominations, [bear] a such date and [such e e 17 mature, in the case of bonds, at [such ] a time not exceeding e e n d 18 twenty years from their date, and in the case of notes, not = = l ] 19 exceeding five years from the date of the original note;

bear a l r i 20 interest at a rate or have appreciated principal value not t e a t exceeding the maximum net effective interest rate permitted by m m 21 e d r e 22 the Public Securities Act;

and be in [such ] a form, carry c e r c 23 [such] registration privileges, be executed in [such] a manner, e a n b 24 be payable [in such ] at a place within or without SB 95 Page 51 the state, be u [ payable at intervals or at maturity and be subject to [such ] .209471.2SA - 55 - terms of redemption as the authorizing ordinance or supplemental resolution [or resolutions ] of the [municipality] local government may provide.

The bonds or notes may be sold in one or more series at, below or above par, at public or private sale, in [such] a manner and for [such] a price as the [municipality] local governmentgovernment, , in its discretion, shall determine;

As an incidental expense of a metropolitan redevelopment project or the portion [thereof] financed with the bonds or notes, the [municipality] local government in its discretion may employ financial and legal consultants with regard to the financing of the project.

In case any of the public officials of the e e 17 [municipality] local government whose signatures appear on any e e n d 18 bonds or notes issued pursuant to the Tax Increment Law [shall ] = = l ] 19 cease to be public officials before the delivery of the bonds a l r i 20 or notes, the signatures shall, nevertheless, be valid and t e a t sufficient for all purposes, the same as if the officials had m m 21 e d r e 22 remained in office until delivery.

Any provision of law to the c e r c 23 contrary notwithstanding, any bonds or notes issued pursuant to e a n b 24 the Tax Increment Law shall be fully negotiable.

u [ F.

In any suit, action or proceeding involving the .209471.2SASB -95 56Page -52 validity or enforceability of any bond or note issued pursuant to the Tax Increment Law or the security therefor, any bond or note reciting in substance that it has been issued by the [municipality] local government in connection with a metropolitan redevelopment project shall be conclusively deemed to have been issued for [such ] that purpose and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of the Metropolitan Redevelopment Code.

e e 17 H.

A [municipality] local government may issue bonds e e n d 18 or notes pursuant to this section with the proceeds from the = = l ] 19 bonds or notes to be used as other money is authorized to be a l r i 20 used in the Metropolitan Redevelopment Code.

t e a t I.

The [municipality] local government shall have the m m 21 e d r e 22 power to issue renewal notes, to issue bonds to pay notes and, c e r c 23 whenever it deems refunding expedient, to refund any bonds by e a n b 24 the issuance of new bonds, whether the bonds to be refunded u [ have or have not matured, and to issue bonds partly to refund .209471.2SASB -95 57Page -53 bonds then outstanding and partly for other purposes in connection with financing metropolitan redevelopment projects, in whole or in part.

The cost of financing a metropolitan redevelopment project shall be deemed to include the actual cost of acquiring e e 17 a site and the cost of the construction of any part of a e e n d 18 project, including architects' and engineers' fees, the = = l ] 19 purchase price of any part of a project that may be acquired by a l r i 20 purchase and all expenses in connection with the authorization, t e a t sale and issuance of the bonds or notes to finance the m m 21 e d r e 22 acquisition and any related costs incurred by the c e r c 23 [municipality] local government.

e a n b 24 L.

No action shall be brought questioning the u [ legality of any contract, mortgage, deed of trust, trust .209471.2SASB -95 58Page -54 indenture or other lien or security device, proceeding or bonds or notes executed in connection with any project authorized by the Metropolitan Redevelopment Code on and after thirty days from the effective date of the ordinance authorizing the issuance of such bonds or notes." SECTION 24.

REDEVELOPMENT BONDING LAW--SHORT TITLE.-- Sections [26 through 46 of the Municipal Redevelopment Code ] 3-60A-26 through 3-60A-46 NMSA 1978 may be cited as the "Redevelopment Bonding Law"." SECTION 25.

[A.A.

"revenue"finance" bonds"or "financing" means bonds,the notesissuing orof otherbonds eby ea 17local securitiesgovernment evidencingand anthe obligationuse andof issuedsubstantially all of the proceeds from the bonds pursuant to a financing agreement with the euser eto npay dor 18to powersreimburse grantedthe byuser or its designee for the Metropolitancosts Redevelopmentof Codethe byacquisition aor =construction =of la ]project, 19whether municipalitythese forcosts purposesare authorizedincurred by thatthe code;local government, the user or a designee of the user;

provided that title to or in the project may at all times remain in the user, and, in such case, the bonds of the local government may be secured by mortgage or other lien upon the project or upon any other property of the user, or both, granted by the SB 95 Page 55 user or by a lpledge rof ione 20or B.]more A.notes, debentures, bonds or other secured or unsecured debt obligations of the user, as the governing body deems advisable, but no local government shall be authorized hereby to pledge any of its property or to otherwise secure the payment of any bonds with its property, except that the local government may pledge the property of the project or revenues from the project;

"finance"B. or "financing" means the issuing of t e a t bonds by a [municipality ] local government and the use of m m 21 e d r e 22 substantially all of the proceeds [therefrom ] from the bonds c e r c 23 pursuant to a financing agreement with the user to pay or to e a n b 24 reimburse the user or its designee for the costs of the u [ acquisition or construction of a project, whether these costs .209471.2SA - 59 - are incurred by the [municipality ] local government, the user or a designee of the user;

provided"financing thatagreement" titleincludes toa orlease, insublease, theinstallment projectpurchase mayagreement, atrental allagreement, timesoption remainto inpurchase the user, and, in such case, the bonds of the [municipality ] local government may be secured by mortgage or other lien upon the project or upon any other propertyagreement of the user, or both, granted by the user or by a pledge of one or more notes, debentures, bonds or other secured or unsecured debt obligations of the user, as the governing body deems advisable, but no [municipality ] local government shall be authorized hereby to pledge any ofcombination itsthereof propertyentered orinto toin otherwiseconnection secure the payment of any bonds with its property, except that the [municipalityfinancing ] local government may pledge the property of thea project orpursuant revenuesto [therefromthe ]Metropolitan fromRedevelopment theCode; project;

[C.C.

]"mortgage" B.means a deed of trust or any other security device for both real and personal property;

"financingD. agreement" includes a lease, sublease, installment purchase agreement, rental agreement, e e 17 option to purchase or any other agreement or any combination e e n d 18 thereof entered into in connection with the financing of a = = l ] 19 project pursuant to the Metropolitan Redevelopment Code;

"ordinance" means an ordinance of a llocal rgovernment ifinancing 20or [D.refinancing an activity involving or affecting improvement or improvements;

]E. C.

"mortgage""project" means aan deedactivity that can be funded or refinanced by revenue bonds issued pursuant to the Redevelopment Bonding Law for the purpose of trustacquiring, improving, rehabilitating, conserving, financing, refinancing, erecting or building new or improved facilities on land, building or buildings or any other timprovement eor aimprovements, tsite securityor deviceany other activity authorized by the Metropolitan Redevelopment Code for bothprojects realor andactivities personalSB property;95 Page 56 located within the boundaries of a metropolitan redevelopment area.

m m 21 e d r e 22 [E.

] D.

"ordinance" means an ordinance of a c e r c 23 [municipality] local government financing or refinancing an e a n b 24 activity involving or affecting improvement or improvements;

u [ [F.

] E.

"project" means an activity [which] that can .209471.2SA - 60 - be funded or refinanced by revenue bonds issued pursuant to the Redevelopment Bonding Law for the purpose of acquiring, improving, rehabilitating, conserving, financing, [or ] refinancing, erecting or building new or improved facilities on land, building or buildings or any other improvement or improvements, site or any other activity authorized by the Metropolitan Redevelopment Code for projects or activities located within the boundaries of a metropolitan redevelopment area.

(1) manufacturing, industrial, commercial or business enterprises, including without limitation enterprises engaged in storing, warehousing, distributing, selling or e e 17 transporting any products of industry, commerce, manufacturing e e n d 18 or business or any utility plant;

= = l ] 19 (2) hospital, [health-care ] health care or a l r i 20 [nursing-home] nursing home facilities, including without t e a t limitation clinics and [out-patient ] outpatient facilities and m m 21 e d r e 22 facilities for the training of hospital, [health-care ] health c e r c 23 care or [nursing-home] nursing home personnel;

e a n b 24 (3) residential facilities intended for use as u [ the place of residence by the owners or intended occupants;

.209471.2SA - 61 - (4) sewage or solid waste disposal facilities;

SB 95 Page 57 (8) convention or trade show facilities;

[and ] (9) research, product testing and administrative facilities;

[G.(10) creative enterprises or industries;

"state" means the state of New Mexico;

] (10) creative enterprises or industries;

e e 17 F.

"revenue bonds" means bonds, notes or other e e n d 18 securities evidencing an obligation and issued pursuant to the = = l ] 19 powers granted by the Metropolitan Redevelopment Code by a a l r i 20 local government for purposes authorized by that code;

t e a t [H.] G.

"user" means one or more persons who enter m m 21 e d r e 22 into a financing agreement with a [municipality ] local c e r c 23 government relating to a project, except that the user need not e a n b 24 be the person actually occupying, operating or maintaining the u [ project;

and .209471.2SAH. - 62 - [I.

] H.

SB 95 Page 58 "3-60A-28.

GENERAL POWERS.--[A.POWERS.--In addition to any other powers, each local government has the following powers:

]A. In addition to any other powers, each [municipality ] local government has the following powers:

[(1) ] A.

If a [municipality] local e e 17 government issues revenue bonds as provided by the Metropolitan e e n d 18 Redevelopment Code to finance or acquire projects, [such ] the = = l ] 19 projects shall be located within the [municipality] a l r i 20 jurisdiction of the local government and within a metropolitan t e a t redevelopment area;

m m 21 e d r e 22 [(2) ] B.

to enter into financing agreements with c e r c 23 others for the purpose of providing revenues to pay the bonds e a n b 24 authorized by the Redevelopment Bonding Law;

to lease, sell or u [ otherwise dispose of any or all of its projects to others for .209471.2SA - 63 - [such revenues ] revenue and upon [such] terms and conditions [as] the local [governing body] government may deem advisable;

and to grant options to renew any lease or other agreement with respect to the project and to grant options to buy any project ]at a price [as] the local [governing body] government at [such deems desirable;

[(3) ] C.

to issue revenue bonds for the purpose of defraying the cost of financing, acquiring, improving and equipping any project, including the payment of principal and interest on [such ] the bonds for a period not to exceed three years and all other incidental expenses incurred in issuing [such] the bonds;

and [(4)SB ]95 Page 59 D.

to secure payment of [such] revenue bonds as provided in the Redevelopment Bonding Law." SECTION 27.

e e 17 "3-60A-29.

REVENUE BONDS--ISSUANCE.-- e e n d 18 A.

A [municipality] local government may issue = = l ] 19 revenue bonds from time to time in its discretion to finance a l r i 20 the undertaking of any project authorized by the Redevelopment t e a t Bonding Law or the exercise of any power or authority delegated m m 21 e d r e 22 under the Metropolitan Redevelopment Code.

These bonds shall c e r c 23 be made payable as to both principal and interest solely from e a n b 24 the income, proceeds, revenues and funds of the projectproject. [or u [ projects].

.209471.2SA - 64 - B.

Bonds issued under the provisions of the Metropolitan Redevelopment Code are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income thereon and income therefrom, shall be exempted from all taxes by the statestate. [of New Mexico ].

Bonds issued under this section [must ] shall be authorized by resolution of the local [governing body such ] government.

The bonds may be issued in one or more series and shall bear a date or SB 95 Page 60 dates, be payable upon demand or mature at a time or times, bear interest at a rate or rates not exceeding the legally authorized rate, be in a denomination or e e 17 denominations, be in a form either coupon or registered, carry e e n d 18 conversion or registration privileges, have rank or priority, = = l ] 19 be executed in a manner, be payable in a medium of payment at a a l r i 20 place or places, be subject to the terms of redemption with or t e a t without premium, be secured in a manner and have the other m m 21 e d r e 22 characteristics as may be provided by the resolution or trust c e r c 23 indenture or mortgage issued pursuant [thereto ] to the bonds.

e a n b 24 D.

The revenue bonds or any portion [thereof] to the u [ bonds may be sold at not less than par at public sales held .209471.2SA - 65 - after notice published prior to the sale in a newspaper having a general circulation in the area of operation and in any other medium of publication as the [municipality ] local government may determine or may be exchanged for other bonds on the basis of par;

provided that the bonds may be sold to the federal government or to the state at private sale at not less than par, and, in the event less than all of the authorized principal amount of the bonds is sold to the federal government or to the state or to political subdivisions thereof, the balance may be sold at private sale at not less than par at an interest cost to the [municipality ] local government of not to exceed the interest cost to the [municipality ] local government of the portion of the bonds sold to the federal government.

SB 95 Page 61 E.

In case any of the public officials of the [municipality] local government whose signatures appear on any ] bonds or coupons issued under the [Redevelopment Law shall e e 17 Metropolitan Redevelopment Code cease to be public officials e e n d 18 before the delivery of the bonds, the signatures shall, = = l ] 19 nevertheless, be valid and sufficient for all purposes, the a l r i 20 same as if the officials had remained in office until delivery.

t e a t Any provision of any law to the contrary notwithstanding, any m m 21 e d r e 22 bonds issued pursuant to the [Redevelopment Law ] Metropolitan c e r c 23 Redevelopment Code shall be fully negotiable.

e a n b 24 F.

In any suit, action or proceeding involving the u [ validity or enforceability of any bond issued under the .209471.2SA - 66 - [Redevelopment Law ] Metropolitan Redevelopment Code or the security therefor, any bond reciting in substance that it has been issued by the [municipality ] local government in connection with a metropolitan redevelopment project shall be conclusively deemed to have been issued for such purpose, and the project shall be conclusively deemed to have been planned, located and carried out in accordance with the provisions of the [Redevelopment Law ] Metropolitan Redevelopment Code." SECTION 28.

all insurance SB 95 Page 62 companies, insurance associations and other persons carrying on an insurance business;

and all executors, administrators, e e 17 curators, trustees and other fiduciaries may legally invest any e e n d 18 sinking funds, money or other funds belonging to them or within = = l ] 19 their control in any bonds or other obligations issued by a a l r i 20 [municipality] local government pursuant to the Metropolitan t e a t Redevelopment Code or by any agency vested with metropolitan m m 21 e d r e 22 redevelopment project powers under the Redevelopment Law;

c e r c 23 provided that the bonds and other obligations shall be secured e a n b 24 by a pledge of property or revenues or combinations thereof u [ [which] that is of sufficient value to equal the principal and .209471.2SA - 67 - interest of [such ] the bonds at maturity.

A [municipality] local government may issue revenue bonds in connection with a financing agreement for the purposes of financing a project authorized by the provisions of the Redevelopment Bonding Law.

A revenue bond shall be a limited obligation of theSB [municipality95 ]Page 63 the local government, the principal and interest of which shall be payable, subject to the mortgage provisions e e 17 of the Redevelopment Bonding Law, solely out of the revenues e e n d 18 derived from the financing, sale or leasing of the project with = = l ] 19 respect to which the bonds are issued.

a l r i 20 C.

The revenue bond and interest coupons, if any, t e a t appurtenant thereto shall never constitute a debt or m m 21 e d r e 22 indebtedness of the [municipality ] local government within the c e r c 23 meaning of any provision or limitation of the [state ] e a n b 24 constitution of New MexicoMexico, , statutes of the state or a home u [ rule charter of the [municipality ] local government, and .209471.2SA - 68 - [such] the bond shall not constitute [nor] or give rise to a pecuniary liability of the [municipality ] local government or a charge against its general credit or taxing powers.

[Such ] These limitations shall be plainly stated on the face of each ] bond." [such SECTION 30.

Revenue bonds shall be authorized by ordinance of the [municipality ] local government, shall be subject to [such] a maximum net effective interest rate and shall be in [such] denominations, bear [such ] a date, mature at [such] a time not exceeding forty years from their respective dates, bear [such ] an interest at a rate, be in [such] a form, carry [such] registration privileges, be executed in [such ] a manner, be payable at [such ] a place within or without the state and be esubject eSB 1795 subjectPage 64 to [such ] terms of redemption as the authorizing e e n d 18 ordinance or supplemental resolution of the [municipality ] = = l ] 19 local government may provide.

a l r i 20 B.

The revenue bonds may be sold in one or more t e a t series at par or below or above par at public or private sale m m 21 e d r e 22 in [such] a manner and for [such] a price as the [municipality] c e r c 23 local government in its discretion shall determine;

but the e a n b 24 [municipality] local government shall not sell [such] revenue u [ bonds at a price such that the net effective interest rate of .209471.2SA - 69 - the issue of bonds exceeds the maximum net effective interest rate authorized.

As an incidental expense of the project, the [municipality] local government in its discretion may employ financial and legal consultants in regard to the financing of the project." SECTION 31.

REVENUE BONDS--BOND SECURITY.--The principal of, the interest on and any prior redemption premiums due in connection with the revenue bonds shall be payable from, [secure] secured by a pledge of and constitute a lien on the revenues out of which [such ] the bonds shall be made payable.

In addition, they may be secured by a mortgage covering all or any part of the project or upon any other property of the user or both by a pledge of the revenues from or a financing agreement for [such ] the project or both as the [governing e e 17 body] local government in its discretion may determine;

but no e e n d 18 [municipality] local government shall be authorized [hereby] by = = l ] 19 the Redevelopment Bonding Law to pledge any of its property orSB a95 lPage r65 ior 20 to otherwise secure the payment of any bonds with its property, t e a t except that the [county or municipality ] local government may m m 21 e d r e 22 pledge the property of the project or revenues [therefrom ] from c e r c 23 the project." e a n b 24 SECTION 32.

Section 3-60A-34 NMSA 1978 (being Laws 1979, u [ Chapter 391, Section 34) is amended to read:

.209471.2SA - 70 - "3-60A-34.

REVENUE BONDS--TERMS OF PROCEEDINGS AND INSTRUMENTS.--[A.INSTRUMENTS.--The proceedings under which the revenue bonds are authorized to be issued and any mortgage or trust indenture given to secure the bonds may contain any provisions customarily contained in instruments securing bonds and constituting a covenant with the bondholders, including:

]A. The proceedings under which the revenue bonds are authorized to be issued and any mortgage or trust indenture given to secure the [same ] bonds may contain any provisions customarily contained in instruments securing bonds and constituting a covenant with the bondholders, including:

[but not limited to (1)] A.

[(2) ] B.

[(3) ] C.

] D.

the maintenance and insurance of the [(4) e e 17 project;

e e n d 18 [(5) ] E.

the creation of funds and accounts into = = l ] 19 which any bond proceeds, revenues and income may be deposited a l r i 20 or credited;

tSB e95 aPage t66 [(6) ] F.

limitation on the purpose to which the m m 21 e d r e 22 proceeds of any bonds then or thereafter to be issued may be c e r c 23 applied;

e a n b 24 [(7) ] G.

limitation on the issuance of additional u [ bonds, the terms upon which additional bonds are issued and .209471.2SA - 71 - secured, the refunding of bonds and the replacement of bonds;

[(8) ] H.

[(9) ] I.

vesting in a trustee [such] properties, ] local rights, powers and duties in trust as the [municipalitylocal government determines and limiting the rights, duties and powers of [such ] the trustees;

and [(10) ] J.

The [municipality] local government may provide e e 17 that proceeds from the sale of revenue bonds and special funds e e n d 18 from the revenues of the project shall be invested and = = l ] 19 reinvested in [such ] securities and other investments, whether a l r i 20 or not any [such ] investment or reinvestment is authorized t e a t under any other law of this state, as may be provided in the m m 21 e d r e 22 proceedings under which the bonds are authorized to be issued, cincluding: e r c 23 including [but not limited to ]:

eSB a95 nPage b67 24 (1) bonds or other obligations of the United u [ States;

.209471.2SA - 72 - (2) bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States;

(7) [bankers ] bankers' acceptances drawn on and accepted by commercial banks;

(8) repurchase agreements fully secured by e e 17 obligations issued or guaranteed as to principal and interest e e n d 18 by the United States or by any person controlled or supervised = = l ] 19 by and acting as an instrumentality of the United States a l r i 20 pursuant to authority granted by the congress of the United t e a t States;

and m m 21 e d r e 22 (9) certificates of deposit issued by commercial c e r c 23 banks.

eSB a95 nPage b68 24 B.

The [municipality] local government may also u [ provide that the proceeds, funds or investments and the .209471.2SA - 73 - revenues payable under the financing agreement shall be received, held and disbursed by one or more banks or trust companies located within or without this state." SECTION 34.

The [municipality] local government may also provide that:

(1) the project and improvements to be constructed, if any, shall be constructed by the [municipality ] local governmentgovernment, , the user, the user's designee or any one or more of them on real estate owned by the [municipality ] local government, the user or the user's designee, as the case may be;

and (2) the bond proceeds shall be disbursed by the trustee bank or trust company during construction upon the e e 17 estimate, order or certificate of the user or the user's e e n d 18 designee.

= = l ] 19 B.

The project, if and to the extent constructed on a l r i 20 real estate not owned by the [municipality ] local government, t e a t may be conveyed or leased or an easement [therein ] in the real m m 21 e d r e 22 estate granted to the [municipality] local government at any c e r c 23 time." e a n b 24 SECTION 35.

Section 3-60A-37 NMSA 1978 (being Laws 1979, u [ Chapter 391, Section 37) is amended to read:

.209471.2SA - 74 - "3-60A-37.

REVENUE BONDS--LIMITED OBLIGATION.--In making [such]SB 95 Page 69 agreements or provisions, a [municipality] local government shall not obligate itself except with respect to the project and the application of the revenues [therefromand ]revenue andbond ]proceeds from the project." revenue bond proceeds [therefor SECTION 36.

Prior to entering into a financing agreement for the project and the issuance of revenue bonds in connection [therewith] with the project, the local [governing body] government shall determine:

(1) the amount necessary in each year to pay the principal of and the interest on the first bonds proposed to be issued to finance [such ] the project;

(2) the amount necessary to be paid each year e e 17 into any reserve funds [which ] that the [governing body] local e e n d 18 government may deem advisable to establish in connection with = = l ] 19 the retirement of the proposed bonds and the maintenance of the a l r i 20 project;

and t e a t (3) the estimated cost of maintaining the m m 21 e d r e 22 project in good repair and keeping it properly insured unless c e r c 23 the terms under which the project is to be financed provide e a n b 24 that the user shall maintain the project and carry all proper u [ insurance with respect [thereto ] to the project.

.209471.2SA - 75 - B.

The determination and findings of the local [governing body ] government required to be made by Subsection A of this section shall be set forth in the proceedings under which the SB 95 Page 70 proposed revenue bonds are to be issued;

REVENUE BONDS--FINANCING OF PROJECT.--Prior to the issuance of any revenue bonds authorized by the Redevelopment Bonding Law, the [municipality ] local government shall enter into a financing agreement with respect to the project with a user providing for payment to the [municipality ] local government of [such revenues as] revenue upon the basis of [such] determinations and findings that the revenue will be e e 17 sufficient to pay the principal of and interest on the bonds e e n d 18 issued to finance the project, to build up and maintain any = = l ] 19 reserves deemed advisable by the local [governing body ] a l r i 20 government in connection [therewith] with the project and to t e a t pay the costs of maintaining the project in good repair and m m 21 e d r e 22 keeping it properly insured unless the financing agreement c e r c 23 obligates the user to pay for the maintenance of and insurance e a n b 24 on the project." u [ SECTION 38.

Section 3-60A-41 NMSA 1978 (being Laws 1979, .209471.2SA - 76 - Chapter 391, Section 41) is amended to read:

A lease may grant the user of a project an option to purchase all or a part of the project at a SB 95 Page 71 stipulated purchase price or at a price to be determined upon appraisal as is provided in the lease.

The option may be exercised at [such ] a time as the lease may provide.

The [municipality] local government and the user may agree and provide in the lease that all or a part of the rentals paid by the user prior to and at the time of the exercise of [such ] the option shall be applied toward the purchase price and shall be in full or partial satisfaction [thereof] of the purchase price." SECTION 39.

e e 17 "3-60A-42.

REVENUE BONDS--REFUNDING.-- e e n d 18 A.

Any revenue bonds issued under the provisions of = = l ] 19 the Redevelopment Bonding Law and at any time outstanding may a l r i 20 at any time and from time to time be refunded by a t e a t [municipality] local government by the issuance of its m m 21 e d r e 22 refunding bonds in such amount as the [governing body ] local c e r c 23 government may deem necessary to refund the principal of the e a n b 24 bonds to be so refunded, any unpaid interest [thereon ] on the u [ bonds and any premiums and incidental expenses necessary to be .209471.2SA - 77 - paid in connection [therewith ] with the bonds.

Any [such] refunding may be effected, whether the bonds to be refunded have matured or shall thereafter mature, either by sale of the refunding bonds and the application of ],the proceeds, directly or indirectly, to the payment the proceeds [thereof of the bonds to be refunded [thereby ] or by exchange of the refunding bonds SB 95 Page 72 for the bonds to be refundedrefunded, [thereby ], but the holders of any bonds to be so refunded shall not be compelled, without their consent, to surrender their bonds for payment or exchange prior to the date on which they are payable by maturity date, option to redeem or otherwise or if they are called for redemption prior to the date on which they are by their terms subject to redemption by option or otherwise.

All refunding bonds issued under authority of the Redevelopment Bonding Law to refund revenue bonds shall be payable solely from revenues out of which bonds to be refunded e e 17 [thereby] are payable or from revenues out of which bonds of e e n d 18 the same character may be made payable under the Redevelopment = = l ] 19 Bonding Law or any other law in effect at the time of the a l r i 20 refunding." t e a t SECTION 40.

Section 3-60A-43 NMSA 1978 (being Laws 1979, m m 21 e d r e 22 Chapter 391, Section 43) is amended to read:

c e r c 23 "3-60A-43.

REVENUE BONDS--APPLICATION OF PROCEEDS.-- e a n b 24 A.

The proceeds from the sale of any revenue bonds u [ shall be applied only for the purpose for which the bonds were .209471.2SA - 78 - issued, and, if for any reason any portion of [such ] the proceeds are not needed for the purpose for which the bonds were issued, [such ] the unneeded portion of the proceeds shall be applied to the payment of the principal of or the interest on the bonds.

The cost of acquiring any project shall be SB 95 Page 73 deemed to include the actual cost of acquiring a site and the cost of the construction of any part of a project [which ] that may be constructed, including architects' and engineers' fees, the purchase price of any part of a project that may be acquired by purchase and all expenses in connection with the authorization, sale and issuance of the bonds to finance [such ] the acquisition and any costs incurred by the [municipality] local government." SECTION 41.

e e 17 "3-60A-44.

NO PAYMENT BY [MUNICIPALITY ] LOCAL e e n d 18 GOVERNMENT.-- = = l ] 19 A.

No [municipality] local government or public body a l r i 20 shall pay out of its general fund or otherwise contribute any t e a t part of the costs of acquiring a project and, unless m m 21 e d r e 22 specifically acquired for uses of the character described in c e r c 23 the Redevelopment Bonding Law or unless the land is determined e a n b 24 by the governing body to be no longer necessary for other u [ municipal purposes or purposes of a public body, shall not use .209471.2SA - 79 - land already owned by the [municipality ] local government or public body or in which the [municipality ] local government or public body has an equity for the construction thereon of a project or any part thereof.

The entire cost of acquiring any project shall be paid out of the proceeds from the sale of the revenue bonds, but this provision shall not be construed to prevent a [municipality] local government or public body from accepting donations of SB 95 Page 74 property to be used as a part of any project or money to be used for defraying any part of the cost of any project." SECTION 42.

NO [MUNICIPAL ] LOCAL GOVERNMENT OPERATION.-- A.

When all principal of, interest on and any prior redemption premium due in connection with the revenue bonds e e 17 issued for a project leased to a user have been paid in full e e n d 18 and in the event the option to purchase or option to renew the = = l ] 19 lease, if any, contained in the lease has not been exercised as a l r i 20 to all of the property contained in the project, the lease t e a t shall terminate and the [municipality ] local government shall m m 21 e d r e 22 sell [such] the remaining property or devote the [same] c e r c 23 property to [municipal] local government purposes other than e a n b 24 manufacturing, commercial or industrial.

u [ B.

Any [such] sale [which] that is not made pursuant .209471.2SA - 80 - to the exercise of an option to purchase by the user of a project shall be conducted in the same manner as is then provided by law governing the issuer's sale of surplus property." -SB 8195 -Page 775 925 11 13 15 e e 17 e e n d 18 = = l ] 19 a l r i 20 t e a t m m 21 e d r e 22 c e r c 23 e a n b 24 u [ .209471.2SA