Real Estate Division Frequently Asked Questions

Here a few of the most frequently asked Real Estate questions here at the Arizona State Land Department. If you have other questions or comments, click here to contact us. Other ASLD Faqs>>

Planning

What are conceptual plans?
Where can I find approved development plans?
How is Trust property planned?
What is the process for annexing State Trust land?

Real Estate

What is the process for bringing a sale or lease of State Trust Land to auction?
How are the auctions conducted?
Where can I find out about upcoming properties ASLD will be offering at public auction?
Does the Department lease land without public auction?
How do I determine if there is legal access State Trust Land to either my to either my private
land or a trust parcel?

Engineering

Is it necessary to contact the ASLD when developing land adjacent to State Trust land?
When may a 401/404 Permit be required for this property?
What is sovereign land?
Is the Colorado River the only navigable river in Arizona?
I own property on the Arizona side of the Colorado River.  Is my property impacted by Arizona sovereign lands?
I want to have a boat dock or ramp constructed on the Colorado River.  Do I need a permit?

 

Q: What are conceptual plans?

Conceptual plans are similar to community general plans and represent the long term planning goals for trust lands within incorporated communities and areas deemed appropriate for conceptual planning by the State Land Commissioner.

Q: Where can I find approved development plans?

Plans approved under the urban lands act can be found at the public counter. These plans are under KE 47 for plans prepared by a planning permit or under a KE 49 for plans prepared using appropriated monies from the legislature.

Q: How is Trust property planned?

Trust properties can be planned by using internal staff, by planning permit issued per the Urban Lands Act, or by contacting with consultants using appropriated monies from the legislature. In some cases the Department will grant the developer permission to include Trust land in a planning project at the developer's expense. And in other cases the Department may allow applicants for the sale and or lease of Trust property to do additional planning that would enhance the marketability of the property.

Q: What is the process for annexing State Trust Land?

Please refer to: Annexing State Trust Land:  Guidelines for Arizona's cities and towns.

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Q: What is the process for bringing a sale or lease of State Trust Land to auction?

Both the purchasing and the commercial leasing process is initiated by an application, completed by the applicant in consultation with Department staff, and filed with the Land Department. Submission of an application does not guarantee that the land will be sold. If a determination is made at any point during the process that a sale or lease would not be in the best interest of the Trust, the application may be denied. The Trust cannot subsidize development for any purpose, no matter how commendable, at the expense of its beneficiaries.

It is the Land Department's responsibility - on behalf of the beneficiaries, public schools and other state public institutions - to enhance value and optimize economic return of state trust resources. All Trust Land transactions must be in furtherance of this mission.

The Department created a Five Year Plan as a management tool to help prioritize the disposition of lands. It takes into consideration numerous attributes of each parcel, including market feasibility, infrastructure, site constraints, entitlements, etc., to help prioritize dispositions.

Completion of an Application Addendum, as well as a conference with and sign off by Real Estate Division staff, is required prior to filing a purchase or long term lease application. Failure to schedule the conference or to provide adequate information as requested in the application may result in rejection of the application. When evaluating an application, the Department will take into consideration factors including, but not limited to, the following:

• The Department’s Five Year Plan

• The highest and best use of State Trust Lands

• The proposed long-term resource commitments and their effects on future uses of the land and adjacent Trust land

• The short term and long term benefits of the transaction to the Trust and its beneficiaries.  The Trust cannot subsidize development for any purpose, no matter how commendable, at the expense of its beneficiaries

• The agency and staff work load, and existing commitments

• Other factors that may be unique to the proposed transaction

A sales and leasing administrator will coordinate evaluation of the applicant to determine if and when to proceed with disposition, as well as to define the necessary due diligence needed prior to appraisal and auction.  Due diligence items may include, but are not limited to: ALTA Land and Title Survey; Archaeological Survey; Geotechnical Report; Infrastructure Analysis; Phase I Environmental Assessment Report and Appraisal Report. The applicant may be required to front these costs, which may be reimbursed, upon approval of the Land Commissioner, in the event that the applicant is not the successful bidder at an auction.

Once all the due diligence information is gathered, the parcel will be appraised. All State Trust Land transactions must be in accordance with the State’s responsibility to receive an appropriate return for the Trust beneficiaries. The Land Department will obtain an appraisal, usually from an independent appraiser, and the applicant must either prepay the cost of the appraisal or the cost will be assessed as a fee at auction. The approved appraised value establishes the minimum acceptable bid at the time of auction. For leases, the approved appraised value forms the basis for establishing a minimum rent schedule; rent is generally assessed at the greater of a percentage of the gross receipts generated by the land or the minimum scheduled rent.

All sales and leases of State Trust Land must be approved by the Board of Appeals, an independent body of 5 members, appointed by the Governor. The Land Department is authorized to pay commissions to Arizona licensed real estate brokers.

After approval by the Board of Appeals, the date of auction is set and an auction notice is published for a 10-week period, prior to the public auction. An estimated advertising fee is required from the applicant, and must be received prior to the Land Department scheduling the public auction.

Q:  How are the auctions conducted?

The auctions are live, open to the public, and verbal. Interested bidders must refer to the official auction notice regarding the terms of the sale or lease. A cashier’s check must be presented to the designated real estate staff before the auction begins. The successful bidder must pay the amount specified in the auction notice by a cashier's check. The auction notice sets forth the conditions of sale or lease, broker registration information, reimbursements, etc. The auction is conducted by an auctioneer. The minimum bid is the appraised land value and the minimum bidding increments are set forth in the auction notice. Bidding continues until a successful bidder is declared.

Q: Where can I find out about upcoming properties ASLD will be offering at public auction?

The Department will advertise all public auctions in the legal notices section of the Capitol Times as well as a local newspaper near the location of the lands auctioned. All advertised auctions are on our website under the “Available Properties” tab on the home page, or in the “Scheduled Public Auctions” calendar, also located on the home page. You can also get on the Department’s email list of upcoming events. Simply email mhyde@land.az.gov and specify which auctions or location you are interested in.

Q: Does the Department lease land without public auction?

Yes, the Department issues “short term leases” or permits for terms of 10 years or less without an auction. Short term leases allow minimal or no improvements, and are issued for uses that are more temporary or interim in nature. Examples include communication sites, temporary storage or staging areas, trail rides, outdoor advertising signs, etc.

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Q: How do I determine if there is legal access State Trust Land to either my private land or a Trust parcel?

Most title companies will research this information for a fee, or you can contact our Public Records Section to assist you in determining if there is an access easement (“Right of Way”) across State Trust Land.

Q: Is it necessary to contact ASLD when developing land adjacent to State Trust land?

Yes. The engineering section must approve any project that might have an impact because of a change in drainage. A copy of the Drainage or Hydrology Report by the consulting agency on the project should be submitted to ASLD for review, comment, and recommendation.

Q: When may a 401/404 Permit be required for this property?

Any project that may result in the excavation or addition of fill materials to a watercourse (river, wash, arroyo, wetlands, etc.) requires a Section 404 Permit (Clean Water Act) from the US Army Corps of Engineers, and a State Water Quality Certification (Section 401) permit from the Arizona Department of Environmental Quality. This includes activities such as the installation of utility and road crossings, bridges, bank protection, boat launch ramps, sand and gravel mining, and the development of residential and commercial property.

Q: What is sovereign land?

The land lying in the bed of navigable rivers at the time of statehood is sovereign land.  Arizona is mandated by the legislature to manage the land from the centerline of the Colorado riverbed to the Ordinary High Water Mark (OHWM) on the Arizona river bank.  Sovereign land is held in trust for the benefit of the people of Arizona for travel, commerce, fishing, and other forms of recreation.

Q: Is the Colorado River the only navigable river in Arizona?

The Arizona Navigable Stream Adjudication Commission has been charged with determining the navigability at the time of statehood of all of the other rivers, streams and washes in the state.  In 2006, they completed their determinations and declared all were non-navigable.  The decisions on the Upper and Lower Salt, Verde, San Pedro and Santa Cruz rivers have been challenged in various appeals courts and are still under review.

Q: I own property on the Arizona side of the Colorado River.  Is my property impacted by Arizona sovereign lands?

It may be, depending on the location of your property and whether a study has been completed on that particular reach of the river. Beginning in 2000, and each year since then, ASLD has commissioned intensive studies of the sovereign boundary.  Because these studies are expensive and time consuming, the river has been subdivided into 5 reaches, from Davis Dam north of Bullhead City, to the Northern International Boundary between California and Arizona, near Yuma. (The Southern International Boundary is where Arizona dips further south than California, and forms a boundary with Mexico.)

As of this writing, January 2009, three of the five reaches have been field surveyed, and official plat maps of the sovereign boundary location have been printed.  Copies of these maps reside at the respective County Recorder’s office, and here at ASLD.  Contact ASLD’s Engineering Section to determine if a study has been completed for your area.   Providing the Township, Range and Section numbers for your property is helpful, but not necessary.

If your property lies within a reach of the river that has not yet been studied and surveyed, you have the option of hiring a registered land surveyor or riparian boundary expert to perform a sovereign boundary investigation. Those results will have to be reviewed and approved by ASLD.

Q: I want to have a boat dock or ramp constructed on the Colorado River.  Do I need a permit?

Yes, you need a permit from ASLD. The permitting process and associated fees are currently being reassessed.

You also need a permit from the US Army Corps of Engineers, which under Section 10 of the Rivers and Harbors Act is charged with protecting the navigability of the river from unauthorized obstructions.