Patrick Lyons
Citing ‘significant defects’ in appraisals, AG’s office asks land commissioner to delay White Peaks land swaps
The Attorney General’s Office has asked the land commissioner to put a controversial series of land deals on hold because it has found “significant defects” in the appraisals used to determine the terms of the deals.
A Dec. 23 letter from Chief Deputy Attorney General Albert Lama to Land Commissioner Pat Lyons requested that none of the White Peaks area land deals proceed until “we can verify that adequate appraisals have been done.”
Among the issues, according to Lama’s letter, is that the appraisals that were done by by John T. Widdoss for the land office – which were paid for by the ranchers who are submitting bids for the state land – make “key” assumptions that lack “any substantiation,” and so on “this basis alone, the appraisal lacks sufficient data to support its conclusion.”
Lama wrote that the appraisals “appear to run afoul of the Uniform Standard of Appraisal Practice.” That conclusion came after an independent appraiser hired by the AG reviewed the proposed land swaps.
Under the proposed Express UU Bar Ranches swap, which the independent appraiser cited as an example, the ranch would receive state trust land appraised at nearly $5.5 million, which is more than twice the $2.4 million appraised value of the land the ranch would turn over to the state.
Additionally, Lama wrote “the revenue-generating potential of the property the state would receive may be significantly less than the revenue-generating potential of the land the state is offering.”
Lyons disagrees. In fact, he wrote a letter to sportsmen in November stating the private acreage involved in the exchange “may be fewer in number, but they have a higher appraised value and a higher earning potential than the current trust land.”
“In the interest of earning the highest possible revenue for the trust this exchange is highly advantageous,” Lyons wrote. “It will consolidate trust land holdings to one large parcel of land rather than a checkerboard of holdings dispersed with private land. This will be more manageable than dispersed land and more profitable as a larger piece has more applicable uses.”
“This exchange will improve land management capabilities for a healthy and productive ecosystem that not only improves hunting opportunities, but the overall health and vigor of the forest,” Lyons wrote.
‘More of a sale than… a swap’
In his letter, Lama wrote that the land swap transaction is more like “a hybrid of a sale and exchange, though the majority of this transaction would be a sale.”
“If this is the case, we have serious concerns about the propriety of the disposition of state trust lands in this manner,” Lama wrote.
And it’s the “additional cash bonus” being offered by UU Bar’s owners that has raised the ire of State Rep. Brian Egolf, D-Santa Fe, who told NMPolitics.net that it “raises serious concerns about the propriety of the disposition of state trust Lands in this manner.”
“More than half of the value is being paid by UU Bar in cash, which means this is more of a sale than it is a swap, and the procedures that are required for a land sale were not followed,” Egolf said.
While the land office did not respond to NMPolitics.net’s inquiries about Lama’s letter or Widdoss’ appraisals, its chief counsel, Robert Stranahan, told The Associated Press he’s “happy to stand behind his work,” and said “some concerns were misunderstandings of the process.”
Stranahan said a meeting is scheduled for next Thursday to discuss the appraisals.
“At the end of the day, the appraised value we are getting is more than we are giving up,” he told the AP.
Governor remains concerned
Meanwhile, Gov. Bill Richardson said the “unanswered questions” about the White Peaks land swaps mean that the land office “should not close the deals.”
“I remain very concerned about the potential loss of prime public hunting and other outdoor opportunities, as well as the secretive process used to determine the terms and comparable valuation of the exchange,” Richardson said in a prepared statement.
Egolf, who requested both the attorney general and state auditor investigate the land swaps, said Lama’s letter is a good first step.
“Hopefully the next step the land commissioner takes is to suspend these transactions until the attorney general and the Legislature are satisfied that the transactions are in the best interest of the beneficiaries,” Egolf said.
“Let’s make sure all the parties, including the attorney general and the Legislature, have a chance to really understand what this deal is all about, to make sure that it’s being done properly, and to make sure it’s the best interests of the beneficiaries of the state trust,” Egolf said.
The state auditor is expected to provide the results of his office’s investigation before the start of the legislative session on Jan. 19.
St. Cyr is a contributing writer for this site and a reporter at 770KKOB.com. He can be reached at peter.stcyr@gmail.com.