Lawmaker no longer seeks audit of Lyons’ dealings

A special audit of the dealings of the State Land Office begins today, even as one of five lawmakers who requested the review has withdrawn his support for it.

The land office announced today in a news release that Democratic state Rep. Ray Begaye of Shiprock has withdrawn his name from the letter that sought the formal involvement of state Auditor Hector Balderas. In an interview, Begaye said he has come to respect Land Commissioner Pat Lyons and his staff and is concerned that the controversy that has ensued over Lyons’ dealings with a Las Cruces developer is costing the state money that could help fund education.

Begaye said that, until the controversy began, Lyons was increasing the amount of money the land office was making for education, which “tells me that Pat Lyons and his office staff are doing a pretty good job.” The controversy, Begaye said, caused the land office’s business and planning lease revenue to drop during the 2007 fiscal year by about $400,000 from the previous fiscal year.

Asked if he believes the controversy is politically motivated, as Lyons has alleged, Begaye said there “is some internal strife” in Las Cruces but he doesn’t know a lot about it.

Balderas announced in May that he will conduct the audit. The letter requesting the review was also signed by Democratic Reps. Nate Cote of Organ, Mimi Stewart of Albuquerque, Elias Barela of Belen and Thomas Garcia of Ocate and followed an opinion by Attorney General Gary King finding fault with a land lease in Las Cruces.

The AG’s formal opinion related to The Vistas at Presidio land deal on Las Cruces’ East Mesa states that the lease agreement’s method of compensating Philip Philippou’s company for developing the land is “not comprehended by and in conflict with” a statute that allows developers who improve land for the state to be compensated only for the appraised value of the improvements. In the lease, the land office also agrees to compensate Philippou for other project costs and 40 percent of the change in value of the land as a result of the improvements.

There are a number of other leases for land in Las Cruces, Albuquerque, Rio Rancho and Santa Fe that contain similar provisions. Lyons is proceeding with those deals and King has taken no action to stop him.

In today’s news release announcing that Begaye had changed his mind, Lyons said he welcomes Balderas’ audit and is confident it will confirm the findings of the agency’s last five audits, which found no problems. The special audit will look specifically at policies and procedures the land office follows in the sale, exchange and leasing of trust lands.

On Wednesday, Lyons spoke about the land office’s dealings before the Legislative Education Study Committee. Begaye is a member of that committee and was present for Lyons’ presentation, which he said was impressive. In the news release, Lyons complained that Cote and Garcia, who are also members of the committee, were absent from the meeting. He said they “will remain in the dark and continue to make unsubstantiated allegations.”

Land office says Garcia also changes mind

Lyons’ news release made one additional claim – that Senate Majority Whip Mary Jane Garcia, D-Doña Ana, has also changed her mind on the controversy in Las Cruces. It was Sen. Garcia and Cote who requested the formal AG opinion on the legality of Lyons’ deal with Philippou last year.

At Wednesday’s meeting, Sen. Garcia “admitted on the record that she got caught up in a ‘political nightmare’ and she has withdrawn her name from that letter (to the AG),” the land office news release alleged. “She said, after speaking with Commissioner Lyons and meeting with the developer of a Las Cruces project that sparked the letter, she feels confident that the commissioner is working in the best interest of the trust.”

In an interview, Sen. Garcia refused to say whether that’s true, but said she did speak with Lyons about the situation.

“I prefer not to make any statement at this time because my statements are always misinterpreted,” Garcia said. “I’m not after Patrick Lyons. I’m not after the developer. I’m not after anyone. I’m just going to run my campaign and that’s all the information I’m giving out at this time.”