No. 31960 (New Rule): R657-61. Valuation of Real Property Interests for Purposes of Acquisition or Disposal

DAR File No.: 31960
Filed: 09/18/2008, 09:50
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule is being created pursuant to Regional Advisory Council meetings and the Wildlife Board meeting conducted for taking public input and reviewing the Use of Division Lands rule.

Summary of the rule or change:

The proposed rule: 1) sets guidelines for the division to follow when acquiring property; and 2) allows the division to obtain a professional estimation of value when acquiring or disposing real estate.

State statutory or constitutional authorization for this rule:

Section 23-21-1

Anticipated cost or savings to:

the state budget:

These amendments provide requirements and restrictions on the acquisition of Division of Wildlife Resources' (DWR) lands. This rule follows guidelines currently being used by DWR and therefore, DWR determines that these amendments do not create a cost or savings impact to the state budget or DWR's budget.

local governments:

None--This filing does not create any direct cost or savings impact to local governments because they are not directly affected by the rule. Nor are local governments indirectly impacted because the rule does not create a situation requiring services from local governments.

small businesses and persons other than businesses:

This rule provides guidelines and restrictions for the acquiring and disposing of DWR's lands. Therefore, these amendments do not impose any additional requirements on other persons, nor generate a cost or savings impact to other persons.

Compliance costs for affected persons:

This rule sets the guidelines and restrictions for acquiring and disposing of DWR's lands. DWR determines that there are no additional compliance costs associated with this amendment.

Comments by the department head on the fiscal impact the rule may have on businesses:

The amendments to this rule do not create an impact on businesses. Michael R. Styler, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Natural Resources
Wildlife Resources
1594 W NORTH TEMPLE
SALT LAKE CITY UT 84116-3154

Direct questions regarding this rule to:

Staci Coons at the above address, by phone at 801-538-4718, by FAX at 801-538-4709, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/14/2008

This rule may become effective on:

11/21/2008

Authorized by:

James F Karpowitz, Director

RULE TEXT

R657.Natural Resources, Wildlife Resources.

R657-61.Valuation of Real Property Interests for Purposes of Acquisition or Disposal.

R657-61-1.Purpose and Authority.

(1)Pursuant to Utah Code Sections 63-34-21, 23-14-8, and Section 23-21-1, this rule defines the process by which the value of real property is determined for purposes of acquisition or disposal by the Division.

 

R657-61-2.Definitions.

(1)For purposes of this rule:

(a)"Appraisal" means an independent analysis, opinion, or conclusion relating to the nature, quality, value, or utility of specified interests in, or aspects of, an identified parcel of real property, and conducted by a state registered, licensed or certified appraiser.

(b)"Value" means as an opinion on the worth of an identified parcel of real property or interest therein at a specific time and may be comprised of one or more of the following values, as commonly understood within the real estate and appraisal services business communities: assessed value, insurable value, use value, investment value, going-concern value, business enterprise value, market value, and public interest value.

 

R657-61-3.Obtaining an Opinion of Value.

(1)When purchasing or disposing real property interests, the Division shall obtain a written opinion on the value of the property interest in the form of either an appraisal or a real estate broker's estimate of value.

(a)The division will keep and maintain the written opinion of value in its real property acquisition and disposal files.

(2)An appraisal or real estate broker's estimate of value is not required under the following circumstances:

(a)The market value of the subject property interest is less than One-Hundred Thousand Dollars ($100,000), as estimated by the Division;

(b)The asking price for the property interest is considerably below prevailing market conditions, as estimated by the Division;

(c)The asking price for the property interest is reasonable based upon prevailing market conditions, but the Division will lose the opportunity to purchase the property if time is taken to conduct an appraisal or acquire a real estate broker's estimate of value prior to making an offer;

(d)An appraisal has been conducted on the subject property interest within the past twelve months;

(e)The real property interest is a gift, contribution, or donation to the division; or

(f)The real property interest is a right-of-way, lease, or other less-than-fee interest that is not perpetual.

(2)A written opinion of value may be rendered by:

(a)a state registered, licensed, or certified appraiser conducting an appraisal for the Division; or

(b)a real estate broker or sales agent rendering an opinion of value in accordance with Utah Code Section 61-2b-3(2).

(3)When values other than market value are considered in addition to or in place of an appraisal rendered by a state registered, licensed, or certified appraiser; or are considered in addition to, or in place of, an opinion of value rendered by a real estate broker or sales agent acting in accordance with Utah Code Section 61-2b-3(2); the Division shall create and keep a memo-to-file describing:

(a)the Division's consideration of said value(s);

(b)the Division's rationale in said consideration relative to the proposed price and other terms of the purchase, sale, or exchange; and

(c)the acquisition or disposal decision made by the Division.

 

R657-61-4.Congruency in Value.

(1)Based on the written opinion of value, the Division shall consider and weigh the various economic and social values associated with the real property in an effort to maintain a level of congruency between the compensation for the property and its values.

 

KEY:wildlife, land sales,property values

Date of Enactment or Last Substantive Amendment:2008

Authorizing, and Implemented or Interpreted Law:23-21-1