R850-90-200. Exchange Criteria

  The agency may exchange trust land for land and other assets which the director finds suitable and of equal or greater value and utility.

  1. Exchanges must clearly be in the best interest of the appropriate trust as documented in a director's finding. The finding shall address:

  (a) the appraised value of affected lands and other assets and the amount of cash involved;

  (b) the likelihood that the acquired land and other assets will provide income in excess of that being generated from existing trust land;

  (c) an analysis of the revenue potential of the existing trust land; and

  (d) potential management and administrative costs and opportunities.

  2. The finding shall verify that the exchange will not result in an unmanageable and/or uneconomical parcel of trust land, nor eliminate access to a remnant holding, without appropriate remuneration or compensation.

  3. The percentage of cash which may be included in an exchange shall not exceed 25% of the value of the trust land involved unless the director has determined that a higher percentage is in the best interests of the trust beneficiary.