Ariz. Admin. Code § R7-6-503 - Funding for Land

A. A school district that is approved for funding of a new school facility under R7-6-502, may ask the Board to provide funding to purchase land on which to locate the new school facility.

B. The Board follows a three-step process, as described in subsections (C) through (E), before recommending whether to authorize funding to purchase land for construction of a new school facility. The Director may deviate from the three-step process to meet circumstances such as purchasing state-owned or condemned land. The Director shall bring a recommendation regarding funding to purchase land to the full Board.

B.C. Step One, justification of the need for land for construction of a new school facility: If a school district currently owns land, the school district shall include in the justification;

1. A list of all land parcels currently owned by the school district;

2. The size and location of each district-owned land parcel; and

3. Why each district-owned land parcel is not suitable for the needed new school facility.

C.D. Step Two, request to purchase a specific land site:

1. A school district that requests to purchase a specific land site for construction of a new school facility shall provide the following to the Board:

a. A map of the school district showing current school facilities and, for each school facility, the projected student population, grade levels served, and attendance boundaries;

b. A description the land site selection process;

c. An explanation of why the land site requested was chosen over alternative sites;

d. A summary of any joint-use provisions or other intergovernmental agreements related to the land site requested; and

e. The legal description, size, and estimated cost of the requested land site. If the size of the requested land site is outside the range of acreage table approved by the Board, the school district shall justify the deviation.

2. The Board shall review the information submitted under subsection (D)(1) and either authorize or deny authorization for the school district to proceed to perform due diligence regarding the land site the school district proposes to purchase.

3.E. Step Three, due diligence regarding the specific land site:

1. A school district that needs funds to verify, gather, and submit the information required under subsection (E)(2) shall submit a cost estimate to the Board and the Board shall approve or disapprove the request to a maximum of $30,000. The Board shall deduct any funds advanced to a school district to verify, gather, and submit the information required under subsection (E)(2) from the final amount authorized, if any. Rather than allocating funds to the school district to verify, gather, and submit information required under subsection (E)(2), the Board may contract and pay directly for the services.

D.2. A school district authorized under subsection (D)(2) to perform due diligence regarding the land site the school district proposes to purchase shall submit the following information to the Board:

1.a. Two appraisals of the land that show the proposed cost of the land site is at or below the fair market value;

2.b. Legal description of the land site;

3.c. Phase one environmental assessment completed within the last 180 days, plus the following factors (if not included):

a.i. Hazardous materials,

b.ii. Archaeology,

c.iii. Endangered flora and fauna,

d.iv. Noise,

e.v. Soil conditions, and

f.vi. Identity of adjacent land owners and/or uses;

4.d. American Land Title Association and topographical survey;

5.e. Drainage statement;

6.f. Estimate of land-site development cost;

7.g. Photographic survey (if required by applicable planning and zoning departments); and

8.h. Site feasibility diagram-conceptual study developed by a design professional that shows the proposed development of the land site. The site feasibility diagram shall include:

a.i. Property lines and measurements;

b.ii. Setbacks, right-of-ways, and easements;

c.iii. Vehicular access and parking;

d.iv. Pedestrian and bicycle access;

e.v. Building zone ;

f.vi. Drainage concept ;

g.vii. Utility routes or systems;

h.viii. Activity fields and courts;

i.ix. Limit-lines and calculation of usable area;

j.x. Existing features to be demolished or preserved; and

k.xi. Future expansion capability.

3. After reviewing the information provided by the school district under subsection (E)(2), the Board shall prepare a recommendation for the Division regarding whether to authorize purchase of the requested land site. The Board shall include in the recommendation the cost of the land site and applicable closing costs.

4. If the Division decides to authorize purchase of the requested land site, the Division shall request a funding appropriation from the legislature.

E.F. Final distribution. If the legislature appropriates funding for purchase of the requested land site, the school district shall submit a written funding request to the Division. The Director shall make final distribution of funds to the school district.

G. Additional matters.

1. A school district that receives funds under subsection (E)(1) shall provide documentation to the Board of the actual expenditures from the funds after the final distribution.

2. A school district that receives funding under subsection (F) shall provide documentation to the Board of actual closing costs after the final distribution.

3. If completion of due diligence reveals a serious problem with the proposed site or if the actual cost of the requested site exceeds the amount approved by the Board, the school district may repeat the three-step process for a new site.

F.H. The Board may modify or waive the requirements of this Section for good cause.

Notes

Ariz. Admin. Code § R7-6-503

New Section made by exempt rulemaking at 8 A.A.R. 287, effective June 7, 2001 (Supp. 01-4). Amended by final rulemaking at 28 A.A.R. 3939, effective 2/5/2023.