Statement of Administration Policy: H.R. 1366 - Land Conveyance to Payson, Arizona School District

(House)
(Rep. Kyi (R) Arizona)

The administration opposes enactment of H.R. 1366. The bill would: (1) freeze the annual rental paid by the Payson Unified School District for its use of 60 acres of National Forest System land at $12,500, far below the $21,000 that is the current fair market value for the use of this property; (2) allow the District to buy the land at any time over the next 30 years at the current fair market value of $425,000, which would otherwise certainly rise over that time; and (3) credit toward the purchase price all rental fees paid from 1972 to whenever the land might be purchased. These concessionary terms amount to an interest-free loan for the purchase of Federal land at less than contemporary fair market value.

The administration opposes such conveyances of Federal property because there is no compelling reason for such assistance, and it is contrary to existing law which requires up front payment of contemporary fair market value to the Federal government in such transactions, with no credit for past rental payments. The special treatment offered by H.R. 1366 would be unfair to other communities that have purchased Federal lands in compliance with Federal law, especially since the Federal government has already given the town of Payson two parcels of land totalling about 32 acres and worth over $100,000 as required by two previous acts of Congress. During the last 15 years, 20 school districts in Arizona, New Mexico, and Oklahoma alone have purchased Federal land at fair market value under current law. There is no reason why the Payson District should not be required to do the same thing, under existing authority.