BL-2727 BERNALILLO COUNTY BUSINESS LEASE

Background: The New Mexico Commissioner of Public Lands (the “Commissioner”) will accept sealed bids seeking the highest and best bid for a long term commercial business lease, BL-2727 for legally permissible uses, which must conform to any and all restrictions and reservations in the Lease, and all laws including but not limited to 19.2.22 NMAC. BL-2727 is for 1.88 ± acres of state trust lands located in Bernalillo County New Mexico. This bid information sheet is part of a bid packet, and describes the state trust lands offered for lease under BL-2727 and some of the principal terms of the proposed Lease. It also describes the qualifications required and the process by which qualified persons or companies may bid on the Lease. The entire bid packet should be reviewed before submitting a bid.

DESCRIPTION:

Being 1.88 + acres located in a state of New Mexico N.M.P.M., Bernalillo County, New Mexico, being more particularly described as follows:

The Land is located within the corporate city limits of Albuquerque, New Mexico.  The Land fronts on the south side of Central Avenue, about 500 feet east of Eubank Boulevard. The physical address is 10600 Central Avenue SE, Albuquerque, New Mexico, 87123.

The Land can be described as being Parcel B, Tract C, Video Addition and Parcels of Land owned by the State of New Mexico Situated within the NW/4NW/4, Section 28, Township 10 North, Range 4 East, NMPM, Bernalillo County, New Mexico dated April 2016 (“Survey”), being more or less 1.88 acres, together with all Permanent Improvements.

19. GENERAL LEASE TERMS: The Land proposed to be leased pursuant  to State Land Office Rule 9 (19.2.9 NMAC) is for the purpose of legally permissible commercial uses, and is subject to the terms and conditions authorized in the Lease. The term of this Lease is 40 years (consisting of a 2 year Introductory Period and a 38 year period thereafter).  Lessee may renew this Lease for four (4) additional terms of five (5) years each by giving Lessor written notice one hundred eighty (180) days prior to the expiration of this Lease. The Minimum Introductory Period Rent is five thousand dollars ($5,000) annually, and the Minimum yearly base rent after the Introductory Period is twenty five thousand dollars ($25,000) with a 2.5% escalator every three (3) years, payable in advance.  Within 60 days of the end of year 39, Lessor, at Lessee’s expense, shall cause an appraisal of the Land to be performed. The purpose of the appraisal is to determine the new rent level for the remaining term of the Lease. This competitive auction will allow for bidders to proffer a higher annual base rental amount.  
20. The Commissioner may consider proposed changes to the Lease either before or after execution, but will not deviate from the minimum rent or any provisions representing the statutory, constitutional, or other legal obligations of the Commissioner.

REQUIREMENTS and QUALIFICATIONS of BIDDERS and REQUIRED DEPOSITS:  Only qualified bidders may submit a sealed bid. In order to qualify to submit a sealed bid, prospective bidders must: 1) submit a completed application (Bid Application and Qualification Form) with a five hundred dollar ($500.00) application fee, along with what is described below; and 2) make a qualification deposit with the Commissioner in the amount of seventeen thousand six hundred ninety six dollars and eighty eight cents ($17,696.88), consisting of a transaction deposit (estimated advertising costs) of ten thousand dollars ($10,000.00) ,the first year rent deposit of five thousand dollars ($5,000.00), and an appraisal deposit of two thousand six hundred ninety six dollars and eighty eight cents ($2,696.88). Additionally, the State Land Office plans to remove the existing building at the site, which will include asbestos abatement. The winning bidder will be required to reimburse the State Land Office for all costs paid for the asbestos removal. This cost is estimated to be approximately $75,000, but is subject to change. An invoice for the asbestos removal, showing the final amount paid by the State Land Office, will be provided and the winning bidder shall reimburse the State Land Office prior to the end of the Lease’s Introductory Period.

Application and Deposit Submittal:  The application (Exhibit 5), application fee and    qualification deposit must be received at the  New Mexico State Land Office, PO Box     1148, Santa Fe, NM, 87504 or 310 Old Santa Fe Trail, Santa  Fe, NM, 87501, Attn:     Commissioner of Public Lands, no later than 3:00 p.m. on Monday December 30, 2019.

Please Note: The State Land Office will be closed December 23rd through December 27th.

THIS IS A THREE (3) VARIABLE BID AUCTION. THE THREE (3) BID VARIABLES ARE:

• The annual Introductory Period Rent (for years 1 and 2)
  1. Minimum $5,000.00 annually
• The annual Rent thereafter (for years 3 through 40)
  1. Minimum $25,000.00 annually
• The Bonus Bid Minimum $6,900.00
  1. Minimum increments of $1,000.00

Sealed Bid Process: The auction will be in the form of a sealed bid. Only bidders who have submitted a complete application and met the qualification requirements may submit a sealed bid. The minimum bonus bid amount is six thousand nine hundred dollars ($6,900.00) with additional amounts in increments of one thousand dollars ($1,000.00) each. The bonus bid amount should be entered on the bid form and sealed in a separate envelope. The envelope containing the sealed bid must be plainly marked “BL-2727 AUCTION – SEALED BID” on the outside of the envelope and must show the date and time the bid is scheduled to be opened, as set forth below. Sealed bids may be submitted by mail, express delivery, or in person to the Commissioner of Public Lands and must be received by 9:30 a.m. on December 31, 2019.  All bids submitted will be opened at the date, time and place of the auction as set forth below.

 Date:                    Thursday, January 2, 2020

Time:                    9:30 am

Place:                   New Mexico State Land Office (Morgan Hall)  310 Old Santa Fe Trail, Santa Fe, NM 87501

Please enter your contact information below. Once you have submitted your contact information, you will be redirected to the Commercial Business Lease (BL-2727) Package.  For more information, please contact Jerry Maher at 505-827-4095.

BL-2727 Long Term Commercial Business Lease

10600 Central Avenue SE, Albuquerque

Bernalillo County, New Mexico

A written inquiry has been received concerning the bid packet for BL-2727. The bid packet contains detailed information regarding the Lease and the auction, and it should be the primary source of information for prospective bidders and other interested persons. If a bidder would like additional information not clearly addressed by the bid packet, all inquiries must be submitted in writing (mailed, emailed, faxed, or hand delivered) to Craig Johnson, Assistant Commissioner of Commercial Resources Division – Fax:(505) 827-6157, cjohnson@slo.state.nm.us, 310 Old Santa Fe Trail, Santa Fe, NM, 87501 or P.O. Box 1148, Santa Fe, NM 87504. Inquiries must include the inquirer’s name, email address and contact information. All inquiries and official responses  will be provided to all persons or entities that have requested bid packets, and will also be posted on the New Mexico State Land Office website: www.nmstatelands.org. 

1. Question: What steps need to be taken to become a qualified bidder?

Answer:

• To become a qualified bidder an applicant must submit Bid Packet Exhibit #4 (Bid Application and Qualification Form) on or before 3:00 pm on December 30, 2019.
• A bidder on this lease is also required to meet the statement of minimum qualifications (Bid Packet Exhibit #4, page 2, number 1).
• The Bid Application and Qualification Form should include a qualification deposit of $18,196.88. (If an applicant has already paid the $500 application fee, the total qualification deposit would be $17,696.88)
• If the aforementioned items 1 through 3 are met then the bidder becomes qualified.

A qualified bidder must then submit a sealed bid on or before 9:30 am on December 31, 2019. Please refer to Bid Packet Exhibit #1 (Sealed Bid Process paragraph VI. B).

Sealed bid opening will occur on January 2, 2020 at 9:30 am (State Land Office building in Morgan Hall).

2.   Question:  If an applicant engages an environmental firm to conduct a Phase 1 Environmental Site Assessment, does the State Land Office need to review or approve the assessment or otherwise provide requirements?

Answer:

No, the Phase 1 study is for the potential lessee’s benefit not the SLO.  Therefore, the SLO does not need to review it nor will the SLO provide any specific requirements.

3. Question: If an applicant has already paid any part of the qualifying deposit prior to submitting the bid application, does the applicant need to provide the amount already paid in the Qualification Deposit in order to qualify to bid?

Answer:

No, if an applicant has already paid any part of the qualifying deposit prior to submitting its bid application, the applicant can deduct the amount previously paid in its qualification deposit.

4. Question: Please clarify the difference if any between the permissible use stated in the bid packet versus the permissible use stated in the lease.

Answer:

The State Land Office will accept bid applications for any legally permissible commercial use. 

5. Question:  Can the NMSLO provide information on any prior uses other than the recent Ponderosa Mobile Home Park activity from 1955-2017?

Answer:

Current NMSLO staff is not aware of prior uses other than the recent Ponderosa Mobile Home Park activity from 1955-2017.

6. Question: Can the NMSLO provide any environmental documents?

Answer:

A copy of a recent title search will be provided. Current NMSLO staff is not aware of any other environmental documents. Please refer to the Bid Packet, Bid Information Sheet page 2, Section II, F, “Bidders Responsible for Due Diligence.” Prospective bidders are encouraged to inspect the records for the land at the NMSLO and the Bernalillo County Clerk’s Office. Any interested party may make a public records request to conduct research of NMSLO historical records by contacting the NMSLO Records Management division at 505-827-5721.

7. Question:  Will the building currently on the subject property be demolished?

Answer:

At present the State Land Office plans to have the building currently on the subject site demolished prior to lease signing.  However, that timing is subject to change depending on scheduling and other factors outside the control of the State Land Office. 

8. Question: When could a winning bidder anticipate signing the lease?

Answer:

Please refer to the Bid Packet, Exhibit 1 Bid Information Sheet, page 5, Section VI, A:

1. Sealed Bid Opening:

        Date:  Thursday, January 2, 2020

        Time:  9:30 am

        Place:  New Mexico State Land Office

                    310 Old Santa Fe Trail

                    Santa Fe, NM 88504

The successful bidder will be notified on or about January 3, 2020.

A winning bidder could anticipate signing the lease on or sometime after January 3rd.

9. Question: Is it possible to request records, including title search records, on the subject property at any time?

Answer:

Please refer to the Bid Packet, Bid Information Sheet page 2, Section II, F, “Bidders Responsible for Due Diligence.” Prospective bidders are encouraged to inspect the records for the land at the NMSLO and the Bernalillo County Clerk’s Office. Interested parties may request records through the Records Management division at any time in person at The Public Room, Room 116, at the State Land Office at 310 Old Santa Fe Trail, Santa Fe, New Mexico, 87504, or via telephone at 505-872-5721. The Public Room is open from 8:00am to 4:30pm Monday through Friday. The Records Management division can provide information regarding fees for searches.