In addition to any other powers that it may now have, a municipality shall have the following powers:

A. to acquire, whether by construction, purchase, gift or lease, one or more projects that shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality; provided that:

(1) urban transit buses qualifying as a project pursuant to Subsection B of Section 3-32-3 NMSA 1978 need not be continuously located within this state but the commercial enterprise using the urban transit buses for leasing shall meet the location requirement of this subsection; and

(2) a municipality shall not acquire any electricity generation facility project unless the acquisition is approved by the local school board of the school district in which a project is located and the governing body, the local school board and the person proposing the project negotiate and determine the amount of an annual in-lieu tax payment to be made to the school district by the person proposing the project, for the period that the municipality owns and leases the project, and provided such approval shall not be unreasonably withheld;

B. to sell or lease or otherwise dispose of any or all of its projects upon such terms and conditions as the governing body may deem advisable and as shall not conflict with the provisions of the Industrial Revenue Bond Act;

C. to issue revenue bonds for the purpose of defraying the cost of acquiring by construction and purchase or either any project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act. No municipality shall have the power to operate any project as a business or in any manner except as lessor;

D. to refinance one or more hospital or 501(c)(3) corporation projects and to acquire any such hospital or 501 (c)(3) corporation project whether by construction, purchase, gift or lease, which hospital or 501(c)(3) corporation project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but which shall not be located more than fifteen miles outside of the corporate limits of the municipality, and to issue revenue bonds to refinance and acquire a hospital or 501(c)(3) corporation project and to secure the payment of such bonds, all as provided in the Industrial Revenue Bond Act. A municipality shall not have the power to operate a hospital or 501(c)(3) corporation project as a business or in any manner except as lessor; and

E. to refinance one or more projects of any private institution of higher education and to acquire any such project, whether by construction, purchase, gift or lease; provided that the project shall be located within this state and may be located within or without the municipality or partially within or partially without the municipality, but the project shall not be located more than fifteen miles outside of the corporate limits of the municipality, and to issue revenue bonds to refinance and acquire any project of any private institution of higher education and to secure the payment of such bonds. A municipality shall not have the power to operate a project of a private institution of higher education as a business or in any manner except as lessor.

History: 1953 Comp., § 14-31-3, enacted by Laws 1965, ch. 300; 1977, ch. 335, § 3; 1994, ch. 134, § 2; 2002, ch. 25, § 3; 2002, ch. 37, § 3; 2005, ch. 9, § 2.

Cross references. — For definition of 501(c)(3) corporation, see 3-32-1 NMSA 1978.

The 2005 amendment, effective March 11, 2005, provided that a qualified urban transit buses project need not be continuously located in New Mexico, but the commercial enterprise using the buses for leasing must meet the location requirements of Subsection A.

The 2002 amendment, effective May 15, 2002, added the provisos in Subsection A and inserted "or 501(c)(3) corporation" in five places in Subsection D.

The 1994 amendment, effective May 18, 1994, substituted "the Industrial Revenue Bond Act" for "Sections 14-31-1 through 14-31-13 NMSA 1953" in Subsection B, inserted "in the Industrial Revenue Bond Act" and made related stylistic changes in Subsections C and D, and added Subsection E.

Location of "project". — A municipality has no power to acquire a "project" that is located, and is to remain located, either outside of the state or more than 15 miles outside the corporate limits of the municipality. Therefore, a municipality may not acquire a "project" that includes a business that is located outside the state, unless that out-of-state business is to be relocated within New Mexico, and within 15 miles of the corporate limits of the acquiring municipality. 1960 Op. Att'y Gen. No. 60-190.

Law reviews. — For article, "Ad Valorem Tax Status of a Private Lessee's Interest in Publicly Owned Property: Taxability of Possessory Interests in Industrial Projects under the New Mexico Industrial Revenue Bond Act," see 3 N.M.L. Rev. 136 (1973).