A.R.S. § 37-325: Improvements; lease renewals; holdover leases

The department shall do all of the following:

1. Within ninety days, approve or deny any application to place an improvement on leased state lands that is consistent with the lease.

2. Within six months after the conclusion of a lease or lease holdover, provide the lessee a reimbursement plan that includes both of the following:

(a) A valuation of the fair market value of all previously approved improvements that the lessee made to the state lands, as determined by an independent third-party vendor.

(b) A reasonable timeline in which the department will reimburse the lessee for the fair market value of all previously approved improvements that the lessee made to the state lands.

3. Not less than six months before the expiration of a lease, provide to the lessee a notice. The notice must include all of the following:

(a) Any proposed rental increase or proposed change to the terms and conditions of the lease.

(b) The intent of the department to renew or terminate the lease.

(c) The justification for the commissioner's decision, as prescribed in section 37-133, to renew or terminate the lease.