91ST CONGRESS 1st Session SENATE { REPORT No. 91-377 AMENDING THE ACT OF AUGUST 9, 1955, TO AUTHORIZE LONGER TERM LEASES OF INDIAN LANDS LOCATED OUTSIDE THE BOUNDARIES OF INDIAN RESERVATIONS IN NEW MEXICO AUGUST 12, 1969.-Ordered to be printed Mr. ANDERSON, from the Committee on Interior and Insular Affairs, submitted the following REPORT [To accompany S. 1609] The Committee on Interior and Insular Affairs, to which was referred the bill (S. 1609) to amend the Act of August 9, 1955, to authorize longer term leases of Indian lands located outside the boundaries of Indian reservations in New Mexico, having considered the same, reports favorably thereon without amendment and recommends that the bill do pass. PURPOSE The purpose of S. 1609 is to amend the act of August 9, 1955, to authorize longer term leases of Indian trust or restricted lands located outside the boundaries of Indian reservations in the State of New Mexico. In 1955 Congress gave general authority for long-term surface leases on any trust or restricted Indian lands, whether tribally or individually owned. Under the 1955 act leases for various purposes, such as business and residential development, could be granted for terms of up to 25 years and could contain an option permitting renewal for not to exceed 25 years. The effect was to permit 50-year leases of Indian land. Farming leases which involved substantial improvements could be made for 25 years and grazing leases were limited to 10 years. Beginning in 1959 the 1955 act has been amended 16 times to allow development leases to be made for up to 99 years on certain reservations. They are Agua Caliente, Navajo, Dania, Swinomish, Southern Ute, Fort Mojave, Cochiti, Pojoaque, Tesuque, Zuni, Spokane, Pyramid Lake, Gila River, San Carlos Apache, and Hualapai. In 1964 Congress also gave authority for 99-year leases on the Colorado River Reservation. In addition, in 1966 Congress authorized the leasing of Indian land on the San Xavier and Salt River Pima-Maricopa Indian Reservations for a term of not to exceed 99 years. NEED There are several reasons why a general 50-year lease term is inadequate to permit the proper development of Indian property: First, a 50-year lease term excludes much financing which should be available. Such a term effectively prevents obtaining FHA mortgage insurance and loans from Federal savings and loan associations because of statutory or regulatory limitations. It also excludes loans from other institutional sources, which although they may not be inhibited by law, require lease terms exceeding 50 years before they will loan on the security of a lease. Second, a 50-year-lease term makes no allowance for a large development which must be carried out over a period of years. A large residential-recreational complex such as is contemplated on some reservations may require 10, 15, or even 20 years to complete. {tu z Third, a 50-year term does not allow for any buffer to protect a development. Most Indian lands are, to one degree or another, removed from existing developed areas and therefore anyone proposing to develop the land faces risks and uncertainties not existing in established communities. Furthermore, in almost every area, a buyer's resistance to leases exists which must be overcome. These and similar factors may prevent development at as rapid a pace as anticipated when a lease is made. Fourth, a 50-year term does not take into consideration the problem of refinancing when a holder of a lease wishes to sell his interest. This is particularly critical where housing developments are concerned. The same limitations apply in refinancing already mentioned for original financing and some latitude must exist, either in the original lease term or in the ability to extend that term later, so that refinancing will be possible. Although long-term leases may be entered into covering Navajo Reservation land under authority of the act of June 11, 1960, which amended the 1955 act, the Interior Department has determined that this authority does not apply to scattered public domain allotments located elsewhere in New Mexico. These Navajo off-reservation allotments extend eastward in New Mexico approximately 30 miles north and south and some 50 to 70 miles from the eastern boundary of the reservation. The area includes some 4,000 allotments. It is understandable that business firms are reluctant to locate industrial or commercial enterprises on these allotments because of the present lease authority which now permits an initial term of 25 years plus an option to renew for an additional 25 years, or 50 years in all. This makes financing and amortizing the property almost impossible. The public domain allotments in New Mexico are for the most part within 30 miles north or south of Interstate Highway No. 4 with rail and truck transportation available at Gallup. These allotments are so situated that many of them are especially suitable for industrial S. Rept. 91-377 |