COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.:3512H.02P Bill No.:Perfected HCS for HB 1597 Subject:Property, Real And Personal; Easements and Conveyances Type:Original Date:March 31, 2022Bill Summary:This proposal authorizes the conveyance of certain state property.
FISCAL SUMMARY
ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2023FY 2024FY 2025General Revenue*Unknown or
(Unknown)
$0 or Unknown$0 or UnknownTotal Estimated Net
Effect on General
Revenue
Unknown or
(Unknown)
$0 or Unknown$0 or Unknown
*Oversight will assume a fiscal impact of less than $250,000.
ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025State Parks Earnings
Fund (0415)**
More than ($7,000) to
Unknown
$0$0
Total Estimated Net
Effect on Other State
Funds $0$0$0
**Oversight has reflected a potential fiscal impact to the state of the sale proceeds of the parcels
versus the purchase cost (some portion of the approximately $8 million spent to purchase the
entire park).
Numbers within parentheses: () indicate costs or losses. L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 2 of
March 31, 2022
KB:LR:OD
ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on All Federal
Funds $0$0$0
ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2023FY 2024FY 2025Total Estimated Net
Effect on FTE 000
☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any
of the three fiscal years after implementation of the act or at full implementation of the act.
☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of
the three fiscal years after implementation of the act or at full implementation of the act.
ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2023FY 2024FY 2025Local Government
$0$0 or Unknown$0 or Unknown L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 3 of
March 31, 2022
KB:LR:OD
FISCAL ANALYSIS
ASSUMPTION
Property in Kirksville/Adair County
Officials from the Office of Administration, Division of Facilities Management, Design and
Construction state they do not make public the appraisal values for property that may be sold or
conveyed because public knowledge of such information may hinder the State’s ability to gain
the best value for the property. Additionally, since the terms of conveyances are yet to be
determined, the fiscal impact, if any, cannot be calculated. Therefore, the fiscal impact is $0 to
unknown.
Officials from the Office of the Governor, the
National Guard (MNG) and the Attorney General’s Office each assume the proposal would
not fiscally impact their respective offices.
Officials from the City of Kirksville did not respond to our request for fiscal impact.
As this parcel appears to be material in size (square city block contained by West Scott Street,
West Fillmore Street, South Main Street and South Elson Street; which currently contains the
Missouri National Guard Armory building), Oversight will reflect the transaction of the
conveyance of state property in Adair County to the Kirksville R-III school district as 1) a loss of
the value of the state property, 2) the proceeds (if any) of the sale/conveyance, and 3) the annual
savings (if any) to the state no longer maintaining the property. Oversight will assume a fiscal
impact of less than $250,000.
Property in Iron County (HA 2) (Section 3)
Officials from the Department of Natural Resources, the Office of the Governor
Missouri Department of Transportation each assume the proposal will not fiscally impact
their respective agencies.
In response to a similar proposal from 2022 (HB 1478), officials from the Office of
Administration and the Attorney General’s Office
fiscally impact their respective agencies.
Oversight notes this proposal conveys small parcels of land from the Department of Natural
Resources (DNR) to the Missouri Department of Transportation (MoDOT) for $1 or less.
Oversight assumes the fiscal impact of these transactions between DNR and MoDOT are not
material and therefore we will not reflect a fiscal impact from these conveyances. L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 4 of
March 31, 2022
KB:LR:OD
Property in Oregon County (Eleven Points State Park) HA 3 (Sections 4 & 5)
In response to a similar proposal from 2022 (HCS for HB Nos. 1972 & 2483), officials from the
Department of Natural Resources (DNR)
Natural Resources to sell property in Oregon County known as Eleven Point State Park. The bill
requires the Commissioner of Administration to set terms and conditions of the property transfer
and the Attorney General to approve the form of the instrument of the conveyance. The property
is titled to the Department of Natural Resources, so it is unclear why the bill requires approval of
the terms of the conveyance by the Office of Administration rather than the Department.
Pursuant to financial agreements with the U.S. Department of Interior (“DOI”), any proceeds
from the sale of the properties that were originally acquired through the use of natural resource
damage funds must be returned to the DOI Restoration Account to be used by the DOI and the
Department as co-trustees to fulfill the restoration objectives of the CERCLA and the ASARCO
LLC Settlement Agreement. The Department is unable to determine the amount of any potential
proceeds if a sale is to occur.
Additionally, there is the possibility that a proposed conveyance could face legal challenge
because the deeds contain clauses requiring the property to remain dedicated to public use as a
state park. Defense of such litigation would be handled by the Attorney General’s Office but a
prevailing party could recover attorneys’ fees and costs from the Legal Expense Fund. It is not
possible to estimate the likelihood or the amount of any such cost at this time.
DNR has made five years of $4,803 payments in lieu of taxes (PILTs) to Oregon County in
accordance with Article IV Section 48(a) of the Missouri Constitution.
Oversight notes, upon previous inquiry, DNR stated the cost of all the properties in the 4,127
acre park included:
Buildings for Babies (purchase price) $4,730,000
Buildings for Babies - settlement costs $18,956
Frederick Creek Ranch (purchase price) $3,273,327; and
Frederick Creek Range - settlement costs $11,748
TOTAL $8,034,032
Oversight assumes this proposal only conveys a portion of the park in Oregon County.
According to a circuit court decision, DNR must sell 625 acres of land along the Eleven Point
River. Oversight will reflect an unknown amount of sale proceeds and an offsetting fair market
value of the 625 acres to be sold. Oversight will show both the loss of the property and the
proceeds of the sale to the State Parks Earnings Fund (0415) in FY 2023. L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 5 of
March 31, 2022
KB:LR:OD
Oversight also notes, upon further inquiry, DNR would be required to obtain an updated real
estate appraisal if DNR were to sell the property; however, this proposal only authorizes DNR to
sell the property. Therefore, Oversight will reflect a “$0 or more than $7,000” potential cost to
DNR for the appraisal (estimate of $7,000 based on DNR’s response to a similar proposal from
2021 (HB 1046).
Officials from the Missouri Department of Transportation and the Office of the Governor
each assume the proposal will have no fiscal impact on their respective organizations.
In response to a similar proposal from 2022 (HCS for HB Nos. 1972 & 2483), officials from the
Office of Administration assumed the proposal would have no fiscal impact on their
organization.
In response to a similar proposal from 2021 (HB 1046), officials from the Attorney General’s
Office
Oversight notes that the above mentioned agencies have stated the proposal would not have a
direct fiscal impact on their organization. Oversight does not have any information to the
contrary. Therefore, Oversight will reflect a zero impact on the fiscal note for those agencies.
In response to a similar proposal from 2020 (HB 2535), officials from Oregon County stated
DNR paid $4,803 in property taxes on these parcels in 2019. Oregon County also stated DNR
has agreed to pay property taxes on the parcels for 5 years. Since DNR has paid four of five
PILT installments, Oversight will assume DNR will not realize a savings (of not having to pay
PILTs in the future if the property is no longer owned by the state) in the fiscal note. However,
Oregon County could see a continuation or perhaps an increase in property tax revenues
depending upon who purchases the parcels.
Oversight notes DNR has now paid the property taxes on the parcels for five years.
Property in Pike County (HA 4) (Section 6)
In response to a similar proposal from 2022 (SB 1112), officials from the Office of
Administration, Division of Facilities Management, Design and Construction (OA) stated
they do not make public the appraisal values for property that may be sold or conveyed because
public knowledge of such information may hinder the State’s ability to gain the best value for the
property. Additionally, since the terms of conveyances are yet to be determined, the fiscal
impact, if any, cannot be calculated. Therefore, the fiscal impact is $0 to unknown. L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 6 of
March 31, 2022
KB:LR:OD
Officials from the Missouri Department of Transportation and Office of the Governor each
assume the proposal will have no fiscal impact on their respective organizations. Oversight does
not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the
fiscal note for these agencies.
In response to a similar proposal from 2021 (HB 731), officials from the Attorney General’s
OfficeOversight does
not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the
fiscal note.
Oversight notes this proposal conveys a parcel of property of land from the state to the Missouri
Department of Transportation (MoDOT) for $1 or less (for land containing 1 8/10 acres more or
less). Oversight assumes the fiscal impacts of this transaction to OA and MoDOT are not
material and therefore we will not reflect a fiscal impact from this conveyance. L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 7 of
March 31, 2022
KB:LR:OD
FISCAL IMPACT – State GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025GENERAL REVENUE FUNDSale Proceeds – conveyance proceeds
of properties (if any)
$0 or
Unknown
$0$0Property value – loss of FMV of
properties (Unknown)$0$0
Savings – for annual maintenance /
upkeep of properties
$0 or
Unknown
$0 or
Unknown
$0 or
Unknown
ESTIMATED NET EFFECT TO
THE GENERAL REVENUE FUNDUnknown or
(Unknown)
$0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – State Government
(continued)
FY 2023
(10 Mo.)
FY 2024FY 2025STATE PARKS EARNINGS FUND
(0145)
Sale Proceeds - sale of part of property
contained in the Eleven Point State Park
(HA 3)
Unknown$0$0FMV of Property sold - assumed fair
market value of portion of Eleven Point
State Park to be sold (HA 3)
(Unknown)$0$0
Cost - DNR - Real Estate Appraisal
(HA 3)
$0 or (More
than $7,000)
$0$0 L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 8 of
March 31, 2022
KB:LR:OD
ESTIMATED NET EFFECT TO
THE STATE PARKS EARNINGS
FUND (0415)
More than
($7,000) to
Unknown
$0$0
FISCAL IMPACT – Local GovernmentFY 2023
(10 Mo.)
FY 2024FY 2025KIRKSVILLE R-III SCHOOL
DISTRICT
Cost - of acquiring the property from
the state
$0 or
(Unknown)
$0$0Property increase – acquired property’s
value
Unknown$0$0ESTIMATED NET EFFECT TO
KIRKSVILLE R-III SCHOOL
DISTRICT
Unknown or
(Unknown)
$0 $0
FISCAL IMPACT – Local Government
(continued)
FY 2023
(10 Mo.)
FY 2024FY 2025OREGON COUNTYIncome - potential additional income if
private entity(s) purchase the parcels
and continues to pay property tax (HA
3)
$0$0 or Unknown$0 or Unknown
ESTIMATED NET EFFECT TO
OREGON COUNTY$0
$0 or
Unknown
$0 or
Unknown
FISCAL IMPACT – Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal. L.R. No. 3512H.02P
Bill No. Perfected HCS for HB 1597
Page 9 of
March 31, 2022
KB:LR:OD
FISCAL DESCRIPTION
This proposal authorizes the conveyance of certain state property.
This legislation is not federally mandated, would not duplicate any other program and would not
require additional capital improvements or rental space.
SOURCES OF INFORMATION
Attorney General’s Office
Office of Administration
Office of the Governor
Department of Public Safety – National Guard
Department of Natural Resources
Missouri Department of Transportation
Oregon County
Julie MorffRoss StropeDirectorAssistant DirectorMarch 31, 2022March 31, 2022