Opinion ID: 1305826
Heading Depth: 1
Heading Rank: 5

Heading: chilling effect on bidding

Text: The petitioner further contends that the statutory preference has a chilling effect on other bidders and thereby lowers the price contrary to the Enabling Act which requires that state trust lands: shall not be sold or leased, in whole or in part, except to the highest and best bidder at a public auction ... notice of which public auction shall first have been duly given by advertisement, .... Enabling Act, § 28, para. 3. Testimony was taken as to the possible chilling effect the statutory preference would have on the bidding and whether or not it prevented the auction from obtaining the highest and best bid for the lease. The hearing officer heard numerous witnesses and concluded that the statutory preference did not have a chilling effect on other bidders. We agree. In this case, a public auction was held and the state apparently received more than the appraised value of the property. A public auction which gives an existing lessee the right to match the highest bid at the auction and thus to be considered in the final determination of who is the highest and best bidder does not violate the Arizona Constitution or the Enabling Act. Relief denied. GORDON, C.J., and MOELLER and HAYS (Retired), JJ., concur. NOTE: Justice WILLIAM A. HOLOHAN did not participate in the determination of this matter. Justice JACK D.H. HAYS (retired) was called back to active duty pursuant to Ariz. Const. art. 6, § 20.