A. On the commissioner's initiative, the commissioner may designate certain urban lands as being under consideration for classification as urban lands suitable for urban planning, or suitable for conservation purposes if the lands are to be planned in conjunction with lands to be developed, pursuant to this section. The commissioner may designate urban lands as being under consideration for classification as urban lands suitable for urban planning or conservation purposes upon application by the governing body having jurisdiction for the area in which the urban lands are located.
B. Unless the commissioner has asked the local governing body for a general or comprehensive plan amendment that would include public notification and hearing, and after designating lands pursuant to subsection A of this section, the commissioner shall give notice of intent to classify the lands as suitable for urban planning or conservation purposes and of intent to prepare a state general plan to existing lessees, local planning authorities, owners of property that extends to within three hundred feet of the designated urban lands and the beneficiary or beneficiaries for whom the lands are held in trust. Within thirty days after giving notice, the commissioner shall publish the notice stating the date, time and place of the public hearing for six publications in a newspaper of general circulation in the county in which the designated urban lands are located. The commissioner shall give notice to any person who requests notice of any classification and preparation of a state general plan made under this section.
C. In the notice required under subsection B of this section, or on the commissioner's request of the local governing body for a general or comprehensive plan amendment, the commissioner shall notify all existing lessees of state land within the boundaries of the area under consideration that such a designation may subsequently result in reclassification of state lands within the boundaries of the designated areas.
D. If applicable, within sixty days after the last date of publication of notice under subsection B of this section, the commissioner or the commissioner's designee shall conduct a public hearing in the city, town or county in which the lands are located to receive and record oral and written testimony concerning the classification as urban lands suitable for urban planning or conservation purposes and the state general plan.
E. The commissioner may classify urban lands as urban lands suitable for urban planning or conservation purposes and may approve a state general plan after determining that:
1. The department has met the notice and public hearing requirements of subsections B, C and D of this section or that the commissioner has requested a general or comprehensive plan amendment by the local governing body that would include public notice and hearing.
2. The state lands being considered as urban lands suitable for urban planning are adjoining existing commercially or homesite developed lands which are either:
(a) Within the corporate boundaries of a city or town.
(b) Adjacent to the corporate boundaries of a city or town.
(c) Lands for which the designation as urban lands is requested pursuant to section 37-331.01.
3. The state lands under consideration are located in areas where planning for urban growth and development is appropriate, is beneficial to the trust and does not promote urban sprawl or leapfrog development.
4. The proximity of the urban lands to other developed areas and local jurisdictions is considered.
5. The urban lands' compatibility with adjoining development and land uses is considered.
6. The department has cooperated with the department of water resources to determine that the urban lands have the quality and quantity of water needed for urban development.
7. The department has fully cooperated with the local planning authorities with jurisdiction over the area or areas in which the state urban lands being considered are located.
8. All of the affected local planning authorities' development policies have been taken into consideration by the department.
9. The classification is consistent with the local planning authorities' development policies.
10. The proximity to and impact on public facilities, including streets and highways, water supply systems, wastewater collection and treatment systems and other public facilities and services necessary to support development, are considered.
11. It is in the best long-term interest of the trust to plan for development.
12. The types of land uses for state lands, including residential, commercial, industrial, agricultural, open space and recreational uses are considered.
13. The natural and artificial features of the state lands, including floodplains, geologic instabilities, natural areas, wildlife habitat, airport influence zones, other potentially hazardous conditions and historic and archaeological sites and structures are considered.
14. The timing of development is considered.
15. The impact to all existing leases in the area under consideration and in the general area is considered.
16. The department has resources available to plan the urban lands under consideration.
17. Any other considerations deemed relevant by the commissioner and local planning authorities.
F. Before approving the classification and proposed state general plan the commissioner shall determine whether the classification and state general plan are in the best interest of the trust. The commissioner shall state in writing the reasons for any determination that the classification or state general plan prepared according to this section would be detrimental to the interests of the trust.
G. After the commissioner approves the state general plan, no amendment or revision may be made without the commissioner's approval. The commissioner may approve a proposed amendment or revision only after notifying and meeting with the local planning authority regarding the nature of the proposed amendment or revision. If the local planning authority does not hold a public hearing on the proposed amendment or revision, the commissioner shall hold a public hearing on the proposed amendment or revision if the proposed amendment or revision does not substantially conform to the state general plan. If such a hearing is held, the proposed amendment or revision may be adopted after the hearing and after the commissioner and the local planning authority consider the information presented at the hearing. The commissioner shall provide notice of the public hearing as provided by subsections B, C and D of this section. If neither the commissioner nor the local planning authority determines that a public hearing is necessary, the commissioner may adopt the proposed amendment or revision.
H. If the land included in a state general plan was previously sold or leased, and the plan amendment proposed by the owner or lessee would substantially increase the value of the land as estimated by an appraisal or would compete with land uses elsewhere on land included under the plan, then as a condition for approving the amendment, the commissioner may require additional consideration.