Ariz. Rev. Stat. § 37-607 – Method of exchange; valuation

A. Exchange of state lands managed by the state land department may be initiated by the owner of the other lands proposed to be exchanged on application forms provided by the department.
B. The department, on determining that the proposed exchange presents obvious benefits to the applicable trust, shall appraise the values of all lands described in the application to establish the fair market value. The appraised value of state lands being considered for exchange shall, in the opinion of the department, be substantially equal to or less than the appraised value of the land offered by the applicant.
C. After completion of the requirements of subsection B of this section, the commissioner shall analyze the long-term potential of all the lands proposed to be exchanged and report his findings to the selection board. The commissioner shall consider at least the following criteria:
1. 1. Proximity to existing and proposed development.
2. 2. Potential zoning and topography of those lands.
3. 3. The impact of paragraphs 1 and 2 on the lands proposed for exchange. Based on this analysis, the commissioner shall recommend approval of the exchange only if he finds that the potential for appreciation in value of the other lands is equal to or greater than the state lands, or that special circumstances make the exchange in the long-term interest of the trust.
D. In lieu of a written agreement between the owner of the permanent improvements and the applicant relieving this state, the department and the commissioner of all duty to compensate the owner for those improvements, the department shall appraise the permanent improvements on the state lands being exchanged, pursuant to section 37-322, and the applicant shall pay the appraised amount to the department on demand. The department shall pay the appraised amount to the owner of the improvements on the effective date of the exchange.