(1) The department will actively pursue commercial, industrial, residential, and conservation uses to increase revenue on trust lands, through one or more of the following means:
(a) targeting those tracts most suitable for development;
(b) improving entitlements on tracts selected for sale or development, when appropriate; or
(c) prioritizing projects with the highest financial return per acre.
(2) The department will give priority to urban real estate projects over rural real estate projects using the following criteria:
(a) financial rate of return per acre;
(b) funding availability; and
(c) the acres remaining in the development thresholds described in ARM 36.25.911.
(3) The department will comply with local and state land use regulations. The department will apply the following development standards in selecting, prioritizing, designing, and implementing real estate projects on state trust lands:
(a) real estate projects should be contiguous to or part of existing or proposed development;
(b) real estate projects in urban locations must connect to existing or planned public infrastructure and be designed to public standards, including alignment to adjoining public and private streets, that are consistent with local land use regulations;
(c) urban real estate projects should achieve urban densities consistent with local land use regulations;
(d) the department will promote mixed use in urban locations through planned-unit development or other means provided by local land-use regulations;
(e) the department will utilize local land use planning and regulatory processes to involve the general public and beneficiaries in developing state trust lands for commercial, industrial, residential, and conservation uses;
(f) the department will coordinate environmental review with local regulatory review;
(g) the department may use or promote purchase of development rights, transfer of development rights, cluster development, joint ventures, or other measures as provided by law;
(h) the department will coordinate with local communities, other state and federal agencies, conservation agencies, and other interest groups to provide for notice and review as necessary; and
(i) the department will exclude from consideration, or employ necessary measures to avoid, minimize, or mitigate impacts potentially resulting from commercial, industrial, and residential real estate projects:
(i) on slopes greater than 25 percent;
(ii) in a designated 100-year floodplain or wetland. The department will avoid adverse impacts in the floodplain. Adverse impacts will be determined by the department through an environmental review in compliance with Title 75, chapter 1, MCA;
(iii) that potentially affect federally listed threatened and endangered species or designated critical habitat; and
(iv) in a designated wildland-urban interface or area of high wildfire hazard.
(4) Any commercial, industrial, or residential lease expected to generate annual revenue in excess of $50,000 may not be issued without the board's prior approval.
(a) The board delegates its authority to the department to issue commercial or industrial leases expected to generate $50,000 or less annually, but the board reserves the authority to subsequently review the issuance of such leases.
(5) Development in rural areas will include commercial resorts, development for public purposes such as sewer or water, natural resource based development, and conservation opportunities. Other unique development opportunities may be considered when the intended uses:
(a) provide infill opportunities;
(b) are contiguous to existing development;
(c) are or can be located within a sewer or water utility service area;
(d) add value to the existing uses;
(e) demonstrate economic viability and conform to applicable development standards; or
(f) limit development to not more than 25 percent of a tract while the remainder of the tract is designated for conservation through an easement, deed restriction, or dedication at final subdivision approval.