Indian Land Leasing at Agua Caliente Reservation

1. United States Department of the InteriorBureau of Indian Affairs - Palm springs Agency INDIAN LAND LEASING ON THE AGUA CALIENTE INDIAN RESERVATION

2. Bureau of Indian Affairs – Palm Springs Agency • The Bureau of Indian Affairs-Palm Springs Agency serves as the federal agency having a fiduciary trust responsibility for the land on the Agua Caliente Indian Reservation. • The Agua Caliente Indian Reservation encompasses approximately 28,000 acres of land in the western Coachella Valley, including portions of Palm Springs, Cathedral City, Rancho Mirage, and unincorporated areas of Riverside County. • There are 1,175 commercial lease, 7,671 residential subleases and 11,118 time shares on Indian land under the jurisdiction of the Palm Springs Agency.

3. Organizational Structure of the Palm Springs Agency The BIA-PSA has two divisions; Indian Services and Trust Services. All real estate and title matters fall under the jurisdiction of Trust Services. The Agua Caliente Band of Cahuilla Indian has contracted with the Federal Government to manage and operate the Agency’s Residential Leasing Department and the Land Titles and Records Office.

4. What is the role of the BIA • The BIA has been designated by federal law as the “trustee” of Indian land, to include the Agua Caliente Indian Reservation • As “trustee”, the BIA has a fiduciary responsibility to ensure Indian landowners receive fair consideration for the use of their land • The BIA holds approval authority for leasing and sales of trust lands on the Agua Caliente Indian Reservation.

5. What is the role of the BIA • The BIA provides technical assistance to Indian landowners on matters of real property management • The BIA does not represent lessees or developers • The BIA will answer general questions from the public regarding the leasing of federal trust lands on the Agua Caliente Indian Reservation

6. Commercial Leasing Overview What is a commercial lease Who do I contact if I want to enter into or extend a commercial lease • Commercial Leases under the jurisdiction of the Agency are ground leases for commercial or residential development. • Commercial leases are between the Indian landowner and the developer who in-turn sub-leases to the tenants and fall in the structure shown below: • Lessor (Landowner) • Lessee (Developer) • Sub-lessee (Tenant) • Lowes • Wal-Mart • Pet Smart • Stein Mart • P.S. Convention Center • If you are interested in a new lease of Indian land you may contact the Land Titles and Records Office to obtain a name and address report of the owners of the land. • The prospective lessee is responsible for contacting the landowners and negotiating the lease. • If you intend to extend an existing lease you should contact the lessor from whom you lease your land. • Lease extensions are negotiated between the parties to the contract. • The BIA has approval authority for new leases and lease extensions.

7. Residential Leasing Overview What is a residential lease Who do I contact if I want to extend a residential lease • Residential leases under the jurisdiction of the Agency are leases of a single family residences. • The majority of residential leases are between the homeowner and a HOA or developer. However, 1,557 homeowners lease their land and improvement directly from the Indian landowner; these leases are commonly referred to as mini-masters as shown below: • Residential Sublease • Lessor (Landowner) • Lessee (Developer) • Sub-lessee (HOA) • Sub-sub-lessee (Homeowner) • Mini-Master • Lessor (Landowner) • Lessee (Homeowner) • If you are a homeowner and want to extend your lease, who you contact depends on the lease. • If you have a mini-master lease, you may contact the Land Titles and Records Office to obtain the name and address of the Indian landowners. • If you are a sub-lessee you will need to contact the HOA or Developer • Lease extensions are negotiated between the parties to the contract. • The BIA has approval authority for lease extensions. • By Federal statute, a lease may only be extended once for a period not to exceed 25 years, provided the total term of the lease does not exceed 99 years.

8. Approval of Lease Extensions • The U.S. Department of the Interior, through the BIA, has a judicially recognized and enforced trust responsibility to Tribes and Indian individuals who own land held in Trust by the United States. • As the trustee of Federal Indian land, the Secretary of the Interior, as designated to the BIA’s Regional Directors and Superintendents, holds the approval authority for leases on Indian land. • Landowners may, at their discretion, enter into or extend a lease • The BIA does not compel landowners to enter into or extend leases • The parties must negotiate and execute the lease • The lease needs to be at or above Fair Market Value

9. Fair Market Value • Many leases on the Agua Caliente Indian Reservation have fallen below fair market value • If you are purchasing a home on Indian land or negotiating a new lease, you can estimate the fair market rent on Indian land • To estimate the fair monthly rent for a land lease you need to know the value of the land • Fair Market Rent is based on the value of the land with a yield rate generally between 7% and 10% • Land values can be obtained from the appraisal or the county assessors office. Value of trust land as if vacant (gross acreage) $60,000.00 Multiplied by Yield Rate (generally between 7-10%) x .07 Equals Fair Annual Rental $ 4,200.00 Divided by 12 monthly payments ÷ 12 Equals the Fair Market Rental Value $ 350.00

10. Contact Information Residential Leasing 760.416.2133 x 246 Commercial Leasing 760.416.2133 x 230 Land Titles and Records Office 760.416.2133 x 273 Trust Accounting 760.416.2133 x 260