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trust for the Hopi Tribe for use by Hopi Tribal members.

Thus,

the Department of the Interior, pursuant to its authority under 25 U.S.C. 465, has agreed to take land into trust for the Hopi Tribe as part of the fourth phase of the Settlement.

Such land

would be purchased by the Hopi Tribe with its own funds.'

In the fourth phase of Settlement, if, by the end of 1996, 75% or more of the Navajo heads of household eligible for an Accommodation Agreement have entered into an Accommodation Agreement or chosen to relocate, the Department of the Interior has agreed that it will take into trust for the Hopi Tribe up to 500,000 acres of rural fee lands or combined fee and State lands in northern Arizona. Such fee lands would need to have been acquired by the Hopi Tribe on a willing-seller willing-buyer basis. No private lands would be condemned as part of this

Settlement.

As those familiar with land ownership in northern Arizona are well aware, most of the larger tracts of rural lands in northern Arizona in the vicinity of the Hopi Reservation are checker-boarded fee and State lands. Over the course of the negotiations, the State has repeatedly indicated its willingness to have the federal government acquire State lands at fair market value in order to help achieve a settlement of this longstanding dispute. Because of State constitutional and statutory restrictions on the sale of State lands, the Hopi Tribe could not

3 The Hopi Tribe may apply some, all, or none of the $50.2 million settlement with the United States to the purchase of land.

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acquire such lands without the assistance of the federal

government.

Thus, in order to facilitate the taking into trust of a contiguous parcel of land, to avoid the jurisdictional and other complications of having State lands interspersed within tribal trust lands, and to facilitate the interests of both the Hopi Tribe and the State, the Settlement Agreement provides that the United States will acquire for the Hopi Tribe for fair market value (with funds provided by the Hopi Tribe) interspersed State lands within the exterior boundaries of private lands acquired by the Tribe, provided that the State concurs that such acquisition is consistent with the State's interests. Our commitment to condemn State lands under these circumstances is based on the authority provided by 40 U.S.C. 257, 25 U.S.C. 465, and 25 U.S.C.

451.

The Settlement Agreement further imposes time requirements on the Office of Navajo Hopi Indian Relocation ("Relocation Office") for completing its responsibilities under the 1974 Settlement Act with respect to those Navajo families remaining on the Hopi Partitioned Lands who are eligible for relocation assistance.

The Settlement Agreement requires the Relocation Office to complete all of the activities with regard to voluntary relocation of Navajo families residing on the Hopi Partitioned Lands (i.e., counsel the family, help the family select a homesite location off Hopi lands, construct or buy a house for the family and move the family) who, during 1996, affirmatively

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choose to relocate, rather than choosing to enter into an

Accommodation Agreement.

The parties also have agreed on a transitional mechanism for Navajo families that enter into Accommodation Agreements during 1996. The passage of three years following the acceptance of a homesite accommodation waives any and all rights a Navajo resident of the Hopi Partitioned Lands has to relocation

benefits. In other words, the Relocation Office

-

-

or other

would provide

entity assigned to assume its responsibilities
benefits for the three years following 1996, for any Navajo
otherwise eligible for the benefits who has entered into an
Accommodation Agreement, and subsequently decides that moving
from the Hopi Partitioned Lands is preferable.

The Settlement Agreement with the Hopi Tribe also addresses the circumstance of Navajo residents who do not enter into an Accommodation Agreement in 1996. The Settlement Agreement requires the Relocation Office to begin, in January 1997, implementation of its regulations that will result in the provision of housing for Navajo residents who have not entered into an Accommodation Agreement and are eligible for relocation but have not affirmatively chosen to relocate. The Settlement Agreement further requires that provision of homes for such families will be completed by February 1, 2000. Such action is already directed by the 1974 Settlement Act and the Relocation Office's regulations. The Settlement Agreement simply

benefits

-

establishes a time frame.

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Congressional appropriations enactments and court orders

have forbidden the United States from moving Navajo residents of the Hopi Partitioned Lands who are eligible for relocation assistance unless a house first has been provided by the Relocation Office. Thus, the provision of housing removes an existing legal obstacle to moving families who decline to enter into an agreement with the Hopi Tribe and refuse to abide by the provisions of federal law that require them to move off the lands partitioned to the Hopi.

The parties have spent years negotiating these agreements in an effort to provide a tenable alternative to relocation. We hope that few will decline to follow either lawful course. But there may be some who will so decline. The Settlement Agreement is designed to address that eventuality in a manner consistent with the provisions of the 1974 Settlement Act, as enacted by Congress and interpreted by the courts.

E.

Meetings with the Public on This Issue

In early 1993, representatives from the Department of the Interior and the Department of Justice devoted several months to meeting with public officials and citizen groups in Arizona that had expressed interest in or concerns about the framework of a settlement which, at that time, involved the transfer of National Forest lands into trust for the Hopi Tribe. We met with representatives of the Governor's Office, the Arizona Land Commission, the Arizona Department of Game and Fish, with representatives of the City of Flagstaff, the County Board of

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Supervisors for Coconino County, and with members from the
Arizona Coalition for Public Lands and with members of

environmental groups in Arizona.

Issues that emerged from these discussions included concern that: (1) no private land be taken by condemnation; (2) the water resources for the City of Flagstaff be preserved; (3) the National Forest lands treasured by the public for recreational use not be transferred out of the public domain; (4) the tax base for the Counties not be significantly reduced; and (5) a mechanism be developed for addressing game and fish management problems that arise where there are changes in management jurisdiction such as at boundaries between states or between state and tribal lands. In working with the Hopi Tribe to restructure the compensation provided in the Settlement, we tried to address these concerns.

The Settlement Agreement signed with the Hopi Tribe does not involve condemnation of any private lands. It does not jeopardize the water supply for the City of Flagstaff. It does not transfer any National Forest land. It appears that any effect on the local tax base will be minimal.

Current tax rates

on rural lands in Coconino, Navajo and Apache Counties are low. According to figures provided by the State, at current rates the lost property tax revenue from taking approximately 250,000 acres off the tax rolls (presuming that roughly half the lands would be already-tax-immune State lands interspersed with private lands) would be between $5,000 and $10,000 annually. In addition, any site specific concerns could be raised in public comment

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