State Land Commissioner Seeks to Improve Terms for Garrett’s Desert Inn Lease

By State Land Commissioner

SANTA FE, NM – State Land Commissioner Aubrey Dunn today announced he is disqualifying the winning bid to redevelop and lease the property known as Garrett’s Desert Inn in historic downtown Santa Fe.

In November, GreenTree Hospitality and project partner Peak Hospitality together were one of two qualifying proposals and submitted the highest and best offer of $300,000 annual base rent, a one-time $100,000 bonus bid, and five percent of annual gross revenues. The University of New Mexico is the sole beneficiary of revenues earned from the property.

During the finalization of the bid process with GreenTree Hospitality Group it was determined that the State Land Office should not move forward with completing the lease. A lease must be completed based upon what was presented in the bid packet and GreenTree and the State Land Office were unable to agree on satisfactory terms.

“It is unfortunate that this partnership will not move forward, however I will not leave future administrations with a less than favorable lease,” said Commissioner Dunn. “This property is a tremendous asset for the community and the beneficiary it supports and will be managed with the utmost fortitude and in the most responsible manner so as not to provide something less than what is deserved.”
Commissioner Dunn said he is pushing the “reset button” and will again offer this property for long term bid after the first of the year.

Garrett’s Desert Inn will continue to operate under the management of 221 Santa Fe Innkeepers, LLC, and local favorite, Santa Fe Bite, will also carry on from this location.

Commissioner Dunn and the State Land Office acquired the 2.7-acre property, located at 311 Old Santa Fe Trail, in September of 2016 by way of a land exchange with Cochiti Pueblo. Commissioner Dunn returned 9,000 acres of ancestral lands, formerly the Dixon Apple Orchard, to the pueblo, and in exchange Cochiti purchased the 60-year old inn from the Catron Family Trust and transferred ownership to the State Land Office.