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H0810......................................................by STATE AFFAIRS ENDOWMENT LANDS - COMMERCIAL LEASE - Amends existing law to provide legal descriptions of state endowment lands to be commercially leased. 03/10 House intro - 1st rdg - to printing 03/11 Rpt prt - to St Aff
H0810|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 810 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO LEASING OF STATE LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO 3 PROVIDE LEGAL DESCRIPTIONS OF STATE ENDOWMENT LANDS TO BE COMMERCIALLY 4 LEASED AND TO MAKE TECHNICAL CORRECTIONS. 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 58-307, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 58-307. TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR 9 IMPROVEMENTS. (1) No lease of state public school endowment lands, other than 10 those valuable for stone, coal, oil, gas or other minerals, shall be for a 11 longer term than ten (10) years; provided, however, that state lands other 12 than public school endowment lands may be leased for a period of up to twenty- 13 five (25) years to federal agencies, state agencies, counties or cities when 14 leased for public purposes. 15 (2) Notwithstanding any other provisions of law, only the state endowment 16 lands, other than public school endowment lands, described below may be leased 17 for a period of up to forty-nine (49) years for commercial purposes, under 18 such terms and conditions as may be set by the board, provided that the board 19 consults with the county commissioners of the county in which the lands are 20 located before leasing the lands described below, and the use for which the 21 land is leased shall be consistent with the local planning and zoning ordi- 22 nances insofar as is reasonable and practicable. The department shall hold a 23 hearing, on each of the parcels described below, in the community in which the 24 parcel is located. 25 (a) One (1) parcel - E1/2, Section 5, T2N, R2E, Boise Meridian, contain- 26 ing three hundred twenty (320) acres, more or less, and located south of 27 the Boise Airport on Pleasant Valley Road. 28 (b) One (1) parcel - SWSWNW, Section 27, T3N, R2E, Boise Meridian, con- 29 taining eight (8) acres, more or less, located northeasterly of the Boise 30 Airport and north of the Boise Interagency Fire Center. 31 (c) Four (4) parcels - E1/2SW, W1/2SE, NESE, Section 31; SW1/4, Section 32 32, T3N, R2E, Boise Meridian, all containing three hundred sixty (360) 33 acres, more or less, located south of the Boise Airport and west of Pleas- 34 ant Valley Road. 35 (d) Three (3) parcels - SWSW, Section 28; Pt. SESE, Section 29 (east of 36 the Railroad R/W, now a bikepath); W1/2NW, Section 33, all in T3N, R18E, 37 Boise Meridian, all containing one hundred twenty-five (125) acres, more 38 or less, located two (2) miles northerly of Hailey, Idaho, excepting 39 therefrom, a parcel of land, containing twenty (20) acres, more or less, 40 at a location to be determined with access to the sheep driveway located 41 on the county road. 42 (e) One (1) parcel - SWNE, Section 32, T3N, R2E, Boise Meridian, contain- 43 ing forty (40) acres, more or less, located southerly and westerly of the 2 1 Boise Airport off Gowen Road; Public Building Endowment. 2 (f) Two (2) parcels - Part NESWNE, Section 35, T3N, R2E, Boise Meridian, 3 containing three and fifteen hundredths (3.15) acres, more or less; Part 4 NENESE, Section 35, T3N, R2E, Boise Meridian, containing one and eight- 5 tenths (1.8) acres, more or less; both located northerly and easterly of 6 I-84 between the Broadway Interchange and the Gowen Road/State Highway 21 7 Interchange; Normal School Endowment. 8 (g) One (1) parcel - Part Lot 1, Section 1, T2N, R2E, Boise Meridian, 9 containing five (5) acres, more or less, located near the Gowen Road/State 10 Highway 21 Exit from I-84; Penitentiary Endowment. 11 (h) One (1) parcel - N1/2NW1/4SW1/4, SW1/4NW1/4SW1/4, Section 4, T2N, 12 R2E, Boise Meridian, excepting that portion deeded to Ada County for a 13 public road, containing twenty-eight and seventy-nine hundredths (28.79) 14 acres, more or less, located south of the Boise Airport and 15 east of Pleasant Valley Road; Normal School Endowment. 16 (i) Three (3) parcels - NWSWSE, S2SWSE, E2SW, Lot 9, Lot 11 (W2SW), 17 Section 19, T16N, R3E, Boise Meridian, containing one hundred eighty-six 18 and forty-nine hundredths (186.49) acres more or less; NWNE, S2NE, E2W2, 19 Lots 1-4 (W2W2), SE, Section 30, T16N, R3E, Boise Meridian, containing 20 five hundred ninety-four and forty hundredths (594.40) acres more or less; 21 E2, E2W2, Lots 1 - 4 (W2W2) Section 31, T16N, R3E, Boise Meridian, con- 22 taining six hundred forty-three and ten hundredths (643.10) acres more or 23 less, all located on the west side of Cascade Reservoir. 24 (j) One (1) parcel - W2NENE, NWNE, Section 8, T15N, R3E, Boise Meridian, 25 containing sixty (60) acres more or less, located on the west side of Cas- 26 cade Reservoir. 27 (3) Notwithstanding any other provisions of law, only the state public 28 school endowment lands described below may be leased for commercial purposes, 29 for a term not to exceed ten (10) years, and the board may grant, upon payment 30 of good and valuable consideration, a preferential right to renew said lease 31 not more than four (4) times, provided that the board shall consult with the 32 county commissioners of the county in which the lands are located before leas- 33 ing the lands described below, and the use for which the land is leased shall 34 be consistent with the local planning and zoning ordinances insofar as is rea- 35 sonable and practicable. The department shall hold a hearing, on each of the 36 parcels described below, in the community in which the parcel is located. 37 (a) One (1) parcel - All, Section 16, T3N, R18E, Boise Meridian, contain- 38 ing six hundred forty (640) acres, more or less, and located in Ohio Gulch 39 some five (5) miles northerly of Hailey, Idaho. 40 (b) One (1) parcel - E1/2NE, Section 16, T18N, R3E, Boise Meridian, con- 41 taining eighty (80) acres, more or less, and located northwesterly of the 42 intersection of Deinhard Lane and Sampson Trail in McCall, Idaho. 43 (c) One (1) parcel - S1/2NW, NESW, Part NWSW, Part SWSW, Part SESW, Sec- 44 tion 36, T3N, R2E, Boise Meridian, containing one hundred seventy-eight 45 and seventy-one hundredths (178.71) acres, more or less, located northerly 46 and easterly of I-84 between the Broadway Interchange and the Gowen 47 Road/State Highway 21 Interchange; Public School Endowment. 48 (d) One (1) parcel - NE1/4SW1/4, SE1/4NW1/4SW1/4, Section 4, T2N, R2E, 49 Boise Meridian, containing fifty (50) acres, more or less, located south 50 of the Boise Airport and east of Pleasant Valley Road; Public 51 School Endowment. 52 (e) Two (2) parcels - Lot 14 (Pt. NESE), Lot 16 (Pt. N2SE), SWSE, 53 Lot 17 (SESE), Section 22, T6N, R36E, Boise Meridian, containing one hun- 54 dred twenty-seven and seventeen hundredths (127.17) acres more or less; 55 NWSW, Pt. SWSW, Section 23, T6N, R36E, Boise Meridian, containing forty- 3 1 eight (48) acres, more or less, located fifty (50) miles north of Idaho 2 Falls at the junction of State Highway 28 and Interstate Highway 15. 3 (f) One (1) parcel - Lot 9 (Pt. NWNE, Pt. NENW), Lot 10 (Pt. SWNE, Pt. 4 SENW), Section 12, T2N, R37E, Boise Meridian, containing nineteen and 5 twenty-seven hundredths (19.27) acres, more or less, located adjacent to 6 the University of Idaho/Idaho State University Center in Idaho Falls, 7 Idaho. 8 (g) One (1) parcel - Lots 1 and 2, Section 8, T2N, R38E, Boise Meridian, 9 containing seven and seventy-seven hundredths (7.77) acres, more or less, 10 located on Lincoln Street in Idaho Falls, Idaho. 11 (h) One (1) parcel - W1/2, Section 16; Lot 1 and 2 (E2NE), W2NE, Section 12 17, T3S, R18E, Boise Meridian, containing four hundred eighty and fifty- 13 seven hundredths (480.57) acres, more or less, located on State Highway 93 14 north of Shoshone at Shoshone Ice Caves. 15 (i) One (1) parcel - All, Section 36, T16N, R2E, Boise Meridian, contain- 16 ing six hundred forty (640) acres, more or less, located on the west side 17 of Cascade Reservoir. 18 (4) The term "commercial purposes" means industrial enterprises, retail 19 sales outlets, business and professional office buildings, hospitality enter- 20 prises, commercial recreational activities, multifamily residential develop- 21 ments and other similar businesses. For purposes of this section, agricultural 22 leases, grazing leases, oil and gas leases, mineral leases, geothermal leases 23 and single family, recreational cottage site and homesite leases are not con- 24 sidered leases for commercial purposes. 25 (5) The board may require that all fixed improvements constructed upon 26 land leased for commercial purposes be removed or become the property of the 27 state upon termination of the lease, and that any heirs, encumbrances or 28 claims of third parties with respect to any improvements shall be expressly 29 subordinate and subject to the rights of the state under this section. 30 (6) Except for geothermal, oil and gas, and mineral leases, the lease 31 year shall run from January 1 through December 31, and all leases shall expire 32 on December 31 of the year of expiration. 33 (7) The annual rental shall be due and payable in advance of year one of 34 the lease and by January 1 of each succeeding year, except for grazing leases 35 which shall be due and payable by the date set by the state board of land com- 36 missioners in the lease, but in no case shall the rental for grazing leases be 37 due and payable earlier than January 1 or later than May 1 of each succeeding 38 year. 39 (8) All applications to lease or to renew an existing lease which expires 40 December thirty-first of any year, shall be filed in the office of the direc- 41 tor of the department of lands by the thirtieth day of April preceding the 42 date of such expiration. Such applications will be considered by the state 43 land board and be disposed of in the manner provided by law; except that the 44 board may reject conflicting applications for a lease for commercial purposes 45 if the lessee exercises the preference right to renew clause. 46 (9) Where conflicts appear upon leases which do not contain a preferen- 47 tial right to renew clause, such applications shall be considered as having 48 been filed simultaneously. However, nothing herein shall be construed to pre- 49 vent the state board of land commissioners from accepting and considering 50 applications for new leases at any time. 51 (10) In case improvements have been made on land while under lease which 52 is expiring, and the former lessee is not the successful bidder, but the land 53 is leased to another, the amount of such improvements shall be paid to the 54 former lessee. The following shall be considered improvements: plowing done 55 within one (1) year, provided no crop has been raised on the plowed land 4 1 after such plowing, fencing, buildings, cisterns, wells, growing crops and any 2 other asset which shall be considered an improvement by the director. 3 (11) Commercial leases of the state lands described in this section shall 4 not be subject to the conflict auction provisions of section 58-310, Idaho 5 Code. The board may, at its discretion, call for proposals and sealed bids by 6 public advertisement, and may evaluate said proposals and award the lease to 7 the bidder whose proposal achieves the highest return over the term of the 8 lease and who is capable of meeting such terms and conditions as may be set by 9 the board. In the alternative, the board may call for lease applications by 10 public advertisement and if more than one (1) person files an application to 11 hold an auction in the same manner as provided in section 58-310, Idaho Code. 12 In either case, the board must obtain a reasonable rental, based upon fair 13 market value of the state land, throughout the duration of the lease. The 14 board may reject any or all proposals and any or all bids, and may reoffer the 15 lease at a later date if the board determines that the proposals or bids do 16 not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE
RS 08195
This proposed bill was prepared at the request of the State Board of Land
Commissioners.
This legislation adds four (4) parcels of land to the list of lands that
may be leased for a longer term than 10 years under Idaho Code 58-307(2), and
six (6) parcels of land to Idaho Code 58-307(3) for preferential right to
renew leases.
These parcels of land are in an excellent location for the purpose of
commercial or industrial development. Long term leases (leases that are more
than 10 years, but no more than 49 years) on these lands would promote high
value commercial or industrial developments that will generate market rent
which normally exceeds rental received for resource uses.
These leases will be offered through a competitive process involving the
use of Requests for Proposals and subsequent evaluation by the Land Board to
determine the proposed use most productive for the Endowment Trust.
Long term leases allow the private sector to invest more money in
improvements since there is no large down payment or debt service (as there
would be if land were purchased). Corporations and individuals must be assured
of an adequate length of time to recoup their investment on endowment land.
Retaining endowment land for lease allows the state to hedge against
inflation. Sale of endowment land results in gradual erosion of assets since
the permanent fund principal is fixed in time and subject to inflation. This
bill also provides for rental payment dates as determined by the land board
and stated in the lease for commercial cottage site, miscellaneous, and
submerged land leases.
FISCAL NOTE
Revenue to the endowment funds will increase due to development of high
value commercial or industrial businesses that will generate market rent on
endowment land.
Development of these lands will also generate jobs, sales tax, and property
tax on the improvements. Rental for endowment land offsets taxes on Idaho
citizens.
No additional general fund money will be needed to implement this bill.
CONTACT: Stan Hamilton & Jay Biladeau
Department of Lands
208/334-0200
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 810