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S1084..........................................by RESOURCES AND ENVIRONMENT
STATE LANDS - LEASING - Amends existing law to provide that all state lands
may be leased for a period of up to 25 years to the federal government,
federal agencies, counties, cities, school districts or political
subdivisions when leased for public purposes; and to provide that such
leases for public purposes may be entered into by negotiation and shall
secure a rental amount based on the fair market value of the state land.
02/02 Senate intro - 1st rdg - to printing
02/03 Rpt prt - to Res/Env
02/16 Rpt out - rec d/p - to 2nd rdg
02/17 2nd rdg - to 3rd rdg
02/18 3rd rdg - PASSED - 32-2-1
AYES--Andreason, Boatright, Bunderson, Burtenshaw, Cameron, Crow,
Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner,
Thorne, Twiggs, Wheeler
NAYS--Stennett, Whitworth
Absent and excused--Branch
Floor Sponsor - Noh
Title apvd - to House
02/19 House intro - 1st rdg - to Res/Con
03/04 Rpt out - rec d/p - to 2nd rdg
03/05 2nd rdg - to 3rd rdg
03/11 3rd rdg - PASSED - 66-0-4
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
Black, Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy,
Deal, Denney, Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould,
Hadley, Hammond, Hansen(23), Hansen(29), Hornbeck, Jaquet, Jones,
Judd, Kempton, Kendell, Kunz, Lake, Limbaugh, Linford, Loertscher,
Mader, Marley, McKague, Montgomery, Mortensen, Moyle, Pischner,
Pomeroy, Reynolds, Ridinger, Ringo, Robison, Sali, Schaefer, Sellman,
Smith, Smylie, Stevenson, Stoicheff, Stone, Taylor, Tilman, Tippets,
Trail, Watson, Wheeler, Williams, Wood, Zimmermann
NAYS -- None
Absent and excused -- Henbest, Kellogg, Meyer, Mr Speaker
Floor Sponsor - Wheeler
Title apvd - to Senate
03/12 To enrol
03/15 Rpt enrol - Pres signed
03/16 Sp signed - to Governor
03/18 Governor signed
Session Law Chapter 84
Effective: 07/01/99
S1084|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1084 BY RESOURCES AND ENVIRONMENT COMMITTEE 1 AN ACT 2 RELATING TO LEASES OF STATE LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO 3 PROVIDE THAT ALL STATE LANDS MAY BE LEASED FOR A PERIOD OF UP TO TWENTY- 4 FIVE YEARS TO THE FEDERAL GOVERNMENT, FEDERAL AGENCIES, COUNTIES, CITIES, 5 SCHOOL DISTRICTS OR POLITICAL SUBDIVISIONS WHEN LEASED FOR PUBLIC PURPOSES 6 AND TO PROVIDE SUCH LEASES FOR PUBLIC PURPOSES MAY BE ENTERED INTO BY 7 NEGOTIATION AND SHALL SECURE A RENTAL AMOUNT BASED ON THE FAIR MARKET 8 VALUE OF THE STATE LAND. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 58-307, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 58-307. TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR 13 IMPROVEMENTS. (1) No lease of state public school endowment lands, other than 14 those valuable for stone, coal, oil, gas or other minerals, shall be for a 15 longer term than ten (10) years .; provided, however, that1617 (2) Notwithstanding any other provisions of law, all state 18 landsother than public school endowment landsmay be leased for 19 a period of up to twenty-five (25) years to the federal government, 20 to federal agencies, state agencies, counties , or 21 cities , school districts or political subdivisions when leased 22 for public purposes. Such leases for public purposes may be entered into 23 by negotiation and shall secure a rental amount based on the fair market value 24 of the state land. 25 (23 ) Notwithstanding any other provisions of 26 law, only the state endowment lands, other than public school endowment lands, 27 described below may be leased for a period of up to forty-nine (49) years for 28 commercial purposes, under such terms and conditions as may be set by the 29 board, provided that the board consults with the county commissioners of the 30 county in which the lands are located before leasing the lands described 31 below, and the use for which the land is leased shall be consistent with the 32 local planning and zoning ordinances insofar as is reasonable and practicable. 33 The department shall hold a hearing, on each of the parcels described below, 34 in the community in which the parcel is located. 35 (a) One (1) parcel - E1/2, Section 5, T2N, R2E, Boise Meridian, contain- 36 ing three hundred twenty (320) acres, more or less, and located south of 37 the Boise Airport on Pleasant Valley Road. 38 (b) One (1) parcel - SWSWNW, Section 27, T3N, R2E, Boise Meridian, con- 39 taining eight (8) acres, more or less, located northeasterly of the Boise 40 Airport and north of the Boise Interagency Fire Center. 41 (c) Four (4) parcels - E1/2SW, W1/2SE, NESE, Section 31; SW1/4, Section 42 32, T3N, R2E, Boise Meridian, all containing three hundred sixty (360) 43 acres, more or less, located south of the Boise Airport and west of Pleas- 2 1 ant Valley Road. 2 (d) Three (3) parcels - SWSW, Section 28; Pt. SESE, Section 29 (east of 3 the Railroad R/W, now a bikepath); W1/2NW, Section 33, all in T3N, R18E, 4 Boise Meridian, all containing one hundred twenty-five (125) acres, more 5 or less, located two (2) miles northerly of Hailey, Idaho, excepting 6 therefrom, a parcel of land, containing twenty (20) acres, more or less, 7 at a location to be determined with access to the sheep driveway located 8 on the county road. 9 (e) One (1) parcel - SWNE, Section 32, T3N, R2E, Boise Meridian, contain- 10 ing forty (40) acres, more or less, located southerly and westerly of the 11 Boise Airport off Gowen Road; Public Building Endowment. 12 (f) Two (2) parcels - Part NESWNE, Section 35, T3N, R2E, Boise Meridian, 13 containing three and fifteen hundredths (3.15) acres, more or less; Part 14 NENESE, Section 35, T3N, R2E, Boise Meridian, containing one and eight- 15 tenths (1.8) acres, more or less; both located northerly and easterly of 16 I-84 between the Broadway Interchange and the Gowen Road/State Highway 21 17 Interchange; Normal School Endowment. 18 (g) One (1) parcel - Part Lot 1, Section 1, T2N, R2E, Boise Meridian, 19 containing five (5) acres, more or less, located near the Gowen Road/State 20 Highway 21 Exit from I-84; Penitentiary Endowment. 21 (h) One (1) parcel - N1/2NW1/4SW1/4, SW1/4NW1/4SW1/4, Section 4, T2N, 22 R2E, Boise Meridian, excepting that portion deeded to Ada County for a 23 public road, containing twenty-eight and seventy-nine hundredths (28.79) 24 acres, more or less, located south of Boise Airport and east of Pleasant 25 Valley Road; Normal School Endowment. 26 (34 ) Notwithstanding any other provisions of 27 law, only the state public school endowment lands described below may be 28 leased for commercial purposes, for a term not to exceed ten (10) years, and 29 the board may grant, upon payment of good and valuable consideration, a pref- 30 erential right to renew said lease not more than four (4) times, provided that 31 the board shall consult with the county commissioners of the county in which 32 the lands are located before leasing the lands described below, and the use 33 for which the land is leased shall be consistent with the local planning and 34 zoning ordinances insofar as is reasonable and practicable. The department 35 shall hold a hearing, on each of the parcels described below, in the community 36 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 Boise Airport and east of Pleasant Valley Road; Public School Endow- 51 ment. 52 (45 ) The term "commercial purposes" means 53 industrial enterprises, retail sales outlets, business and professional office 54 buildings, hospitality enterprises, commercial recreational activities, multi- 55 family residential developments and other similar businesses. For purposes of 3 1 this section, agricultural leases, grazing leases, oil and gas leases, mineral 2 leases, geothermal leases and single family, recreational cottage site and 3 homesite leases are not considered leases for commercial purposes. 4 (56 ) The board may require that all fixed 5 improvements constructed upon land leased for commercial purposes be removed 6 or become the property of the state upon termination of the lease, and that 7 any heirs, encumbrances or claims of third parties with respect to any 8 improvements shall be expressly subordinate and subject to the rights of the 9 state under this section. 10 (67 ) Except for geothermal, oil and gas, and 11 mineral leases, the lease year shall run from January 1 through December 31, 12 and all leases shall expire on December 31 of the year of expiration. 13 (78 ) The annual rental shall be due and payable 14 in advance of year one of the lease and by January 1 of each succeeding year, 15 except for grazing leases which shall be due and payable by the date set by 16 the state board of land commissioners in the lease, but in no case shall the 17 rental for grazing leases be due and payable earlier than January 1 or later 18 than May 1 of each succeeding year. 19 (89 ) All applications to lease or to renew an 20 existing lease which expires December thirty-first of any year, shall be filed 21 in the office of the director of the department of lands by the thirtieth day 22 of April preceding the date of such expiration. Such applications will be con- 23 sidered by the state land board and be disposed of in the manner provided by 24 law; except that the board may reject conflicting applications for a lease for 25 commercial purposes if the lessee exercises the preference right to renew 26 clause. 27 (910 ) Where conflicts appear upon leases which 28 do not contain a preferential right to renew clause, such applications shall 29 be considered as having been filed simultaneously. However, nothing herein 30 shall be construed to prevent the state board of land commissioners from 31 accepting and considering applications for new leases at any time. 32 (101 ) In case improvements have been made on 33 land while under lease which is expiring, and the former lessee is not the 34 successful bidder, but the land is leased to another, the amount of such 35 improvements shall be paid to the former lessee. The following shall be con- 36 sidered improvements: plowing done within one (1) year, provided no crop has 37 been raised on the plowed land after such plowing, fencing, buildings, 38 cisterns, wells, growing crops and any other asset which shall be considered 39 an improvement by the director. 40 (112 ) Commercial leases of the state lands 41 described in this section shall not be subject to the conflict auction provi- 42 sions of section 58-310, Idaho Code. The board may, at its discretion, call 43 for proposals and sealed bids by public advertisement, and may evaluate said 44 proposals and award the lease to the bidder whose proposal achieves the high- 45 est return over the term of the lease and who is capable of meeting such terms 46 and conditions as may be set by the board. In the alternative, the board may 47 call for lease applications by public advertisement and if more than one (1) 48 person files an application to hold an auction in the same manner as provided 49 in section 58-310, Idaho Code. In either case, the board must obtain a reason- 50 able rental, based upon fair market value of the state land, throughout the 51 duration of the lease. The board may reject any or all proposals and any or 52 all bids, and may reoffer the lease at a later date if the board determines 53 that the proposals or bids do not achieve the highest and best use of the land 54 at market rental.
STATEMENT OF PURPOSE
RS08819C1
The purpose of this bill is to permit leasing of state endowment lands to federal,
state and local units of govemments under the same procedures used for leasing of other
state lands to such entities. Presently, state lands other than endowment lands may be
leased to federal, state and local govemments for a period of up to 25 years under Idaho
Code 58-307 by direct negotiations. Endowment lands were excluded from Idaho Code
58-307 because the Idaho Admissions Bill limited leases of such lands to a period of 10
years. In 1998, Congress removed the 10 year limitation from the Idaho Admissions Bill.
This bill would include state endowment lands under the provisions of Idaho Code 58-307 but require that all leases to govemmental units secure a rental amount based on the
fair market value of the state land.
FISCAL NOTE
No fiscal impact is expected from this legislation.
CONTACT: Senator Laird Noh
(208) 332-1333
STATEMENT OF PURPOSE/FISCAL NOTE S 1084