Print Friendly SENATE BILL NO. 1104 – Endowment land/lease/add’l parcels
SENATE BILL NO. 1104
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S1104..........................................by RESOURCES AND ENVIRONMENT
ENDOWMENT LANDS - LEASE - Amends existing law to provide legal descriptions
of five parcels of land (four near Idaho Falls and one near Shoshone),
authorizing the Department of Lands to incorporate a preferential
right-to-renew clause in the offered leases.
02/04 Senate intro - 1st rdg - to printing
02/05 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 - 34-0-1
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,
Stennett, Thorne, Twiggs, Wheeler, Whitworth
Absent and excused--Branch
Floor Sponsor - Burtenshaw
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 - 61-0-9
AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Bieter,
Black, Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy,
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, Montgomery, Mortensen, Moyle, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Sali, Schaefer, Sellman, Smith, Smylie,
Stevenson, Stoicheff, Stone, Taylor, Tilman, Tippets, Trail,
Williams, Wood, Zimmermann
NAYS -- None
Absent and excused -- Deal, Henbest, Kellogg, McKague, Meyer,
Pischner, Watson, Wheeler, Mr Speaker
Floor Sponsor - Jones
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 86
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fifth Legislature First Regular Session - 1999
IN THE SENATE
SENATE BILL NO. 1104
BY RESOURCES AND ENVIRONMENT COMMITTEE
1 AN ACT
2 RELATING TO LONG-TERM LEASING BY THE BOARD; AMENDING SECTION 58-307, IDAHO
3 CODE, TO PROVIDE ADDITIONAL LEGAL DESCRIPTIONS OF STATE ENDOWMENT LANDS TO
4 BE COMMERCIALLY 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
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 (3) Notwithstanding any other provisions of law, only the state public
17 school endowment lands described below may be leased for commercial purposes,
18 for a term not to exceed ten (10) years, and the board may grant, upon payment
19 of good and valuable consideration, a preferential right to renew said lease
20 not more than four (4) times, provided that the board shall consult with the
21 county commissioners of the county in which the lands are located before leas-
22 ing the lands described below, and the use for which the land is leased shall
23 be consistent with the local planning and zoning ordinances insofar as is rea-
24 sonable and practicable. The department shall hold a hearing, on each of the
25 parcels described below, in the community in which the parcel is located.
26 (a) One (1) parcel - All, Section 16, T3N, R18E, Boise Meridian, contain-
27 ing six hundred forty (640) acres, more or less, and located in Ohio Gulch
28 some five (5) miles northerly of Hailey, Idaho.
29 (b) One (1) parcel - E1/2NE, Section 16, T18N, R3E, Boise Meridian, con-
30 taining eighty (80) acres, more or less, and located northwesterly of the
31 intersection of Deinhard Lane and Sampson Trail in McCall, Idaho.
32 (c) One (1) parcel - S1/2NW, NESW, Part NWSW, Part SWSW, Part SESW, Sec-
33 tion 36, T3N, R2E, Boise Meridian, containing one hundred seventy-eight
34 and seventy-one hundredths (178.71) acres, more or less, located northerly
35 and easterly of I-84 between the Broadway Interchange and the Gowen
36 Road/State Highway 21 Interchange; Public School Endowment.
37 (d) One (1) parcel - NE1/4SW1/4, SE1/4NW1/4SW1/4, Section 4, T2N, R2E,
38 Boise Meridian, containing fifty (50) acres, more or less, located south
39 of the Boise Airport and east of Pleasant Valley Road; Public
40 School Endowment.
41 (e) Two (2) parcels - Lot 14 (Pt. NESE), Lot 16 (Pt. N2SE), SWSE,
42 Lot 17 (SESE), Section 22, Township 6 North, Range 36 East, Boise Merid-
43 ian, containing one hundred twenty-seven and seventeen hundredths (127.17)
44 acres more or less; NWSW, Pt. SWSW, Section 23, Township 6 North, Range 36
45 East, Boise Meridian, containing forty-eight (48) acres, more or less,
46 located fifty (50) miles north of Idaho Falls at the junction of State
47 Highway 28 and Interstate Highway 15.
48 (f) One (1) parcel - Lot 9 (Pt. NWNE, Pt. NENW), Lot 10 (Pt. SWNE, Pt.
49 SENW), Section 12, Township 2 North, Range 37 East, Boise Meridian, con-
50 taining nineteen and twenty-seven hundredths (19.27) acres, more or less,
51 located adjacent to the U of I/ISU Center in Idaho Falls.
52 (g) One (1) parcel - Lots 1 and 2, Section 8, Township 2 North, Range 38
53 East, Boise Meridian, containing seven and seventy-seven hundredths (7.77)
54 acres, more or less, located on Lincoln Street in Idaho Falls.
55 (h) One (1) parcel - W1/2, Section 16; Lot 1 and 2 (E2NE), W2NE, Section
1 17, Township 3 South, Range 18 East, Boise Meridian, containing four hun-
2 dred eighty and fifty-seven hundredths (480.57) acres more or less,
3 located on State Highway 93 north of Shoshone at Shoshone Ice Caves.
5 (4) The term "commercial purposes" means industrial enterprises, retail
6 sales outlets, business and professional office buildings, hospitality enter-
7 prises, commercial recreational activities, multifamily residential develop-
8 ments and other similar businesses. For purposes of this section, agricultural
9 leases, grazing leases, oil and gas leases, mineral leases, geothermal leases
10 and single family, recreational cottage site and homesite leases are not con-
11 sidered leases for commercial purposes.
12 (5) The board may require that all fixed improvements constructed upon
13 land leased for commercial purposes be removed or become the property of the
14 state upon termination of the lease, and that any heirs, encumbrances or
15 claims of third parties with respect to any improvements shall be expressly
16 subordinate and subject to the rights of the state under this section.
17 (6) Except for geothermal, oil and gas, and mineral leases, the lease
18 year shall run from January 1 through December 31, and all leases shall expire
19 on December 31 of the year of expiration.
20 (7) The annual rental shall be due and payable in advance of year one of
21 the lease and by January 1 of each succeeding year, except for grazing leases
22 which shall be due and payable by the date set by the state board of land com-
23 missioners in the lease, but in no case shall the rental for grazing leases be
24 due and payable earlier than January 1 or later than May 1 of each succeeding
26 (8) All applications to lease or to renew an existing lease which expires
27 December thirty-first of any year, shall be filed in the office of the direc-
28 tor of the department of lands by the thirtieth day of April preceding the
29 date of such expiration. Such applications will be considered by the state
30 land board and be disposed of in the manner provided by law; except that the
31 board may reject conflicting applications for a lease for commercial purposes
32 if the lessee exercises the preference right to renew clause.
33 (9) Where conflicts appear upon leases which do not contain a preferen-
34 tial right to renew clause, such applications shall be considered as having
35 been filed simultaneously. However, nothing herein shall be construed to pre-
36 vent the state board of land commissioners from accepting and considering
37 applications for new leases at any time.
38 (10) In case improvements have been made on land while under lease which
39 is expiring, and the former lessee is not the successful bidder, but the land
40 is leased to another, the amount of such improvements shall be paid to the
41 former lessee. The following shall be considered improvements: plowing done
42 within one (1) year, provided no crop has been raised on the plowed land after
43 such plowing, fencing, buildings, cisterns, wells, growing crops and any other
44 asset which shall be considered an improvement by the director.
45 (11) Commercial leases of the state lands described in this section shall
46 not be subject to the conflict auction provisions of section 58-310, Idaho
47 Code. The board may, at its discretion, call for proposals and sealed bids by
48 public advertisement, and may evaluate said proposals and award the lease to
49 the bidder whose proposal achieves the highest return over the term of the
50 lease and who is capable of meeting such terms and conditions as may be set by
51 the board . ; i I n the alternative, the
52 board may call for lease applications by public advertisement and if more than
53 one (1) person files an application to hold an auction in the same manner as
54 provided in section 58-310, Idaho Code. In either case, the board must obtain
55 a reasonable rental, based upon fair market value of the state land, through-
1 out the duration of the lease. The board may reject any or all proposals and
2 any or all bids, and may reoffer the lease at a later date if the board deter-
3 mines that the proposals or bids do not achieve the highest and best use of
4 the land at market rental.
STATEMENT OF PURPOSE
This legislation would add the legal descriptions of five (5) parcels of land to Section
58-307(3), Idaho Code, thereby authorizing the state board of land commissioners
and the department of lands to incorporate a "preferential right to renew" clause in
offered leases. The parcels described include:
Two parcels of land (175 acres) located at Sage Junction located 50 miles
north of Idaho Falls at the junction of State Highway 28 and Interstate
One parcel of land (19 acres) located adjacent to the University of
Idaho/ldaho State University Center in Idaho Falls;
One parcel of land (8 acres) located on Lincoln Street in Idaho falls;
One parcel of land (480 acres) located on State Highway 93 north of the
Shoshone at the Shoshone Ice Caves.
These parcels of land are in an excellent location for the purpose of commercial or
industrial development. Long term (10+ years up to 49 years) lease authority on these
lands enhance opportunities to find high value commercial or industrial developments
that will generate rentals that exceed rentals received for natural resource uses.
These leases will be offered through a competitive process. Prospective tenants are
frequently willing to invest more money in improvements - and rent - when they can be
assured of an adequate period to recoup their investment.
The authority to issue a long term leases will result in larger rentals and more revenues
to the endowment beneficiaries.
Development of these lands will generate jobs, sales tax, and property tax on the
improvements. Endowment lands rentals reduce the amount of tax monies appropriated
to the endowment beneficiary institutions.
No additional general fund money will be needed to implement this bill.
CONTACT: Stan Hamilton, Director
Department of Lands
STATEMENT OF PURPOSE/FISCAL IMPACT S 1104