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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
NAYS--None
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
Effective: 07/01/99
S1104|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN 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 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 (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 3 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. 4 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 25 year. 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.; iIn 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- 4 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
RS08869
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
Highway 15;
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.
FISCAL IMPACT
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
(208) 334-0239
STATEMENT OF PURPOSE/FISCAL IMPACT S 1104