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H0083......................................................by STATE AFFAIRS
ENDOWMENT LAND - LONG-TERM LEASE - Amends existing law to add two parcels
of State Hospital South Endowment Lands and one parcel of public school
endowment lands to the property available for long-term leases by the State
Board of Land Commissioners.
01/16 House intro - 1st rdg - to printing
01/17 Rpt prt - to Res/Con
01/22 Rpt out - Ref'd to St Aff
01/28 Rpt out - rec d/p - to 2nd rdg
01/29 2nd rdg - to 3rd rdg
01/31 3rd rdg - PASSED - 66-0-4
AYES -- Andersen, Barraclough, Bauer, Bell, Bieter, Black, Block,
Boe, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Cuddy, Deal,
Denney, Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
Field(23), Gagner, Garrett, Harwood, Henbest, Jones, Kellogg,
Kulczyk, Lake, Langford, Langhorst, Martinez, McGeachin, McKague,
Meyer, Miller, Mitchell, Moyle, Nacarrato, Nielsen, Raybould,
Ridinger, Ring, Ringo, Roberts, Robison, Rydalch, Sali, Sayler,
Schaefer, Shepherd, Shirley, Skippen, Smith(30), Smith(24), Smylie,
Snodgrass, Stevenson, Tilman, Trail, Wills, Wood, Mr. Speaker
NAYS -- None
Absent and excused -- Barrett, Bedke, Crow, Jaquet
Floor Sponsors - Roberts & Cuddy
Title apvd - to Senate
02/03 Senate intro - 1st rdg - to Res/Env
03/31 Rpt out - rec d/p - to 2nd rdg
04/01 2nd rdg - to 3rd rdg
04/02 3rd rdg - PASSED - 33-0-2
AYES -- Andreason, Bailey, Brandt, Burkett, Burtenshaw, Calabretta,
Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
McWilliams, Noble, Noh, Pearce, Richardson, Sorensen, Stegner,
Stennett, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Bunderson, Schroeder
Floor Sponsor - Brandt
Title apvd - to House
04/03 To enrol
04/04 Rpt enrol - Sp signed
04/07 Pres signed
04/08 To Governor
Governor signed
Session Law Chapter 234
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 83
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO LONG TERM LEASING OF STATE LANDS BY THE BOARD OF LAND COMMISSION-
3 ERS; AMENDING SECTION 58-307, IDAHO CODE, TO ADD THREE PARCELS OF ENDOW-
4 MENT LAND TO THE PROPERTY AVAILABLE FOR LONG TERM LEASES AND TO MAKE TECH-
5 NICAL CORRECTIONS.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 58-307, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 58-307. TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR
10 IMPROVEMENTS. (1) No lease of state public school endowment lands, other than
11 those valuable for stone, coal, oil, gas or other minerals, shall be for a
12 longer term than ten (10) years.
13 (2) Notwithstanding any other provisions of law, all state lands may be
14 leased for a period of up to twenty-five (25) years to the federal government,
15 to federal agencies, state agencies, counties, or cities, school districts or
16 political subdivisions when leased for public purposes. Such leases for public
17 purposes may be entered into by negotiation and shall secure a rental amount
18 based on the fair market value of the state land.
19 (3) Notwithstanding any other provisions of law, only the state endowment
20 lands, other than public school endowment lands, described below may be leased
21 for a period of up to forty-nine (49) years for commercial purposes, under
22 such terms and conditions as may be set by the board, provided that the board
23 consults with the county commissioners of the county in which the lands are
24 located before leasing the lands described below, and the use for which the
25 land is leased shall be consistent with the local planning and zoning ordi-
26 nances insofar as is reasonable and practicable. The department shall hold a
27 hearing, on each of the parcels described below, in the community in which the
28 parcel is located.
29 (a) One (1) parcel - E1/2, Section 5, T2N, R2E, Boise Meridian, contain-
30 ing three hundred twenty (320) acres, more or less, and located south of
31 the Boise Airport on Pleasant Valley Road.
32 (b) One (1) parcel - SWSWNW, Section 27, T3N, R2E, Boise Meridian, con-
33 taining eight (8) acres, more or less, located northeasterly of the Boise
34 Airport and north of the Boise Interagency Fire Center.
35 (c) Four (4) parcels - E1/2SW, W1/2SE, NESE, Section 31; SW1/4, Section
36 32, T3N, R2E, Boise Meridian, all containing three hundred sixty (360)
37 acres, more or less, located south of the Boise Airport and west of Pleas-
38 ant Valley Road.
39 (d) Three (3) parcels - SWSW, Section 28; Pt. SESE, Section 29 (east of
40 the Railroad R/W, now a bikepath); W1/2NW, Section 33, all in T3N, R18E,
41 Boise Meridian, all containing one hundred twenty-five (125) acres, more
42 or less, located two (2) miles northerly of Hailey, Idaho, excepting
43 therefrom, a parcel of land, containing twenty (20) acres, more or less,
2
1 at a location to be determined with access to the sheep driveway located
2 on the county road.
3 (e) One (1) parcel - SWNE, Section 32, T3N, R2E, Boise Meridian, contain-
4 ing forty (40) acres, more or less, located southerly and westerly of the
5 Boise Airport off Gowen Road; Public Building Endowment.
6 (f) Two (2) parcels - Part NESWNE, Section 35, T3N, R2E, Boise Meridian,
7 containing three and fifteen hundredths (3.15) acres, more or less; Part
8 NENESE, Section 35, T3N, R2E, Boise Meridian, containing one and eight-
9 tenths (1.8) acres, more or less; both located northerly and easterly of
10 I-84 between the Broadway Interchange and the Gowen Road/State Highway 21
11 Interchange; Normal School Endowment.
12 (g) One (1) parcel - Part Lot 1, Section 1, T2N, R2E, Boise Meridian,
13 containing five (5) acres, more or less, located near the Gowen Road/State
14 Highway 21 Exit from I-84; Penitentiary Endowment.
15 (h) One (1) parcel - N1/2NW1/4SW1/4, SW1/4NW1/4SW1/4, Section 4, T2N,
16 R2E, Boise Meridian, excepting that portion deeded to Ada County for a
17 public road, containing twenty-eight and seventy-nine hundredths (28.79)
18 acres, more or less, located south of the Boise Airport and east of Pleas-
19 ant Valley Road; Normal School Endowment.
20 (i) One (1) parcel - NWSWSE, S2SWSE, E2SW, Lot 9 (NWSW), Lot 11 (SWSW),
21 Section 19, Township 16 North, Range 3 East, Boise Meridian, containing
22 one hundred eighty-six and forty-nine hundredths (186.49) acres, more or
23 less; NWNE, S2NE, E2W2, Lots 1-4 (W2W2), SE, Section 30, Township 16
24 North, Range 3 East, Boise Meridian, containing five hundred ninety-four
25 and forty hundredths (594.40) acres, more or less; E2, E2W2, Lots 1-4
26 (W2W2), Section 31, Township 16 North, Range 3 East, Boise Meridian, con-
27 taining six hundred forty-three and ten hundredths (643.10) acres, more or
28 less, all located on the west side of Cascade Reservoir.
29 (j) One (1) parcel - W2NENE, NWNE, Section 8, Township 15 North, Range 3
30 East, Boise Meridian, containing sixty (60) acres, more or less, located
31 on the west side of Cascade Reservoir.
32 (4) Notwithstanding any other provisions of law, only the state public
33 school endowment lands described below may be leased for commercial purposes,
34 for a term not to exceed ten (10) years, and the board may grant, upon payment
35 of good and valuable consideration, a preferential right to renew said lease
36 not more than four (4) times, provided that the board shall consult with the
37 county commissioners of the county in which the lands are located before leas-
38 ing the lands described below, and the use for which the land is leased shall
39 be consistent with the local planning and zoning ordinances insofar as is rea-
40 sonable and practicable. The department shall hold a hearing, on each of the
41 parcels described below, in the community in which the parcel is located.
42 (a) One (1) parcel - All, Section 16, T3N, R18E, Boise Meridian, contain-
43 ing six hundred forty (640) acres, more or less, and located in Ohio Gulch
44 some five (5) miles northerly of Hailey, Idaho.
45 (b) One (1) parcel - E1/2NE, Section 16, T18N, R3E, Boise Meridian, con-
46 taining eighty (80) acres, more or less, and located northwesterly of the
47 intersection of Deinhard Lane and Sampson Trail in McCall, Idaho.
48 (c) One (1) parcel - S1/2NW, NESW, Part NWSW, Part SWSW, Part SESW, Sec-
49 tion 36, T3N, R2E, Boise Meridian, containing one hundred seventy-eight
50 and seventy-one hundredths (178.71) acres, more or less, located northerly
51 and easterly of I-84 between the Broadway Interchange and the Gowen
52 Road/State Highway 21 Interchange; Public School Endowment.
53 (d) One (1) parcel - NE1/4SW1/4, SE1/4NW1/4SW1/4, Section 4, T2N, R2E,
54 Boise Meridian, containing fifty (50) acres, more or less, located south
55 of the Boise Airport and east of Pleasant Valley Road; Public School
3
1 Endowment.
2 (e) Two (2) parcels - Lot 14 (Pt. NESE), Lot 15 (Pt. NESE), Lot 16 (Pt.
3 N2SE), SWSE, Lot 17 (SESE), Section 22, Township 6 North, Range 36 East,
4 Boise Meridian, containing one hundred sixty and two-tenths (160.20)
5 acres, more or less; NWSW, Pt. SWSW, Section 23, Township 6 North, Range
6 36 East, Boise Meridian, containing forty-eight (48) acres, more or less,
7 located fifty (50) miles north of Idaho Falls at the junction of State
8 Highway 28 and Interstate Highway 15.
9 (f) One (1) parcel - Lot 9 (Pt. NWNE, Pt. NENW), Lot 10 (Pt. SWNE, Pt.
10 SENW), Section 12, Township 2 North, Range 37 East, Boise Meridian, con-
11 taining nineteen and twenty-seven hundredths (19.27) acres, more or less,
12 located adjacent to the U of I/ISU Center in Idaho Falls.
13 (g) One (1) parcel - Lots 1 and 2, Section 8, Township 2 North, Range 38
14 East, Boise Meridian, containing seven and seventy-seven hundredths (7.77)
15 acres, more or less, located on Lincoln Street in Idaho Falls.
16 (h) One (1) parcel - W1/2, Section 16; Lots 1 and 2 (E2NE), W2NE, Section
17 17, Township 3 South, Range 18 East, Boise Meridian, containing four hun-
18 dred eighty and fifty-seven hundredths (480.57) acres, more or less,
19 located on State Highway 93 north of Shoshone at Shoshone Ice Caves.
20 (5) Notwithstanding any other provisions of law, only the state public
21 school endowment lands described below may be leased for a period of up to
22 forty-nine (49) years for commercial purposes, under such terms and conditions
23 as may be set by the board, provided that the board consults with the county
24 commissioners of the county in which the lands are located before leasing the
25 lands described below, and the use for which the land is leased shall be con-
26 sistent with the local planning and zoning ordinances insofar as is reasonable
27 and practicable. The department shall hold a hearing, on each of the parcels
28 described below, in the community in which the parcel is located.
29 (a) One (1) parcel - All, Section 36, Township 16 North, Range 2 East,
30 Boise Meridian, containing six hundred forty (640) acres, more or less,
31 located on the west side of Cascade Reservoir.
32 (6) The term "commercial purposes" means industrial enterprises, retail
33 sales outlets, business and professional office buildings, hospitality enter-
34 prises, commercial recreational activities, multifamily residential develop-
35 ments and other similar businesses. For purposes of this section, agricultural
36 leases, grazing leases, oil and gas leases, mineral leases, geothermal leases
37 and single family, recreational cottage site and homesite leases are not con-
38 sidered leases for commercial purposes.
39 (67) The board may require that all fixed improvements constructed upon
40 land leased for commercial purposes be removed or become the property of the
41 state upon termination of the lease, and that any heirs, encumbrances or
42 claims of third parties with respect to any improvements shall be expressly
43 subordinate and subject to the rights of the state under this section.
44 (78) Except for geothermal, oil and gas, and mineral leases, the lease
45 year shall run from January 1 through December 31, and all leases shall expire
46 on December 31 of the year of expiration.
47 (89) All applications to lease or to renew an existing lease which
48 expires December 31 of any year, shall be filed in the office of the director
49 of the department of lands by the thirtieth day of April preceding the date of
50 such expiration. Such applications will be considered by the state land board
51 and be disposed of in the manner provided by law; except that the board may
52 reject conflicting applications for a lease for commercial purposes if the
53 lessee exercises the preference right to renew clause.
54 (910) Where conflicts appear upon leases which do not contain a preferen-
55 tial right to renew clause, such applications shall be considered as having
4
1 been filed simultaneously. However, nothing herein shall be construed to pre-
2 vent the state board of land commissioners from accepting and considering
3 applications for new leases at any time.
4 (101) In case improvements have been made on land while under lease which
5 is expiring, and the former lessee is not the successful bidder, but the land
6 is leased to another, the amount of such improvements shall be paid to the
7 former lessee. The following shall be considered improvements: plowing done
8 within one (1) year, provided no crop has been raised on the plowed land after
9 such plowing, fencing, buildings, cisterns, wells, growing crops and any other
10 asset which shall be considered an improvement by the director.
11 (112) Commercial leases of the state lands described in this section shall
12 not be subject to the conflict auction provisions of section 58-310, Idaho
13 Code. The board may, at its discretion, call for proposals and sealed bids by
14 public advertisement, and may evaluate said proposals and award the lease to
15 the bidder whose proposal achieves the highest return over the term of the
16 lease and who is capable of meeting such terms and conditions as may be set by
17 the board; in the alternative, the board may call for lease applications by
18 public advertisement and if more than one (1) person files an application to
19 hold an auction in the same manner as provided in section 58-310, Idaho Code.
20 In either case, the board must obtain a reasonable rental, based upon fair
21 market value of the state land, throughout the duration of the lease. The
22 board may reject any or all proposals and any or all bids, and may reoffer the
23 lease at a later date if the board determines that the proposals or bids do
24 not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE
RS 12536
On May 14, 2002, the State Board of Land Commissioners (SB of LC) approved of
2,124 acres to WestRock Associates, L.L.C. (W.R.) (Now known as "Tamarack
Resort ,L.L.C.")for use as a ski hill and golf course. This transaction was
the culmination of several years of studies, agreements and negotiations
involving, among others, Valley County, Department of Environmental Quality,
Department of Fish & Game, Department of Parks and Recreation, Department of
Commerce, Department of Transportation and the Idaho Department of Lands
(IDL)and SB of LC.
The proposal submitted by W.R. was in response to a "Request for Proposals
(RFP)put out by IDL under the direction of the SB of LC. The RFP sought
proposals from any party interested in leasing the endowment land for
commercial purposes.
The lease to W.R. is currently for a ten (10) year period. However, the
negotiations surrounding the lease and the intent of the lease itself is for a
long term project and lease term. Article I of the lease provides that the
lease shall be automatically extended upon passage of legislation authorizing
a long-term lease for the parcel. Additionally, the rent is structured to
provide a greater return to the endowment beneficiary after the first ten (10)
years of the lease.
The W.R. project has a much greater opportunity to succeed under a long term
lease. The use of this endowment land for a ski hill and golf course provides
a much greater return to the endowment beneficiary than its previous use for
timber production.
The SB of LC is mandated by Article 9, Section 8 of the Idaho Constitution to
manage these lands in such a manner as will secure the maximum long-term
financial return for the beneficiary. As such, the SB of LC made a business
decision, based on years of review and study, to lease this land to W.R. That
decision maximizes financial returns to the beneficiary and calls for the
ability to issue a long term lease.
This legislation adds a portion of the endowment parcel leased to W.R. to
Idaho Code 58-307(3) for long term leasing and adds a subsection to allow long
term leasing of the remainder, which is public school endowment land. Long
term leasing of these parcels will provide a greater opportunity for success
and will provide greater financial return to the beneficiaries.
FISCAL IMPACT
Revenue to the endowment beneficiary will increase due to development of a
high value commercial business 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 of endowment land
offsets taxes on Idaho citizens.
No additional general fund money will be needed to implement this
bill.
Contact
Name: Winston Wiggins, Idaho Department of Lands
Phone: 208/334-0238
STATEMENT OF PURPOSE/FISCAL NOTE H83