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H0044........................................................by MR. SPEAKER
Requested by: Department of Lands
STATE LANDS - COMMERCIAL LEASES - Amends existing law to exempt commercial
leases of state lands from the lease year of January 1 through December 31;
and to exempt commercial leases of state lands from an expiration date on
December 31 of the year of expiration.
01/06 House intro - 1st rdg - to printing
Rpt prt - 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 - 65-0-5
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, 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, Garrett, Jaquet
Floor Sponsor - Wills
Title apvd - to Senate
02/03 Senate intro - 1st rdg - to Res/Env
04/03 Rpt out - rec d/p - to 2nd rdg
04/04 2nd rdg - to 3rd rdg
04/07 3rd rdg - PASSED - 32-0-3
AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Burtenshaw,
Calabretta, Cameron, Compton, Darrington, Davis, Gannon, Geddes,
Goedde, Hill, Ingram, Kennedy, Keough, Little, Lodge, Malepeai(Kumm),
Marley, McKenzie, McWilliams, Noble, Noh, Richardson, Schroeder,
Stegner, Sweet, Werk, Williams
NAYS -- None
Absent and excused -- Pearce, Sorensen, Stennett
Floor Sponsor - Little
Title apvd - to House
04/08 To enrol
04/09 Rpt enrol - Sp signed - Pres signed
04/10 To Governor
04/15 Governor signed
Session Law Chapter 295
Effective: 07/01/03
|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-seventh Legislature First Regular Session - 2003IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 44 BY MR. SPEAKER Requested by: Department of Lands 1 AN ACT 2 RELATING TO LEASES OF STATE LANDS; AMENDING SECTION 58-307, IDAHO CODE, TO 3 EXEMPT COMMERCIAL LEASES FROM THE LEASE YEAR OF JANUARY 1 THROUGH DECEMBER 4 31 AND TO EXEMPT COMMERCIAL LEASES FROM AN EXPIRATION DATE ON DECEMBER 31 5 OF THE YEAR OF EXPIRATION. 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 (4) Notwithstanding any other provisions of law, only the state public 21 school endowment lands described below may be leased for commercial purposes, 22 for a term not to exceed ten (10) years, and the board may grant, upon payment 23 of good and valuable consideration, a preferential right to renew said lease 24 not more than four (4) times, provided that the board shall consult with the 25 county commissioners of the county in which the lands are located before leas- 26 ing the lands described below, and the use for which the land is leased shall 27 be consistent with the local planning and zoning ordinances insofar as is rea- 28 sonable and practicable. The department shall hold a hearing, on each of the 29 parcels described below, in the community in which the parcel is located. 30 (a) One (1) parcel - All, Section 16, T3N, R18E, Boise Meridian, contain- 31 ing six hundred forty (640) acres, more or less, and located in Ohio Gulch 32 some five (5) miles northerly of Hailey, Idaho. 33 (b) One (1) parcel - E1/2NE, Section 16, T18N, R3E, Boise Meridian, con- 34 taining eighty (80) acres, more or less, and located northwesterly of the 35 intersection of Deinhard Lane and Sampson Trail in McCall, Idaho. 36 (c) One (1) parcel - S1/2NW, NESW, Part NWSW, Part SWSW, Part SESW, Sec- 37 tion 36, T3N, R2E, Boise Meridian, containing one hundred seventy-eight 38 and seventy-one hundredths (178.71) acres, more or less, located northerly 39 and easterly of I-84 between the Broadway Interchange and the Gowen 40 Road/State Highway 21 Interchange; Public School Endowment. 41 (d) One (1) parcel - NE1/4SW1/4, SE1/4NW1/4SW1/4, Section 4, T2N, R2E, 42 Boise Meridian, containing fifty (50) acres, more or less, located south 43 of the Boise Airport and east of Pleasant Valley Road; Public School 44 Endowment. 45 (e) Two (2) parcels - Lot 14 (Pt. NESE), Lot 15 (Pt. NESE), Lot 16 (Pt. 46 N2SE), SWSE, Lot 17 (SESE), Section 22, Township 6 North, Range 36 East, 47 Boise Meridian, containing one hundred sixty and two-tenths (160.20) acres 48 more or less; NWSW, Pt. SWSW, Section 23, Township 6 North, Range 36 East, 49 Boise Meridian, containing forty-eight (48) acres, more or less, located 50 fifty (50) miles north of Idaho Falls at the junction of State Highway 28 51 and Interstate Highway 15. 52 (f) One (1) parcel - Lot 9 (Pt. NWNE, Pt. NENW), Lot 10 (Pt. SWNE, Pt. 53 SENW), Section 12, Township 2 North, Range 37 East, Boise Meridian, con- 54 taining nineteen and twenty-seven hundredths (19.27) acres, more or less, 55 located adjacent to the U of I/ISU Center in Idaho Falls. 3 1 (g) One (1) parcel - Lots 1 and 2, Section 8, Township 2 North, Range 38 2 East, Boise Meridian, containing seven and seventy-seven hundredths (7.77) 3 acres, more or less, located on Lincoln Street in Idaho Falls. 4 (h) One (1) parcel - W1/2, Section 16; Lot 1 and 2 (E2NE), W2NE, Section 5 17, Township 3 South, Range 18 East, Boise Meridian, containing four hun- 6 dred eighty and fifty-seven hundredths (480.57) acres more or less, 7 located on State Highway 93 north of Shoshone at Shoshone Ice Caves. 8 (5) The term "commercial purposes" means industrial enterprises, retail 9 sales outlets, business and professional office buildings, hospitality enter- 10 prises, commercial recreational activities, multifamily residential develop- 11 ments and other similar businesses. For purposes of this section, agricultural 12 leases, grazing leases, oil and gas leases, mineral leases, geothermal leases 13 and single family, recreational cottage site and homesite leases are not con- 14 sidered leases for commercial purposes. 15 (6) The board may require that all fixed improvements constructed upon 16 land leased for commercial purposes be removed or become the property of the 17 state upon termination of the lease, and that any heirs, encumbrances or 18 claims of third parties with respect to any improvements shall be expressly 19 subordinate and subject to the rights of the state under this section. 20 (7) Except for geothermal, oil and gas,andmineral and commercial 21 leases, the lease year shall run from January 1 through December 31, and all 22 leases shall expire on December 31 of the year of expiration. 23 (8) All applications to lease or to renew an existing lease which expires 24 December 31 of any year, shall be filed in the office of the director of the 25 department of lands by the thirtieth day of April preceding the date of such 26 expiration. Such applications will be considered by the state land board and 27 be disposed of in the manner provided by law; except that the board may reject 28 conflicting applications for a lease for commercial purposes if the lessee 29 exercises the preference right to renew clause. 30 (9) Where conflicts appear upon leases which do not contain a preferential 31 right to renew clause, such applications shall be considered as having been 32 filed simultaneously. However, nothing herein shall be construed to prevent 33 the state board of land commissioners from accepting and considering applica- 34 tions for new leases at any time. 35 (10) In case improvements have been made on land while under lease which 36 is expiring, and the former lessee is not the successful bidder, but the land 37 is leased to another, the amount of such improvements shall be paid to the 38 former lessee. The following shall be considered improvements: plowing done 39 within one (1) year, provided no crop has been raised on the plowed land after 40 such plowing, fencing, buildings, cisterns, wells, growing crops and any other 41 asset which shall be considered an improvement by the director. 42 (11) Commercial leases of the state lands described in this section shall 43 not be subject to the conflict auction provisions of section 58-310, Idaho 44 Code. The board may, at its discretion, call for proposals and sealed bids by 45 public advertisement, and may evaluate said proposals and award the lease to 46 the bidder whose proposal achieves the highest return over the term of the 47 lease and who is capable of meeting such terms and conditions as may be set by 48 the board; in the alternative, the board may call for lease applications by 49 public advertisement and if more than one (1) person files an application to 50 hold an auction in the same manner as provided in section 58-310, Idaho Code. 51 In either case, the board must obtain a reasonable rental, based upon fair 52 market value of the state land, throughout the duration of the lease. The 53 board may reject any or all proposals and any or all bids, and may reoffer the 54 lease at a later date if the board determines that the proposals or bids do 55 not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE
RS 12311
The State Board of Land Commissioners (SB of LC) issues commercial leases for
professional office and retail uses. A lease term for these type of uses is
typically negotiated based on a yearly timeframe with monthly payments.
A lease termination date of December 31 falls within a time frame considered by
realtor/brokers as a slow period for acquiring tenants. To acquire or retain
desirable tenants at this time could limit negotiation for insuring maximum
revenue to the endowment beneficiaries.
State of Idaho, Division of Financial Management (DFM) has requested the lease
period for state entities occupying endowment owned facilities be based on a
state fiscal year basis rather than a calendar year. Putting the lease agreement
on a fiscal year basis would simplify the budgeting and payment process.
This legislation will amend Idaho Code 58-307(7) to exempt commercial leasing
from the lease year of January 1 through December 31 and an expiration date on
December 31 of the year of expiration.
FISCAL IMPACT
This bill will ensure the opportunity to maximize the revenue to the endowment
beneficiaries and allow governmental entities to simplify their budgeting and
payment process.
No additional General Fund money will be needed to implement this bill.
CONTACT
Name: Winston Wiggins, Director
Agency: Lands, Dept of
Phone: 208-334-0238
Statement of Purpose/Fiscal Impact H 4