Print Friendly HOUSE BILL NO. 45 – Land, Cascade Reservoir area, lease
HOUSE BILL NO. 45
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H0045...........................................................by MR. SPEAKER
Requested by: Department of Lands
LAND - CASCADE RESERVOIR AREA - Amends existing law to add parcels of state
land in and around Cascade Reservoir to be available for long-term leases.
01/06 House intro - 1st rdg - to printing
Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 45
BY MR. SPEAKER
Requested by: Department of Lands
1 AN ACT
2 RELATING TO LONG-TERM LEASING OF STATE LANDS BY THE STATE BOARD OF LAND COM-
3 MISSIONERS; AMENDING SECTION 58-307, IDAHO CODE, TO ADD PARCELS OF LAND IN
4 AND AROUND CASCADE RESERVOIR AVAILABLE FOR LONG-TERM LEASES.
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.
12 (2) Notwithstanding any other provisions of law, all state lands may be
13 leased for a period of up to twenty-five (25) years to the federal government,
14 to federal agencies, state agencies, counties, or cities, school districts or
15 political subdivisions when leased for public purposes. Such leases for public
16 purposes may be entered into by negotiation and shall secure a rental amount
17 based on the fair market value of the state land.
18 (3) Notwithstanding any other provisions of law, only the state endowment
19 lands, other than public school endowment lands, described below may be leased
20 for a period of up to forty-nine (49) years for commercial purposes, under
21 such terms and conditions as may be set by the board, provided that the board
22 consults with the county commissioners of the county in which the lands are
23 located before leasing the lands described below, and the use for which the
24 land is leased shall be consistent with the local planning and zoning ordi-
25 nances insofar as is reasonable and practicable. The department shall hold a
26 hearing, on each of the parcels described below, in the community in which the
27 parcel is located.
28 (a) One (1) parcel-E1/2, Section 5, T2N, R2E, Boise Meridian, containing
29 three hundred twenty (320) acres, more or less, and located south of the
30 Boise Airport on Pleasant Valley Road.
31 (b) One (1) parcel-SWSWNW, Section 27, T3N, R2E, Boise Meridian, contain-
32 ing eight (8) acres, more or less, located northeasterly of the Boise Air-
33 port and north of the Boise Interagency Fire Center.
34 (c) Four (4) parcels-E1/2SW, W1/2SE, NESE, Section 31; SW1/4, Section 32,
35 T3N, R2E, Boise Meridian, all containing three hundred sixty (360) acres,
36 more or less, located south of the Boise Airport and west of Pleasant Val-
37 ley Road.
38 (d) Three (3) parcels-SWSW, Section 28; Pt. SESE, Section 29 (east of the
39 Railroad R/W, now a bikepath); W1/2NW, Section 33, all in T3N, R18E, Boise
40 Meridian, all containing one hundred twenty-five (125) acres, more or
41 less, located two (2) miles northerly of Hailey, Idaho, excepting there-
42 from, a parcel of land, containing twenty (20) acres, more or less, at a
43 location to be determined with access to the sheep driveway located on the
1 county road.
2 (e) One (1) parcel-SWNE, Section 32, T3N, R2E, Boise Meridian, containing
3 forty (40) acres, more or less, located southerly and westerly of the
4 Boise Airport off Gowen Road; Public Building Endowment.
5 (f) Two (2) parcels-Part NESWNE, Section 35, T3N, R2E, Boise Meridian,
6 containing three and fifteen hundredths (3.15) acres, more or less; Part
7 NENESE, Section 35, T3N, R2E, Boise Meridian, containing one and eight-
8 tenths (1.8) acres, more or less; both located northerly and easterly of
9 I-84 between the Broadway Interchange and the Gowen Road/State Highway 21
10 Interchange; Normal School Endowment.
11 (g) One (1) parcel-Part Lot 1, Section 1, T2N, R2E, Boise Meridian, con-
12 taining five (5) acres, more or less, located near the Gowen Road/State
13 Highway 21 Exit from I-84; Penitentiary Endowment.
14 (h) One (1) parcel-N1/2NW1/4SW1/4, SW1/4NW1/4SW1/4, Section 4, T2N, R2E,
15 Boise Meridian, excepting that portion deeded to Ada County for a public
16 road, containing twenty-eight and seventy-nine hundredths (28.79) acres,
17 more or less, located south of the Boise Airport and east of Pleasant Val-
18 ley Road; Normal School Endowment.
19 (i) Three (3) parcels-NWSWSE, S2SWSE, E2SW, Lot 9 (NWSW), Lot 11 (SWSW),
20 Section 19, Township 16 North Range 3 East, Boise Meridian, containing one
21 hundred eighty-six and forty-nine hundredths (186.49) acres more or less;
22 NWNE, S2NE, E2W2, Lots 1-4 (W2W2), SE, Section 30, Township 16 North,
23 Range 3 East, Boise Meridian, containing five hundred ninety-four and
24 forty hundredths (594.40) acres more or less; E2, E2W2, Lots 1-4 (W2W2)
25 Section 31, Township 16 North, Range 3 East, Boise Meridian, containing
26 six hundred forty-three and ten hundredths (643.10) acres more or less,
27 all located on the west side of Cascade Reservoir.
28 (j) One (1) parcel-W2NENE, NWNE, Section 8, Township 15 North, Range 3
29 East; Boise Meridian, containing sixty (60) acres more or less, located on
30 the west side of Cascade Reservoir.
31 (4) Notwithstanding any other provisions of law, only the state public
32 school endowment lands described below may be leased for commercial purposes,
33 for a term not to exceed ten (10) years, and the board may grant, upon payment
34 of good and valuable consideration, a preferential right to renew said lease
35 not more than four (4) times, provided that the board shall consult with the
36 county commissioners of the county in which the lands are located before leas-
37 ing the lands described below, and the use for which the land is leased shall
38 be consistent with the local planning and zoning ordinances insofar as is rea-
39 sonable and practicable. The department shall hold a hearing, on each of the
40 parcels described below, in the community in which the parcel is located.
41 (a) One (1) parcel-All, Section 16, T3N, R18E, Boise Meridian, containing
42 six hundred forty (640) acres, more or less, and located in Ohio Gulch
43 some five (5) miles northerly of Hailey, Idaho.
44 (b) One (1) parcel-E1/2NE, Section 16, T18N, R3E, Boise Meridian, con-
45 taining eighty (80) acres, more or less, and located northwesterly of the
46 intersection of Deinhard Lane and Sampson Trail in McCall, Idaho.
47 (c) One (1) parcel-S1/2NW, NESW, Part NWSW, Part SWSW, Part SESW, Section
48 36, T3N, R2E, Boise Meridian, containing one hundred seventy-eight and
49 seventy-one hundredths (178.71) acres, more or less, located northerly and
50 easterly of I-84 between the Broadway Interchange and the Gowen Road/State
51 Highway 21 Interchange; Public School Endowment.
52 (d) One (1) parcel-NE1/4SW1/4, SE1/4NW1/4SW1/4, Section 4, T2N, R2E,
53 Boise Meridian, containing fifty (50) acres, more or less, located south
54 of the Boise Airport and east of Pleasant Valley Road; Public School
1 (e) Two (2) parcels-Lot 14 (Pt. NESE), Lot 15 (Pt. NESE), Lot 16 (Pt.
2 N2SE), SWSE, Lot 17 (SESE), Section 22, Township 6 North, Range 36 East,
3 Boise Meridian, containing one hundred sixty and two-tenths (160.20) acres
4 more or less; NWSW, Pt. SWSW, Section 23, Township 6 North, Range 36 East,
5 Boise Meridian, containing forty-eight (48) acres, more or less, located
6 fifty (50) miles north of Idaho Falls at the junction of State Highway 28
7 and Interstate Highway 15.
8 (f) One (1) parcel-Lot 9 (Pt. NWNE, Pt. NENW), Lot 10 (Pt. SWNE, Pt.
9 SENW), Section 12, Township 2 North, Range 37 East, Boise Meridian, con-
10 taining nineteen and twenty-seven hundredths (19.27) acres, more or less,
11 located adjacent to the U of I/ISU Center in Idaho Falls.
12 (g) One (1) parcel-Lots 1 and 2, Section 8, Township 2 North, Range 38
13 East, Boise Meridian, containing seven and seventy-seven hundredths (7.77)
14 acres, more or less, located on Lincoln Street in Idaho Falls.
15 (h) One (1) parcel-W1/2, Section 16; Lot 1 and 2 (E2NE), W2NE, Section
16 17, Township 3 South, Range 18 East, Boise Meridian, containing four hun-
17 dred eighty and fifty-seven hundredths (480.57) acres more or less,
18 located on State Highway 93 north of Shoshone at Shoshone Ice Caves.
19 (i) One (1) parcel-All, Section 36, Township 16 North, Range 2 East,
20 Boise Meridian, containing six hundred forty (640) acres more or less,
21 located on the west side of Cascade Reservoir.
22 (5) The term "commercial purposes" means industrial enterprises, retail
23 sales outlets, business and professional office buildings, hospitality enter-
24 prises, commercial recreational activities, multifamily residential develop-
25 ments and other similar businesses. For purposes of this section, agricultural
26 leases, grazing leases, oil and gas leases, mineral leases, geothermal leases
27 and single family, recreational cottage site and homesite leases are not con-
28 sidered leases for commercial purposes.
29 (6) The board may require that all fixed improvements constructed upon
30 land leased for commercial purposes be removed or become the property of the
31 state upon termination of the lease, and that any heirs, encumbrances or
32 claims of third parties with respect to any improvements shall be expressly
33 subordinate and subject to the rights of the state under this section.
34 (7) Except for geothermal, oil and gas, and mineral leases, the lease
35 year shall run from January 1 through December 31, and all leases shall expire
36 on December 31 of the year of expiration.
37 (8) All applications to lease or to renew an existing lease which expires
38 December 31 of any year, shall be filed in the office of the director of the
39 department of lands by the thirtieth day of April preceding the date of such
40 expiration. Such applications will be considered by the state land board and
41 be disposed of in the manner provided by law; except that the board may reject
42 conflicting applications for a lease for commercial purposes if the lessee
43 exercises the preference right to renew clause.
44 (9) Where conflicts appear upon leases which do not contain a preferen-
45 tial right to renew clause, such applications shall be considered as having
46 been filed simultaneously. However, nothing herein shall be construed to pre-
47 vent the state board of land commissioners from accepting and considering
48 applications for new leases at any time.
49 (10) In case improvements have been made on land while under lease which
50 is expiring, and the former lessee is not the successful bidder, but the land
51 is leased to another, the amount of such improvements shall be paid to the
52 former lessee. The following shall be considered improvements: plowing done
53 within one (1) year, provided no crop has been raised on the plowed land after
54 such plowing, fencing, buildings, cisterns, wells, growing crops and any other
55 asset which shall be considered an improvement by the director.
1 (11) Commercial leases of the state lands described in this section shall
2 not be subject to the conflict auction provisions of section 58-310, Idaho
3 Code. The board may, at its discretion, call for proposals and sealed bids by
4 public advertisement, and may evaluate said proposals and award the lease to
5 the bidder whose proposal achieves the highest return over the term of the
6 lease and who is capable of meeting such terms and conditions as may be set by
7 the board; in the alternative, the board may call for lease applications by
8 public advertisement and if more than one (1) person files an application to
9 hold an auction in the same manner as provided in section 58-310, Idaho Code.
10 In either case, the board must obtain a reasonable rental, based upon fair
11 market value of the state land, throughout the duration of the lease. The
12 board may reject any or all proposals and any or all bids, and may reoffer the
13 lease at a later date if the board determines that the proposals or bids do
14 not achieve the highest and best use of the land at market rental.
STATEMENT OF PURPOSE
On May 14, 2002 the State Board of Land Commissioners (SB of LC) approved a lease
of 2,124 acres to WestRock Associates, L.L.C. (W.R.) 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
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 provide a
much greater return to the endowment beneficiary than its previous use for timber
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) (non-public school endowment lands) for long term leasing and the
remainder to Idaho Code 58-307(4) (public school endowment lands) for
preferential right to renew leases. Long term leasing of this parcel will
provide a greater opportunity for success and will provide greater financial
return to the beneficiary.
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 for endowment land offsets taxes on Idaho citizens.
No additional General Fund money will be needed to implement this bill.
Name: Winston Wiggins, Director
Agency: Lands, Dept of
Statement of Purpose/Fiscal Impact H 4