Boise Guardian » County

Ada Spent $15,000 To Collect $10,000

dave — Wed, 23 May 2012 02:22:01 +0000

A report from Ada County Treasurer to the Commishes Tuesday confirms the county lost nearly $15,000 in property tax revenue when officials excused back property taxes on the Red Hawk subdivision north of Hidden Springs. Since the county now owns the land they would actually be taking money of of one public pocket and putting it in another if they paid the back taxes.

The subdivision had been foreclosed upon by a bank and sold at a sheriff’s auction May 8. Had a private party made the purchase, a county tax lien on the property would have been first in line to be satisfied. Instead, Commishes Sharon Ullman and Rick Yzaguirre purchased the bare foothills ground for $240,000. In a press release issued last week they said they made the purchase to satisfy a claim they had against the owner for $10,000.

They cancelled a tax bill for $15,000 in order to collect legal fees of $10,000! We don’t know if they need instruction in math, accounting, public administration, or logic.

County Amps Up The Voltage On Dynamis Deal

dave — Tue, 22 May 2012 20:34:09 +0000

When Ada Commishes Sharon Ullman and Rick Yzaguirre approved a last minute extension to the Dynamis “franchise agreement” at the landfill, they added “significant value” to the deal according to a GUARDIAN financial consultant. It appears the lease has jumped from 5 years to 30 years.

Additionally, the contract now allows Dynamis to bring in waste from other sources “with a higher BTU content.” That can include up to 6 tons of tires–something that has been rumored by opponents of the facility for the past few months.

Word on the street has it that Dynamis is unable to get financing for the so-called “waste to energy” project the Eagle firm has proposed to build. The firm has refused to provide any proof of financing, claiming it is privately owned. Ada Commishes paid Dynamis $2 million in public funds for design plans on a private commercial facility the county will never own, control, lease, or operate. Payment to Dynamis has been described by Dave Case, the Republican nominee who unseated Ullman in the primary, as “a loan any way you look at it.”

Until this morning Dynamis had little more than an idea to sell to potential investors and lenders. Now, they can claim they have a 30 year commitment from a government agency. Even if Dynamis never operates the proposed facility, it is possible they will be able to sell their franchise to another party, depending on how the contract is worded.
Our banker explained it as the difference between applying for a construction loan on an apartment building versus a loan on a building with 100% occupancy and 10 year leases.

We see this as a preemptive political maneuver to rush the deal through prior the pending appointment of a third commissioner to fill the seat vacated by Vern Bisterfeldt. Also, all the remaining candidates–both Dems and Repubs–have gone on record as opposing the Dynamis deal in its present form.

For what its worth, the GUARDIAN predicts Dave Case will be appointed as an Ada Commish by the end of the week. Even if he gets outvoted by Ullman and Yzaguirre, he will have the inside info hopefully he will make public that which has been under the radar of late.

See the STATESMAN version of events and click on the “RELATED CONTENT” box to get the entire contract.

County Attempts Cover Up On Questionable Land Deal

dave — Mon, 21 May 2012 15:40:42 +0000

Ada County officials are squirming over the recent purchase of land without an appraisal mandated by Idaho law.

The GUARDIAN has confirmed that neither elected Assessor Bob McQuade nor his chief deputy, Tim Tallman, were consulted about the so-called appraisal and no one with a commercial appraisal license ever supervised the appraisal as claimed in an Ada County press release.

Ada County Commishes issued a press release late Friday attempting to spin a case for their unscheduled and hasty purchase of the 250 acre Red Hawk subdivision at a sheriff’s sale May 8. The cover up is getting worse than the crime. The GUARDIAN stands by the PREVIOUS POST.

The GUARDIAN previously requested a copy of any appraisal–which is mandated by Idaho Code prior to acquiring real estate. We were provided an informal e-mail from a member of the Ada Assessor’s staff who is NOT a licensed appraiser.

After the GUARDIAN posted that fact and opined the entire purchase was outside the law, Ada County issued a press release claiming the employee’s supervisor was a licensed commercial appraiser and that made it OK for the third level unlicensed tax appraiser to issue what the county says qualifies as a commercial appraisal–despite his lack of a proper license to do so.

Turns out even Tallman, the supposed supervisor at the Ada Assessor’s office is not licensed to appraise more than a four-plex structure and his state license does not extend to massive land deals such as the 250 acre purchase the county made.

We suspect the staffer was merely offering a cursory answer to a question about the land value when said the land in question was “worth $1,000 to $5,000 per acre.” About as safe as saying, “my house is worth between a hundred thousand and half a million.”

Given the county argument, anyone supervised by a licensed attorney could practice law. Or those working for a licensed electrician could do electrical wiring and installation. Great economic idea–pay for a single license and claim authority for anyone working for the licensed expert.

The third level staffer was approached directly by a county attorney who was advising the commishes and eventually did the actual bidding on the 250 acres at the sheriff’s sale. She scared off a private party and got it for $240,000.

No one argues about the price, but the county spinners are saying the county lien for legal fees stemming from a court judgement would not have been paid if a private party acquired the land at auction. The county SPENT $240,000 and did not “protect the taxpayers” in any fashion. They gave up more in delinquent taxes than the judgement they held for legal fees.

They claim the land could go into some sort of reserve for “trading purposes.” The main reason local governments trade land is to avoid declaring it surplus and selling at public auction. They also mentioned “possible open space,” which flies in the face of the fact it was the Ada County Commission that approved the Red Hawk subdivision in the first place!

Finally, in their efforts to toss about stinky “red herring,” Ada’s press release makes the outrageous claim, “Additionally, Idaho Code 31-806 indicates an appraisal is not required in instances where land is purchased for the purposes of recreation and open space preservation.”

In fact, 31-806 makes no mention of any exemption from an appraisal to acquire park land. Further, Idaho Code 31-807 requires an appraisal prior to acquisition of ANY property and also makes no exceptions for park or open space. They can’t even argue the statute is unclear or in conflict. Practically inviting a lawsuit, Commish Ullman said, “We obtain our legal advice from the elected Ada County Prosecutor and his attorneys. When there is a disagreement over the interpretation of applicable law, the court system is always an available resource.”

The GUARDIAN “court of public opinion” rules the county acted outside the law!

Click to view press release text…

County Land Purchase

(Boise, ID) – Earlier this month, Ada County purchased approximately 250 acres of property in the Dry Creek Valley in the Boise foothills, more commonly referred to as “Red Hawk Estates.” Ada County bought the property at a public foreclosure auction and paid $240,000 for it, significantly less than the property’s fair market value.

The Red Hawk Estates developer had unsuccessfully sued Ada County when the County denied a second request for a time extension to develop the land. The Idaho Supreme Court deemed his lawsuit frivolous, and ordered the developer to pay the county’s legal fees. After not receiving payment, Ada County placed a lien against this property for the money owed. The property eventually ended up in foreclosure with more than $1.1 million owed to the bank.

When the property went to auction, the only way the County could protect its financial interest, was to purchase it. The County would not have received the money owed if the property was sold to a private bidder, because the bank debt would have been paid from the proceeds first. There was additional incentive to purchase the property given the possibility the County could swap the land for other land adjacent to the landfill, or leave it as open space for recreational purposes. The property purchase provides the opportunity to connect the Ridge to Rivers trails in Hidden Springs to those proposed as part of the Avimor Planned Community, a goal that is supported by the County.

The suggestion that the County violated the legal requirement of Idaho Code 31-807 to obtain an appraisal prior to the purchase is not true. Commissioners did consult with the Ada County Assessor’s Office. All of the Assessor’s employees work under the supervision of a licensed Idaho appraiser. The Assessor’s Office reported that the land is estimated to be worth between $1000 and $5000 per acre.

Additionally, Idaho Code 31-806 indicates an appraisal is not required in instances where land is purchased for the purposes of recreation and open space preservation. “We obtain our legal advice from the elected Ada County Prosecutor and his attorneys. When there is a disagreement over the interpretation of applicable law, the court system is always an available resource,” said Ada County Commissioner Sharon Ullman.

No related posts.

Ada Republicans Eat Their Young

dave — Fri, 18 May 2012 03:35:07 +0000

Ada County’s Republican Central Committee–fresh off the first ever closed primary election–snubbed their newly elected County Commish candidate, making him a third rate choice to fill the vacant seat created by Vern Bisterfeldt’s resignation.

Gotta admit it is entertaining to watch the dominant political party in the state eat its young and disrespect its elders.

In a field of three names to be offered to Gov. Butch Otter to appoint as an Ada Commish, David Case came in dead last–despite his victory at the polls only two days earlier. Dan Dunham was the party’s first choice, followed by Gordon Browning and Case. We hear there were 63 party members voting.

Old wounds were ripped open and generous amounts of salt were poured in when a 2010 list of those supporting former Dem Congressman Walt Minnick was circulated at the Thursday night central party gathering. The list highlighted DAVE CASE and VERN BISTERFELDT as Minnick committee members. A photo with a “WALT MINNICK” campaign sign purportedly in front of a home owned by David Case was also circulated at the meeting.

Back in 2010 the party took a swipe at Bisterfeldt–with Commish Sharon Ullman actively calling for Bisterfeldt to resign his Commish candidacy due to his lack of party loyalty. Ullman lost to Case Tuesday and Case was strongly backed by Bisterfeldt…and the feast continues.

County Land Purchase Violated Idaho Law

dave — Wed, 16 May 2012 16:41:00 +0000

Public records obtained by the GUARDIAN indicate the Ada County purchase of a foothills subdivision May 8 was contrary to Idaho Code 31-807 which mandates an appraisal by a LICENSED appraiser must be made prior to purchase.

The applicable law states: “…but no purchase of real property must be made unless the value of the same has been previously estimated by a real estate appraiser licensed to appraise real property in the state of Idaho pursuant to the provisions of chapter 41, title 54,…”

County officials were quietly checking out the land as early as April 23. A county tax appraiser–certified to do tax appraisals, but not LICENSED as required by law–was contacted by a county lawyer regarding the legal description and value of the property commonly known as Red Hawk Subdivision.

The appraiser responded with an informal note–not a legal appraisal–saying: “I have looked (sic) reviewed the valuation on these parcels and have searched for market comparables within the North Ada County Area. From my review these parcels consist of sloping and rolling terrain, with limited access. From the market research that I have compiled, I have observed a comparables range of $1000 to $5000 per acre with variances depending primarily on access and overall site usability. Please let me know if you need any other information.”

Despite this activity two weeks prior to the May 8 meeting, the commishes made a last minute amendment to the agenda, met in a secret session and then voted publicly to authorize the legal staff to bid at the sheriff’s sale a mere two hours later. The 258 acre parcel was purchased by the county for $240,000. We see no justification for the secret executive session since the land was being offered for sale at a public sheriff’s auction and public knowledge of the county’s interest wouldn’t affect the auction price.

The county made no declaration of public need or public purpose prior to the acquisition. Commish Sharon Ullman told the Idaho statesman they were protecting the interest of the taxpayers with the purchase because the owner owed back taxes and legal fees. That logic simply doesn’t wash because liens placed on the property by the county would satisfy any back taxes or legal fees–there was no need to purchase the land and remove it from the tax rolls.

They may have gotten a good deal, but the deal was outside the law and we see a scramble afoot to cover their tracks.

No related posts.

Ullman Ousted, Case In Line For Appointment

dave — Wed, 16 May 2012 14:18:40 +0000

Ada Commish Sharon Ullman self destructed in the primary election, paving the the way for Gov. Butch Otter to appoint Dave Case to fill the remaining six months of the seat vacated by Vern Bisterfeldt. Case garnered 11,471 votes to Ullman’s 9833 for a 54-46% victory.

The Ada County Republican Central Committee meets Thursday to select three names they will provide to the Guv as possible appointees to fill the position vacated by Vern Bisterfeldt who resigned May 4 for health reasons. The GUARDIAN generally doesn’t endorse candidates, but since Case will likely take office in January as the Repub winner in the November general election, it makes sense to give him–and the citizens–a six month head start, especially with budget matters in the works. No sense in warming the commish seat with someone who will leave soon.

Ullman’s troubles focused around the controversial Dynamis trash-energy project at the county landfill. At a candidate forum just a week prior to the primary election, Ullman showed up, but refused to participate–to the bewilderment of the audience.

The county rushed through a $2 million payment to Dynamis under the guise of acquiring federal stimulus funds. However, the Dynamis facility is to be privately owned and operated. The county would provide it with free fuel (trash) and Dynamis would retain all earnings from sale of electricity. Ullman repeatedly defended the deal and even boasted of working with the county attorney to formulate the contract. She claimed the $2 million was for the design plans to the private facility and would be repaid to the county prior to construction. Idaho’s constitution bans public loans to private organizations.

Case opposed the project, its lack of transparency, and the speed with which it was going forward–despite red flags regarding Dynamis and its financing. He was supported by folks living close to the landfill with three days of full page ads in the Statesman prior to the election.

No related posts.

County Outbids Citizen For Land

dave — Fri, 11 May 2012 18:40:04 +0000

Jeff Wood lives in Hidden Springs and for years has dreamed of building his “dream home” atop a rugged bluff north of his current residence.

He contacted the owner, only to learn the property was in the midst of a legal battle and subsequent foreclosure action. He followed the land dealings through the legal process and ended up on the steps of the Ada County Sheriff Tuesday at a public auction.

Long story made short: Ada County sent a couple of employees–at least one was probably from the Prosecutor’s office–and bid the price up in $10,000 increments fast enough to scare off Wood. They got it for $240,000. Opening bid started at $211,000.

The GUARDIAN has made calls and sent e-mails to the Commisioners and their administrator–no one has responded. Statesman reporter Cynthia Sewell had better luck and posted the COUNTY VERSION of events.

Based on the Statesman account the deal looks clean and tidy, all done for the benefit of county citizens. We hope that is true, but still note it is “irregular” to authorize a bid/purchase only two hours prior to acquiring land.

According to the Statesman report, Commish Ullman implies the county acquired the land at least in part to satisfy a tax lien of $10,403 and unspecified legal fees. While the county may now have land, it is off the tax rolls and cost taxpayers an additional $240,000 cash.

No related posts.

Ada County Buys Foreclosed Subdivision

dave — Thu, 10 May 2012 20:11:20 +0000

First it was the Idaho Land Board purchasing a private storage business, now Ada County Commishes bought a foreclosed subdivision on 250 acres north of Hidden Springs and east of Highway 55 for $240,000.

Known as Red Hawk Estates, the development fell on hard times and was foreclosed by Bank of The Cascades from Dry Creek Partners on January 19. As provided by Idaho code, the land was sold at a Sheriff’s Sale on Tuesday.

The Ada Commishes–Sharon Ullman and Rick Yzaguirre–rammed the deal through with a last minute change to the agenda and voted to place a bid. They met in executive session prior to authorizing the bid at the Sheriff’s Sale.

Efforts to get an explanation from various county staffers and officials regarding the motivation for the purchase have been futile. No one can tell us WHY the county purchased an undeveloped platted subdivision. There was only one other bidder at the auction. That party placed a bid of $230,000 on the barren foothills land.

The foreclosure and sale were properly advertised, but based on records and agendas posted at the Commish site, we can’t see any public discussion or consideration that would justify the sudden expenditure.

Politico Takes Dynamis And Beer Seller Payments

dave — Sat, 05 May 2012 17:23:32 +0000

Looks like freshman Congressman Raul Labrador has taken money from Lloyd Mahaffey, the controversial CEO of Dynamis. Interesting to note back taxes in Boise County go unpaid while political payments are made.

Betsy Russell of the SPOKESMAN-Review lists Mahaffey as a contributor to Labrador–who happens to live in Eagle where Dynamis is based–to the the tune of $3,500.

Russell also noted the Mormon Congressman was paid $5,000 by the National Beer Wholesalers PAC.

Sparks Fly As Dynamis Deal Short Circuits

dave — Fri, 04 May 2012 23:48:36 +0000

Several interesting developments today in the saga of Dynamis Energy’s proposed waste-to-energy project at the Ada County landfill.

Commissioner Sharon Ullman has publicly claimed Ada County spent $2 million for design plans for the waste-to-energy facility and the money will be repaid once construction begins or is approved. Today after long consideration the GUARDIAN has determined there was no legitimate reason for the county to pay for design plans, drawings, or blueprints. The county has no business paying for plans to a facility it will never own, hold interest in, or otherwise operate.

The facility–if it is ever built–will be privately owned and operated by Dynamis on land it will lease for $1 a year from Ada County. The deal is akin to someone paying for architectural drawings for a home to be built, owned, and occupied by someone else! Any way you cut it, the best the county can claim is they made a loan and loans of public funds are illegal.

In another development, The STATESMAN linked two officers of the firm to the failed DBSI real estate development outfit that is subject of federal investigations and a bankruptcy. No sooner had the story been posted, it was removed from the DAILY PAPER website.

SATURDAY UPDATE–Statesman posted THE STORY.

No related posts.