Boise Guardian » Taxes

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 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.

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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.

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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.

Boise To “Upgrade” Council Chambers For Only $1,300,000

dave — Mon, 07 May 2012 19:35:41 +0000

UPDATE Tuesdy 5/8/12–Councilors passed the expenditure on a 4-2 vote. Councilors TJ Thomson and Ben Quintana stood up against staff and four of their colleagues to cast the no votes. Thomson noted it was hard to justify the expense in the face of the current budget crunch. The GUARDIAN was asked by one wag if the council chambers would now have thrones.

Couched as a routine budget transfer of funds, the Boise City Council will be asked Tuesday to pony up $1.3 million of tax money for what amounts to a three room upgrade–the council chambers area. It will be an INCREASE to the code upgrade previously approved.

Like most things “on sale,” the upgrade will actually save $200,000. Right!

Here is how it is presented in the Council work agenda:

Public Works (Capital Fund) – City Hall Building 1, 3rd Floor Public Space Upgrades: $1,300,000 (one-time)
Public Works is requesting approval of a $1.3 million increase to the City Hall Code Upgrade capital project, funded by a transfer from the Capital Facilities Contingency. The additional funding will be used to improve the functionality and configuration of the public-use areas of Building 1, 3rd Floor, which have not received any significant enhancements since the building was constructed in the 1970s. Completing these enhancements now is advantageous because the 3rd floor is being significantly impacted by the current Code Upgrade project; the upgrade work can be incorporated into the overall project with minimal impact to the overall schedule. Postponing this work to a future date would result in a $200,000 increase to the overall project cost as well as increased inflationary costs. Improvements will be focused on the areas used by the public when participating in government activities, including the Council Chambers, lobby / reception area, Bonneville Room / City Council work space, as well as associated utility / storage areas. Staff has worked with the design team to develop a conceptual plan to resolve long- standing issues such as lobby noise / acoustics, limited flexibility, outdated audio-visual capabilities and inadequate Americans with Disabilities Act access.

The GUARDIAN reported in December that no local artist’s work made the final cut for inclusion in the new City Hall makeover.

Dynamis Looks Like “Garbage In, Garbage Out”

dave — Thu, 03 May 2012 11:00:37 +0000

The DAILY PAPER posted a well done summary Thursday of the various short circuits experienced by an Eagle firm seeking to build a “waste-to-energy” facility at the county dump.

Cynthia Sewell– publicly cited by Commish Sharon Ullman for her award winning reporting on the issue–told readers Dynamis and its CEO, Lloyd Mahaffey have refused to disclose any proof of financial backing for the proposed facility at the Ada County landfill.

Sewell also confirms what the GUARDIAN has written over the past two years with regard to Mahaffey’s dodging questions from critics, tax debt in Boise County, and lack of performance on various projects that are “in the works or underway.” In addition to burning trash, the facility seeks to burn tires, claiming the super heated proprietary technology will eliminate concerns about emissions. Critics are skeptical.

Ullman is scrambling to make it all come together because she was instrumental in delivering $2 million in public money to Dynamis. It is unclear exactly WHAT the $2 million purchased if anything. Dynamis has become the focal point for the upcoming May 15 primary election.

The GUARDIAN feels it is time for Dynamis to “put up or shut up” with regard to financing. Ada County politicos have failed to obtain any proof of financial ability, relying instead upon promises and statements from a guy with a public record of deceptive and evasive statements and a history of non-payment of taxes.

We first QUESTIONED THE DEAL in July 2010 and the concerns are unabated.

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Skeptics Take Dim View Of Dynamis Power Plant

dave — Sat, 28 Apr 2012 19:31:01 +0000

While the GUARDIAN has always been skeptical about the proposed “trash to energy” project at the county dump, more folks are jumping on the trash truck seeking to short circuit the plan.

A Thursday meeting called by residents in the Hidden Springs area adjacent to the landfill was attended by Ada Commish candidates and reps from Dynamis. By almost all reports, Dynamis failed to provide answers to questions regarding emissions from its pyrolysis technology trash burning project.

The Dynamis project and the $2 million payment in taxpayer money to the firm are focal points in the Commish primary race.

The GUARDIAN has been monitoring the project and talking to scientists familiar with the process and the specific Dynamis proposal. Simply put, the project is full of holes with regard to waste sorting and who will pay for sorting (cement, iron, and other waste simply will not burn or provide fuel for the system), emissions, and other issues including things like who owns the trash that will be used to fuel the system.

The firm has applied for an expedited “15 day permit” from the Idaho DEQ. That will allow them to begin construction, but if the project is not approved someone will be left holding the bag. Prior financing has fallen through and Dynamis was refused to provide details with regard to the current financing while touting job creation, economic development, etc. The 350 page applications can be seen HERE.

They have previously pushed for a “world headquarters” operation in Garden Valley in conjunction with the South Fork Landing development which is failing and owes Boise County hundreds of thousands in back taxes. See STATESMAN story.

Environmentalists are now claiming the issue of emissions is a serious concern–noting Dynamis has removed references to certain carcinogens from its web site. Says opponent Erik Jensen, “Dynamis has absolutely zero experience building, operating, and maintaining a facility like the one they want to build right at the population center of Idaho.”

Dynamis has been touting projects all over the world from Alaska to Italy, but when examined closely they either don’t exist or are not at all what they claimed to be. A consortium of several Eastern Idaho Counties have reportedly abandoned plans to use the Dynamis trash burning technology at a proposed facility in Clark County.

While the firm does have an agreement to sell electricity to Idaho Power, the deal is only good IF they “produce the juice.”

We see the proposal as a way to take advantage of public funding for something that is not needed and will most certainly cost taxpayers more than the $2 million already spent when it is all over.

UPDATE 4/30/12–The IDAHO CONSERVATION LEAGUE blogs in opposition to the project.

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Bikeboy Says Two Wheeler Plan Off Balance

dave — Fri, 20 Apr 2012 05:35:46 +0000

Our long time two wheeler expert, Steve Hulme (aka Bikeboy) offers up his views on a new government spending spree for Boise bikes.

By Steve Hulme

The CCDC, in cahoots with the Central District Health Dept., are hoping to start upa bike-sharing program in Boise.

On the surface, it sounds laudable… 140 bikes at 10-15 different secure”stations” around town–mostly downtown extending out around BSU, and to the North End. You swipe your membership tag, or bankcard in the case of out-of-towners, and you release a shared bike. You ride and ride, and then turn your bike in at any of the 10-15 stations to release yourself from liability for the bike. Depending on how long you’ve used it, you pay rent.

In big cities, “members” get a half-hour of use for free, and then it’s a few bucks per hour. Members pay a $55-85 annual fee. Visitors would just be charged the per-hour fee for the time they had the bike out.

Fantastic, huh? Promotes health… cements our reputation as being “bike friendly,”gives tourists an easy way to ride the Greenbelt.

But here’s the rub. The startup money is likely to be $650,000. And that kind ofmoney doesn’t grow on trees… but it might as well; they’ve asked the federalTransportation Department to give it to ‘em. And of course, it would go onto the backs of the taxpayers. Or doesn’t it count, if it’s our federal taxes?

Here’s another point of interest… they did a study to determine the viability and decide where the bike stations should be located. They looked at 6 cities with existing bike-shares: Montreal, Minneapolis/St.Paul, DC Metro, Boston, Denver, and Miami.

What makes Boise different from them? Well, the comparison cities range in size from 400,000 (Miami) on up, and the metro populations range from 2.5 million(Denver) on up. I question whether Boise has the population base or density to
realistically compare with those places, or support a bike share program, even if we are “a bike-friendly city,” as stated by Karen Sanders of the Downtown Boise Association.

I’m not confident that my grandkids and their grandkids want to pay for a bike-sharing program for us, today.

It’s like nobody “in power” gives a rip about the $15 trillion debt – let’s just spend more!

EDITOR NOTE–Paris was the first place to start the bike vending program and it has caught on worldwide.

U.S. Corp. Taxes High, But Few Actually Pay

dave — Tue, 03 Apr 2012 19:25:12 +0000

Senior Sen Mike Crapo put out a PRESS RELEASE today claiming the USA Corporate tax rate is the highest on earth and called the U.S. Government “antagonistic” toward job creators.

Crapo claims there is also growing evidence that high taxes stifle business growth and employee wages.

We see it a little differently. The following come to mind here in the Gem State:
–Micron hasn’t paid taxes in years because they are the largest “non-profit” in the state.
–The Boise Valley Railroad sought tax CREDITS for routine expenses to maintain their railroad track and Crapo supported the subsidy.
–Chinese owned Hoku solar panel plant in Pocatello gets urban renewal funds, energy credits, etc. and they don’t even pay their electric bill, let alone pay a single cent in taxes.
– French owned Areva continues to take taxpayer cash and has suspended its plans for a private facility at Idaho Falls–thanks to Rep. Mike Simpson.
–Dynamis avails itself of federal largess which will pay up to 30% of construction costs for a private for-profit electric plant at the Ada Landfill.
–Then you look at the largest private employer in the state–ST. LUKES–which pays no taxes at all, despite a $40,000,000 profit.
The list goes on. With Federal debt in the trillions and few companies, if any, actually paying the top rate, it makes no sense to push for tax breaks in our opinion. If a company is paying 39% income tax it is because they are making a bunch of profit and can afford to do so.

When Lawyers Disagree Citizens Pay

dave — Mon, 02 Apr 2012 18:44:39 +0000

The efforts of the GUARDIAN to pay for a 99 year lease on behalf of the North Ada County Fire and Rescue district were rejected by the Ada Commishes.

Last month we presented a $99 check to Chairman Rick Yzaguirre on behalf of NACFAR for a lease from Ada County for the land under station #16 on Glenwood. In a letter to GUARDIAN editor Dave Frazier, the Commishes claimed: “The ballot question does more than authorize the $1 annual lease payment. The ballot question authorizes the fire district to enter into a long term obligation including paying for such things as water, power, sewer, property and liability insurance, maintenance, repairs and replacements.”

Really? If so, NACFAR voters are getting scammed. We have a copy of the ballot and NONE of the items identified as “liabilities and obligations” are even hinted at on the ballot question. Also none of those items would fall into the category of “long term” obligations. Each is a simple annual expense.

The Ballot says: “Shall the board of commissioners of the North Ada County Fire & Rescue District be authorized to lease the property for fire station16, located at 5800 Glenwood, Boise from Ada County, Idaho for ninety-nine years at a lease fee of one dollar ($1) per year?”

We also have a copy of the letter from NACFARs attorney to the Ada county attorney which asserts there is no need for voters to approve a $99 year lease.

The reason this issue is important to voters is we fear it is an attempt to further erode the constitutional requirement to seek voter approval for long term debt. Legislators next year could easily be swayed by the argument, “it was necessary to have an election for a trivial $99 agreement.”

Either the county is overstating the issue or voters are being deprived of the true intent of the vote. (We see it as an overstatement). Meanwhile the vote will cost an extra $1200 for the complex ballots due to diverse residency among 13 precints.