Business
AG Sticks To His Principles On Land Issue
December 2, 2010 
Gotta hand it to Lawrence Wasden, Idaho’s Attorney General.
While we disagree with his Land Board position when it comes to the state owning and operating a storage business under the guise of “obtaining maximum return for the education endowment fund,” at least the guy is consistent.
He has taken his fellow Land Board Commissioners to court (the statewide elected officers including the Guv, Secy of State, Controller, and Super of Ed) for not living up to their duty to charge top dollar for cabin leases on state lands at places like the shores of Payette Lake at McCall. That money too goes to the education endowment fund. Wasden claims lease rates are below market value.
The Supremes rejected his case on a technicality and sent him to District Court to get started. Ed Super Tom Luna has issued a public plea for Wasden to drop his legal pursuit, saying it would cost too much.
The recreation lease issue has festered for years with oldtime Idaho families holding onto the public land (through leases) at bargain basement rates and investing in private cabins. Past Land Boards have grappled with the situation and at one time gave preference to “Idaho Residents” when the “California Money” was flowing to the Gem State.
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Comments & Discussion
Comments are closed for this post.
Dec 2, 2010, 10:40 pm
Once again, we need numbers to truly determine if these are “bargain basement” rates. My family had a cabin and lease on Payette Lake for over 50 years. We made the painful decision to sell as the future looked grim with every increasing lease payments with the higher property values. No longer can the average Idahoan afford lease rates of $25,000 to $40,000/year for lakefront lots in addition to property taxes on the structure. Wasden is looking to go from the 2.5% of assessed or market value (depends on Payette or Priest Lake) to 5-6% which would cause lease rates up to $70,000/year.
The state needs to get out of this business by selling these lots or trading for similar value lands that can bring the rates Wasden is seeking.
EDITOR NOTE–What was the value of the land/lease that cost $25,000? If it was $1 million, that would qualify as bargain basement. The issue as we see it is calling the bluff of the Board. When “Californians” (from anywhere) are willing to run the price up to $70,000 a year, the board is obligated to get that “maximum return” on the investment–even from foreigners. Clancy, we totally agree they should be out of the recreation lease business as well as the self storage.
Dec 2, 2010, 11:21 pm
Ah, those pesky technicalities! I agree with BG on Affordable Storage and that the AG is consistent. As to spending taxpayer monies, the Land Board is spending $85,000 of endowment beneficiary funds for bronze plaques. Obvious case of the Pot (Luna) calling the Kettle (Wasden) black! At least we have an interesting District Court case to sweat over these cold winter months.
EDITOR NOTE–It appears the $85,000 is for the PR guy and will include the plaques that he will use to defend their position.
Dec 3, 2010, 6:55 pm
Very few families could afford a lakefront lot, whether they are from Idaho or not. That is some primetime real estate.
I do think this business of renting residential lots is a bad idea for the Land Board. Thus, the idea of selling or trading them is enticing.
Dec 3, 2010, 11:17 pm
Idaho code says my property must be valued at FULL MARKET VALUE. My property taxes are a refelction of FULL MARKET VALUE.
Lease payments to the Land Board should reflect FULL MARKET VALUE.
I wish I could get a sweet deal like the land board lease payment deals.
The Land Board is not fulfilling their fiduciary repsponsiblity to MAXIMIZE THE RETURNS to education and the other trusts they run.
Dec 4, 2010, 12:35 pm
I’ve always wondered what kind of people would build a fancy home on land that they don’t own???
Dec 4, 2010, 12:59 pm
But Paul, they bought a storage complex to make up the difference! Give them a break, as they mean well! (as long as your great grandaddy played golf with them)
Dec 5, 2010, 12:06 am
Hey Cyclops,
Given all the cash the opposition to Wasden ponied up it is yet another case of “those with the gold making the rules”. Money can certainly purchase a desired outcome in Idaho.
My other pet peeve is the corrupt way Urban Renewal agencies get to operate outside the parameters of the Idaho Constitution. It is nothing more than legalized theft of property tax dollars causing all county-wide taxpayer to pay higher taxes on their homes.
Given all the pork projects by UR in this valley perhaps the legislature will do something this year to stop the outright theft.
Dec 6, 2010, 12:30 am
Paul, you are SO right! The problem is I doubt the legislature will even bring a bill to the floor.
Dec 6, 2010, 10:02 am
George Bacon, Director of Idaho Department of Lands tried to
explain, in the Statesman on November 28, that the Land Board is
simply running the Land Board Trust like a business, by owning
businesses! He’s either in total denial of the original intent of
its authority or purposefully misinforming the public. What he’s
saying is; The means justifies the end. His approach is morally
corrupt. The Land Board has overstepped it’s authority and is in
direct competition with private enterprise.
In setting prices, private enterprise must take into account the
cost of doing business such as property taxes and income taxes. The
Land Board doesn’t and by owning banks, parking garages and storage
units, is in a position to undercut private enterprise and enhance profits.
As I understand it, government owned enterprises is Socialism.
In Socialist society you and I, those of us who pay their property
taxes, those of us who pay income taxes, those of us that own
private enterprises, are paying the Land Board to be in competition
with us. Since when does it make sense to buy bullets for your
enemy to use against us?
George Bacon ended his comments by informing us…”When every
Idahoan understands the nature of endowment land, they will agree
that our founding fathers were pretty smart.” How arrogant is that? The
founding fathers were certainly pretty smart and endowment land
may be appropriate, but I really don’t believe that endowment
lands can be broadly defined to include banks, storage units and
parking garages.
Dec 6, 2010, 1:16 pm
I agree with Larry on this except I wouldn’t call it Socialism. Republicans don’t do socialism. If Democrats did it by golly it would be socialism. It is really nationalisim. The land board nationalized a private business in the lust for power and greed. Meanwhile, big shots get special tax breaks at the state tax commission.
Love the one party system in Idaho government.
Dec 6, 2010, 3:46 pm
Larry, They own and rent a building to private business who happens to be a bank.
The state seems to be moving slow in the endeavor to come to a consensus on these cabin leases. They tried selling some leases in 2007 at the 5% and received no bids. After that the board indicated they would start working on some long lasting solution, including selling these parcels in private ownership.
I particularly like this quote from Ysursa. “We had an auction and nobody participated. Is that because the market’s flat?” he asked. “Is it because the 5 percent rent was too high for them in the long term? It’s probably a combination of factors. I don’t know.”
http://www.spokesman.com/stories/2007/oct/29/priest-lake-site-auction-flops-state-may-revisit/
Dec 6, 2010, 5:46 pm
As I understand it, government owned enterprises is Socialism.
Republicans don’t “do” socialism, except when it’s in the interests of their buuinessmen and bigshots. Then it’s AOK. The US as a whole is suffering from corporatism, egged on by the Republican Party ever since Ray-gun. The hand in glove alliance of business and government is now viewed by the Repubs as unstoppable, and everybody else is giving up and going home, only too many no longer have homes to go to.
Corporatism is the same as national socialism, which was the MO of the National Socialist Party of Germany under Hitler, aka the NAZI Party.
But Idahoans just keep on re-electing the sly big-shots who keep on doing them and the state in, meanwhile swindling the ordinary taxpayers.
Dec 6, 2010, 8:37 pm
For a better understanding of the Idaho Land Board, read Idaho Statutes 58-101 through 58-156.
Property taxes are based on “assessed value” not “market value.” See:
http://www.adaweb.net/Treasurer/PropertyTaxInformation/FrequentlyAskedQuestions
This link also answers questions about URD taxes.
The Land Board is authorized to “lease” property at the “full market value” as determined by appraisals and approved by the Board.