Comments on: No Tax On Private Building Leased By CWI

By: Aggrieved Party

Aggrieved Party — Sat, 09 May 2015 01:40:56 +0000

Clancy wrote: CWI’s main campus was poorly placed from the get go and probably the reason that BSU decided to transfer over the properties to CWI.
Care to guess which property it was that BSU received from its’ Heritage Foundation?
Yep, you got it, and you are right it wasn’t the best location. The best location for the “extension University” out on Hiway 20/26 went begging and is now lost to time.
The Nampa purchase has a 100K penalty for backing out of the deal so this is probably a done deal.

By: Clancy

Clancy — Fri, 08 May 2015 20:45:27 +0000

They need a Boise campus because a majority of the students are from Ada County (53% vs 37%).
http://cwidaho.cc/info/facts-glance

CWI’s main campus was poorly placed from the get go and probably the reason that BSU decided to transfer over the properties to CWI.

By: chicago sam

chicago sam — Fri, 08 May 2015 16:56:07 +0000

So, perhaps the obvious question Why go to Boise at all when you can build a mighty fine building with the difference in purchase price and hazardous questions would be unlikely to arise?

By: chicago sam

chicago sam — Fri, 08 May 2015 15:21:05 +0000

In related gnus from CWI they have entered into a purchase agreement with B $ L Idaho 2,LLC to purchase 32.5 acres on the north side of the Nampa campus extending to Cherry lane. This would add to the 95+ acres on the current Nampa campus. Price is $25,000/ acre ($815,000) with a closing date of Tuesday May 12, 2015.
Seems to be a red hot rush to obtain property. Unknown whether an appraisal of this property was performed and there is no plans listed on their recently completed 25 year plan for use of this property.

EDITOR NOTE–Sam, our rough math indicates they did a lot better–appraisal or not– on that deal than the Boise parcel. Given your numbers, they paid 35 times more per acre in Boise over the Nampa purchase!

By: erico49

erico49 — Thu, 07 May 2015 21:09:14 +0000

Another example of the unfairness of the tax on property. It no longer has any relationship to the cost of services.

By: Aggrieved Party

Aggrieved Party — Thu, 07 May 2015 18:27:38 +0000

This little know law shares the same component of 100% deductibility with another law which allows donations made to institutions of higher learning’s charitable foundations.
The real magic of this law is that donations of land are conveyed by “Gift Deed”, whereafter the foundation holds the property for a year and the then reconveys it to the school itself and magically the Gift Deed becomes a Warrantee Deed. The giftor eventually rerceived a tax reduction (dollar for dollar) in the amount the giftor and giftee agreed upon. In the instant case, the giftor was able to receive a “receipt” value for the donated land in an amount 250% higher than the tax appraisal. BSU gained a valuable piece of unarable swamp land. The scary part is that any defects on the gifted property are assumed by the giftee. I call it “indemification by expiration of time”. Neat trick.

By: Yossarian_22

Yossarian_22 — Thu, 07 May 2015 15:02:29 +0000

I second the question from boisecynic…..does the savings get passed on, or is it gravy for the landlord?

EDITOR NOTE–We don’t know how one could even tell if there is a savings passed along in the event of tax exemption.

By: boisecynic

boisecynic — Thu, 07 May 2015 14:02:16 +0000

Regarding 3 buildings and 1 exemption. This is not much different than the homeowner’s exemption for a duplex where the owner lives in half and rents out the other half. Owners get an exemption only on the half they live in.

The question is– Does the owner reduce the rent charged to CWI? Or do they pocket the savings? If they pocket the savings then I don’t think that’s within the spirit of the law. I guess it increase their income which subjects them to higher income tax though.

I’m not a real estate lawyer.

By: Easterner

Easterner — Thu, 07 May 2015 03:49:13 +0000

Seems a little odd that Sundance has 3 buildings all leased to CWI and only 1 has the exemption.

Of course, everyone is picking on CWI- any guesses how many “exempt” properties are being leased to Boise State? UofI ? What about the Macy’s building being renovated to accomodate the Charter School Administrators? etc?

While Commissioner Dave Case is concerned about the CWI deal, maybe he ought to be concerned about all the tax-exempt Ada properties and how the Assessor drops their values off the notice so it’s impossible to collect the data on what tax dollars are being exempt for ALL the nonprofit owners (and education lessees).

Ada Assessor please change the policy and make an annual report on what properties are exempted: total dollars, top 10 exempt land owners by value, and a complete list available to the public.
So for example: to answer the question, how much tax does ADA forgo to St. Lukes? Or BSU? Or the Mormon church? etc.

EDITOR NOTE–we understand the other two buildings were first rented in the past year and only a portion are for CWI. They may apply for exemption of the CWI space. Wait and see. You can file a records request for the documents you seek.

By: Mel

Mel — Thu, 07 May 2015 01:13:30 +0000

So if you do not have to pay taxes BUT your charge the market rate for the lease then YOU MAKE MORE MONEY!

Nice way to make extra bucks and short change the rest of the tax payers that have to pay to provide fire, police, etc.

GAG!