If you are looking to sell a piece of bare land in Boise, chances are it is worth a ton of money. Small lots averaged $53,000 during 2005 with a median price of $44,500. A quarter acre lot could easily fetch $110,800.

Bad news is if you want to buy land, you will need a F-150 pick-up just to carry the money to the buyer. Worse news is your taxes will probably go up–double in some cases–over last year.

Ada County assessor Bob McQuade is stocking up on antacids and zanax in anticipation of irate taxpayers.

He told the GUARDIAN that 9 vacant lots were sold twice each during 2005 and the AVERAGE increase in sales price (value?) between the first and second sale was a whopping 60% in less than a year!

Before you go ballistic looking at your assessment notice, take a look at the data below. The notices will go out to property owners next month. They form the basis for your tax bill. In Boise the “levy” is expected to be about 1.8% of TAXABLE value (ASSESSED value minus a homeowner exemption of $75,000 or 50%, whichever is less). For most it will be $75,000 exempted from taxation. Most folks will see a huge jump in their land value.

There is NO homeowner exemption for vacant lots. You will feel the sting mostly on commercial property or vacant lots. Value on the GUARDIAN’s home lot doubled over 2005.

Here is a recap of land values in Boise based on the sales prices of 400 lots scattered around the city. These figures are for land only.

Small lots of .14 acre or less averaged $53,500 with a median price of $44,500
Lots of .14-.24 acre averaged $66,500 with a median price of $64,075
Lots between a guarter and a half acre averaged $ 110,800 with a median of $89,450
Half an acre to an acre parcels went for $185,300 with a median price of $175,000
And a full acre brought a price of nearly $250,000.

Ada County has leased – with an option to purchase – the Smith Building at Sixth and Myrtle Streets in downtown Boise, from a company that does not even own it.

The idea of a “Justice Center” – a one-stop shop for victims of rape and domestic violence – is a worthwhile idea. The problem with the project is the way Ada County legal beagle Greg Bower and Commishes Judy Peavey-Derr, Fred Tilman and Rick Yzaguirre have set up the financiing for the facility.

Ada County will dump $600,000 cash into “remodeling” the dilapidated Smith Building. Senator Mike Crapo (R-Idaho) helped secure a $1 million HUD grant, also public tax dollars, that will apparently offset some of the County’s costs for this project.

In addition to the up front money, the County is also paying Oaas and Laney $374,000 a year to lease the property. Oaas and Laney, in turn, have their own lease with an option to purchase the building from its true owners, Mutual Investments Company. Oaas and Laney are expected to put an estimated $1 million into the facility to complete agreed-upon improvements.

If the County does not exercise its Option to Purchase but continues to lease the facility, the $374,000 a year will increase 10 percent after five years and each five-year period after that.

This is a “triple net lease” requiring Ada County to pay all costs affiliated with the property including agreed-upon lease payments, taxes, assessments, insurance, utilities, repairs and maintenance. Even though the County does not own the building, the County has all the disadvantages of ownership (bearing all the costs) as well as all the disadvantages of leasing (making rent payments).

If the County exercises its Option to Purchase the facility, which it must do on or before December 31, 2010, developers Oaas and Laney will choose an appraiser and the County will pay the full-appraised value.

If the County exercises its option to purchase on or after March 2, 2007, the County will receive five percent off the full-appraised value.

The County gets no credit for lease money or other expenses paid and little return (just five percent of the full-appraised value) on the $600,000 initial investment in the property.

Taxpayers get to pay that $600,000 twice: once up front to improve the facility, and once again, when the County pays the appraised price of the improved facility to complete the purchase.

Imagine buying a house and saying, “Look, I’ll pay you rent, put a big chunk of money into remodeling your house, and pay all costs of living in the house including utilities and repairs if something goes wrong. If I decide I want to buy your house, then YOU choose an appraiser to determine the value of the house once it has been all spiffed up with my money, and I will pay you whatever the appraiser says the house is worth. And oh yeah, if I wait 15 months while paying rent and all the other expenses before I decide to buy the house, you’ll give me a big five percent discount on the price.”

This Lease with Option to Purchase deal is one time the County commissioners should have had enough business savvy and common sense to Just Say No! It is not unlike the courthouse deal.

For more information, call Ullman at (208) 362-0843 or send e-mail to sharonu@cableone.net

The site of the proposed generating facility is on a desert sage covered parcel off Gowen Road near the Outlet Mall. It was originally purchased as an “Industrial Park” site during the Brent Coles’ mayor administration. That scheme included designating the bare desert land as an urban renewal area. It never got off the ground, but the city was stuck with vacant land that did not have a public purpose.

We don’t know who approached whom, but the various city agencies– planning, finance, legal– are all in a position to have potential conflicts of interest because any decision they make regarding Mountain View Power will have a direct impact on city revenues.

Based on public documents, Boise City is basing the lease on a lower than market land value in consideration for future property taxes on the power plant. Sort of like leasing tax exempt city land to a retail store for below market rates because they pay a lot of sales tax.

If the project is killed, the city stands to “lose” lease income of $57,000 annually from Mountain View Power. Boise has established the value of the land at just under $22,000 per acre for purposes of the 25 acre lease. We think that figure is low. For the entire 25 acre site they set the value at Just under $550,000. (Reader comments are welcome on the value.)

The GUARDIAN is concerned about an apparent trend by Boise City to purchase land that is not in the “public purpose” (for an identified use) and turn around and offer long term leases to private businesses.

They did just that with excess city property declared “not in the public purpose” and entered into a 50 year lease for a private rock climbing gym near the connector and 25th Street.

Bottom line is Boise City is setting itself up to be a developer landlord for a private business. It would be no different to develop subdivisions and offer long term leases to people who build houses on TAX EXEMPT REAL ESTATE.

If the Planning and Zoning Commission approves a rezone and the state environmental folks approve the use, the cleanest financial deal is to offer the land for sale to the highest bidder.

We feel it is a mistake for the citizens of Boise to act as bankers for these power speculators.

A proposed high end development in Eagle built around a designer golf course along with a designer swimming, tennis, and soccer sports programs is a far cry from Boise’s penchant for “infill.” Boise provides those amenities at taxpayer expense.

Both philosophies have the same goal: accommodate developers and increase tax revenues. To increase revenues you either raise prices or increase volume.

Eagle may have found a dirty little secret as they cater to big houses on big lots. Here is a simplistic, but accurate example of how it works:

EAGLE divides 10 acres into 10 parcels with $1 million homes. They collect taxes on $10 million worth of property and provide roads, sewer, schools, sidewalks, and water lines to 20 people.

BOISE divides the 10 acres into 40 parcels with $150,000 homes. They collect taxes on $6 million worth of real estate, but serve 80 people…four times the people for almost half assessed the value. This results in higher tax rates in Boise.

Part of Boise’s desire to cram more houses into existing neighborhoods is to increase the tax revenue–make up in volume what they lose in price. If they can jam 80 homes into that 10 acres they can grab taxes on $12 million worth of real estate value, BUT they have to serve 160 people.

Boise officials think it is a good deal because the roads, sewers, schools, sidewalks and water lines cost the same if used by 20 people in Eagle or 160 in Boise.

The result is Boise has even more $150,000 houses–and people who can afford them. Folks who don’t want to rub elbows with the neighbors and grow a garden not shaded by a two story “skinny house” flee the city, but come back in the daily commute to earn a living.

Eagle would be hard pressed to “lower” its standards and Boise is finding it a difficult sell to “raise” its standards with the perceived “need” to increase density to increase the bottom line.

Meanwhile, when you read reports on the Wednesday IDAHO ENVIRONMENTAL FORUM discussion about “infill” bear in mind there is a fair amount of incest.

Here is a rundown of speakers:

GARY ALLEN is a lawyer who represents developer BILL CLARK who is a director of Idaho Smart Growth which employs ELAINE CLEGG who is on the City Council which employs Planning Director BRUCE CHATTERTON who works with neighborhood association advocate ELLIOT WERK who is also a state senator.

Who’s your daddy?

At the public hearing a lone supporter testified in favor of the subdivision which will include 685 houses and 75,000 square feet of commercial structures. Four other citizens protested the development.

The GUARDIAN has been wrestling with how to “follow the money” on this and many other projects. The parent company in this real estate project is Arizona based SunCor Development.

We have been able to confirm that SunCor has made a donation to a political PAC called “Idaho PAC.” The Idaho PAC shows up on various campaign reports, but so far it is impossible to make a direct link between the payoff and who receives it.

That said, we note on public records that SunCor paid $1,000 to Idaho PAC a year ago and Idaho PAC paid Ada Commissioner Rick Yzaguirre $1,000 within a couple of weeks. No way to prove a link, but we note these “pass throughs” are totally legal under current law and serve to distance “buyer from seller.”

Easy to sound like an old fart that wants to return to the “good old days” on this issue, but folks we are assaulted daily with announcements of new developments which–no other way to say it–DEGRADE OUR QUALITY OF LIFE.

Here a few from the mainstream media of the past few days:

–Developers plan 473 homes and a convention center at Garden Valley smack dab in the middle of a cattle ranch pasture. Say so long to the deer and elk at South Fork Landing.

–Tamarack sells $129 million worth of condos in a retail development on West Mountain near Cascade. Meanwhile the state is dealing with the feds to trade 18 square miles of Boise National Forest land so Tamarack will have a better chance at using even more public lands for the French and Mexican developers who are selling to big money out of staters, further reducing deer and wildlife habitat.

–Arizona Developer Sun Cor is nearing approval from Ada County to populate the foothills with up to 30,000 nature loving people at Spring Valley Ranch along Highway 55 on and around Horseshoe Bend Hill. Deer can take another hike.

–There is a “planned development” (love that term) called Hammer Flats stirring above Lucky Peak Dam. Screw the damn deer!

–Kohls department store is seeking to put up a 96,000 square foot retail outlet at Utstick and Eagle Road. Meridian politicians will be hard pressed to turn it down since taxes are predicted to be $100,000 a year. Like we need more traffic on the busiest road in Idaho!

–Two gas fired electricity power plants are up for approval in Southeast Boise.
–A giant coal fired plant is on the application trail at Jerome. This is a biggie and while the tributary stream media in the Sun Valley area have covered it along with the small stream Times-News in Twin Falls, we have, seen nothing from the main stream Idaho Statesman or Boise TV stations. The application is currently before state regulatory agencies and is moving ahead with little public scrutiny thanks to a lazy press. The applicant, Sempra, is a California firm and apparently the power is destined for the Golden State as well. Talk about Californicate!

All this is just in the past week or so! These things have a common underlying sinister thread: Since nearly two-thirds of Idaho land is government owned, that means 100% of the people have to live on 33% of the land. Very little room to “spread out” upon. More people means more demand for electricity, roads, water, sewer.

Net effect is when population doubles we simply get squeezed tighter. On paper Idaho appears to be “sparsely populated,” but when you consider ALL our population is jammed into relatively small areas which total only one-third of the state, we are just like suburban California or the crowded Eastern Seaboard. Not a pretty thought to many of us.

Developers are learning the secret Idaho ranchers knew for years–the easiest way to use and control government land is to own some private land next door. That way you can get cheap leases and not be constrained to the measly one-third of the state that is private.

Meanwhile Bambi has a smaller and smaller back yard in which to play.

Ed note: The GUARDIAN does not have a position on the power plants, but we offer a link to a site that is AGAINST it as a reader service. If there is a “pro” site we will link to that as well.
http://nocoalforidaho.org/

The Statesman reported, “The project will also boost Boise property tax revenues, create hundreds of jobs and is expected to trigger new Downtown residential and commercial construction.” NOT!

In fact, the new downtown buildings and “improvements” yield NOTHING for police, fire, parks, libraries, and other city services. They just CONSUME services without paying for them.

Truth is, businesses outside downtown have to provide their own landscaping, parking, and lighting. These infrastructure improvements are paid by TAXPAYER funds throughout downtown.

A more accurate story would have been, “Spurred on by subsidized development and active night life, Boise’s downtown area has been the scene of 60% of the city’s homicides this year. Three of the five murders during 2005 have taken place on the streets of downtown Boise.”

Perhaps one of the reasons the cops are so strapped for officers and funds is the HIGHEST VALUE property in the state of Idaho pays practically NOTHING to the city that supports it. All but the school tax on the new buildings goes to the CCDC redevelopment agency to perpetuate and expand itself.
Even the COUNTY courthouse is owned by the CITY.

On the flip side of the coin, the Day family has remodeled and expanded Vista Village, the first Idaho shopping center, entirely with private funds.

In a September 19 posting the GUARDIAN called for dissolution of the CCDC board, noting that all members are appointed by the mayor and council and their funding also comes from city taxes. Yet, the mayor and council continue to hide behind the claim of, “That is CCDC, not city.”

Idaho law permits the council to abolish the board with a simple ordinance and take responsibility for the actions of the agency which is REALLY part of city government.

Incumbent councilor Jerome Mapp is a long time member of the CCDC board and he is seeking re-election against Jim Tibbs. He is a pro-growth planner by trade. It would be interesting to hear his take on BoDo at a candidate forum.

It its never ending quest for more and bigger, we find it absurd the city planners and councilors would approve a megaplex theater, hotel and shops between the two busiest streets in town. We are destined to experience gridlock or intolerable traffic congestion prompting folks to “avoid downtown” like some many of us “avoid Eagle Road.”

To paraphrase former New York Yanke catcher/manager Yogi Berra, “It is getting so crowded no one comes here anymore.”

Once they got whacked between the eyes with complaints of three duplex homes sneaked into a tiny space in the middle of the night on Hale St., they called an emergency council meeting and passed an ordinance tightening the reins on design requirements for infill houses. A good move, but long overdue.

Infills are those skinny structures that often as not have cars parked in the front yard or have one unit of a duplex facing an alley. The new ordinance has lots of soft language like “quality materials” and two story buildings will be “discouraged, but might be appropriate sometimes.” It is a temporary measure only, but it seems to the GUARDIAN the council is missing the overall point on this.

WE DO NOT WANT TO BE CRAMMED TOGETHER LIKE SARDINES IN BOISE IDAHO! That is why people are moving away.

Listen to the citizens NOT the planners and developers who are hell bent on packing together as many people per square foot as possible to increase profits.

How about charging the 5% sales tax on real estate transactions–at least NEW RESIDENTIAL units? Before you start screaming too loudly, take a look at the potential benefits.

–The 5% tax would be deductible from income tax–great if you live in the house, but of no benefit for out of state investors.

–It would have a chilling effect on the real estates market–maybe. But when rolled into the overall cost it would be hardly noticeable in the mortgage payments.

–Only people who buy or sell a house would have to pay. They can negotiate who pays, but the tax would be on the transaction (sale).

–Rather than complicated impact fees for schools, highways, fire, city, county, etc. the revenues from sales tax collection on real estate would serve to soften the impact on those of us who already own homes when new schools, more cops, and better roads are needed. Existing property owners would not have to subsidize development.

–The revenues could be distributed at the same rate the various taxing units levy currently.

Bottom line is growth would stand a better chance of paying its own way instead of the faulty argument that more people and “economic vitality” make up the difference for those fat cats who get rich at the expense of the existing property owners.

The residential property owners have been taking it in the shorts at an increasing rate–especially when the Idaho Legislature creates tax breaks for big business and developers. The net effect has been more people, students, cars, crime, pollution and bragging rights to being “Business Friendly.”

Just like the airlines, we have plenty of crowded flights (subdivisions) that don’t pay their way. Just like the airlines it’s good for the aircraft (housing) industry.

Never mind the comfortable flights we once knew in the form of great service, real meals, pillows and blankets have been replaced by cheap crackers, knees in the back of the seat and surly flight attendants who have lost their pensions.

Never mind the neighborhood has been replaced by the homeowners association, folks communicate with their city council through legal briefs, new homes are a source of tax revenue and each student means $8,000 in state money for the district.

Both the airlines and local government are facing financial woes because they think increased volume will offset bad decisions and the answer to all problems is to get BIGGER. The airlines charge fares so low they can’t make a profit and then offer frequent flyer miles so you can fly for FREE next time and the company can lose even more money.

The cities annexed land to beat their neighbors to potential tax revenues and in the process gave away everything to developers in hopes of future payoffs from the home owners. Meanwhile, demands for service outstripped revenues to pay for them. The big difference is government has a bottomless pit of money to dip into (increased taxes).

And the winner is….the real estate developers! They flock to Idaho where there are few impact fees and existing fees are paltry compared to places like California. They create demands for sewer, water, roads, schools, police, fire and all that goes with a civilized society.
Those demands are financed by YOU–the existing homeowner. That red hot housing market bumps the value of your home, forcing property taxes skyward. You benefit only if you sell.

IMPACT FEES CAN PREVENT A CRASH LANDING