Tuesday, September 20, 2022
- The Attorney General and Secretary of State were absent
- Review the Final Agenda
Department Report
Timber
- Attachment: Trust Land – Timber Sales
- Controller Brandon Woolf asked about the timber salvage sale that did not sell after three auctions and asked if IDL received feedback from potential purchasers. Director Dustin Miller stated they have received feedback and the next step will likely be to move forward with a direct sale.
Leases & Permits
Fire Season Report
- Attachment: Status Update - Fire Season Update
- Governor Brad Little said he advocated for IDL with the Chief of the US Forest Service Randy Moore regarding the Master Fire Agreement. The Director stated last week was a full week of meetings where they went through maps and had detailed discussion and believes IDL is in a good place.
Endowment Fund Investment Board Report
Manager’s Report
Investment Report
Consent Agenda
Disclaimer of Interest Request DI600305-Spencer Hill, South Fork Boise River
Disclaimer of Interest Request DI600306-Aaron Fuhriman, South Fork Boise River
- The Governor asked if the documents are recorded with the county and expressed some concern about the adverse possession wording as governments would be exempt. Resource Protection and Assistance Bureau Chief Eric Wilson stated the documents are recorded with the county and the wording was based on Supreme Court determinations above the high water mark.
- The Governor asked about the $300 fee covering the costs of the disclaimer process. Wilson explained an initial $300 fee is required but then the party filing must cover the expenses before receiving the final document.
- The Controller asked about the plan moving forward if the Land Board would continue to see these come up each month. Wilson explained that it is a voluntary process initiated by the landowner and the process has been place since 1980. He noted that the Boise Greenbelt is a product of right of ways from these easements. He explained IDL takes the long view, reserving easements that make greenbelts possible.
- The Governor noted that some of these easements have been isolated. He then asked if the Land Board can expect to have disclaimers in every land board meeting for the next 50 years. Wilson stated that development drives the requests. He noted there are additional easements two miles down from today’s disclaimers in Featherville.
- The Governor suggested the process be evaluated and questioned how many more disclaimers the Land Board would see. Wilson expects thousands to come up over time.
Regular Agenda
FY2024 Department of Lands Budget
- Attachment-FY2024 Department of Lands Budget
- Approved 2-0 (Governor recused himself)
- The Controller asked if there were any major changes from what was presented last month and what is before them today. Financial Manager Rhonda McFarland responded no.
University of Idaho CAFE Project Proposal– Presented by Josh Purkiss, Bureau Chief-Real Estate Services, IDL; Scott Green, President, University of Idaho; Brent Olmstead, CALS Director of Government Relations, UI; Brian Foisy, Chief Financial Officer, UI; and Kent Nelson, General Counsel, UI
- Attachments-
- Approved 3-0
- The Governor asked about enrollment revenues that were mentioned. Brian Foisy stated it was tuition fees, room, board, and all fees that would be income.
- The Governor asked if a student enrolls in the University but participates in the program, does the money go to CAFÉ instead of U of I. Foisy said it would follow the normal processes it does with those expenses.
- The Controller asked where the $17.2 million fits into this plan. Foisy said it is within the construction.
- The Controller asked if the $17.2 million would cover the construction costs. Foisy said the numbers are more solid than just estimates as these are bids and they have compared the bids to the estimates.
- The Controller was concerned that one of the exhibits was not in the packet. He stressed he does not want fractional ownership in the agreement. Kent Nelson stated there will be no fractional ownership of facilities. He stated if the project is short on money for the milking barn, U of I will make up the difference, but the ownership would not be split. He stated they are prepared to make sure there are no fractions.
- The Controller expressed concern that this might open the door for other beneficiaries. Nelson says the situation is unique because the Morrill Act allows for land and buildings for research.
- The Controller questioned what the endowment will receive back as there will not be any returns annually and expressed concerns about the volatility of the dairy market and the single use for the endowment with the land and barn. Nelson stated the income will directly benefit the beneficiary and believes it is better for the beneficiary. He noted money from donations and grants are coming because of the dairy. He added it will also result in increased enrollment.
- The Governor wanted to confirm the endowment would have no further liability. He noted this would be taking a non-performing asset and putting it into an active asset but with increased risk. He mentioned there were some amendments seen, and some the Land Board hasn’t seen but said this is the right thing to do for the university, industry and the state. He had concerns about the building in relation to the Morrill Act. Nelson said there were changes in 2008 that would allow for a research building.
- Superintendent of Public Instruction Sheri Ybarra asked if the legal review was complete. Nelson replied they are in the process of answering the last minute questions. He added there is a document and the final will be in substantial conformance and will limit obligation, but he can’t put something in front of the Land Board right now.
- The Controller asked Josh Purkiss about the money transfer. Purkiss explained it would be similar to any other land transaction.
Cottage Site Leasing: 2025 Plan - removed from agenda
Avimor Land Exchange
- Approved 3-0
- The Governor asked about ingress and egress and if we have full access with the county roads. Purkiss noted there would only endowment land between the county roads and there would be no issues.
- The Controller asked about the current validity of the appraisal. Purkiss noted appraisals are set with an effective date and it is not necessary to have another appraisal.
Brisbie LLC Land Exchange
- Approved 3-0 to move forward with due diligence
- The Controller was concerned that this might look like a disguised sale. Deputy Attorney General Darrell Early stated the statutes that authorize land exchanges has not been challenged in Idaho. Other states have found it poses a legal risk. He stated the Land Board would have a legal analysis of risk vs. reward at the time this comes before the Board. He noted that as outlined at this stage the reward is great and the endowment would get “something for nothing.”
Carey Act Lands Transfer (Idaho Department of Water Resources)
- Approved 3-0
- The Governor asked if there would be issues with the canal or powerline right of ways if it is given to the BLM. Deputy Attorney General Mark Cecchini-Beaver stated that would not be an issue.
Information Agenda
Executive Session
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