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Land Board Hearing Recap

Tuesday, April 16, 2024

• All members were present, with Superintendent Critchfield joining by Zoom 
• Review the Final Agenda
• Download the Meeting Materials

The Agenda was amended:

• Endowment Land Alternative Energy Leasing Policy was removed from the agenda
• Hailey Readiness Center Surplus Property (Idaho Military Division) was moved to Information

Department Report

Timber

• Attachment: Trust Land – Timber Sales

• March 2024 timber sales:

  • Department of Land auctioned 3 endowment timber sales, one with competitive bidding.

  • 4 sales unsold, to be reevaluated for second auction.

  • Net sale value increased by 2% to $15.3 million.

• Despite market challenges:

  • Sales exceeded $3.1 million.

  • 533 million board feet under contract, surpassing target of 328 million.

  • 91% of offered volume sold or in process.

• Harvest volume remains strong, at 96% of three-year average.

• Uncertainty persists due to elevated interest rates affecting housing starts.

• Question: Are stumpage prices being affected by inflation and fuel market pressures, potentially leading to reassessment of harvest levels based on market conditions?

  • Answer: Yes, recent increases in industry costs, including labor and fuel, have impacted stumpage prices. This has prompted consideration of potential adjustments in harvest levels.

Leases & Permits

• Attachment: Trust Land – Leases and Permits

• In March:

  • Department issued 14 instruments.

  • Closed real estate transaction for an easement in Bonner County.

• Non-timber revenue:

  • Remained ahead of projections at $5.6 million by end of March.

  • Larger increases seen in agriculture, grazing, commercial, energy, geothermal, and mineral leasing categories.

• Royalties:

  • Fiscal year royalties ahead of three-year average at $1.94 million.

  • Majority from sand and gravel leases.

Legislative Summary

• Attachment: Status Update - Legislative Summary

• Legislature adjourned.

• Provided regular legislative updates throughout session and reported on departmental progress.

Land Bank Aging Report

• Attachment: Status Update - Land Bank Aging Report

• Balance of entrance interest: $73.7 million.

• Nearly $10 million obligated to AG College category for University of Idaho College of Agricultural and Life Sciences, CAFE Dairy Research Center in Rupert.

• Department evaluating potential land acquisitions to meet or exceed hurdle rates using available funds.

• Unutilized funds within five-year window roll into permanent fund for investment.

Questions Regarding Fire Preparedness

• Question: How prepared is the department for fire season in terms of staffing and resources?

  • Answer: We will be assessing readiness later in May through our readiness reports, evaluating staffing, training, and equipment. Recruitment efforts, supported by approved resources, are ongoing to modernize our program. We are bringing on recruits and seasonal employees, with further preparations ongoing. We are adapting to changes in the landscape and the master fire agreement, and committed to aggressive fire response with federal partners.

Endowment Fund Investment Board

• Attachments:
  • EFIB Manager's Report
  • EFIB Investment Report

• Market conditions:

  • Noticed market turn in last four months.

  • Anticipating slight increase, similar to April.

  • Expecting March data within two weeks.

• Forecast:

  • Managers believe market near bottom, most write-downs taken.

  • Public REIT market rebounding quicker than private market.

• Decision-making:

  • Considering timing to return to target real estate allocation.

  • Uncertain timing but aiming for next quarter or two.

Consent Agenda

• Approved 5-0

Disclaimer of Interests Overview

• Overview of location: Downstream from Middleton Rd. about a mile.

• Five disclaimers of interest along the Boise River south of Middleton.

• Introduction of Hubler airfield, activated in 1964.

• Historical context: Airfield not present in 1938 aerial imagery; Boise River shifted channels.

• Explanation of consent agenda item due to airplane hangers and lack of easements.

• Clarification on neighboring properties and title discrepancies.

• Payment of $300 application fee by each applicant.

Disclaimer of Interest Request DI600328–William and Betty Hubler, Boise River

• Attachment: Disclaimer of Interest Request DI600328–William and Betty Hubler, Boise River

• Owners of two parcels totaling 9.288 acres.

• Easement details: 25-foot wide pedestrian easement along the river reserved.

Disclaimer of Interest Request DI600329–Jeffrey and Heidi Theis, Boise River

• Attachment: Disclaimer of Interest Request DI600329–Jeffrey and Heidi Theis, Boise River

• Owners of one parcel accretion land.

  • Totaling just over 1.6 acres.

  • No structures on the parcel.

  • Not adjacent to the Boise River.

Disclaimer of Interest Request DI600330–Bruce and Becky Hubler, Boise River 

• Attachment: Disclaimer of Interest Request DI600330–Bruce and Becky Hubler, Boise River 

• Totaling .033 acres.

• Parcel contains an airplane hanger structure.

• Question raised regarding ownership based on tax payments.

Disclaimer of Interest Request DI600331–Holbrook Maslen, Boise River 

• Attachment: Disclaimer of Interest Request DI600331–Holbrook Maslen, Boise River 

• Parcel size: Just over half an acre (.67 acres).

• Parcel contains airplane hanger structure.

• Correction: Massillon parcel size is .67 acres, not .067.

Disclaimer of Interest Request DI600332–John K. Olsen, Boise River

• Attachment: Disclaimer of Interest Request DI600332–John K. Olsen, Boise River

• Parcel size: .183 acres.

• Parcel contains airplane hanger structure.

Regular Agenda

FY2025 Timber Sales Plan 

• Attachments:

  • FY2025 Timber Sales Plan memo and letters

  • FY 2025 Timber Sales Plan

• Approved: 5-0

• Proposed volume for sale: 334 million board feet.

• Plan slightly higher than previous due to logistical considerations and mortality.

• Plan may change based on mortality issues or wildfire risks.

• Approximately 23,000 poles proposed for sale.

• Plan posted for public review in January 2024, received one comment.

• Agency plans to move forward with the recommended plan.

• Question 1: For clarification sake on mortality issues, is this just because the age of the timber, is that predominantly what you're referring to?

  • Answer: Yes, it's primarily due to the age of the timber, with specific mortality occurring in certain areas, such as Eastern Idaho, where there's an increase in mortality due to factors like age and susceptibility to pests.

• Question 2: On that note, are we reassessing our timber harvesting considering the recent increase in no bids and market pressures?

  • Answer: While there's been an uptick in no bids due to market pressures, it's crucial to maintain a steady timber supply to keep mills operational. The department also targets older growth timber for harvesting, balancing the need for revenue with long-term forest health.

• Question 3: Could you clarify the Delivered Products Program and its benefits?

  • Answer: The Delivered Products Program, also known as sort sales, allows for the sale of specific timber products to suit mill preferences, benefiting smaller producers who may not need every timber species. It enhances market flexibility and streamlines sales.

• Question 4: What's the rationale behind the set number of cedar poles for sale, and is it still appropriate?

  • Answer: The set number of cedar poles (originally established in 1986) is currently under review, considering the increase in timber harvest levels since then. The department anticipates adjusting the number to meet current demand and maintain sustainable forest management practices.

• Question 5: Can we get a detailed map showing the locations of the timber sales?

  • Answer: The department will provide access to a timber sale website link, allowing stakeholders to view the specific locations of timber sales for greater transparency and understanding.

Approval of Timber Sales with Clearcut Harvest Units–Chunker and Paddy Pond Ton

• Attachment: Approval of Timber Sales with Clearcut Harvest Units–Chunker and Paddy Pond Ton

• Approved: 5-0

• Chunker Timber Sale:

  • Located 6 miles South of Saint Mary's, Idaho

  • Three units totaling 188 contiguous acres

  • Addressing mortality and converting stands to more resilient seral species

  • Dense shrub understory impedes natural regeneration

• Paddy Pond Timber Sale:

  • Located 5 miles northeast of Donnelly, ID

  • Two units totaling 100.5 contiguous acres

  • Facing high rates of mortality

  • Lacks permanent access, relying on multiple entry harvests

• Both sales meet regulatory requirements and economic justification

• Secretary inquires about gap between units in Paddy Pond sale, clarified as prior harvest

Information Agenda

Idaho Outdoor Recreation Fund Advisory Council Projects 

• Attachment: Idaho Outdoor Recreation Fund Advisory Council Projects 

• Background:

  • Surge in outdoor recreation activities, increasing demand on various lands.

  • Executive order created Outdoor Recreation Fund Advisory Council in 2023.

  • Council tasked with recommending projects funded by $5,000,000 appropriation to ID Parks and Rec in FY 2024.

• Project Recommendations:

  • East Fork Rock Creek project ($1,000,000): Improve recreational access and camping opportunities.

  • Henrys Lake State Park expansion ($750,000): Expand overnight camping opportunities.

  • Cooperative Management Recreation Area ($300,000): Address motorized use issues, trail management, and restoration.

  • White Pine Heights Access Easement proposal ($300,000): Fund public right-of-way easement between properties to improve access.

• Next Steps:

  • Legal agreements needed for some projects to secure properties for recreational access.

  • Revenue generation focus to ensure income for endowments through leases or agreements.

• Board Questions:

  • Clarifications on the $5 million funding and revenue generation prospects from improvements.

  • Need for ongoing financial planning considering the impact of one-time funding on future budgets and projects.

Executive Session

• None

Adjournment