Eye On Boise

State Lands: ‘We will not be running a brewpub’

Posted by Betsy

Aug. 15, 2011 8:24 a.m. • 4 comments

The recent brouhaha over operation of a mini-storage business on Idaho state endowment land is expanding today, with a report on the Boise Guardian here headlined, “Land Board to build brewpub?” about the state Lands Department advertising for a restaurant construction manager for a downtown Boise brewpub. But Kathy Opp, acting director at the Lands Department, said, “We are not going to run a brewpub.” Instead, what's going on is that a potential tenant for one of a dozen endowment-owned properties in downtown Boise, which include parking lots and commercial properties mostly leased for retail or office use, is interested in opening a restaurant.

“Our current relationships for constructing tenant improvements are all office retail,” Opp said. “So restaurants are potentially very different for that. So to construct a responsible different type of establishment for a tenant, we felt it was needed.” The negotiations are still under way, so the department isn't releasing the name of the potential tenant or site, though the construction manager RFP listing identifies it as a one-story 1915 building at 9th and Bannock. “It's currently got some retail space in it and some vacant,” she said. “But we would not be running a brewpub. This is simply to secure tenant improvements, which every investor has to do.”

As part of the negotiations, the state, as the landlord, and the tenant would negotiate who pays for what as part of the tenant improvements. “All those are negotiated,” Opp said. “That's what investors do all the time.”

The state endowment, a land trust that benefits public schools and other state institutions like the University of Idaho, owns property in downtown Boise as a result of a land exchange conducted between 1998 and 2000, when it acquired it as part of swap involving cottage sites and forest land. Two state agencies, the Public Utilities Commission and the Endowment Fund Investment Board, rent space in endowment-owned buildings; the remaining tenants are “mostly private firms,” Opp said.

She said, “We're not doing anything that any other investor wouldn't do to try to get a tenant in their space, and we will balance any tenant improvement with the long-term return for any potential lease. Contracting for these services does provide jobs for the construction company – we're not a construction company, so it does provide private-sector jobs.” Click below for a list of all commercial property owned by the endowment in Ada County.

Idaho State Endowment, ADA County office, retail and commercial lots

Central Washington Place: 472 & 420 W. Washington
Garro Bldg: 816 W. Bannock Street
Capital Park Plaza: 300 N. 6th Street
Sherm Perry Bldg.: 9th & Bannock
Home Federal Bldg.: 800 W. State
CPP parking lot: 512 W. Bannock
6th and Washington: 590 W. Washington
211 No. 5th Street Lot: 211 No. 5th Street
4th & Bannock Parking Lot: 4th & Bannock
Hoff Lot: 8th & Bannock
Garro Lot: 810 W. Bannock
Jefferson Lot: Jefferson & 8th Street
East Watertower: East Watertower
Affordable Self Storage: 450 S. Maplegrove
Bannock St. Parking Lot: 8th & Bannock

Four comments on this post so far. Add yours!

Hereford on August 15 at 10:05 a.m.
Maybe Mr. Frazier should do some basic fact checking before going off half-cocked.
scott_nicholson on August 15 at 10:51 a.m.
When any governmental or quasi-governmental group potentially conflicts with private enterprise, we need to subject that group to a great deal of scrutiny. The fundamental question is: should the government be involved in those activities where private enterprises should be competing? They’re on a very slippery slope and, in my opinion, they have crossed the line. Running a self storage business is very much over the line and owning buildings for profit also clearly competes with private enterprises. A yurt in the wilderness - ok, I can understand that, but straight up competition with other businesses? I think not.

Now, I understand, the Land Board has different objectives. They own land and receive income from those properties, but now they’re in Downtown Boise, owning & renting buildings in straight up competition with other investors / owners. That’s a hard one to swallow for me.
WildWest on August 15 at 11:22 a.m.
Mr. Frazier is consistently issues propaganda with an anti-government agenda.

Mr. Frazier loves to identify himself as a media entity, LMFAO…..but he is simply an anti-government activist who promotes and agenda to demonizes all forms of government and taxation to meet his narrow view of life.

Mr. Fraizer would prefer government fail.

Government owns buildings that’s the fact…..they have for decades!!!!!!!!!…………………… its nothing new taters…………..they pay a mortgage on those
structures…….would taxpayer prefer these buildings we the state of Idaho own sit empty and rot or should they earn money on our investment……taters like Frazier just pissed off government owns property……..

Private developers have the same opportunities within the free market…..to attract the same brew pub ownership……..so are the taters opposed to government operating in the free market…….really….. what are they afraid of………competition
BlueIdahos on August 15 at 12:54 p.m.
@ScottN, Agree 100%