Four cabin owners on state-owned leased land at Priest Lake, and one at Payette Lake, have drawn conflict bidders who want to bid against them in the fall for the right to continue leasing the ground under their cabins. It’s the first time in decades that Idaho has faced that situation on its state-owned cabin sites on scenic Priest and Payette lakes; for years, a state law has protected the lessees from conflicting bids at lease renewal time, but the Idaho Supreme Court overturned that law in July as unconstitutional.
“The high bidder, if it’s not the current lessee, would have to pay the value of the improvements before they left the auction,” said Tom Schultz, director of the Idaho Department of Lands. “The current lessee could be the high bidder, or the conflictor could be the high bidder.”
After years of struggle over whether the rents charged for the lake cabin sites met the state’s constitutional requirement to manage its land endowment for the maximum long-term return to the endowment’s beneficiaries – the largest of which is Idaho’s public schools – the state’s moving toward getting out of the cabin-site business. But it still has 354 at Priest Lake and at least 150 at Payette Lake, and every one of those has its lease expiring Dec. 31.
As of Tuesday’s deadline – 5 p.m. Boise time – 343 of the 354 lessees at Priest Lake had applied to renew their leases, or 97 percent; and 134 of the 150 at Payette Lake had done the same, at 89 percent. The fate of the 11 other lots at Priest Lake and the 16 at Payette Lake is uncertain, but Schultz said some of those involve lessees who already were behind on their rent or otherwise in default on their leases.
Over the coming years – and even as soon as this summer - the state will look at land exchanges, auctions and other moves to protect endowment income and get the state out of the business of being a landlord for people’s longtime lake houses. That could allow some of the existing lessees to buy the land under their cabins. But for now, a small number of them could face competitors to keep the plots. “If you’re a lessee, you probably don’t look at it as a good thing,” Schultz said. “If you’re the state, it says at least on those sites, at that value, someone is willing to want to acquire that for that value. To me that’s a positive.”
The five cabin owners who are the targets of the conflict bids haven’t yet been identified; the state will begin notifying them Wednesday. If they successfully complete land exchanges or voluntary auctions to remove the lots from state ownership by October, they could avoid the conflict auctions. Otherwise, the conflict auctions for the right to lease those lots will be scheduled in the fall. Bids start at $1,000 for the right to take over the lease at the existing lease rate; the high bidder wins. You can read my full story here at spokesman.com.