A conservation easement sought by Stimson Lumber in North Idaho has been in the works for six years, but today is the subject of a big public hearing in Sandpoint and has prompted holdups in approval of the budgets for the state Department of Lands and Fish & Game. That’s because a March 11 letter from two Bonner County commissioners, distributed to House members by Reps. Heather Scott, R-Blanchard, and Sage Dixon, R-Ponderay, said the two didn’t support the project because there had been “no communication with the county from the property owners, any state agencies nor federal agencies on this proposal.”

That prompted the House to pull both budgets back to JFAC; this morning, the joint budget committee re-set them without the Clagstone project, and instead is planning to write a separate budget bill for the project, depending on the outcome of this morning’s hearing. However, Stimson officials had met with the commissioners about the project prior to the letter.

County commissioners had failed to follow the Open Meeting Law to make a decision opposing the project, commission Chairman Cary Kelly, who didn’t sign the letter, told the Idaho Statesman this week. “We have an open meetings problem,” he said. You can read the two commissioners’ letter here. Also, the property owner and officials involved with the project had worked with past county commissioners; the two who signed the letter were elected in 2012 and 2014.

Rep. Scott has been a vocal opponent of the conservation easement, writing in a legislative newsletter this week, “What I do not support is using public dollars to reward a corporation for something they could do for free – set up a conservation easement on their own, allow public access and harvest timber.” Scott called the conservation easement "a prime example of crony capitalism."

The property was approved for development with 1,200 homes and two golf courses, but neighbors and North Idaho sportsmen opposed the plan. Working with them, Stimson agreed to give up its development rights to the property through a conservation easement, in favor of continuing to operate it as timber production land in perpetuity and allowing public access and hunting privileges.

The project includes $5.5 million in federal funds for a forest legacy project through the Idaho Department of Lands, $2 million in federal hunter access funds from the Fish & Game budget, $2 million from a public lands trust, and a $3.1 million contribution from Stimson; all told, it’s a $12.6 million project.

In July of 2014, The Spokesman-Review reported, “As part of the conservation easement, Stimson would allow access on the property for non-motorized recreation, including hunting and fishing. The area is home to whitetail deer, elk, black bears, wild turkeys and upland game birds,” according to the Idaho Department of Fish & Game. S-R reporter Becky Kramer wrote then that it’s the largest contiguous tract of private forest land in Bonner County.

Under the conservation easement, the property would continue to be privately owned and pay property taxes.

Laurie Reid, whose Hoodoo Valley property borders Clagstone Meadows, told The Spokesman-Review Monday that she's disappointed that two Bonner County commissioners sent a letter to Idaho legislators opposing the conservation easement. "This has been over six years in the making," she Reid. "The landowners want it, the neighbors want it and the agencies want it."

The Hoodoo Valley gets the water that flows out of Clagstone Meadows lakes and wetlands, Reid said. Downstream neighbors are worried about water availability and potential water quality impacts to Kelso Lake if the area is developed, she said. If the conservation easement goes through, Stimson would continue to harvest timber from the property to supply local sawmills. But the private property, which is currently gated, would have public access for recreation.

Clagstone Meadows was named for Paul Clagstone, a Chicago entrepreneur who thought he could make a fortune by draining the area's wetlands, clearing the timber and establishing a large cattle ranch there in the early 1900s. Instead, he lost the property through foreclosure.

The wetlands remain in a series of small lakes, peat bogs and marshes at the northern edge of the Spokane Valley-Rathdrum Prairie Aquifer, which provides drinking water for more than 600,000 of the region's residents. Officials say Clagstone Meadows is recognized as one of Idaho's higher-priority wetlands because of its contribution to the aquifer, rare plant communities and intact wildlife habitat.

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