Posts tagged: cabin sites
Idaho auctioned off 13 state-owned cabin sites at Payette Lake in 2013, 10 of them previously leased and three vacant. Now, with the first such voluntary auction – cabin owners who rent the lots under their cabins can decide whether they want to participate – coming up at Priest Lake on Aug. 28, the state has approved a second round of auctions at Payette Lake for later this year.
The state Department of Lands has received applications from 30 Payette Lake cabin site renters who want to go to auction; it’s proposing putting those 30 plus six vacant sites up for auction. The state Land Board voted unanimously this morning to go ahead with the auction of the 36 lots, to be held in November or December.
At the first Payette auction, all 13 sites sold, with a total selling price of $5.88 million. The 10 previously leased lots all were purchased by the owners of the cabins on them; only one saw competitive bidding, pushing the price up to $11,000 above the appraised value, which is set as the minimum bid. The three vacant lots all saw competitive bidding. All three sold for more than their appraised values, with one appraised at $662,400 selling for $1 million.
Idaho's state Land Board voted unanimously today to impose restrictive covenants on state-owned cabin sites at Priest Lake, to ensure that the land use there doesn't change as some or all of the lots move to private ownership in the future. A few Priest Lake cabin owners whose cabins are on the state lots objected to the move, saying they didn't want a homeowner's association to enforce restrictions in the future, but most backed them; here, Land Board members hear comments from Priest Lake State Lessees Association President Denny Christensen, who spoke in favor. Kaari Burrows Davies, a dissenter, told the board, “We don't need to now put a homeowners' association in place that's going to cause division or wreck a good system that really is working.” Several other cabin owners submitted emails to the board; one, from Neil Maris, said, “Please do not let the voices of a few disgruntled lessees influence your decision. They DO NOT speak for us!”
The state is moving toward possible land exchanges to rid the state endowment of the lakefront cabin sites after years of struggle to charge appropriate rents; the endowment is required by the Idaho Constitution to be managed for maximum long-term returns to its beneficiaries, the largest of which is the state's public schools. The Idaho Supreme Court recently overturned as unconstitutional a state law that protected the cabin sites from conflict auctions when leases come up.
The board, which consists of the state's top elected officials, held a special meeting today, after it put off the issue at its last regular meeting to request a formal legal opinion from Attorney General Lawrence Wasden. That opinion was delivered, and it found that the board has the authority to impose restrictive covenants on the land; it doesn't need leaseholders' consent to do so; and the standard that should govern the board's actions is its fiduciary responsibility to the endowment's beneficiaries. State consultants and Land Board staffers said covenants would protect the value of remaining state endowment land in the area once some cabin sites change ownership.
Idaho Secretary of State Ben Ysursa made the motion to approve the staff's recommendation to impose covenants on the cabin lots, citing the constitutional requirement to maximize long-term income for the beneficiaries. “In my humble opinion, I think CC&R's will do that,” he said. His motion passed unanimously, with all five Land Board members present; in addition to Ysursa, they include Wasden; state schools Superintendent Tom Luna; acting state Controller Brandon Woolf; and Gov. Butch Otter, who chairs the board.
As Idaho moves toward transferring hundreds of state-owned cabin sites on scenic Priest Lake to private owners through land exchanges or auctions, the state wants to protect the value of the land - and nearby state endowment land - through restrictive covenants. Most Priest Lake cabin owners who now own their cabins, but not the land, are on board with the idea, but some are objecting.
The restrictions would keep in place current regulations limiting the sites to single-family homes, rather than condos, resorts or commercial development; ban mobile homes; require earth tones and “unobtrusive” construction; and require erosion control and defensible space to cut wildfire risk. Restrictive covenants aren't being proposed for similar cabin sites on Payette Lake to the south, but that's because those cabin sites are within the McCall city area of impact, subjecting them to restrictive zoning regulations. That's not true of the Priest Lake sites, where Bonner County's current zoning regulations could permit a variety of changes if the land became privately owned.
Gov. Butch Otter requested a formal legal opinion from Attorney General Lawrence Wasden on the matter today; once the board receives that in a week or so, it'll set a special meeting to decide on the covenants. You can read my full story here at spokesman.com.
Owners of cabins at Priest Lake, like this 1930s one that retired school teachers Jim and Myrna Brown spent years renovating in the hopes that it could be a family legacy, are facing increased uncertainty after the Idaho Supreme Court decision overturning a state law that protected state-owned cabin site leases from conflict bidding. The ruling affects 354 cottage sites at Priest Lake and 167 at Payette Lake. S-R reporter Sara McMullen takes a look at the issues here; cabin owners, who own their cabins but not the state-owned ground underneath, already are in the midst of working with the state in the Land Board's effort to “unify” ownership of cabin sites, through land exchanges and other steps.
The Idaho Supreme Court ruled that leases of state-owned cabin sites, like those on Payette and Priest lakes, are subject to competitive conflict auctions when the leases come up, striking down a state law that exempted the cottage sites. You can read the court's full decision here, and click below for a full report from AP reporter John Miller.
Owners of cabins on state-owned lots at Payette Lake will be offered the option of an appraisal to determine the land value on which their lease rates are based, or sticking with assessments set by Valley County, under a new process approved unanimously by the state Land Board this morning. The appraisal process would be similar to that used to set rents for state-owned cabin sites at Priest Lake. “We received a letter from the Payette association, they want to do that,” said Secretary of State Ben Ysursa. He noted that it'll be at the option of the lessee.
Cabin owners who opt to stay with the county assessment won't need to do anything; those who want to switch to appraisals would need to sign a lease adjustment before Aug. 1. The state Department of Lands would then contract with an outside appraiser during the fall of 2012, with the new appraisals used to calculate 2013 rent.