Posts tagged: cottage 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.
More than 150 people attended an auction over the weekend at which the state Department of Lands auctioned off 21 cabin sites at Payette Lake on which renters have built cabins or homes; 20 of the 21 sold to the current renters. The other lot sold for $42,000, or $5,000 above the appraised value of the land; the purchaser also will be required to pay the appraised price for the improvements to the former renter.
The auctions were for the land only; they took in a total of $6.07 million for the state endowment fund, which benefits state institutions including schools. All but three of the lots sold for appraised value to the current renter with no competitors bidding; the competitive bidding on the other three brought in an additional $33,200 over the appraised values. You can read a full announcement here from the state Department of Lands. The renters of the 21 lots voluntarily joined the auction in hopes of getting title to the property under their cabins, though they also risked being outbid; the state is trying to get out of the cabin-site renting business and into more profitable investments for the endowment. The lots auctioned included six on the lakefront.
In a special meeting today, Idaho’s state Land Board, which consists of the five top elected state officials and is chaired by Gov. Butch Otter, voted to accept new values for state-owned cabin sites at Priest and Payette lakes on which renters have built and own their own cabins. New appraisals were done on 361 Priest Lake cabin sites and 16 at Payette Lake.
“As we’re all painfully aware, the 2013 valuations came in 84.9 percent higher than IDL’s 2012 valuations,” Denny Christenson, president of the Priest Lake State Lessees Association, told the board. “Lessees were astounded to see their values increase by that much during a time when their other real estate investments were declining in value.” But the new appraisals, he said, are 79 percent higher than the 2012 appraisals. That’s left lessees, he said, “with the same question they asked last year – how can these values be 79 percent higher than 2012 in a down market?”
The 2014 values vary considerably, and Christenson said the appraisers’ qualifications were much better this time around. Still, he said, “A large number of lessees continue to believe the appraised values are much too high and would not be supported on the open market.” Many will appeal, he said.
The values matter because they’re the basis for calculating rent on the land, and also are a starting point for auctions or other transactions in which cabin owners – or others – could have the opportunity to buy the land under the cabins from the state. The state has been working for several years to get out of the cabin-site renting business, in favor of other land investments that bring greater earnings to the beneficiaries of Idaho’s state endowment, the largest of which is the state’s public schools.
Lands official Patrick Hodges said based on the results of a meeting between the department and the Priest Lake lessees, “We’ve opened a two-week window after the appraisal numbers are approved by this board, to allow lessees to submit factual corrections.” That will be for errors in measurements and the like, he said, and such corrections will be made without having to go through a full appeal process.