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Idaho guv wants ‘total, complete transparency’ on state lands

Tue., July 21, 2009, 10:37 a.m.

Idaho Gov. Butch Otter spoke out against proposed changes in how Idaho transfers its state endowment land Tuesday, including exempting such transactions from the Idaho Public Records Act, saying the state must maintain "total and complete transparency" in how it transfers public assets. (Betsy Russell / The Spokesman-Review)
Idaho Gov. Butch Otter spoke out against proposed changes in how Idaho transfers its state endowment land Tuesday, including exempting such transactions from the Idaho Public Records Act, saying the state must maintain "total and complete transparency" in how it transfers public assets. (Betsy Russell / The Spokesman-Review)

A committee of top real estate professionals was asked to review how Idaho could update its rules for transfers of state endowment lands to match “modern business practices,” and this morning, the panel presented its recommendation to the state’s top elected officials. Among them: Eliminate the requirement for public auctions of endowment lands, and exempt the transactions from the state’s Public Records Act. Idaho Gov. Butch Otter immediately objected.

“We have to make sure that there is total and complete transparency,” the governor declared. “Taking it off public auction inherently reduces the transparency. … I would have a problem with that.” Otter said he’d also oppose exempting state land transactions from the public records act. “Oh yeah,” he said, “and I think every member of the board would.” The state Land Board, which commissioned the report from the committee of professional real estate experts, praised the panel and thanked it for its work. “This board was formed to look at one narrow issue,” said Idaho Attorney General Lawrence Wasden. “There are a lot of other factors we have to take into account … such as can we create a system that will preserve transparency.”

The Land Board is made up of the state’s top elected officials and is charged by the state Constitution with getting the maximum long-term financial return from state endowment lands. Board members didn’t raise objections to other proposals from the panel, to amend the Constitution to eliminate acreage limits on transfers of state land to a single individual or company. Those limits, according to the panel’s report, “do not conform to modern business practices.” The panel also proposed allowing sales of state endowment lands “in any reasonable manner” rather than only by public auction; and changing the Admissions Act that made Idaho a state to remove a clause that requires endowment land to be “sold only at public sale,” instead saying they “shall be sold as provided by Idaho law.”

“Our intent was to provide flexibility to the state, then let the state decide through its laws how best to govern these transactions,” said Robert Phillips, president of Hawkins Companies and a commercial real estate developer. George Kirk, a residential real estate developer and member of the panel, told Otter, “Your points are excellent and well-taken. … There are ramifications both corporate, personal and moral that you bring up.”

The group’s report said, “Participants in private sector and commercial business transactions typically expect confidentiality in negotiations and protection of trade secrets of the parties. Likewise, it is recommended that the same protections be afforded to the state Board of Land Commissioners when negotiating leases, purchases, or sales of state endowment lands,” in order to secure maximum financial returns. Though the panel proposed an ambitious timeline, to present its recommendations to the Legislature this year and then get constitutional amendments on the ballot in the 2010 election, Land Board members said they thought that was unrealistic. “It could be worked out this legislative season,” said residential real estate broker Bryant Forrester of Homeland Realty, but state Controller Donna Jones shook her head.



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