Idaho Should Loosen Up Lease Policy, Study Says Commercial Deals Could Maximize Earnings, Former Blm Official Says

Idaho could earn more money for education by revamping how some of the state lands are leased, a new study suggests.

The state Department of Lands should place greater emphasis on commercial leasing in prime development areas, says the study by Lloyd Ferguson.

But a department accustomed to dealing with grazing and timber uses will need to be more flexible on such leases.

“I felt like they really are acquiring some properties that would appear to have some commercial values. And in order to make the best deals, I think they would need to revamp their procedures,” said Ferguson, a former U.S. Bureau of Land Management district manager in eastern Idaho. The Lands Department hired him as a consultant.

The recommendation is part of a review of more than 3,000 acres of state land in the Island Park area, a popular vacation spot.

Commercial leases on some of that property could help the department meet its constitutional mandate to gain the maximum long-term financial return for the school endowment fund.

Even with an inventory, the department must come up with development plans for larger swaths of state land, instead of leasing them out bit by bit as businesses approach them, he said.

Commercial deals also can be hamstrung by existing rules designed more for uses like grazing, he said. For example, 10-year limits on most leases can deter businesses that want to put up permanent buildings.

State Controller J.D. Williams, a member of the policy-setting state Land Board, said the panel already is looking at major changes in the lands department.

“What our study showed is that we have a lot of land that’s not very productive,” he said.

Other land is in important wildlife habitat or offers scenic views. That should be kept undeveloped for now, or traded with other agencies for property that could be developed without raising public opposition, Ferguson said.

That idea was praised by Janice Brown, executive director of the Henry’s Fork Foundation conservation group. She said the state needs to take a look at all of its holdings there, instead of allowing unplanned development.

“That’s exactly what we’ve been encouraging from all land management agencies,” she said.