Potlatch wants state to pay for access to firm’s land
BOISE – For more than 100 years, the Potlatch Corp. has let hunters and recreational users access its North Idaho timberlands for free.
On Wednesday, however, the Spokane-based company told the Idaho Legislature it wants the state to pay millions of dollars annually for access to its 670,000 acres in the region. Otherwise, the forest products company said it could close the land to the public.
Potlatch wants to produce more money for investors from its property. In Arkansas and Minnesota, for instance, it already leases its land for hunting and recreation use.
“Any program that we would consider would have to have more money coming in than the cost of administering it,” Potlatch spokesman Mark Benson said. Right now, it’s costing the company thousands every year to maintain and repair its land due to vandalism or misuse, he said.
Even before the company’s announcement, members of the Idaho Fish and Game Commission, which sets policy for hunting in the state, have complained about loss of access for hunters and anglers in Idaho.
Residents of North Idaho towns surrounded by Potlatch lands say access to the company’s property is something they take for granted.
“I know a good deal of people around here do hunt for their meat; it is part of their livelihood to have meat to feed their families,” said Melanie Hawkins, owner of Rae Bros. Sporting Goods in Grangeville. “Potlatch could become a very sore subject around here if they close their land.”
Last year, Potlatch, founded in 1903, announced it was converting itself to a real estate investment trust. As a real estate investment trust, income from Potlatch’s timberland is exempt from federal corporate income taxes, leaving more money to be sent to shareholders.
The company’s preferred option is to lease its Idaho acreage to the state for between $4 and $7 an acre per year – leaving it open to the public.
At the top rate, the cost for Idaho would be $4.7 million annually, though Benson estimated the figure would be around $3 million.
Public use often results in littering, vandalism and dumping, forcing the company to spend about $300,000, Benson said. Company officials also want the state to contribute another $2 million to help restore 50,000 acres near the St. Joe River.
“The company has something that is worth some money and they are giving away for free,” said Sen. Gary Schroeder, R-Moscow, who said the state’s priority should be keeping the land open to the public. Other options include assessing user fees or leasing the forests to private users. Benson offered no timeline for the proposed changes.