Priest Lake lot auction nets $13 million
An unleased lot on Powerline Road in Coolin that was auctioned by the Idaho Department of Lands. The lot was one of 16 lots auctioned off this weekend by the state.
(Courtesy photo)
The Idaho Department of Lands (IDL) auctioned 16 endowment-owned lake front lots at Priest Lake for deeded ownership during a public, oral auction in Coeur d’Alene on Saturday.
The land sales generated $13,161,440 which is $3,560,440 over the appraised value, for the endowment fund that supports public schools, with 5 properties selling for the appraised value and 11 selling with competitive bidding.
The Idaho Constitution requires a public auction for the disposal of state endowment trust lands, and IDL can accept no less than the appraised value of the properties.
Six properties were vacant unleased lots, and competitive bidding was active on 5 of the properties resulting in an 66% increase in the up-bid amount.
Ten properties auctioned had homes on them. The land is owned by endowment beneficiaries, and the cabins and other improvements on the land are owned by leaseholders as personal property. The auction was for the land only.
Current leaseholders purchased 8 of the 10 lots, 2 of the lots were won by non-lessee bidders. The winning non-lessee bidders will pay the amount bid for the land and the appraised value of the personal property, which will be reimbursed to the lessee.
Under the direction of the State Board of Land Commissioners (Land Board), IDL manages more than 2.5 million acres of state endowment trust land under a constitutional mandate to maximize long-term financial returns to public schools and a number of other State of Idaho institutions. The Land Board is comprised of Idaho’s governor, secretary of state, attorney general, state controller, and superintendent of public instruction.
In 2010, the Land Board approved a plan to divest the state’s ownership of most cottage sites at both lakes over time. The Land Board authorized IDL to offer most of the remaining residential lake lots for auction through 2024. Additionally, IDL will be auctioning un-leased lots at both lakes.
Including this weekend's auction, 463 cottage sites have been sold – 315 lots at Priest Lake (293 leased and 22 unleased) and 148 lots at Payette Lake (127 leased and 21 unleased) – for a total of $218,326,625 for the endowments.
The funds from the land sales will be deposited in the “Land Bank” and used to purchase other lands in Idaho or they may go into a Permanent Fund, in order to continue earning returns for the endowment beneficiaries. In May 2016, the Land Board approved the Strategic Reinvestment Plan and will consider strategic acquisitions of timberland and, on a more limited basis, farmland with the proceeds from the sale of cottage sites and commercial properties.