Priest Lake lots auctioned for $24.5M

PRIEST LAKE — The sale of 10 lakefront lots on Priest Lake generated more than $24.5 million during a public auction in mid-August.

The endowment-owned lots were sold for $24,542,000 — about $14,050,000 over the appraised value — for deeded ownership, Idaho Department of Lands officials said.

The auction included one parcel that was purchased at 779% over the appraised value by the lessee for $9.8 million. Of the 10 properties sold, seven had competitive bidding and three had only one bid.

Of the three lots purchased by those without an existing lease, the sites sold for an average of $451,333 over the final appraised land value. Of the seven lots purchased by existing lease-holders, the site sold for an average of $1.814 million over final appraised land value.

The sites ranged in size from a half-acre to just under 1.5 acres. Three of the lots did not have existing dwellings; each of those lots were purchased by non-lessees.

Of the lots auctioned, IDL officials said seven lots had existing dwellings owned by the leaseholders with the land owned by the public school endowment beneficiary. Existing leaseholders purchased all seven lots that had a split estate, officials said.

The competitive bidding resulted in a 134% overall increase above the appraised value.

An auction of several endowment-owned lots on Payette Lake, including Cougar Island, is scheduled for Sept. 14.

The Idaho Constitution requires a public auction for the sale of state endowment trust lands, and IDL cannot accept less than the appraised value of the properties.

While potential participants joined online, all bids were made by those who were at the auction in person.

Under the direction of the State Board of Land Commissioners, 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 several other state 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 unleased lots at both lakes.

Including the Aug. 13 auction, 479 cottage sites have been sold — 325 lots at Priest Lake (300 leased and 25 unleased) and 154 lots at Payette Lake (133 leased and 21 unleased) — for a total of $251,223,625 for the endowments.

Upon the transactions closing, the funds from the land sales will be deposited in the “Land Bank” and may be used to purchase new endowment land in Idaho or may go into a permanent fund 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.