COEUR D'ALENE, Idaho (KIFI) - The Idaho Department of Lands (IDL) sold 10 endowment-owned lake front lots at Priest Lake for deeded ownership during a public auction that allowed participants to bid online or in-person.
The public auction generated $24,542,000 which is $14,050,000 over the appraised value. It included one parcel that was purchased at 779% over the appraised value by the lessee for $9,800,000. Of the 10 properties sold, seven had competitive bidding and three had only one bid. The competitive bidding resulted in a 134% overall increase above the appraised value.
The Idaho Constitution requires a public auction for the sale of state endowment trust lands, and IDL can accept no less than the appraised value of the properties.
On Saturday, IDL auctioned seven lots that 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.
While potential participants joined on-line, all bids were made by those who were at the auction in person.
Under the direction of the State Board of Land Commissioners (Land Board), The Department of Lands 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 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 today’s 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.