2005 Idaho Code - 58-307 — TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR IMPROVEMENTS

                                  TITLE  58
                                 PUBLIC LANDS
                                  CHAPTER 3
                           APPRAISEMENT, LEASE, AND
                                SALE OF LANDS
    58-307.  TERM OF LEASE -- APPLICATION FOR RENEWAL -- ALLOWANCE FOR
IMPROVEMENTS. (1) No lease of state public school endowment lands, other than
those valuable for stone, coal, oil, gas or other minerals, shall be for a
longer term than ten (10) years.
    (2)  Notwithstanding any other provisions of law, all state lands may be
leased for a period of up to twenty-five (25) years to the federal government,
to federal agencies, state agencies, counties, or cities, school districts or
political subdivisions when leased for public purposes. Such leases for public
purposes may be entered into by negotiation and shall secure a rental amount
based on the fair market value of the state land.
    (3)  Notwithstanding any other provisions of law, all state endowment
lands may be leased for a period of up to forty-nine (49) years for commercial
purposes, under such terms and conditions as may be set by the board, provided
that, for such leases in excess of ten (10) years, the board consults with the
county commissioners of the county in which the lands are located before
leasing the lands, and the use for which the land is leased shall be
consistent with the local planning and zoning ordinances insofar as is
reasonable and practicable. For each lease in excess of ten (10) years, the
department shall hold a hearing in the county in which the parcel is located.
    (4)  The term "commercial purposes" means industrial enterprises, retail
sales outlets, business and professional office buildings, hospitality
enterprises, commercial recreational activities, multifamily residential
developments and other similar businesses. For purposes of this section,
agricultural leases, grazing leases, oil and gas leases, mineral leases,
geothermal leases, communication site leases, single family, recreational
cottage site and homesite leases, and leases for other similar uses, are not
considered leases for commercial purposes.
    (5)  The board may require that all fixed improvements constructed upon
land leased for commercial purposes be removed or become the property of the
state upon termination of the lease, and that any heirs, encumbrances or
claims of third parties with respect to any improvements shall be expressly
subordinate and subject to the rights of the state under this section.
    (6)  Except for geothermal, oil and gas, mineral and commercial leases,
the lease year shall run from January 1 through December 31, and all leases
shall expire on December 31 of the year of expiration.
    (7)  All applications to lease or to renew an existing lease which expires
December 31 of any year, shall be filed in the office of the director of the
department of lands by the thirtieth day of April preceding the date of such
expiration. Such applications will be considered by the state land board and
be disposed of in the manner provided by law; except that the board may reject
conflicting applications for a lease for commercial purposes if the lessee
exercises the preference right to renew clause.
    (8)  Where conflicts appear upon leases, except for mineral leases which,
pursuant to chapter 7, title 47, Idaho Code, contain a preferential right to
renew clause, such applications shall be considered as having been filed
simultaneously. However, nothing herein shall be construed to prevent the
state board of land commissioners from accepting and considering applications
for new leases at any time.
    (9)  In case improvements have been made on land while under lease which
is expiring, and the former lessee is not the successful bidder, but the land
is leased to another, the amount of such improvements shall be paid to the
former lessee. The following shall be considered improvements: plowing done
within one (1) year, provided no crop has been raised on the plowed land after
such plowing, fencing, buildings, cisterns, wells, growing crops and any other
asset which shall be considered an improvement by the director.
    (10) Commercial leases of the state lands shall not be subject to the
conflict auction provisions of section 58-310, Idaho Code. The board may, at
its discretion, call for proposals and sealed bids by public advertisement,
and may evaluate said proposals and award the lease to the bidder whose
proposal achieves the highest return over the term of the lease and who is
capable of meeting such terms and conditions as may be set by the board; in
the alternative, the board may call for lease applications by public
advertisement and if more than one (1) person files an application to hold an
auction in the same manner as provided in section 58-310, Idaho Code. In
either case, the board must obtain a reasonable rental, based upon fair market
value of the state land, throughout the duration of the lease. The board may
reject any or all proposals and any or all bids, and may reoffer the lease at
a later date if the board determines that the proposals or bids do not achieve
the highest and best use of the land at market rental.