OpenCDA

June 20, 2008

There Are Rules About These Things

Filed under: Observations — Dan Gookin @ 10:08 am

The State of Idaho has laws regarding the sale or lease of public property by a City. These laws are in place to ensure that the citizens who paid for that property are not abused by public officials, regardless of their intent. In other words, the means are important here, more important than the ends.

I’m not a lawyer, but neither are most of our elected officials who actually write the law. The law is not written with the intent that only lawyers or legal scholars understand it. So, as any good lawyer will tell you, the law is “open to interpretation.” Join with me as I do some interpreting regarding the City’s now-on-hold lease with the University of Idaho for the Education Corridor.

Issue: Is the City Council supposed to hold a hearing regarding the lease?

I would say yes. Consider this quote from I.C. 50-1402:

Notice of the public hearing concerning the proposed exchange or conveyance shall be published in the official newspaper of the city at least fourteen (14) days prior to the date of the hearing.

And from I.C. 50-1403:

After a public hearing has been conducted, the city council may proceed to exchange, convey or offer for sale the real property in question, subject to the restrictions of section 50-1401, Idaho Code

On Tuesday, the City Council met and passed a resolution regarding the lease. It was not a hearing, but the structure was similar: City Administrator Wendy Gabriel made a presentation. Had it been a hearing, as I believe the law requires, then people would have been afforded the opportunity to speak — pro or con — regarding the lease. But on Tuesday, no public comments were allowed after Ms. Gabriel gave her presentation.

True, public comments were allowed, but only those standard comments made during the start of every meeting. The issue was addressed by several citizens, but unlike a hearing, they did not get to witness the Staff’s presentation beforehand. Was this fair to the citizens who had concerns on the deal? Was it legal?

Issue: Can the City give away property purchased for Wastewater Treatment Facility expansion?

From I.C. 50-1407:

The mayor and council may, by resolution, authorize the lease of any real or personal property not otherwise needed for city purposes, upon such terms as the city council determines may be just and equitable.

I draw your focus to the words not otherwise needed for city purposes. The Osprey property was purchased by a bond, passed by a supermajority of the voters in Coeur d’Alene, for Wastewater Treatment Facility expansion. That sounds to me like a city purpose. So how could they lease away the land in compliance with this statute?

I.C. 50-1409 restates what I.C. 50-1407 states, but it adds a few key words:

The mayor and council may, by resolution, authorize the lease of any property not needed for city purposes, upon such terms as may be just and equitable.

Just and equitable. The appraisal mentioned by Ms. Gabriel during her presentation cited a value of $6,500,000 for the land alone. (I’m not certain of the figure and do plan on doing a public records request for the appraisal.) The County shows the land assessed value at $2,160,00 and the building at $2,631,837 for a total package of $4,791,837. Regardless, either figure is greater than the $1,300,000 lease value.

Remember, the $1,300,000 figure is based on the land value as of 2002, six years ago. Everyone knows that property values have gone up, so why was the city horse-trading away the land for less than it’s worth? Why were the citizens not being given full value, “just and equitable”?

Proponents like to argue that this is all about education and that concerned citizens who ask questions are “against education.” That’s nonsense. There is a process. A legal, public process. When that process is not followed, and citizens are disrespected, it taints whatever goal or end is being pushed. In this case, the noble profession of education is being abused to favor a land deal.

We do not have all the information. We are being denied that information and it appears that we are being mislead. The State Board of Education was correct in delaying this decision. I ask why our City elected officials lack that same wisdom and insight, especially with regards to respecting the citizens they are paid and sworn to represent?

3 Comments

  1. Here’s a comment from Gary Ingram, posted a few minutes ago on the “Don’t sign the Lease” thread of this blog. Gary wrote:

    Dan, I don’t think the question of what will become of the lease money is now moot. I think a demand should made of the Mayor to explain in full detail just what is intended for the windfall to CDA from the lease should it be finalized. We should know NOW if it going to be used to reduce property taxes, spent on a one time CITY expense, and if intended to gift to NIC for the EC, how that will be done legally, considering NIC is not a city enterprise. Furthermore, if it can be done legally, then an explanation of why it should be done morally, ethically and in keeping with sound public policy, without going into generalizations about the value of education. It is not their money for esoteric purposes. It belongs to the citizens of Coeur d’Alene exclusively.

    Comment by Gary Ingram — June 20, 2008 @ 9:57 am

    Comment by mary — June 20, 2008 @ 10:22 am

  2. Gary, the explanation of how and why the city will give the $1.3 million to NIC will be very important for the public to understand.

    Comment by mary — June 20, 2008 @ 10:24 am

  3. Paging Mark Altman. Mark Altman to the white courtesy phone please.

    Since real and credible evidence is now on the table about malfesance in office by elected officials, what will the defenders of “trustee government” have to say? Inquiring minds want to know.

    Comment by Pariah — June 20, 2008 @ 12:03 pm

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