[Vision2020] University Sale of Clark Fork Property

[Tom Trail]

Visionaries:

There has been much in the press of late about the sale of the Clark Fork
Property by the U. of Idaho.  I will share with you comments went to me by
the University.

"In 2002 the University received permission from the board of regents to sell
the property.  Last year the property was appraised at $670,000. 
While the University presented this as an asking price to those who 
expressed an interest in the property, upon careful review of the 
appraiser's estimate of property vale, the University decided to 
accept an offer of $450,000 for the property.

The appraisal's lack of any actual sales of comparable properties or 
evidence of a business plan that could support the appraiser's 
estimate of vale contributed to the Universit's conclusion regarding 
a realistic market vale for the property.  The appraiser's reliance 
on the cost approach in determining market vale for a property witha 
unique combination of improvements--cabines, offices, a dormitory, 
etc.--without market evidecne that the replacement vale of the land 
and improvements inherent in tyhe cost approach represented market 
vale was somewhate speculative and could not justify holding a high 
cost proprety in hopes that the untested estimate of market value 
would prove accurate.

In fact, the University notified its governing board in December 
2002, "It is unclear whether the University will be able to sell the 
property for its appraised vale.  The University is requesting the 
ability to enter negotiations with financial terms of disposal based 
upon investments made by the University...  The accepted selling 
price of $450,000 certainlyh exceeds the
original purchase price and the value of capital improvements made to 
the property since 1995 and ended the considerable operating losses 
associated with holding the surplus property.

The property was not listed for sale through a local real estate 
agent.  rather we opted to market the property initially through word 
of mouth at the appraised price.  The property was not listed for 
sale through a local real estate agent.  Rather, we opted to market 
the property initially through word of mouth in the region, with the 
understanding that if this method was unsuccessful we would proceed 
to a more intensive marketing plan.  As a groups of the word of mouth 
efforts, the University received at least six inquires from groups or 
individuals expressing interest in the property.  One of those 
resulted ina purchase officer, which the University ultimately 
rejected because the offered price was too low.

Another inquiry resulted in the eventual offer of $450,000 from a 
buyer.  The buyer is a local outfitter who has indicated that he will 
continue to make the campus available for use for outings, retreats, 
exhibitions and events, just as been the practice of the university 
(my comment--but nothing in writing."

The University admits that they did not handle the situation well in terms of
involving local citizens in the process.  There was a group of local citizens
who wanted to purchase the property for a community and arts center. This
may have been one of the bids that was too low.  It is unfortunate that after
the University Place senario that university administrators did not learn the
importance of involving the public.  Perhaps Idaho Place was a lesson not
learned.  Someone once said, "That appearances are everything."  Following
a formal advertising and bidding process would have kept everything in the
open and certainly accountability in the public eye would have strengthened
University credibility.  The University obviously did everything legally and
I would hope in the future would learn from this experience.

Rep. Tom Trail
-- 
Dr. Tom Trail
International Trails
1375 Mt. View Rd.
Moscow, Id. 83843
Tel:  (208) 882-6077
Fax:  (208) 882-0896
e mail ttrail@moscow.com