BOISE, Idaho — This story originally appeared in the Idaho Press.
The board governing the Idaho Transportation Department on Thursday withdrew a 2022 resolution regarding the agency’s old headquarters in response to this year’s action by the Legislature to tank a long-planned sale.
The Idaho Transportation Board move brings control of the property back to the agency and paves the way to renovate the main building that has been vacant since a flood two years ago.
The board unanimously voted at a meeting Thursday in Lewiston to rescind the 2022 resolution declaring property surplus, which put it under the control of the Department of Administration to oversee a potential sale. At the time it was declared surplus, the plan was to sell the property and move ITD to the state’s Chinden campus.
There was no discussion Thursday prior to the vote. The resolution also directs staff to work with the state Department of Public Works to create a cost estimate for making the property suitable for the agency.
During the 2024 session, lawmakers had asked the Department of Administration to create preliminary cost estimates for renovation. The estimates ranged from $32.5 million to $63.2 million, according to a document shared with legislators.
“This estimate was generated quickly — a rudimentary ‘back of the napkin’ approach — in order to give legislators an initial gauge of the financial requirements for the project,” Department of Administration spokesperson Kim Rau told the Idaho Press in an email. “It was based on standard costs typically associated with renovation projects.”
Thursday’s decision signaled that the agency wouldn’t be fighting a move by the Legislature that had sparked heated debate in the Statehouse and a lawsuit in the state Supreme Court.
The dispute over what to do with the transportation department’s 44-acre property on State Street stemmed from a Jan. 2, 2022 flood that displaced all employees working in the campus’ largest building. That same year, the Legislature appropriated $37 million to the Department of Administration for the purpose of moving ITD to the Chinden campus.
The Department of Administration sought potential buyers for the property, and a group of three developers came out as the highest bidders, agreeing to purchase the property for nearly $52 million.
This session, House Speaker Mike Moyle and other lawmakers voiced concern over the planned sale. The state budget writers then added in the regular ITD and Department of Administration budget bills language that killed the sale and provided around $32 million for renovations of the old building — a number on the lowest end of the cost estimates provided.
These budget bills and the intent language regarding the sale became a flashpoint in the waning days of the legislative session, with Senate President Pro Tem Chuck Winder strongly opposing the maneuver to disrupt a sale.
Eventually, the bills narrowly passed.
In response, top three bidders — Hawkins Companies, the Pacific Companies and FJ Management — filed a lawsuit challenging the constitutionality of the budget bills. The Supreme Court dismissed the case because the developers had no binding contract and therefore had no standing to bring the case. The court’s opinion did state that the agencies involved would have standing to challenge the law if they chose to do so.
The vote Thursday is an indication that they won’t seek a legal challenge and will move forward with renovating the old building. State agencies fall within the executive branch, which is overseen by Gov. Brad Little.
“Executive branch agencies in Governor Little’s administration are committed to following the law,” governor’s office spokesperson Joan Varsek wrote in an emailed statement. “The recent court ruling upheld House Bill 770, revoking the sale of the ITD State Street campus and directing the property back into the control of the Transportation Board. The Transportation Board’s resolution this week outlines the next steps in the process. The State of Idaho is now taking steps to better identify the true costs of the repairs needed to make the State Street property safe and operational. The Governor’s Office and the agencies will work closely with legislators on options moving forward after more accurate estimates for repairs are identified later this year.”
This article originally appeared in the Idaho Press, read more on IdahoPress.com.