NIC: Judge dismisses lawsuit

COEUR d'ALENE - Officials at North Idaho College received word Friday that a lawsuit questioning the constitutionality of the college's lease of the former DeArmond Mill site property has been dismissed by a First District Court judge.

NIC's attorney Marc Lyons reported that in a 14-page opinion, Judge John Mitchell concluded that the lease is constitutional and dismissed all claims against the college and its foundation.

The suit, filed in October by co-plaintiffs Larry Spencer, Tom Macy and Bill McCrory, alleged that the 2009 lease agreement between the college and the nonprofit North Idaho College Foundation violates the section of the Idaho Constitution that restricts the debt local taxing districts can assume without voter approval.

"We feel extremely pleased that we have been proved to be following the law as we interpreted it," said John Martin, NIC's vice president for community relations. "We can press on now and develop the property."

The lawsuit called for an injunction prohibiting NIC from making any further lease payments to the foundation until the financing is approved by voters or a judge.

The document further asked for a court order requiring the NIC Foundation to return all payments it has already received from the college.

The foundation, a nonprofit that supports the college in its fundraising and endowment efforts, purchased the mill site property on behalf of the college for $10 million, and is leasing the land to NIC until it is paid for.

The college will acquire ownership of the land at the completion of the lease.

The 17-acre site sits between NIC and the city of Coeur d'Alene's wastewater treatment plant, and is considered crucial to a joint effort between the city of Coeur d'Alene, NIC, the University of Idaho and Lewis-Clark State College to develop an education corridor along land between the Spokane River and Northwest Boulevard.