NIC trustees vote to pay off leases

COEUR d'ALENE - North Idaho College trustees voted unanimously Wednesday to pay off two long-term property leases ahead of schedule and take ownership of the properties.

Ron Dorn, NIC's vice president for resource management, presented the college administration's recommendation that NIC complete the purchase of the Workforce Training Center property in Post Falls and the old Robin Hood Campground property.

"That would allow the institution, in both cases, to significantly reduce our capital lease outlay," Dorn told trustees during their regular monthly meeting held on the NIC campus.

Each of the properties were purchased in the late '90s by the NIC Foundation, and have since been leased by the foundation to the college. The NIC Foundation is a nonprofit that supports the college in its fundraising and endowment efforts.

Each of the lease agreements concludes with NIC's acquisition of the land upon making all lease payments.

"It is my hope, eventually, as we look at future projects, to eliminate all of the college's capital leases," Dorn said.

By completing the purchase of the Robin Hood Campground land, Dorn said the college will have the authority to grant the city of Coeur d'Alene the right-of-way needed to complete roadwork that is part of NIC's current expansion project.

The cost to pay off the Robin Hood Campground lease is $211,005. Upon payment, the college will no longer be required to make annual rent payments of $81,300.

Completion of the purchase of the Workforce Training Center property in the Riverbend Commerce Park in Post Falls will cost the college $442,873, and eliminate annual rent payments of $164,138.

The money will come from the college's capital investment reserve, a fund within the college's budget where trustees have placed the $2.4 million collected annually as the result of their 2008 decision to exercise foregone taxing authority. Trustees tapped the foregone taxing authority to facilitate the purchase of the 17-acre mill site property now being developed adjacent to the college's downtown Coeur d'Alene main campus.

The mill site property was also purchased by the NIC Foundation in 2009, and leased to the college. That land purchase was also completed ahead of schedule. The college paid off that lease last year, freeing up the funds in the capital investment reserve.

"The board sets that aside in the plant fund," Dorn said.

The money is designated by trustees to be used for property acquisition and building.