LANDS: State oversteps bounds

Is it possible that the Idaho Department of Lands is cooking the books a bit to try and justify its desire to be a player in the commercial real estate and development business in Idaho? The IDL 2012 annual report attempts to make the case that the return on assets for the commercial properties it manages for the school and other trusts was a remarkable 22.56 percent. That might be impressive to the casual observer but on closer examination it is rather revealing. The actual cash on cash return was a meager 1.29 percent annual net return. That is the real measure of IDL financial performance.

The remaining 21.27 percent IDL is claiming is attributed to an increase in asset value. Was this accomplished using a Ouija board or a certified appraisal? Most of these commercial holdings are in the Treasure Valley and there is no evidence that commercial properties in the Treasure Valley are surging in value. In fact those values are flat at best.

Certainly it is fair to assume most real estate values will appreciate over time on the order of 2-4 percent annually. Where in the world did this outrageous 21.27 percent originate? Someone should be held accountable for that deceptive reporting. This smells of an agenda to perpetuate careers in a field where IDL lacks the talent or credibility.

JULIE CHENOWETH

Orofino