Unwanted outcome

Lessees disappointed in commission vote to renew lease

Yellow Pages

By Johnna Ray
Posted Sep 12, 2009 @ 05:29 PM

Against the recommendation of Shawnee’s community development director and the wishes of a majority of lessees of state-owned school land at Shawnee Twin Lakes, city commissioners voted 5-2 Tuesday night to renew the lease with the Commission of Land Owners.
The leaseholders wanted city commissioners to vote to refrain from renewing their three-year lease with the Commission of the Land Office and allow leaseholders to lease the properties directly from the Commission.
Justin Erickson, Shawnee’s community development director, presented city staff’s recommendation to commissioners, which was to honor the leaseholders’ requests.
“The staff is recommending for the city not to renew it’s lease with the state based on three reasons,” Erickson said. “First, this is a resident-driven request to relinquish the lease; second, it would save the city time, money and hassle; and third, it would cause the state to take responsibility of the property.”
Erickson also pointed out that the city had received “no public testimony from residents in opposition of the request not to renew.”
City commissioners voted 5-2 to renew the lease, which originated in 2000, if it were to include the 360 acres commissioners believed it included.
Commissioners Frank Sims and Carl Holt voted against renewal of the lease and said they both believed commissioners should follow the recommendations of city staff and the requests of the leaseholders.
“Three attorneys have reviewed this and all three think it’s appropriate that these people lease directly from the state,” Sims said. “We need to listen to staff and they believe it’s best not to renew with CLO. The Shawnee Twin Lakes Association also believes it’s best to not renew. If you listen to the people affected by this, you have to do what they’re asking.”
Commissioner James Harrod strongly disagreed with Sims and said he was familiar with the CLO and he was “not willing to turn that property over to them.”
“I’m opposed to releasing it,” Harrod said. “To protect the water for Shawnee.”
Holt asked Harrod, “What are we turning back over to the state?”
“A is paying B and B is paying C; we’re just the collection agency,” Holt said. “Seventy to 80 percent of them out there say it’s what they want.”
Discussion continued for several minutes about whether the city leases 360 acres or 28 lots with the option of leasing out 24 more.
Erickson attempted several times to explain that regardless of what the original lease looked like before, it would look different if the city chose to renew.
“They don’t believe we have that whole 360 acres, only the 28 lots,” Erickson explained. “If we renew the lease, it’s going to look different.”
Harrod was visibly agitated and said he wanted to make a decision without clarifying the amount of property actually leased.
“Let’s condemn it, buy it all, proceed with legal action and then see who owns it,” he said.
Erickson said the commissioners could wait for clarification to respond but Harrod was not comfortable with that idea.
“I don’t trust them, point blank,” Harrod said.
Sims said the “prudent thing to do” would be to get the answers to what property the lease includes.
“If all we’re being is the pass-through for 28 lots, that’s crazy,” Sims said.
Mayor Linda Peterson said her primary concern was the watershed — the area surrounding the lake from which water drains into the lake — and what effects it could have to the city’s water supply if not protected by the city.
“It’s extremely compelling that a majority of the leaseholders requested this change for us,” Peterson said. “Anyone prefers to be the main leaseholder but the difference for me is this land’s primary use is our water supply. That’s why it’s important we maintain our lease to that land. Our response is to be the main entity to decide how it’s used.”
Keith Kuhlman, director of real estate management for CLO, said Friday regardless of whether the lease was renewed or not, the city would remain the zoning entity for the property.
“There’s been a concern about septic systems over the years, that’s been the big issue,” Kuhlman said. “But we want to make sure the land is preserved. We always want land values to increase not decrease. And we’re going to allow the city to have a say. Whether we renew or not, the city is still the zoning entity.”
After the motion carried at Tuesday night’s meeting, Peterson clarified her vote.
“My vote was to negotiate on the property, not just the 28 lots,” she said.
Sims responded that the motion was to “renew the lease if it had the same terms and conditions.”
The decision to renew or relinquish the lease must be made by Oct. 1, according to renewal requirements.
Watch for more articles on this developing story in future editions of The News-Star.
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Johnna Ray may be reached at 214-3934.
 

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