Land Board passed Alternative 3B
This morning, the Land Trust Board passed Alternative 3B.
Several Leasholders travelled to Helena again today to present our case to the Land Board. Thank you to Lisa Owens, Julie Helbach and Kelly Sloan for getting up and speaking on our behalf. Thank you to all of the others who have put in countless hours of their own personal time to help all of us leaseholders receive fair treatment by DNRC.
Oct 19 Land Board Meeting Agenda – New Cabinsite Alternative 3b
You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Thanks so much to everyone who has put so much work into this. Now, can anyone explain what exactly we are in for with Alternative 3b? What is meant by “a lease term 5 years beyond mortgage term?” Would such terms only apply to leaseholders who have mortgages? Or, as I understand that most mortgage terms are 25 years, does that mean we get a 30-year lease? I’ll be grateful for all advice!
Hello Leaseholders
Yes, today the Land Board approved Alternative 3B. This is a blow, but we are not done fighting. I am sorry this will mean some of us may need to give up our properties under this alternative – it is unfortunate it has come to this.
Here’s how Alternative 3B works:
1. Start with your 2003 appraisal.
2. Multiply that number by 1.0653. This is your escalated 2004 value.
3. Take the resulting number and multiply that by 1.0653. This is your 2005 value.
4. Do that 4 more times to get to your escalated 2009 value.
5. Take your escalated 2009 value and multiply that by 5%. This is your 2010 lease fee. (If you are currently in your phase-in, your fee will continue in that phase-in until you reach your “full fee” year. The following year you would jump in with your escalated value for that year.) 6. Take your 2010 lease fee and multiply that by 1.055. This is approximately what your 2011 lease fee would be with the addition of the annual “Lease Fee Index”.
7. Do that every year until 2025 – adding an additional 5.5% or so as that year’s Lease Fee Index increase. (The DNRC proposes “resetting” the system in 2025.)
What you will find when you run these numbers is that your lease fee goes up (after you complete your phase in) immediately and will be approximately double your current (full phased-in) lease fee in 5 years. By 2025, your lease fee will be more than triple what your full phase-in is now. These numbers add up fast folks.
I will be sending a letter out in a few days to answer some of our questions about next steps. It is very likely we will file a law suit at some point in the future and/or ask the state legislature to take action.
We need to be preparing ourselves for a long fight. We are asking everyone who can to make a donation to the association.
Thanks – you’ll here more soon-
Lisa