20180413Petition.pdf

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STATE OF IDAHO
OFFICE OF THE ATTORNEY GENERAL
I.AWRENCE G. WASDEN
April 13,2018
Via Hand Delivery
Diane Hanian, Secretary
Idaho Public Utilities Commission
472 W. Washington
Boise, ID 83702
Re Petition of the Idaho Department of Administration for an Exemption from the
Idaho Public Utilities Commission's Master-Metering Rules for Electric Utilities
and the Idaho Power Master Metering Standards
Dear Ms. Hanian
Enclosed please find one original and seven copies of the above Petition. I have
also enclosed an additional copy. Please conform and send this copy to me by Statehouse
Mail.
I have identified Exhibits B and C to the Petition as exempt from public disclosure.
The subject exhibits are provided on yellow paper, however, some of the lines on the
exhibits may not reproduce clearly in this format. Please feel free to contact me if I can
assist by providing a copy on white paper. I have included the attorney statement required
by Rule 67.03 within the Petition, which I have signed as required by the rule.
Thank you for your assistance in this matter. Please feel free to contact me if you
have any questions. My direct telephone line is 208-334-4145.
J
Deputy Attomey General
c: Lisa Nordstrom, Counsel, Idaho Power Company (w/o Exhibits B and C)
Contracts & Administrative Law Division
P.O. Box 83720, Boise, ldaho 83720-001 0
Telephone: [phone], FAX: [phone]
Located at 954 W. Jefferson, 2nd Floor
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LAWRENCE G. WASDEN
ATTORNEY GENERAL
STATE OF IDAHO
S. KAY CHRISTENSEN (ISB No.3103)
Division Chief
Contracts and Administrative Law Division
JULIE K. WEAVER (ISB No. 5062)
Deputy Afforney General
954 W. Jeffersonr 2'd FL
P. O. Box 83720
Boise,ID 83720-0010
Telephone: [phone]
Facsimile: [phone]
Attorneys for Petitioner
IN THE MATTER OF THE PETITION
OF THE IDAHO DEPARTMENT OF
ADMINISTRATION FOR AN
EXEMPTION FROM THE IDAHO
PUBLIC UTILITIES COMMISSION'S
MASTER.METERING RULES FOR
ELECTRIC UTILITIES AND THE
IDAHO POWER MASTER METERING
STAI{DARDS
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BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
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PETITION OF THE IDAHO
DEPARTMENT OF
ADMINISTRATION
COMES NOW, The Idaho Department of Administration ("IDOA") and, pursuant to
IDAPA 31.01.01.053 (Rule 53), petitions the Idaho Public Utilities Commission ("Commission")
for issuance of an order granting IDOA an exemption from the provisions of IDAPA 31.26.01 -
Master-Metering Rules for Electric Utilities (the "Master Metering Rules") for the State of Idaho
Chinden Office Complex (the "Campus"). IDOA further petitions the Commission to waive the
requirements identified in IPUC NO 29, Tariff No. 101 as Rule E, Master Metering Standards
("ldaho Power Master Metering Standards") to the extent necessary for IDOA to operate and
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION. 1
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manage the Campus under an exemption from the Master Metering Rules. In support of this
Petition, IDOA respectfully submits the following:
I.
CAMPUS BACKGROUND
HP Inc., formerlyknown own as Hewlett-Packard Company, developed an office complex
in Boise, Idaho between 1976 and 1995. The complex consists of approximately 200 acres
containing eight separately numbered buildings, a cafeteria building, multiple outbuildings, a
picnic shelter, trails, sports fields, and parking areas. A map of the Campus is attached as Exhibit
A to this Petition. Hewlett-Packard Company developed the Campus for its own use, however,
prior to 2010 it leased a small suite of approximately 2,000 square feet in Campus Building 2to a
credit union primarily serving employees of information technology companies, First Technology
Federal Credit Union.
IDOA understands that in approximately 2015, Hewlett-Packard Company separated its
business into multiple companies. As apart ofthe separation, a portion of Campus Building 2 and
all of Campus Building 4 were leased to a newly formed company, Hewlett Packard Enterprise
Company. As corporate changes continued, the Campus Building 4 lease was assigned to a related
company, HP Enterprise Services LLC, which subsequently changed its name to Enterprise
Services LLC. In 2015, the sameperiod as the Hewlett-Packard Companybusiness separation,
Hewlett-Packard Company leased Campus Building 8 to, Sykes Enterprises, Incorporated, which
is unrelated to Hewlett-Packard Company.
II.
CAMPUS ELECTRICAL SERVICE
Electrical service is provided to the Campus by Idaho Power Company. Attached as
Exhibit B to this Petition is a one line drawing of the power supply to the Campus. As shown on
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Exhibit B, the electric supply feeds 12.5 KV from the substation shown at the upper left of the
drawing to the primary switches located outside Campus Building l, which is shown at the upper
right of the drawing. The primary switches then feed the various transformers and buildings at the
Campus. Exhibit C to this Petition is a drawing indicating underground power from the primary
switches to the Campus Buildings. Campus Building 8 was separately metered at or near the time
it was leased to Sykes Enterprises, Incorporated in 2015. The remaining electric service is
provided under a single meter.
The Campus is served by 2 chilling plants and 2 boiler plants. Because the Campus was
built for a single owner-occupant, the distribution ofheating and cooling from these plants overlaps
in a complex network. Campus Buildings 1,3, 5,7 and the cafeteria building, which are leased to
HP Inc. and described in more detail below, are primarily served by chill plant number I and boiler
plant number l, located outside Campus Building 5. Campus Building 7, however, receives
heating and cooling water from boiler plant number 2, in Campus Building 6 and cooling water
from chill plant number 2. As part of the HP Inc. lease utility separation work discussed below,
IDOA is in the process of installing BTU meters on the hot and cool piping to determine Campus
Building 7's use of heating and cooling water from the chill and boiler plants.
III.
STATE ACQUISITION OF THE CAMPUS
Idaho Code section 67-5708 provides that IDOA is the state agency authorized to lease
space for agency use. In 20|6,IDOA undertook a search for a new facility to serve the Idaho State
Tax Commission. Through its leasing agent, HP Inc. offered a building at the Campus for IDOA
to lease on behalf of the Idaho State Tax Commission. After touring the building available for
lease, IDOA contacted HP Inc. directly concerning a purchase of the Campus. Although HP Inc.
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was initially reluctant, IDOA was able to reach a tentative agreement. A key term of the tentative
agteement was the lease-back of a portion of the Campus to HP Inc.
The Idaho Legislature approved acquisition of the property by the Idaho State Building
Authority in 2017 House Concurrent Resolution 29. A copy of the Resolution is attached to this
Petition as Exhibit D. In the Resolution, the Legislature recognized that the State leases over
800,000 square feet ofprivately owned space, with leases comprising nearly one third of that space
expiring in the next five years. The Legislature concluded that purchasing the Campus and creating
a single destination complex to serve state agencies is a wise use of taxpayer dollars.
As authorized by the Resolution, the Idaho State Building Authority completed the
acquisition from HP Inc. and ownership of the property transferred on Decemb er 21, 2017 . In
conjunction with this process, IDOA negotiated and entered a lease with HP Inc. and assumed HP
Inc.'s existing leases effective upon the transfer of ownership. As is typical of properties financed
by the Idaho State Building Authority, the IDOA is the sole tenant of the Campus under a Facilities
Lease. The Facilities Lease transfers the operation and maintenance of the Campus to IDOA and
authorizes the IDOA's leases with HP Inc. and HP Inc.'s former tenants.
IV.
TRANSITION TO STATE OCCUPANCY
Assumption of HP Inc.'s Leases
Idaho Code section 67-5708 provides that IDOA may enter leases incidental to the
acquisition of a facility by Idaho State Building Authority. Under this authority, IDOA assumed
the leases between HP Inc. and Hewlett Packard Enterprise Company, Enterprise Services LLC,
and Sykes Enterprises, Incorporated. The First Technology Federal Credit Union Boise space was
part of a single master lease providing space to the credit union at all of HP Inc's properties. To
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 4
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separate the lease from HP Inc.'s master lease, IDOA entered a new lease with First Technology
Federal Credit Union. The credit union lease has no material change in terms from the HP Inc.
master lease.
IDOA is responsible for utilities under all the assumed leases. Campus Building 8,
occupied by Sykes Enterprises, Incorporated, is separately metered; however, the tenant is not
required to pay for electrical service by the assumed lease unless its use exceeds a usage cap
specified in the lease. Under the Campus Building 8 lease, IDOA is also responsible for supply of
heating and air conditioning to the building sufficient to maintain an indoor air temperature
between 68 and 72 degrees.
The assumed leases expire as follows:
. Building 2, Enterprise Services LLC, expires June 31, 2018.
. Building 2, First Technology Federal Credit Union, expires on March 31,2019, with
an option to extend to March 31,2022.
. Building 4, Hewlett Packard Enterprise Co., expires on July 31,2020.
. Building 8, Sykes Enterprises, Incorporated, expires on June 30, 2020, with two (2)
options to extend the term for five (5) year periods.
IDOA has no statutory authority to enter new leases for the space vacated by these tenants and
state agencies will transition to this space as the leases expire. With the exception of the small
credit union suite, state agencies will fully occupy Campus Buildings 2,4, and 6 by the middle of
2020. The transition to state occupancy begins in a few months with the expiration of the
Enterprise Services LLC lease for Campus Building 2 and the completion of the remodel necessary
for the State Tax Commission and Industrial Commission's use of the building.
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HP Inc. Lease
A key issue in the Govemor's and Legislature's decision to pursue a purchase of the
Campus was retaining HP Inc. as a part of the Treasure Valley business community. HP Inc. also
made a lease a condition of the sale of the Campus. IDOA successfully negotiated a lease with
HP Inc. under its authority in Idaho Code section6T-5708 to enter leases incident to an Idaho State
Building Authority facility acquisition.
The HP Inc. Lease was heavily negotiated. Terms relevant to the Petition are as follows:
o HP Inc. is the sole tenant of Campus Buildings 1, 3, 5 and 7 , the cafeteria building and
certain connecting corridors and outbuildings serving these buildings.
o The initial term of the lease is seven (7) years. The lease has two (2) renewal options,
each for a term of five (5) years. HP Inc. may reduce the leased premises as follows:
. Beginning on December 21,2022, HP Inc. may terminate the lease for an entire
building or an entire floor of a building.
. HP Inc. may terminate the lease for an outbuilding at any time.
. HP Inc. may terminate the lease for the cafeteria building on sixty (60) days' notice.
o HP Inc. has the right to audit the expenses invoiced by IDOA. If expenses are overstated
by more than a small percentage, IDOA must pay HP Inc.'s costs of audit.
o HP Inc. has full building automation system (BAS) control for their leased premises. HP
Inc. thus fully controls the electric hot water systems, air systems, vacuum systems and
process water systems.
o HP Inc. has full control of chill plant number I and boiler plant number I . As discussed
above, these plants provide the majority of heating water and cooling to HP Inc. leased
premises and BTU meters will monitor the use of the other boiler and chill plants.
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IDOA must, at its expense, undertake certain work to separate the utilities serving the HP
Inc. leased premises from the remainder of the Campus. The lease provides:
. . More specifically, the Landlord Separation Work shall include the
following, which shall be performed at Landlord's sole cost and expense:
v. Install sub-meters on power being fed from Building 5 to the irrigation
pumps and the pavilion, recreational and picnic areas near the Sports Fields
so as to allow the correct separate metering and billing of power to those
Common Areas.
vii. Install Emon or other sub-meters on electrical service at Buildings l, 3,
5, and 7 to allow the correct separate metering and billing of electricity used
by Buildings l, 3, 5 andT in a location to be mutually agreed upon between
Landlord and Tenant.
Landlord agrees to commence the Landlord Separation Work promptly
following the Term Commencement Date and shall diligently pursue the
same to completion. Subject to Force Majeure, the Landlord Separation
Work shall be completed not later than the first (1't) anniversary of the Term
Commencement Date.
HP Inc. requested and drafted the lease terms regarding utility separation. IDOA understands the
basis for such terms is compliance with Internal Revenue Service provisions regarding the sale
and lease-back ofreal property.
HP Inc. has a very complex Supervisory Control and Data Acquisition (SCDA) system that
meters and measures all utility use at the HP Inc. leased premises. For business confidentiality
reasons, HP Inc. will not share the SCDA system or its information with IDOA. HP Inc., however
will use this information in conjunction with its control of chill plant number I and boiler plant
number l, its BAS system control of lighting and HVAC, and as additional information in an audit
of IDOA to confirm its utility usage under its contractually required sub-metering of its leased
premises.
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 7
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V.
IDOA'S OPERATION OF THE CAMPUS
IDOA has no authority to lease the Campus to any private entity outside of the existing
leases at the Campus. IDOA and the Legislature intend that the Campus will be used as a complex
for state agencies. The transition to state agency use has begun. The Division of Public Works is
currently remodeling Campus Building 2 and the Idaho State Tax Commission and Industrial
Commission will move to the building this year.
IDOA currently manages the state's multi-agency facilities under the provisions of Idaho
Code section 67-5709. Multi-agency facilities include the State Capitol Mall, office buildings in
Lewiston and Idaho Falls, and the Campus. In the 2018 session, the Idaho Legislature revised
Idaho Code section 67-5709 to specifically provide that the charges to state agencies for use of the
multi-agency facilities must fund both annual operating costs and long-term maintenance and
upkeep of the facilities. Annual operating costs for the multi-agency facilities include the utilities,
routine maintenance, landscaping, and security for the facility.
Like most private corporations, the State of Idaho allocates facility operating costs to its
internal divisions. These costs are included in the annual budget requests approved by the State
Legislature, which functions in a manner roughly similar to a corporate board of directors.
Facilities operating costs are allocated to agencies based on the costs incurred to operate their
particular space at a multi-agency facility under IDOA's established procedures. The Legislature
reviews the cost allocation procedures during Legislative Services Office audits and the allocated
costs for each agency are a part of the Joint Finance and Appropriations budgeting process.
IDOA's transition of the Campus to full state occupancy involves two distinct management
programs. In the first program, IDOA will move state agencies to Campus Building2 as soon as
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 8
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possible and will replace all the private tenants in Buildings 2, 4 and 8 with state agencies as the
existing leases expire. This program could be complete for all but Campus Building 8 as early as
2020 if the small credit union in Campus Building 2 does not exercise its two-year extension
option. Once a state agency occupies the state owned space at the Campus, IDOA allocates
operating costs as directed under Idaho Code section6T-5709.
The second management program involves the HP [nc. occupancy. During this program,
IDOA will allocate operating costs to HP Inc. as provided in its lease. HP Inc.'s lease specifically
provides that HP Inc.'s electrical use will be separated by sub-metering no later than the end of
2018. HP Inc. will see and pay for its electrical usage through the protocols for reading the sub-
meters developed by the parties. Both parties are represented in the development of these protocols
by facilities management experts and have equal bargaining power. The HP Inc. lease does not
allow the IDOA to pass through or charge any costs related to electrical service other than the
actual charges from Idaho Power Company related to HP Inc.'s use of electricity. If HP Inc.
SCADA data does not match the IDOA invoices and an HP Inc. audit finds that IDOA overstates
electric charges, the lease provides that IDOA is required to pay the audit costs, which could be
substantial.
VI.
WAIVER OF THE MASTER METERING RULES
At the conclusion of the transition to state agency use, the Campus will again be owner-
occupied and managed as it was when it was owned, used and managed by Hewlett-Packard
Company. IDOA will manage the Campus for the State's own use and will not be operated as a
commercial activity. The Idaho Legislature has directed how costs are internally allocated within
state government and these directions will cover the entire Campus at the conclusion ofthe existing
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PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION.9
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leases. IDOA requests a waiver of the Master Meter Rules and the Idaho Power Master Metering
Standards to provide the State of Idaho time to transition to full public agency occupancy in
compliance with the leases to private tenants and in the best interests of the State, including its
taxpayers and utility ratepayers.
Waiver as to the Assumed Leases is Justified.
The leases assumed by IDOA incident to the purchase for Campus Buildings 2,4 and 8
included existing terms concerning landlord payment of utility costs. IDOA must comply with
these lease terms. Maintaining the status quo on these leases also saves the cost of separately
metering buildings that will be occupied in the near term by the State of Idaho as the owner of the
buildings. The majority of Campus Building 2 wlll be occupied by Idaho agencies this summer.
Campus Building 4 will be transitioned to Idaho agency use in just over two years. As each
building is fully owner-occupied, sub-metering is consistent with the cost allocation process
directed and supervised by the Legislature for State owned multi-agency facilities managed by
IDOA.
Waiver for the HP Inc. Buildinss is Consistent with the Policv of the Master Meterins Rules.
ln adopting the Master Metering Rules, the Commission identified the following premises
underlying the rules:
o Individually metered tenants who are responsible for paying their own electric bills use
less and waste less electric energy than master-metered tenants;
o The ultimate consumers of electric energy are better served by the utility if their costs are
not included in the rent or as a pass-through by the landlord; and,
o Customers should pay their actual cost for electricity.
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 10
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The HP [nc. drafted lease term covering electric sub-metering satisfies each of these premises.
Electric charges are transparent to HP Inc. and are calculated based upon protocols developed by
the facilities management experts at both IDOA and HP Inc. The HP Inc. SCADA system in
conjunction with the lease's audit process ensures that HP Inc.'s electric costs are its actual costs.
HP Inc. has full BAS control of the building systems. Under the lease's sub-metering term, HP
Inc. can make the corporate decisions necessary to control the efficiency of its electric use based
on its actual use and the business needs of the company.
The Costs of Separate Metering Exceed lts Benefits.
IDOA's cost projection for sub-metering the Campus is not more than one hundred
thousand dollars. This includes the costs of the type of sub-meters specifically identified by HP
Inc. in its lease term to sub-meter Campus Buildings l-7, the cafeteria, the outbuildings, the
parking lots, and the recreational facilities. These sub-metering costs are within the current IDOA
legislative budget appropriation.
Initial estimates for equivalent separate metering range from two to three million dollars.
These costs will either require appropriation of taxpayer funds by the 2019 Idaho Legislature or
will be paid in part by electric ratepayers through Commission approved processes. Delaying
electric separation to secure an appropriation will cause IDOA to be in violation of its lease with
HP Inc., at potential additional costs to taxpayers arising from the breach. To the extant a breach
impacts HP Inc.'s taxes arising from the sale of the Campus, the additional costs paid by state
taxpayers could be large.
Upon full occupancy by the State of Idaho, separate metering provides no benefit to the
State over sub-metering. During the transition of Campus Buildings 2 and 4 to State occupancy,
IDOA cannot transfer the costs of electrical service to the private tenants under the terms of the
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 11
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leases assumed from HP Inc. The sub-metering terms of the lease to HP Inc. provide the same
direct allocation of costs as will occur if the HP Inc. premises is separately metered. The sub-
metering lease term is a revenue neutral for the State: taxpayers will not be subsidizing or receiving
a profit from HP Inc.'s electrical use. Following full occupancy by State agencies, IDOA does not
believe any substantive changes in the agency facilities charges will result from the readings of
separate meters billed to the IDOA versus the internal cost allocation of a single meter billed to
IDOA.
VII.
APPLICATION FOR MODIFIED PROCEDURE
IDOA requests that the Petition be considered under the Commission's Rules for Modified
Procedure, IDAPA 31.01.01.201 to 204 (Rule 201 through Rule 204). The public interest in this
Petition does not require a hearing to consider the issues presented and written submissions
sufficiently address the public interest presented in the Petition.
VIII.
RELIEF REQUESTED
Based upon the foregoing, IDOA respectfully requests the Commission enter an order
waiving the provisions of the Master Metering Rules and the Idaho Power Master Metering
Standards for the Campus. IDOA also requests that this Petition be processed as quickly as
possible so that IDOA can install the HP Inc. required sub-meters and require HP Inc. to pay the
actual costs of its electric use. Each month that sub-meters are not installed, HP Inc. is paying its
electrical costs using an estimated cost, which may be less than the actual costs.
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 12
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NOTICES
Communications with reference to this Petition should be sent to the following:
Julie K. Weaver
Deputy Attomey General
Contracts and Administrative Law Division
954 W. Jefferson,2nd Fl.
Boise, ID 83720-0010
IX.
CERTIFICATION OF EXEMPTION FROM PUBLIC DISCLOSURE
The undersigned, in accordance with IDAPA31.01.01.067.03 (Rule 67), believes that
Exhibits B and C attached to this Petition are confidential under Rule 67 and are exempt from
public disclosure under Idaho Code sectionT4-105(4)(b). Exhibits B and C are records of systems
representing critical infrastructure and the incapacity or destruction of such systems would have a
debilitating impact on the safety of persons or property.
DATED tni, /!fl dayof Apri 1,2018
VER
Attorney General
Contracts and Administrative Law Division
PETITION OF THE IDAHO DEPARTMENT OF ADMINISTRATION - 13
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EXHTBIT A
Campus Map
EXHIBIT A
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EXHIBIT B
One Line Drawing of Campus Power Supply
(coNFTDENTTAL)
EXHIBIT B
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EXHIBIT C
Campus Underground Power Supply
(coNFTDENTTAL)
EXHIBIT D
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EXHIBIT D
201 7 House Concurrent Resolution 29
EXHIBIT D
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LEGISIATURE OF THE STATE OE IDAHO
Sixty-fourth Legislature First Regular Session 20]-1
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IN THE HOUSE OF REPRESENTATIVES
HOUSE CONCURRENT RESOLUTION NO. 29
BY WAYS AND MEANS COMMITTEE
A CONCURRENT RESOLUTION
STATING E]NDINGS OF THE LEGISLATURE AND AUTHORIZING THE DEPARTMENT OF AD-
MINISTRATION TO ENTER INTO AGREEMENTS hIITH THE IDAHO STATE BUILDING
AUTHORITY TO FINANCE THE PURCHASE OF, EINANCE OR CONSTRUCT NEW, OR
PURCHASE EX]STING, OFFICE AND/OR WAREHOUSE SPACE TO ESTABLISH A SIN-
GLE-DESTINATlON COMPLEX TO HOUSE STATE AGENCIES.
Be It Resolved by the Legislature of the State of Idaho:
8 WHEREAS, the State of Idaho currently leases more than 800,000 square9 feet of office and warehouse space in Ada County at an annual l-ease cost of
10 $12.2 million; and11 WHEREAS, the cost of leasing wil-l- continue to grow as lease rates nego-12 tiated durj-ng the great recession become open to renegotiation; and13 WHEREAS, the Idaho State Tax Commission, the Idaho Department of Eish14 and Game and the Idaho Department of Finance currently occupy more than
15 159,000 square feet of office space in a facility being purchased by an owner16 with no interest in .l-easing to third partiesi and
17 WHEREAS, other state agencles occupying 478,000 square feet of office18 space and 82r000 square feet of warehouse space have leases expiring within19 the next 5 years; and
20 WHEREAS, the state recognizes that the lowest long-term occupancy cost21 is achieved through ownership. making ownership the most conservative pol-
22 icy choice; and23 WHEREAS, state agencies need a dependable, predictabl-e l-ocation to con-24 duct business outside of the control of third-party owners; and
25 VflHEREAS, by grouping agencies in a single location, costs can be shared26 and reduced, whiLe citizens are better served; and27 WHEREAS, the timing is favorable for bonding the purchase of state of-
28 fice buil-dings, due to historically l-ow interest rates; and29 WHEREAS, the state has executed an excfusive right to negoti-ate for a30 period of 45 days following the adoption of this resofution, in conjunction31 with a letter of intent, the purchase of property located at 11311 Chinden32 Boul-evard, Boise, Idaho commonly referred to as the HP Campus, with Hewl-ett-33 Packard, Inc. maintaj-ning its current level- of occupancy through a lease34 with the state as part of the purchase agreement.
35 NOW, THEREFORE, BE IT RESOLVED by the members of the First Regular Ses-36 sion of the Si-xty-fourth Idaho Legislature, the House of Representatives and
37 the Senate concurrj-ng therein, that the Legisl-ature authorlzes and approves38 the Department of Administration, in consul-tation with legisl-ative l-eader-
39 ship, to enter into an agreement or agreements with the Idaho State Building40 Authority, under such terms and condi-tions as may be reasonable and neces-41 sary, to provide fj-nancing to construct new, or purchase existlng, office
42 and/or warehouse space to estabfish a si-ng1e-destination complex to house43 state agencj-es.
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BE 1T EURTHER RESOLVED that this resolution constitutes authorization
required by the provisions of Section 5'7-6410, Idaho Code.
BE IT FURTHER RESOLVED that it is the intent of the Legislature that
due to the tax-exempt status of state-owned property, a property tax shift
coul-d resul-t to other property owners in those affected taxing districts,
and those taxing districts shouLd remove the assessed vafue of this property
from their budget capaclty pursuant to Section 63-802, Idaho Code.
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