by Logan Finney, Idaho Reports

The developers who had all but purchased the site of the former Idaho Transportation Department property in downtown Boise have sued the state. The legal action alleges lawmakers violated the state constitution by including policy language to block the property sale in a pair of budget bills.

The lawsuit, filed by Hawkins Companies, Pacific West Communities, and FJ Management, says sections of budget language revoking the authority to dispose of the land violate the constitutional requirement that bills address one unified subject. Their argument hinges on Idaho Supreme Court precedent that lawmakers cannot use agency budgets to amend provisions of general law.

“While the specific facts of the case address the sale of a single, state-owned property, the import of this case is far broader,” the lawsuit says. “It addresses attempts by the Legislature to use appropriations bills to modify general law – a practice that permits ‘shadow’ amendments of general law and creates confusion, which is why the Idaho Constitution included the unity of subject matter in the first place.”

The Idaho Department of Administration is stuck, the developers allege, between following state law on disposal of surplus property and following their budget that directs them to violate that law.

“The language of the Surplus Statute is mandatory,” the developers’ petition states. “Statute does not provide for any exceptions once the process has begun with a declaration of surplus.”

According to reports from BoiseDev, the state was considering whether to sell the property in early 2021. The ITD Board declared the campus as surplus property in January 2022 following a flood in the building, and the developers’ bid to purchase the campus was awarded in September 2023.

“The Surplus Statute remains in effect and has not been modified,” the developers note.

Prior to the budget language blocking the sale, the House passed a bill to amend the property surplus statute but the legislation did not pass the Senate.

“Petitioners have relied on the clear language of the Surplus Statute and have expended significant sums in order to comply with the State’s deadlines and requirements,” the petition states.

The Idaho Supreme Court accepted the developers’ petition on May 1 for expedited consideration and gave the state 14 days to respond to the lawsuit. Oral arguments could be set at a later date.

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