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County board votes 2-1 to sell donated land
McCOOK, Nebraska -- Red Willow County, Nebraska, commissioners voted 2-1 Monday morning to sell land donated to the county by McCook-area rancher-farmer Tom Kiplinger.
After coming out of a 30-minute public hearing, commissioner Vesta Dack cast the lone vote against selling the quarter section of canal-irrigated crop land southwest of McCook. Dack said she agreed with several callers she had who said, "If you have land, you keep it."
Fellow commissioners Steve Downer and Earl McNutt supported recommendations to sell from fair board members and from members of an advisory committee appointed by Kiplinger to oversee the endowment fund and agreement, "The Tom and Alice Kiplinger Endowment Fund," written by Tom Kiplinger to take care of the Kiplinger and Trudy arenas and nearby pens, stalls and livestock handling facilities on the fairgrounds in McCook into perpetuity.
During the public hearing, McCook resident Dale Cotton encouraged commissioners to retain the land and use it as a wildlife reserve to create jobs and encourage tourism.
Cotton suggested pulling the land out of farm production. "There's a better use than farm land," he said.
Chad Taylor, of the Nebraska Game and Parks Commission, said that only 2 percent of Nebraska is open to public hunting. If the county were to retain ownership of the Kiplinger land, it would provide "a rare opportunity" to allow hunting access to public land, he said.
Southwest Nebraska, he said, is one of the best areas in Nebraska for hunting -- pheasants, deer, turkey, quail -- "and non-residents spend lots of money here, and return year after year."
Taylor said he is not suggesting that the land be taken out of farm production. Farm production and land management for the benefit of wildlife can go hand-in-hand, he said. If the land is sold, he encouraged commissioners to consider retaining the rights for public hunting.
Bob Haag, president of the fair board, told Taylor and Cotton that, while the reserve idea is "noble," it is in complete violation of the endowment agreement written by Kiplinger, who stipulates that proceeds from the sale of the land or from its rental are to be used to operate, maintain and promote the Kiplinger complex on the fairgrounds.
County Attorney Paul Wood agreed, saying that the gift was given by Kiplinger with the idea of using income from the land for the benefit of the Kiplinger arena and complex. Turning the land into a wildlife reserve "is not possible" given the purpose and restrictions of the gift, Wood said. A project "must be income producing," he said. "It (the land) has to be held for the production of income or sold. To turn it into a public reserve with no income would be a violation of the agreement" that commissioners signed when they accepted the gift of land.
Cotton asked if commissioners would change their minds, adding that he could search for grants to pay for a reserve project. "Maybe we can raise you more money," he said. Haag asked him, "More than $30,000 a year?" which is what the land rents for annually ($200 an acre).
Dorwin Felker, a rural McCook resident who regularly attends commissioners' meetings with his wife, Roberta, agreed with Wood and Haag. A reserve is way off base, he said, continuing, "Tom Kiplinger gave the gift of land so that tax payers don't have to pay for the upkeep of the Kiplinger buildings." The construction, operation and maintenance of the facilities, all built since 2002, have been paid for entirely with Kiplinger's donations and with rental fees charged for activities conducted there, not with tax payer money, which has always been Kiplinger's desire.
Wood said that if the land is sold, the use of proceeds from the sale would be restricted by the endowment agreement. "It's public money and therefore must go to the county treasurer," Wood said, "who still has to follow the law." Expenditure of the funds will be determined by the endowment committee members -- Charlie Collins, Deb Lafferty, James Uerling, C.E. Nichols, Debra Christy, Boyd Adkinson and Marty Sis.
Sis currently leases and farms the Kiplinger quarter section, and has one more year on a lease agreement. He did not sign the advisory committee's recommendation to sell the land, but said Monday morning it was simply because he hadn't made it into town to sign it.
Haag said he could not divulge right now all the considerations that made the fair board change an original thought to keep the land to its recommendation to commissioners to sell it. He said that at some point those considerations will become apparent, but he said he could not say how long that would be.
Haag said the land has been appraised by a professional appraiser at $685,000; the minimum bid to buy the land would be $550,000, he said.
County assessor Sandra Kotschwar said the tax valuation for the quarter section of land in 2012 is $237,811, which is 70 percent of market value.
For 2013, the estimated tax valuation of the land, if it is taxable, would be $286,856, which is 71 percent of market value.
Kotschwar said that because ag land valuations in Red Willow County will increase next year, the land could be valued for tax purposes at an estimated $404,000 for 2014.
CLARIFICATION:
McCOOK, Nebraska -- A news story in Wednesday's Gazette should have indicated that the full market value in 2013, not the tax valuation for 2014, for a quarter section of land donated to Red Willow County is approximately $404,000.
County commissioners voted Monday 2-1 to sell the land, using proceeds from the sale to operate, maintain and promote the fairgrounds' Kiplinger Arena facilities, money for which has been donated since 2002 by McCook-area rancher-farmer Tom Kiplinger.
Haag said that although he can't make predictions, there is some speculation that ag land values are at their peak and will likely go down, and that corn prices are going to go down.
Wood agreed. "Is land going to remain this valuable? Does it seem to be at a peak? Is it going to bottom out?" he asked.
"It's not a bad time to sell," said commissioner Steve Downer, who made the motion to sell the Kiplinger land. "I'm sayin', sell it."
McNutt said that while there have been "some extremely high land sales, we don't have to sell it if it doesn't sell for the minimum (reserve)."
Wood said there is no provision for Kiplinger to retain oil/mineral rights for himself in the endowment agreement. Wood said he does not know if the county now owns the mineral rights; he will research the particulars.
McNutt said commissioners will "definitely put mineral rights on the table for discussion."
Haag said there is oil production is "not too far away."
Cotton said it appears "there is still lots of confusion. When there's lots of confusion, I always table stuff. There's no hurry. An opportunity may come to make an advantage of this. Have patience."
Downer and McNutt voted to sell the land. Dack voted against selling. "I'm going with 'no'," she said thoughtfully.
According to state statute, the county must offer the land to the highest bidder within two months of the public hearing.
Wood said the commissioners may conduct their own sale, or hire a broker. Wood opened three proposals at the meeting Monday:
* Heartland Partners, Arapahoe, 6 percent of the selling price if the seller pays for advertising and rental for a sale facility; 6 1/2 percent if Heartland Partners pays advertising and facility rental.
* Gateway Realty, McCook, 2.75 percent of gross sale price. If the land does not sell, the seller will reimburse Gateway for advertising costs.
* Farmers National Co., McCook, 4 percent commission; advertising and sale costs are included.
Downer's motion was to hire Gateway and request a written listing contract. Dack seconded the motion; the vote was unanimous. The subject comes before the commissioners at 9:45 a.m., Monday, Nov. 25.