The value of land could be perceived quite differently depending on how it will be used, and on February 28, 2012, County Commissioner Fritz Sobanja raised a question about who gets to determine that.
The issue came up when Cook County Land Commissioner/Assessor Mary Black reported on progress toward a land exchange between the U.S. Forest Service and the county. The Forest Service is interested in exchanging some of its Cook County land outside the Boundary Waters Canoe Area Wilderness (BWCAW) for county-owned land inside the BWCAW and would also like to purchase some of Cook County’s BWCAW land outright.
The county submitted a list of Forest Service land it is interested in acquiring, but it may need to add more Forest Service properties to its list, Black said.
Commissioner Sobanja said he thought they should be looking at the mineral wealth on the county’s BWCAW property when its value is being appraised.
“It’s a highest and best use analysis,” Black responded. “Highest and best use for land in the BWCA is not going to be mining and minerals.” She likened Sobanja’s suggestion to evaluating land in downtown Grand Marais for its gravel potential. She also said the Forest Service wants to know how the county would intend to use the land it is requesting from the Forest Service.
“What dictates highest and best use?” Sobanja asked. “What the purchaser wants to use it for or what’s actually on the land?”
School trust PILT in jeopardy
The money Cook County may have been receiving from the state as payment in-lieu-of-taxes (PILT) for school trust lands may be in jeopardy. Land Commissioner/Assessor Black told the board that legislation has been introduced that would transfer management of school trust lands from the Minnesota Department of Natural Resources (DNR) to the legislature, and she has been told that authors of the legislation do not intend to have the state pay PILT for school trust lands.
Revenue from activity on school trust lands, such as logging, has historically gone to help pay for public education, although it has gone to the state and not directly to the school districts nearest the lands. PILT, on the other hand, is paid to counties for land that does not generate property taxes because it is owned by the government.
According to the DNR website, “When Minnesota became a state in 1858, sections 16 and 36 of every township [called school trust lands] were granted to Minnesota from the federal government to support schools.”
Alternative sections were granted for land that had already been claimed, were reserved for Indian reservations, or were under water.
The DNR website goes on to say, “The grant ultimately resulted in 2.9 million acres being given to the state for the use of the public schools. By 1900, much of this land had been sold to support public schools.
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“Also includedhas a rein dschoolto atrust- lands today are remainingticipate landsin t frome 2 2two other federal land Displagrants: theAdSwamplandNetwork Grant of about 4.7 programillion acresby runningin 1860, and the Internal Improvementth e ads i Grantth mainof 500,000 acres in 1866. 2.5 acres of school trust n Today million and an additionalflands c p 1 million acres of mineral rights( remain and are managed byclthessiDNR.ied y
“The DNR manages the school trust lands for maximumi , long-d term economic return undermasoundr qunaturalst a speciresource and conservationicpractices.secti n
“The c n i lvast majority of school trust lands are concentratedelyin theup northeaste h quarter of the state. Muchnews ofapethe. landAds ismayintermixed with county,n federal,ed to b private,dec ea andd other state lands.
“School yourtrust landslu n areiz owned by the state in trust for all public schools of Minnesota, Pleasethey aredo not billownedfor by the local school thesedistrict”ad
Black saidq shee wason tryingplea toc findll out if Cook CountyM hadA evenat been00/2 getting9- any PILT for school79trustThankfund landsyou within the county, either in the BWCAW or outside of it. The only revenue that would apply to PILT from BWCAW land in recent years would be permit fees from people canoeing, hiking, and camping.
Black was concerned that discontinuing PILT payments for school trust lands would allow state funding to start eroding and result in less and less aid. “It could be that slippery slope and snowball into more and more being taken away,” she said.
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