DETAILED ANALYSIS RENITA HURDSMAN BEAR RIVER STATE PARK LAND EXCHANGE PROPOSAL June 1, 2006 Prepared by the Office of State Lands and Investments Herschler Building, 3W 122 West 25 th Street Cheyenne, WY 82002
DETAILED ANAYLSIS LAND EXCHANGE PROPOSAL BETWEEN THE BOARD OF LAND COMMISSIONERS and RENITA HURDSMAN BEAR RIVER STATE PARK UINTA COUNTY, WYOMING PROPOSAL: Mrs. Renita Hurdsman (formerly Renita Secrist) has presented a land exchange proposal to the Office of State Lands and Investments (the Office) involving state lands within the boundaries of the Wyoming State Hospital for a parcel of deeded land. The Office recorded the proposal on the Category I Disposal/Acquisition Lists. After preliminary review, the Director determined that the parcels may be suitable for exchange, and moved the parcels to the Category II Disposal/Acquisition Lists in accordance with the rules of the Board of Land Commissioners (the Board). Mrs. Hurdsman signed an agreement to initiate (ATI) the proposed exchange on April 12, 2005. A copy of the ATI is attached as Exhibit A. In accordance with the ATI the state land and private lands in the exchange proposal were appraised. The appraisal indicated that the state land parcel was of greater value than the private land. As provided in the ATI, Mrs. Hurdsman offered additional deeded land in order to equalize the values of the parcels to be considered for exchange. AUTHORITY: W.S. 36-1-107. Exchange of state-owned and privately owned lands. W.S. 36-1-110. Authority of the director to effect and complete land exchanges. W.S. 36-1-111. Orders, rules and regulations relative to exchange of lands. Rules: Chapter 26, Section 5, Exchanges. - 1 -
Trust Land Management Objectives adopted by the Board August 11, 2005. All documents relating to the Board s authorization to exchange state land are attached as Exhibit B. LEGAL DESCRIPTIONS: ABBREVIATED LEGAL DESCRIPTION (Exact legal descriptions will be determined by a survey.) STATE HOSPITAL LAND 60.00 ± Acres Township 15 North, Range 120 West, 6 th P.M., Uinta County, WY Section 26: A tract of land in the W½ 60.00± Acres HURDSMAN LAND 36.20 ± Acres Township 15 North, Range 120 West, 6 th P.M., Uinta County, WY Section 27: A tract of land in the NE¼ 34.20± Acres Section 35: A tract of land in the NE¼NE¼ 2.00± Acres TOTAL 36.20± Acres PROPERTY DESCRIPTIONS: STATE LAND County/Location: The state land is located in Uinta County, Wyoming approximate two miles southeast of Evanston, Wyoming. Maps and Photographs: Topographical maps of the state land in the proposed exchange are attached as Exhibit C. Photographs of the state land are attached as Exhibit D. Land Description: The parcel is nearly level having irrigation ditches meandering across the field. It slopes downward to the north. The vegetation is a mixture of grasses. It has territorial water rights. The state has used this parcel to pasture livestock owned by the Wyoming State Honor Farm. It lies in the Bear River stream bottom but does not have river frontage. There is access to this parcel through other state owned land. Cattle have historically grazed this parcel of state land. Fences: The state parcel has a fence on its southern and western border. Water Rights: Section 26 has water rights on the W½SW¼, Certificate of Record No. 27 page 500, Territorial 1887. Easements, Hazards, Detriments: In the parcel s southwest corner is a railroad right of way. Along its western border paralleling the railroad right of way is a - 2 -
fiber optic right of way. There does not appear to be any hazardous materials or environmental concerns present on the property. The land has not been developed for any use that would subject the land to hazardous materials, or which would create environmental concerns. The appraiser did not notice any hazardous materials on the property during his inspection. Zoning: State Parcel is in an Agriculture/Resource Development District as identified under the Uinta County Land Use Resolution. Forest Products: There are no forest products on this parcel of state land. HURDSMAN LAND County/Location: The Hurdsman land is located in Uinta County, Wyoming approximate one mile southeast of Evanston, Wyoming. Maps and Photographs: Topographical maps of the Hurdsman land proposed for exchange are attached as Exhibit C. Photographs of the Hurdsman land are attached as Exhibit E. Land Description: The Hurdsman parcels are irregular shaped. The 34.20 acre parcel shares its northern and eastern borders with Bear River State Park. Meandering through the parcel are several small streams. These streams are either the results of irrigation drainage or springs. Its foliage is a combination of trees, shrubs, water plants and grasses. The Bear River flows in a northerly direction through these 34.20 acres bisecting the parcel. The 2 acre parcel lies on the southern side of a ravine that flows westerly toward the Bear River. It is triangular in shape with a northern exposure. Along its eastern border is a gas line right of way. It is covered with sagebrush and grasses. Water Rights: Section 27 has water rights on the E½NE¼ and NW¼NE¼, Certificate of Record No. 27 page 496, 28 March 1875. Easements, Hazards, Detriments: Along the northern border of the Hurdsman land are several rights-of-way for natural gas lines. Along its western border is a fiber optic right-of-way. The Bear River meanders through the northeast corner of the Hurdsman land. Portions of the land may be flooded during spring runoff. During inspection it was noted that parts of the Hurdsman land contained surface water caused either by irrigation drainage, a high water table, or springs. There does not appear to be any hazardous materials or environmental concerns present on the property. The land has not been developed for any use that would subject the land to hazardous materials, or which would create environmental concerns. The appraiser did not notice any hazardous materials on the property during his inspection. Zoning: Hurdsman Land is in an Agriculture/Resource Development District as identified under the Uinta County Land Use Resolution. - 3 -
Forest Products: There are no forest products on the Hurdsman property. COMMENTS FROM AGENCIES: In accordance with the Board s rules the Wyoming Game and Fish Department (the Department) and the Wyoming Department of State Parks and Cultural Resources (State Parks) were notified of the proposed land exchange. State Parks conducted its Site Evaluation in accordance with its Chapter 2 Rules. The site analysis with due diligence is an integral part of the evaluation. The Department participated in the evaluation. The entire site acquisition analysis is attached as Exhibit F. Game and Fish reviewed the proposal and advised that it will have no detrimental effects on terrestrial resources, and will increase access to Bear River for fishing. The letter from the Game and Fish is attached as Exhibit G. APPRAISED VALUE: The Office conducted an appraisal of both properties. The effective date of the appraisals was August 30, 2005. The appraiser determined that the highest and best use of the State Land is rural home site because of its location and size. The Hurdsman Land was also appraised as a rural home site, but its superior location with river frontage, and its small size resulted in a higher price per acre. The appraiser used the sales comparison approach to arrive at the market value of each of the properties proposed for exchange. The comparable sales were all selected from Uinta County within a 20 mile radius of the subject properties. The appraised value for the properties are summarized as follows: State Land: 60.00 ± acres x $4,400/acre = $264,000 Hurdsman Land: 36.20 ± acres x $7,300/acre = $264,000 The appraisal reports for both properties along with the accompanying comparable sales information, maps, photographs and related information are available in the Office for review. MANAGEMENT OF THE PARCELS CONSIDERED IN THE EXCHANGE: The detailed analysis provides a side by side comparison of the two parcels from a management perspective; each as a stand alone property and in conjunction with other state lands (if applicable). State Land: The 60.00 acres State Land parcel is pastured by cattle owned by the Department of Corrections, State Honor Farm. The pasture is in good condition and would pasture about 30 head for a month. It is likely that if this parcel is - 4 -
retained by the state that the state would continue to utilize it under the Honor Farm s grazing operation. If Hurdsman acquires the state land through this exchange, the land will likely continue to be used for livestock pasture for Hurdsman s cattle. The change of ownership, and loss of 60 acres of grazing land, would not have a significant effect on the Honor Farm s livestock operation. Hurdsman Land: The Hurdsman property consists of two parcels, 34.2 acres and 2.00 acres, totaling 36.20 acres which is used in conjunction with other private land. Much of the 34.20 acre parcel is classified as wetlands. If the land is acquired by the state it is not likely that the land will be grazed by livestock. The land will be incorporated into the Bear River State Park and used for wildlife habitat and recreation. The exchange would provide a better land ownership configuration for the Bear River State Park. The addition of this parcel will provide access on the west side of the Bear River to adjacent parcels of state land (Section 26). The 2.00 acre parcel located in Section 35 would provide legal access to the State School Section 36. ANTICIPATED INVESTMENTS RETURN: The total return of investment is comprised of two parts; (1) income generating potential; and (2) appreciation of the underling assets. 1. INCOME GENERATING POTENTIAL: Board of Land Commissioners Rules and Regulations Chapter 26 require the detailed analysis to include an estimate of the income generating potential of the parcels, individually and in combination with other trust lands. Grazing and Agricultural Opportunities: If acquired through exchange, the Hurdsman land would be incorporated into the Bear River State Park and would not generate income from grazing or agriculture. Projected Income from Mineral Related Opportunities: Mineral rights are not included in the proposed exchange. The likelihood of mineral development would not be altered as a result of the exchange. Projected Income from Wildlife Oriented Opportunities: The exchange as proposed would not significantly alter the current wildlife habitat or wildlife oriented opportunities in Uinta County. Projected Income from Public Recreational Opportunities: The acquisition of the Hurdsman Land would significantly improve public access and public recreational opportunities on Bear River State Park (see Exhibit F ). The additional 34.20 acres would enhance access to the west side of the Bear - 5 -
River in Section 26. The acquisition of the 2.00 acre parcel in Section 35 would provide legal access to State School Section 36. 2. ANTICIPATED APPRECIATION OF PARCELS AS REAL ESTATE ASSET: The appraisal of the Hurdsman property and the State land indicates that land of this type is appreciating in value at 5% per year. Appreciation in land value is a function of supply and demand and the local community s economic condition. The appraisal indicates that the State land and the Hurdsman land are appreciating at approximately the same rate. CONCLUSION: The Office has completed the Detailed Analysis as required by the Board s rules. The Detailed Analysis has determined that the proposed land exchange meets the following Land Management Objectives: 1) Better meet the beneficiaries short and/or long term objectives: a) Revenue Acquisition of the Hurdsman land would not result in additional revenue to the State. The land would be incorporated into the Bear River State Park and managed as such. The disposal of the State land will not result in a loss of revenue since the land has been used for grazing by the State Honor Farm under an agreement with the State Hospital. b) Investment Returns i) Asset Value The appraised value of the Hurdsman Land proposed in the exchange is equal in value to the State Land in the proposal. ii) Appreciation potential The Hurdsman Land and the State Land should continue to increase in value at a minimum of 5% per year. 2) Improve the manageability of the assets: a) Consolidate ownership patterns The addition of the 36.20 acres Hurdsman Land would provide better access to users of the Bear River State Park and other state land in the immediate area. The exchange would result in a net reduction in State ownership of 23.80 acres. b) Leverage management resources of other agencies/entities The acquired land will be managed by State Parks. 3) Meet a specific school and/or community need: a) Provide growth opportunity and recreational opportunities The addition of the 36.20 acres would allow for the expansion of the Bear River State Park. This Detailed Analysis is being distributed to the public in accordance with the rules. The detailed analysis is also available on the Office s website. It is also available for public viewing at several locations in Uinta County. As required in the rules, one public hearing will be conducted in Uinta County. The date, time and location of the public hearings will be advertised in the Uinta County Herald and the Casper Star Tribune. - 6 -
This Detailed Analysis includes the following documents and attachments as required by the rules: Detailed descriptions of the State land and the Hurdsman land, including maps and photographs. A summary of the appraisal of the State Land and the Hurdsman Land. The Office has made the appraisal of both properties available for public review in the Cheyenne Office. The Bear River State Park Site Acquisition Proposal which includes the evaluation by State Parks and the Wyoming Game & Fish Department. Anticipated Investment Returns from Income Generation and Appreciation. LIST OF EXHIBITS A B C D E F G Exchange Proposal from Hurdsman Authorities of the Board to Exchange Land Land Exchange Proposal Map Photographs of the State Trust Land Photographs of the Hurdsman Land Bear River State Park Site Acquisition Proposal Game and Fish Department Letter - 7 -