Maybe some good news? Proposed BLM land purchase on the Musselshell River

[Big Fin]

Bad news. Government money from LWCF cannot be used to pay above appraised market. When private buyers come in with boatloads of cash, they can pay whatever they want and agencies or groups using LWCF dollars will be outbid.

This one was close to being done. Wish it had a different outcome.

 

[TOGIE]

Bad news. Government money from LWCF cannot be used to pay above appraised market. When private buyers come in with boatloads of cash, they can pay whatever they want and agencies or groups using LWCF dollars will be outbid.

This one was close to being done. Wish it had a different outcome.

that seems like a reasonable rule for government funds...

while simultaneously feeling like a somewhat calculated rule meant to reel in what the lwcf may be capable of.

 

[brocksw]

Bad news. Government money from LWCF cannot be used to pay above appraised market. When private buyers come in with boatloads of cash, they can pay whatever they want and agencies or groups using LWCF dollars will be outbid.

This one was close to being done. Wish it had a different outcome.

So the land sold to a private buyer? Or the sellers decided they wanted more money and its still for sale?

 

[Irrelevant]

Maybe the ole APR will swoop in

 

[brocksw]

that seems like a reasonable rule for government funds...

while simultaneously feeling like a somewhat calculated rule meant to reel in what the lwcf may be capable of.

I know right. They over pay for everything else.

 

[Schaaf]

Maybe the ole APR will swoop in

If @Big Fin is right, that a private buyer was willing to go above appraised value, APR is out too as a non-profit.

 

[Irrelevant]

If @Big Fin is right, that a private buyer was willing to go above appraised value, APR is out too as a non-profit.

I don't think just because they're a non-profit doesn't mean they can't approve a purchase that's over an appraisal. That's usually a condition of grant funding.

 

[brocksw]

Anyone found out any details on this deal falling through?

 

[Big Fin]

Sorry to be late in some replies I think were directed toward me and my comment.

Unlike private transactions, LWCF can only be used for appraised market value purchases. From what I understand, the appraisal became the issue and thus the deal will not be completed. Unlike private parties who might have piles of cash to make up the difference on appraised value, the BLM and most non-profits cannot do that.

Sorry if I my comment implied that some private party was outbidding others on this. I don't know that as the outcome. I should have stated that differently. My comment was meant to emphasize that a private party is not bound by appraised values, however subjective appraisals may be due to the age of comparable sales or the availability in finding local sales that can be used. Not a lot of large properties are being sold on the Musselshell to provide up-to-date comps for appraisal purposes, especially when it is a rapidly appreciating market where appraisal comps lag behind the appreciation rate. That puts the benefit to private parties who have piles of cash, who can move quickly, and who aren't bound by appraised value.

To the point of NGOs not being bound by appraised value, that is true to some degree, but not in practicality. Non-profit organizations, with any level of governance, will not pay over appraised value, as there are private inurement rules they must adhere to as a condition of their 501(c)(3) status. If they were to pay a material amount over appraised value, the case could be made that a private party, the seller, benefited at the expenses of the non-profit organization. Thus a private inurement had occurred.

 

[Schaaf]

Anyone found out any details on this deal falling through?

I heard the landowners got an appraisal that the BLM thought was too high so the BLM got their own appraisal and it was lower than the first appraisal and they couldn’t agree on which to use.

If I had to guess, the landowner’s appraisal had a much higher value placed on the recreation/hunting aspect.

 

[Irrelevant]

To the point of NGOs not being bound by appraised value, that is true to some degree, but not in practicality. Non-profit organizations, with any level of governance, will not pay over appraised value, as there are private inurement rules they must adhere to as a condition of their 501(c)(3) status. If they were to pay a material amount over appraised value, the case could be made that a private party, the seller, benefited at the expenses of the non-profit organization. Thus a private inurement had occurred.

Interesting. I assumed it was simply that the governing boards would have to approve a higher than appraisal cost, which, while not ideal, doesn't mean it doesn't still fit into their mission.

What mecanism requires a non-profit to even obtain an appraisal if they are paying in cash?

 

[Hammsolo]

I probably should have read the whole thread, but I don’t have time. I just hunted 700 for elk with my brother who was lucky enough to draw a bull tag.

The 73 is poorly managed and hostile. It is prime land that needs to be connected to the CMR somehow.

The area is in its worst drought in recorded history, less than 3 inches of moisture this year according to the owners of the Harris Ranch.

The 73 didn’t irrigate this year in anticipation of the sale. After the failure of the sale they were in real trouble. Guess where their cattle were grazing??? THE CMR! Another government bail out for an irresponsible corporation…

As per standard most of the elk had moved out due to the cattle and no feed, due to overgrazing and drought.

What do we do? I’m down to donate and work.

 

[golfer]

I probably should have read the whole thread, but I don’t have time. I just hunted 700 for elk with my brother who was lucky enough to draw a bull tag.

The 73 is poorly managed and hostile. It is prime land that needs to be connected to the CMR somehow.

The area is in its worst drought in recorded history, less than 3 inches of moisture this year according to the owners of the Harris Ranch.

The 73 didn’t irrigate this year in anticipation of the sale. After the failure of the sale they were in real trouble. Guess where their cattle were grazing??? THE CMR! Another government bail out for an irresponsible corporation…

As per standard most of the elk had moved out due to the cattle and no feed, due to overgrazing and drought.

What do we do? I’m down to donate and work.

I am pretty sure its been sold.

 

[Schaaf]

Edit: No spilling the beans. But there is a buy-sell signed on the ranch.

 

[Hammsolo]

I am pretty sure its been sold.

Is this a good thing? I guess it matters to whom…

 

[Hammsolo]

Edit: No spilling the beans. But there is a buy-sell signed on the ranch.

More beans…? Who?

 

[Schaaf]

@neffa3 nailed it

 

[Irrelevant]

@neffa3 nailed it

Even a blind squirrel finds a nut eventually.

 

[MTLivin]

Well, if they are the new buyer then we should have some access to it for a potentially limited amount of time. That is a rabbit hole, but I'd rather see them purchase the property than someone like the Harris Ranch or another wealthy out-of-stater that's 100% guaranteed to lock it up.