Rescheduling Request for FY 2006, Project 199106200

 
Access CBFWA's Status of the Resource (SOTR) website or BPA's Report Center for more information on project 199106200
SOTR Project & Correspondence
Project
Pisces Report
Project Status Work Funded
Section 1: General Administrative Information
BPA Project Number: 199106200
BPA Project Name: Spokane Tribe of Indians Wildlife Mitigation
BPA Contract Number,
Release and Name
(if applicable):
No 1: 00029666 Release: Contract Name: 199106200 EXP BLUE CR WINTER RANGE
COTR/BPA Project Manager: Jan Brady
Agency, Institution or Organization Requesting Rescheduling: Spokane Tribe of Indians
Funding Type: capital
Contact Person
First Name: Kelly
Last Name Singer
Address: PO Box 480
City, State Zip: Wellpinit, WA 99040
Phone: 509-626-4428
Fax: 509-258-9600
Email: kellys@spokanetribe.com

Section 2: Financial Information/Budget for Rescheduled Activities
Original Budget for Rescheduled Activities FY 2006: $ 0
Proposed Budget for Rescheduled Activities FY 2007: $500,000
Explanation or Additional Information: The Spokane Tribe requests a pre-schedule of work that was planned for FY07-09. We request that all work to acquire wildlife mitigation lands, identified for FY07-09, be completed in FY07. Acquisition of these acres has the potential to complete mitigation for the Spokane Tribe’s wildlife losses related to the construction and inundation from the Grand Coulee Dam. ~~ Background: The Tribe has been working since FY06 to acquire 3,937 acres of land as wildlife mitigation for Grand Coulee Dam Wildlife losses. The first tract is a 10-acre Tribal Allotment that has been in the acquisition process over 1 1/2 years. The sale was unable to close in FY06 due to appraisal issues. ~~ The vast majority, 3,927 acres, consists of 29 individual tracts ranging from 40-600 acres in size and owned by Forest Capital Partners (FCP Timber Company). Through the Province Review, the Project was scheduled to acquire the FCP lands over the 3 years of the Rate Case (FY07-09) at a cost of $2,250,000 per year (total of $6,750,000). ~~ However, in early FY07, senior management at FCP said they preferred a straight forward sale where all lands were purchased together at the same time. From their standpoint, a one-time sale would reduce time and money including the cost and effort of revising outdated appraisals. From the tribe’s standpoint, there is a desire to purchase lands soon because land values are going up rapidly due to investor interest and commensurate inflated prices. ~~ The Tribe has contracted and received two appraisals which include all 30 tracts of land with a total purchase price of $5,482,000. These appraisals are currently being reviewed by BPA for final approval. ~~ Outcome: We are requesting – in essence – an advance of $3,250,000 of capital funding to cover the appraisal amounts and closing costs to acquire all 30 tracts of land in FY07 for estimated cost of $5,500,000 ($18,000 estimated for closing costs). This action will result in a direct savings to Bonneville of over one million dollars ($1,250,000) in capitalization funds for the FY07-FY09 rate period.

Section 3: Financial Information/Budget for Rescheduled Activities
Activity Description Original Start Date Original End Date New Start Date New End Date Condition/Situation Creating the Need to Reschedule Cost What Will Enable the Work to be Achieved Now?
Acquisition of 3937 acres of land for Wildlife Mitigation of the Grand Coulee Dam construction and inundation losses on the Spokane Indian Reservation.  10/1/2007  9/30/2009  10/1/2007  9/30/2007  The landowner wants to conduct a one time sale and high demand for Capital funding in FY08 & FY09.  $3,450,000  Nearly all pre-acquisition work is complete at this time and all parties want the project completed in FY2007. 

Please explain why the following alternative funding solutions are not feasible and would jeopardize the project:
Reducing existing scope of project
(i.e., eliminating some activities planned for FY 2007 to accommodate the FY 2006 activities)
Not applicable.
Shifting entire schedule
(i.e., deferring some FY 2007 activities to FY 2008 to avoid doubling up on activities this year)
There are several issues that jeopardize the Project if not done entirely in FY07 ~~ We may not be able to obtain the land we want - Due to shifting priorities, FCP may choose not to sell if the project is not completed as a one time total purchase. ~~ Realty time and costs will go up - FCP may require a new appraisal in FY08 since land appraisals are only considered good for about 6 months. The Project spent about $28,000 on the appraisals in FY07 and it would not be beneficial to have to conduct more appraisals on the same tracts of land. ~~ Land values will go up - With the ever increasing land prices in northeast Washington and fluctuating timber costs it is likely that a new appraisal could result in a significant increase in cost, which could impact the F&W budget or jeopardize the project completely. FCP expected the appraisal value to be higher but are still willing to sell at the lower value now, if the sale is completed all at once. If the project is not completed fully in FY07, they have already indicated they would need to have another appraisal conducted. ~~ Uncertain BPA capital funding in the future - Another problem the Project faces is that Capital funding in FY08 & FY09 may be restricted due to the construction of 2 new hatcheries scheduled in the region. BPA has indicated that funding for Wildlife land acquisition will not be a priority with the hatchery construction taking place. If the project is not completed in FY07, the Spokane Tribe faces the potential loss of an important Wildlife Mitigation project that could complete the construction and inundation losses at Grand Coulee Dam.

Section 4: Documents Pertaining to this Reschedule
No documents are associated with this request