Ed board approves UI Home Depot deal

The Idaho State Board of Education on Wednesday unanimously approved a ground lease between the University of Idaho and Home Depot for a proposed 136,000-square-foot retail store and garden center in Moscow.

The proposed site for the store is on University of Idaho land just north of the Palouse Mall near the intersection of Farm Road and A Street. The site is used by UI for pasture and cropland.

Brian Foisy, the university’s chief financial officer, told the SBOE that revenue from the transaction with Home Depot will directly support UI education programs and help keep costs low for students.

“We believe there is a higher and better use for this land and the lease revenue will be shared with our College of Agriculture and Life Sciences, meaning this transaction will directly support the ag programs which are a hallmark of our land grant mission,” he said.

He said Home Depot approached the university with the proposal to build a store on UI land.

“We also understand that Home Depot’s evaluated other sites, meaning they were planning to come to town whether they selected the U of I site or some other privately owned land in town,” Foisy said.

While the university-owned land is not subject to property taxes, the building that Home Depot will own is subject to property taxes, he said.

Foisy said the rate for the 20-year lease starts at $90,000 a year and will ultimately grow to $291,000 per year at the end of the final five-year renewal cycle.

Foisy said this store is not being subsidized by UI in any way and there are no other financial arrangements between the university and Home Depot outside of what is stated in the ground lease. He said the commercial use of the land is consistent with Moscow’s comprehensive plan.

Many of Foisy’s comments were meant to address concerns raised by more than 150 people who sent letters to the SBOE opposing the ground lease deal.

Tyler Garrett, owner of Moscow & Pullman Building Supply, wrote a letter warning the SBOE that bringing in a large national retailer like Home Depot will be detrimental to Moscow and its economy. Garrett asked community members to sign the letter and email it to the SBOE.

Garrett argues in his letter that the UI land in question would be of greater benefit to Moscow and its economy if it was home to a local or regional business.

“While competition is good and healthy for any business big or small, introducing a juggernaut like The Home Depot greatly risks damaging the diverse and vibrant community that we all know and love,” Garrett wrote in his letter.

UI President Scott Green addressed Garrett’s letter during Wednesday’s meeting. He complimented Moscow & Pullman Building Supply and added that he and his wife will still be patrons there.

He also stated that the locally owned business should hold up to competition.

“From my perspective, they can defend their turf,” he said.

Green said keeping Home Depot out of the Moscow community “robs consumers of choice.”

State Board Member Kurt Liebich reiterated the possibility that Home Depot will find another way to locate in Moscow even without the UI deal.

“If we don’t do this deal for the benefit of the University of Idaho, if they want to be in this market, they’ll find another place to be in this market,” he said. “So I think this is the right thing for the students of Idaho.”

Kuipers can be reached at akuipers@dnews.com.