Idaho Supreme Court dismisses Idaho Transportation Department headquarters lawsuit • Idaho Capital Sun

The Idaho Supreme Court on Tuesday dismissed a lawsuit filed by the would-be buyers that the Idaho Legislature blocked from purchasing the Idaho Transportation Department’s former Boise headquarters.

In a unanimous decision, the five Idaho Supreme Court justices dismissed the lawsuit, writing that the state did not sign a contract with the would-be buyers of the property. The buyers were the high-bidders for state surplus property, but did not have a legally enforceable contract, the Idaho Supreme Court found.

“Our decision is based solely on our conclusion that petitioners do not have a legally enforceable right to purchase the ITD campus and as a result, they do not have standing to file this action,” Idaho Supreme Court Justice Colleen D. Zahn wrote in the opinion.

In a written statement Tuesday, the would-be buyers expressed disappointment in the ruling. The buyers included Hawkins Companies, Pacific West Communities, INC. and FJ Management.

“We are shocked by the Idaho Supreme Court’s decision to dismiss this case, avoiding a decision to correct the unconstitutional legislative interference in our state’s budget process,” Hawkins Companies CEO Brian Huffaker said in a written statement. “We continue to believe any review of the unchecked actions of the Idaho Legislature would have found them to be illegal.”

“Despite months of opportunities for all three branches of state government to participate in fair business dealings, none have chosen to do so,” Huffaker added. “Those choices, along with the actions of the Idaho Legislature, send a clear message: Don’t do business with Idaho. All of us – citizens and businesses alike – should be concerned.”

 “We now hope the taxpayers hold legislators and state leaders accountable for lost revenue and opportunity stemming from their unprecedented interference with the free market,” Huffaker said.

The Idaho Supreme Court had originally scheduled oral arguments on the case Aug. 26, but Tuesday’s opinion dismissed the case and makes oral arguments unnecessary. 

The 45-acre property at the center of the case is the Idaho Transportation Department’s former Boise headquarters located at 3311 W. State St. in Boise. 

A series of events led to the lawsuit. 

• In January 2022, the building flooded and was contaminated with asbestos, according to court documents. 
• In August 2022, the Idaho Transportation Department’s board declared the property “surplus property,” paving the way for it to be put up for sale.
• In November 2023, state officials told the Idaho Legislature’s Joint Finance-Appropriations Committee that the state sold the State Street property to a joint venture including Hawkins Companies, Pacific West Communities and FJ Management for $51.7 million, the Sun previously reported. 
• On March 1, the Joint Finance-Appropriations Committee approved budget language blocking the sale of the property. That day, some legislators on the committee told the Sun the contract had not been signed and money had not yet changed hands. They said they felt it was more financially responsible to keep the property and refurbish it. 
• On April 25, the would-be buyers filed a lawsuit against the state asking the Idaho Supreme Court to throw out legislative budget language that blocked the state’s authority to sell the property, the Sun previously reported. 

The would-be buyers said they followed all of the state’s purchasing requirements, made the high bid in a competitive bidding process and felt they had a deal. But the state argued that it had discretion in concluding the sale and was not obligated to sign a contract with the high bidder or even complete the sale at all.

In the end, the Idaho Supreme Court ruled that the would-be buyers did not have standing to file the challenge, and did not not look at whether or not the Idaho Legislature overstepped its authority to block the sale. 

“To be clear, our opinion today does not decide whether the legislature exceeded its

constitutional authority in passing the appropriations bills,” Zahn wrote in Tuesday’s opinion. “It also does not decide whether a party with standing would be entitled to the requested writs.”

Idaho Supreme Court ITD opinion