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New revelations, new wrinkles in Idaho Supreme Court hearing on Phoenix sale • Idaho Capital Sun

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New revelations, new wrinkles in Idaho Supreme Court hearing on Phoenix sale • Idaho Capital Sun


This story was originally posted on IdahoEdNews.org on June 13, 2024.

(UPDATED, 3:56 p.m., with comment from Trudy Fouser, the State Board’s lead attorney.)

An Idaho Supreme Court justice Thursday floated a new and confounding question about the proposed University of Phoenix acquisition: Did the State Board of Education pay $1.5 million for consulting before greenlighting the deal?

State Board officials were quick to say they never paid for due diligence work, which would have been covered through tax dollars.

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The due diligence question came up during oral arguments, as the Supreme Court took up an open meetings lawsuit against the State Board. Attorney General Raúl Labrador has argued that the board broke state law when it held three closed-door meetings to discuss the University of Idaho’s $685 million plan to purchase Phoenix. The State Board gave the purchase the go-ahead in an open meeting on May 18, 2023.

Labrador’s lawsuit — rejected in an Ada County district court — has nonetheless thrown a monkey wrench into the bid for Phoenix, a giant for-profit online university serving some 85,000 students nationally. And if the Supreme Court sides with Labrador and against the State Board such a decision would further imperil the deal.

The Supreme Court took the case under advisement after a 70-minute hearing. It’s unclear when the court will rule.

Did the Idaho State Board of Education pay for due diligence?

It sounded that way, at least in Thursday’s hearing.

During a line of questions, Supreme Court Justice Gregory Moeller clearly suggested that the State Board had spent $1.5 million on due diligence. And he said the spending indicated that the Phoenix talks had progressed beyond the “preliminary negotiations” that can be held in a closed meeting.

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Moeller’s questions also seemed to draw a distinction between the State Board’s due diligence and the U of I’s consulting contracts, which have been a matter of public record for months. The U of I has spent roughly $11 million on Phoenix-related consulting — and as Idaho Education News reported in February, $7.3 million of this work went to U of I President C. Scott Green’s former employer, Hogan Lovells, an international law firm.

So did the State Board spend $1.5 million?

During Thursday’s hearing, the State Board’s outside attorney did not dispute Moeller’s claim, and said the magnitude of the Phoenix deal justified due diligence.

“(It’s) not an unreasonable action,” Stephen Adams said.

When State Board spokesman Mike Keckler was reached for comment Thursday morning, he questioned Moeller’s version of the facts.

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“Neither the board nor the board office spent funding on due diligence,” Keckler said in an email. “Given that we are in a board meeting today we weren’t able to listen to this morning’s oral arguments, so we can’t comment any further on Justice Moeller’s line of questions.”

The board has been meeting in Pocatello since Tuesday for a previously scheduled meeting running through today. No board member or State Board staff member attended Thursday’s Supreme Court hearing.

The lead attorney representing the State Board, which operates as the U of I’s governing board of regents, corroborated Keckler’s account. In an email Thursday afternoon, Trudy Fouser said the board never paid for consulting or due diligence.

Familiar — and less familiar — legal arguments

Thursday’s legal arguments revolved around two snippets in the open meetings law, pertaining to the negotiations process and competition.

The State Board justified its closed meetings under a little-used piece of the law, covering “preliminary negotiations … in which the governing body is in competition with governing bodies in other states or nations.”

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Negotiations. Chief Justice Richard Bevan seemed to set the tone for Thursday’s hearing with the court’s first question to Joshua Turner, Labrador’s constitutional litigation and policy chief: “When do preliminary negotiations cease and final negotiations begin?”

For much of the hearing, the justices grilled Turner and Adams about this question. Not surprisingly, the two attorneys saw the issue differently.

Turner argued that the preliminary talks end — and the public debate must begin — when there is an offer on the table. And Turner suggested that this must have happened sometime during the board closed meetings, in March, April and May 2023.

Adams said preliminary negotiations don’t end with an offer; they end when the parties begin work on a contract. And he said the preliminary phase ended with the State Board’s open meeting on May 18, 2023; that’s when the board agreed to pursue a contract, setting a $685 million purchase price.

Competition. This was the centerpiece in the Ada County trial in January, when District Judge Jason Scott ruled in the State Board’s favor. Scott said board members had reason to believe the U of I was vying against other public suitors, such as the University of Arkansas. (However, Arkansas’ board of trustees voted down a Phoenix purchase in April 2023, almost a month before the State Board endorsed a U of I-Phoenix affiliation.)

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But this turned out to be a secondary issue Thursday, as the court and the competing attorneys spent relatively little time discussing competition.

Adams defended State Board members, saying they worked diligently to make sure their closed meetings were legal. And he said everything the board heard in private confirmed the U of I was in the middle of a competitive bidding process.

Meanwhile, Turner took a jab at Scott. By focusing on whether board members had reason to believe the U of I faced competition — rather than proof of actual competition — Scott used a subjective measure. As a result, Turner said, Labrador’s team had no choice but to spend hours deposing individual board members for their read on the market for Phoenix.

Transparency vs. competitive advantage

The State Board’s May 2023 vote blindsided Idahoans who knew nothing about a potential Phoenix purchase, Turner said. And that preempted the process the open meetings law is designed to protect. “The public wants to be able to enter the conversation and have a seat at the table.”

In response, Adams said the board was not trying to shut out the public. Instead, he said, the board was working “to get the best deal possible for the people of the state of Idaho.”

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On Thursday, the court publicly wrestled with this question of balance.

Justice Colleen Zahn said the Legislature made its objectives known, with a law designed to allow the government to negotiate behind closed doors. “It’s clearly got to be to provide the state a competitive advantage.”

Moeller acknowledged that closed-door negotiations are a great way to run a private business. “The debate I’m having internally is, is this a good way to run a state?”

The case, in broader context

The case before the Supreme Court is legally narrow: an open meetings dispute.

Its implications run deeper.

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Labrador’s lawsuit, filed nearly a year ago, has prevented the U of I from financing a Phoenix purchase. The Supreme Court appeal has also kept bonding on hold.

As long as the lawsuit is active — and on Thursday, justices floated the possibility of kicking the case back to district court for another hearing — the Phoenix purchase remains in limbo.

And as EdNews first reported in May, Phoenix’s owner, Apollo Global Management, has said it now wants to talk with other prospective buyers. The U of I could receive “breakup fees” from Apollo if its Phoenix purchase falls through.

More reading: Click here for more in-depth, exclusive Phoenix coverage from Idaho Education News.

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‘I’ve never seen something that big’: Boise neighbors finding rats in their backyards

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‘I’ve never seen something that big’: Boise neighbors finding rats in their backyards


BOISE, Idaho — A Boise neighbor said she trapped the largest rat she has ever seen in her backyard, and a local pest control expert said he has already responded to multiple Treasure Valley homes this year to remove the rodents. As sightings increase, Idaho lawmakers are also taking action.

Britni Killeen, who grew up on a farm in East Idaho, said nothing could have prepared her for what she found in her West Boise backyard.

WATCH: What to do if you spot a rat near your residence

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Rats spotted on the Boise Bench. What experts say you should do

“I’m a 5th-generation Idahoan, and I’ve never seen something that big,” Killeen said.

Killeen believes the rats may be swimming through the Hyatt Hidden Lakes Reserve and making their way into nearby neighborhoods.

“We live next door to the refuge, and if you have a gap between your fence, which we do, it’s about 3 ft, they come into your yard, and they can go under fences,” explained Killeen.

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Alpha Home Pest Control has served the Treasure Valley for over 10 years. Owner Mike Hill said he has been receiving weekly calls about rat sightings. While some turn out to be false alarms, he has already visited seven Treasure Valley homes this year to remove rats. Hill said many of them may be arriving from out of state and staying because of the mild weather conditions.

“Washington, California, the shipping, the freight coming back and forth, they’re kind of stowaways,” Hill said. “Then with the mild winters that we’ve been having, [it] hasn’t really been killing them off.”

RELATED | ‘It was like an explosion of rats’: Neighbors report rise in pests

Hill said Norway and Roof rats can pose serious risks to both health and property.

“They carry disease, they carry fleas, ticks, they can chew through your wiring in your home,” Hill said. “Their teeth grow very rapidly, so there have been cases where they’re up there chewing on wires, [and] the house burns down.”

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If you spot a rat, Hill recommends calling a professional to ensure there are not more hiding nearby. He also offered several prevention tips.

“The droppings of the fruit, excess fruit, keep that stuff picked up. Make sure that your trash is enclosed in either a hard plastic or metal container,” Hill said.

RELATED| Rodents of Unusual Size Act advances to House after 28-3 Senate vote

As rat sightings increase across the Treasure Valley, lawmakers are taking notice. On Thursday, the Idaho Senate passed the Rodents of Unusual Size Act, which would declare Norway and roof rats a public health and safety nuisance and requires the state to take action to control and remove them. That bill now heads to the House.

Killeen said the legislation is a step in the right direction.

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“Considering how big that rat is, I would definitely say so,” Killeen said. “I didn’t even know that big of rats could exist in Idaho, but maybe I’m just rural.”

This story was initially reported by a journalist and has been, in part, converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.





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Idaho lawmakers introduce bill to phase out state funding for Hispanic Affairs commission

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Idaho lawmakers introduce bill to phase out state funding for Hispanic Affairs commission


BOISE, Idaho — Idaho lawmakers have introduced legislation that would phase out state funding for the Idaho Commission on Hispanic Affairs while keeping the commission in place.

The proposal, introduced by Rep. Jeff Ehlers, would gradually eliminate general fund support for the commission by July 1, 2028. The commission would continue to operate but would need to rely on private funding.

Rep. Ehlers told the House Revenue and Taxation Committee on Thursday that the proposal came from recommendations by Idaho’s DOGE Task Force, which reviewed government programs and spending.

READ MORE | Idaho DOGE Task Force recommends defunding Idaho Commission on Hispanic Affairs

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The bill would also eliminate the commission from a list of organizations eligible for a state income tax charitable contribution credit.

Rep. Steve Berch questioned why the legislation would remove both state funding and the tax credit option, saying it could make it more difficult for the commission to raise money.

“I hate to use this word, but I’m really offended by this specific effort to make it that much more difficult for private citizens to be able to contribute to the Hispanic commission,” Rep. Berch said in committee. “I don’t think this can be justified from a financial point of view, and quite frankly, I don’t think it can be justified from a moral point of view.”

In response, Rep. Jason Monks said that it would be more “offensive” to not allow further discussion of the bill before a final decision is made.

The proposal comes after an earlier attempt this session to eliminate the commission entirely. In January, Rep. Heather Scott presented a draft bill that would have removed all references to the commission from Idaho law and dissolved it by July 1, but that measure failed to advance out of committee.

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The committee ultimately voted on Thursday to introduce the legislation, allowing it to be printed and advanced for further debate.

This story has been, in part, converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.





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Local woman having ‘closet revival’ with new consignment store – East Idaho News

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Local woman having ‘closet revival’ with new consignment store – East Idaho News


Shanea Fulks is the owner of Seven Sisters Closet Revival, a new consignment store at 260 South Woodruff in Idaho Falls. Take a look inside in the video above. | Rett Nelson, EastIdahoNews.com

Do you want to know what’s happening in the eastern Idaho business scene? We’ve got you covered. Here is a rundown of this week’s business news across the valley.

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IDAHO FALLS

New consignment shop in Idaho Falls offers vintage clothes for customers and booth space for sellers

Clothes on display at Seven Sisters Closet Revival | Rett Nelson, EastIdahoNews.com

IDAHO FALLS – Curating vintage clothing is Shanea Fulks’s passion, and she’s sharing it with the community through a new business venture.

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Seven Sisters Closet Revival opens Saturday at 260 South Woodruff inside Parkwood Plaza in Idaho Falls. It offers racks of vintage clothes for customers and booth space for others to sell their items.

“You get a rack with shelves, and you can come in throughout the week and sell things,” Fulks tells EastIdahoNews.com. “The things you’ll see in the middle of the store are pieces that I have curated. I hand-pick all the things I bring to the store.”

See some of the items in the video above.

Fulks says she’s had multiple people walk in already who are excited about the shop.

The store will have a grand opening this weekend. Fulks is partnering with the Greater Idaho Falls Chamber of Commerce for a ribbon-cutting and open house at noon on Friday. A local band will be performing during the event.

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Then on Saturday, a grand opening celebration will begin at 2 p.m. Several vendors and live entertainment will be available. Fulks says she’s looking forward to interacting with the community.

Fulks has been selling items from her personal collection online for years. After helping a mother and daughter find a formal dress during an interaction at another shop in town several years ago, Fulks says she realized there was a need for a store like this.

After about a year of working with real estate agents, Fulks says the Parkwood Plaza space formerly occupied by a beauty salon called Blush became available, and it was an ideal fit.

“It’s just been a whirlwind and we’re just trying to get it going,” says Fulks.

A rack of sweaters at Seven Sisters Closet Revival | Rett Nelson, EastIdahoNews.com
A rack of sweaters at Seven Sisters Closet Revival | Rett Nelson, EastIdahoNews.com

Fulks’ interest in fashion stems back to childhood. She lost her dad and stepdad to suicide at a young age and grew up in a household that struggled to make ends meet. As a result, she says they bought clothes at Goodwill and other secondhand stores.

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She remembers being made fun of because of the clothes she wore. In time, she learned to embrace her uniqueness and developed an interest in vintage clothes.

“I’ve just always been attracted to old sweaters, military jackets (her dad served in Vietnam),” Fulks says. “I like to help people feel confident wearing something unique, even if it’s not trendy. Be bold and wear whatever you want.”

The idea of making the most of your circumstances and embracing who you are is inspired by her experience with suicide, and it’s reflected in the art that’s on display in her store.

“Part of the theme in my store is ‘Stay. We need you,’” she says.

Art on display at Seven Sisters Closet Revival | Rett Nelson, EastIdahoNews.com
Art on display at Seven Sisters Closet Revival | Rett Nelson, EastIdahoNews.com

The business name refers to her family. She comes from a blended family of six girls and four boys. When she and her husband were married, they had a daughter — the seventh sister.

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Fulks says she’s looking forward to offering great deals to customers. She has two sons with autism who love art, and she wants to host art-themed events for people with special needs. She’d also like to host tea parties and other events in the future.

“I want people to come and feel like they belong,” she says. “I’m going to allow people to do karaoke. When you’re here, I want you to feel like you can have fun.”

Seven Sisters Closet Revival will be open from 10 a.m. to 7 p.m. Monday through Saturday.

IN CASE YOU MISSED IT…

Women’s-only gym offers ‘unintimidating and beginner-friendly’ atmosphere

New surgeon at Idaho Falls clinic does oral, jaw and facial work

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Elsie’s Closet in downtown Idaho Falls is a ‘whole vibe’ and tells a story

Pocatello-based transportation company acquires competitor Yellowstone Transportation

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