ACTION ALTERNATIVES A AND B 



The following is an estimated value for the 

 Murray Lake cabinsites. The value is not 

 discounted; it is assumed that we would 

 develop them today. The 4 lots could range in 

 , value from $30,000 to $47,500 per lot. The lots 

 would be competitively bid. The bids could 

 return 3.5% to 10% of the value of the lot. The 

 estimated annual lease payment would be 

 from $1,050 to $3,000 (low range) to $1,662 to 

 $4,750 (high range) per lot per year. The 

 estimated total value for the 4 lots is in the 

 range of $4,200 to $19,000 per year. 



Due the uncertainty from a court ruling re- 

 lated to the cabirisite rates, there may be little 

 opportunity in the next 5 years to market and 

 develop the Murray Lake site. Thus, the value 

 estimates should be discounted. 



The proposed cabinsites on Murray Lake 

 reduce the number of high-quality (lakefront) 

 recreational acres in the Beaver Lake area. The 

 area included in a cabinsite lease is excluded 

 from the area covered by the general 

 Recreation Use License. Basically, a cabinsite 

 lease transfers the use of the land from the 

 general recreating public to the exclusive use 

 of the cabinsite lessee. West of the proposed 

 cabinsites is an area that has been used heavily 

 in the past by the general recreationist; this 

 area would remain unleased. Adding these 

 cabinsites on Murray Lake could help 

 moderate the amount of human impacts from 

 the general recreationist in the Murray Lake 

 area. The assumption is that cabinsite lessees 

 are better behaved and would influence the 



behavior of the general recreationist by direct 

 communication, involving the local law 

 enforcement, or clearung up after them. .8 



SELLING CABINSITES 



ANALYSIS OF SELL VERSUS "I 

 KEEP ■ 



The following is an analysis done using cur- 

 rent Land Board policy regarding the sale of a 

 typical cabin lease site on Beaver Lake. A 

 similar analysis would be completed for 

 proposed cabinsite sales following an applica- 

 tion to purchase. This analysis would be 

 completed prior to consideration of the pur- 

 chase request by the Land Board. 



EXAMPLE : 



Legal Description: Lot X Beaver Lake f\ 



The appraised value determined by the 

 Department of Revenue (DOR) based on 

 the 1982 market is $9,180. The 1996 .il 

 value is $29,800. According to Depart- 

 ment of Revenue appraisals, this prop- 

 erty has appreciated 8.7% annually from 

 1982-1996. 



Given the assumptions listed below and 

 in Chapter IH, the value of the land, plus ''" 

 cabinsite lease revenues if the land were 

 not sold, exceeds the income generated 

 from selling the land at Year 1. At Year 

 60 the value of retaining the site is 

 $6,277,639 to the trust, versus $190,951 if ' 

 the site were sold. 



Chapter IV: Environmental Consequences 



ilV-37) 



