Transfer and Replacement
Once the list of eligible parcels for the Trust Land Transfer (TLT)program has been prioritized by the advisory committee, DNR will prepare a funding request for the Washington State Legislature. The request is based on the estimated fair market value of all the parcels on the prioritized list, combined. Fair market value is based on the parcel's highest and best use and includes the value of land and what is on the land (such as timber, other valuable materials, and improvements owned by the state).
The Legislature will consider the request and set the funding level in the context of other, competing funding needs. DNR may or may not receive enough funding to transfer all of the parcels on the list.
DNR will present each legislatively approved and funded parcel to the Board of Natural resources for their approval. Once approved, each parcel will be transferred directly to the receiving agency. The receiving agency does not purchase the land, and all of DNR’s standard transfer-related expenses, such as the appraisal, will be funded through the legislative appropriation.
Once the transfer is complete, the receiving agency will be responsible for all costs associated with managing the parcel. Parcels that are not funded by the Legislature can be proposed again in a subsequent biennium.
At the time of transfer, DNR will conduct a formal appraisal of each funded parcel. The appraised value of each parcel (including the timber, other valuable materials, and improvements owned by the state)* will be deposited into the following accounts, depending on the type of state trust lands being transferred:
- For federally granted lands, the appraised value will be deposited into the Real Property Replacement Account.
- For State Forestlands, the appraised value will be deposited into the Parkland Trust Revolving Account.
DNR uses the funding in these accounts to purchase replacement lands for the affected trust. For example, if DNR transferred a Common School Trust parcel with an appraised value of $7 million, DNR will deposit $7 million into the Real Property Replacement Account. DNR will use this funding to purchase replacement land specifically for the Common School Trust.
*For transfers of State Forestlands, affected counties may request up to 100 percent of the proceeds from the timber and other valuable materials on the transferred land as a one-time payment. Counties must submit a request for this funding in writing to the Board of Natural Resources.
What does DNR look for in replacement lands?
For trust beneficiaries, the primary benefit of the TLT program is the opportunity to improve the overall revenue-generating potential of the state trust lands portfolio. DNR accomplishes this through careful selection of replacement lands. DNR looks for productive land that can be managed for revenue-generating activities such as timber production, agriculture, or other uses over the long term.
For State Forestlands, DNR looks for replacement lands that are within the same tax district as the parcel being transferred. If no replacement lands are available in that area, DNR will search for replacement lands within the same county.