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LCO Real Estate Services Report for the Membership

By Nita Kemp

LCO Realty Director


Reminder:

Always remember to update your change of address with the LCO Citizenship (Enrollment) Dept. Also, if you own undivided interests in Indian Land and have an Individual Indian Money Account (IIM Account), update the Office of the Special Trustee in Ashland, WI.


Leases:

Please provide any change in your mailing address to the LCO Real Estate Services Department.


Lease Rent:

If you are leasing trust land, the Annual Rental Fee is $25.00. The rent due is in the month your lease was approved by the Bureau of Indian Affairs. When the invoice is received, you have 30 days to pay this lease rent. When the individual Lessee has an issue and will be late, no problem, just communicate with the Real Estate Services office and we can always work out a payment plan.


Land Ordinance:

The Tribe’s existing Land Ordinance is very outdated and is being updated in the Lac Courte Oreilles Legal Dept. It is the tribal governing board’s wish that once the Land Ordinance has been reviewed and adopted, the lease applications on file in the LCO Real Estate Services office will be reviewed and long-term residential leases can be then offered to the LCO Tribal Members who meet the eligibility requirements.


Parcels of Land for Leasing:

Historically, there are land leases that have been approved for tribal members but the parcels of leas land have not been improved with homes. These particular sites may be made available for future home sites. The Tribe purchased over 880 lots in the Northwoods Beach Subdivision earlier this year. From the 880 lots purchased on land contract, some of the lots are scattered and are not large enough for a leased home site. There are 113 building sites that do have enough lots to make a home-site. Typically, it takes 5 or 6 lots to create a building site.


Recent Land Acquisitions:

March 16, 2018 – Land Contract with Thorp Properties, LLC

Northwoods Beach Subdivision: 882 Lots, 113 buildable sites and scattered lots.

World’s End Road: 40 Acres

Blueberry Fire Lane: 3 parcels, 9.10 acres, 3.40 acres, 12.75 acres = 25.25 acres

May 16, 2018 – 27.72 Acres from Rosalie Sheptick – South of the C Store 2 West Co. Hwy K.

May 16, 2018 – 3.00 Acres from Sherry and Rick Hodd – South of 27.72 Acre purchase (White House), 9987N Co. Hwy K.

August 17, 2018 – 5.0 Acres, Lot 4, Indian Trail Avenue from E. Benton, Sr.


Sawyer County Land Sale:

The LCO Real Estate Services with tribal governing board approval bid on 9 parcels. 7 of the 9 bids were granted to the LCO Tribe.

Parcel No. 23: Abendpost Beach, Block 20, Lots 1 & 2. (adjacent to lots owned by the Tribe.)

Parcel No. 29: Rockford Beach, Block 15, Lots 3 & 4 (adjacent to lots owned by the Tribe.)

Parcel No. 31: Part SW1/4 SE1/4 Section 33, Township 40 North, Range 8 West. 10.00 Acres Smith Road.

Parcel No. 37: Part E1/2 NE1/4, Lot 3, CSM No. 1351. 5.0 Acres Indian Trail Avenue. (adjacent to lot owned by the Tribe.)

3-Lots pending to close December 1, 2018. – Pending negotiations with Futurewood Corporation for several large parcels on the LCO Reservation. – Pending closing on 2 – 13.34 Acre Parcels of Sole Heirship Land.

A Land Contract for 40.00 Acres – Seller, P. Frasier was paid off early. South of the Ashegon Fire Lane and West of Co. Hwy H.

The total fee simple land acres owned by the Tribe as of 10/25/18 is approximately – 11,950.33 Total Acres.

The Total Acres purchased by the Tribe in the last fiscal year October 1, 2017 through September 30, 2018 is 452.00 acres.

The Tribe was able to purchase this acreage with tribal fee land stumpage revenue and the PL Stumpage account at the OST. There are no bank mortgages and no liens on the tribal fee simple land. There are however, the 2 land contracts with Thorp Properties, LLC @ 5% interest rate for 5 years and will be paid in full, prior to the 5-year term.


Forestry Update:

The LCO Tribe continues with the agreement with Futurewood Corporation to manage timber sales on Fee Lands within the exterior boundaries of the Reservation. Active timber sales: Lemington parcels, West of Co. Hwy C. The Grindstone Springs sale has some further cutting to be completed. Futurewood Corp. Timber Sale Revenue: $143,818.10, and TEAM Logging: $15,658.50.


June 17, 2018 Storm Damage to Timber north of Froemel Road, East & West of Round Lake School Road. The Tribal Governing Board entered into an agreement for the removal of damaged timber by Hayward Land & Logging Co. The loggers have been on this project beginning early July to the present time. Currently, Hayward Land & Logging is doing cleanup West of Osprey Creek. The safe and timely renewal has generated stumpage revenue for the LCO Tribal Stumpage Account. Storm Timber Revenue to date: $19,606.52.


The Bureau of Indian Affairs Forestry Staff have also been performing cleanup on trust land that has a lot of timber damage. This creates revenue to the BIA Forestry Stumpage Account. Year End Baland for OST Forestry Management Deduction Account (also known as the 10% tax account) is: $194,274.58.


(FMD or Forestry Management Deduction is a trust account held with OST (Office of the Special Trustee). The FMD monies come from trust land timber sales. For LCO, the FMD percentage is 10%. So for every dollar of stumpage money collected, 90% gets distributed to the owners (LCO Tribe or allottees), and the 10% goest into the LCO FMD account. This happens on both Tribal and Allotted trust land timber sales. Not fee lands owned by the Tribe. The 10% account has a yearly budget for Forestry activities only, such as a Forester wages and fringe.


The OST proceeds of Labor Stumpage Account Year End Balance 9/30/18 is: $110,809.30

This account is held with the Office of Special Trustee also. This account receives the 90% portion of timber sale proceeds from tribal land timber sales only. There are no Forest Management strings attached to funds in this account. The Tribe may draw money down from OST and spend it on whatever they need to. (Including land purchases, as the Tribe has always done.)


The 2 active land contracts with Thorp Properties, LLC are paid monthly and large principal payments are made when funding is available, to retire the land contracts earlier than the 5-year terms. The land contracts are negotiated at 5% interest and 10% paid of the purchase price. Mid-summer 2018, $200,000.00 was applied to the land contracts as principal payment. This money was drawn down from the PL Stumpage Account at the OST.


TEAMS or Trust Asset & Accounting Management Systems:

After a long application process, as Real Estate Services Officer, I was approved for access to the TAAMS Software Program. The Bureau of Indian Affairs provided the laptop and training to access the TAAMS program. I will be able to perform online searches rather than rely on the BIA Great Lakes Agency staff to complete the tasks. It has already been proven to be very convenient tool to confirm land status, search for easement documents, etc.