The acquisition and management of a self-storage facility in Boise, Idaho, by the state of Idaho has caused controversy in the industry, and spurred two self-storage associations into action.
Recently, the national Self Storage Association and the Idaho Self Storage Association wrote a letter of opposition to the Idaho Department of Lands. According to the SSA’s most recent newsletter, the associations believe the purchase and management of Affordable Self Storage by the state creates an unfair competitive advantage. The associations have requested the state of Idaho divest itself of the self-storage facility.
The state paid $2.7 million in August for the 400-plus-unit facility on Maple Grove, in a Boise suburb. In an effort to increase its return on investments, the agency that oversees the state’s endowment lands added the storage site to a portfolio of properties that includes offices, parking garages and grazing land. The endowment benefits public schools and has generated $2 million to date.
Affordable self-storage is run as a tax-exempt facility. Though state ownership and operation of the property is legal, some people are concerned about the removal of this and other commercial properties from the tax rolls while competing with private businesses.