Council approves three-year lease with Human Rights Education Institute for historic park building after lengthy debate

The Coeur d'Alene City Council on July 15 approved a three-year lease with the Human Rights Education Institute (HREI) that allows the nonprofit to continue using the historic brick building at 414 West Fort Grounds Drive in City Park.

Council members voted 4–3 to approve the lease as presented and directed city staff to study the building’s highest-and-best uses during the three-year term. The vote came after more than an hour of public comment and council discussion about unpaid rents, documented capital improvements and restrictions on the parcel’s use under federal land patents.

The building sits along the boundary of Lots 48 and 49 in City Park and carries a complex ownership and use history. City staff told council the parcel was the subject of an 1904 Act of Congress and a 1967 land patent that limit uses to park and recreational purposes unless the city obtains approval from the U.S. Secretary of the Interior. The Bureau of Land Management (BLM) has administered related approvals in the past, city staff said.

City staff presented the proposed lease terms as negotiated with HREI. Staff said HREI has historically received credits to offset rent for capital improvements; records show a documented credit of $149,574.42 approved in a 2007 amendment that staff said offset rent through late 2017. HREI also submitted a $10,000 payment on Jan. 23, 2025, to reimburse the city for a roof repair. Staff said they had incomplete documentation for some additional improvements HREI claims and that the city and HREI had negotiated the new lease to provide stability for the nonprofit while the city clarified its options for the property.

Under the version of the lease before council, staff said utilities (water, sewer, gas, electric, cable and telephone) would count as rent for the first two months; for the remainder of the initial term HREI would pay a modest monthly rent (staff discussed $500/month for part of the term and $1,000/month in renewal periods as a negotiation point). Council members said the rent amounts reflected HREI’s nonprofit funding model (donations and grants) and staff’s effort to set a number the organization could sustain. The council’s motion approved the lease “as presented” but limited approval to a three-year arrangement and explicitly directed staff to evaluate alternative uses for the building during the lease term.

During the discussion, councilmembers pressed staff for clarity on the size and documentation of capital improvements, legal constraints created by the land patent and whether the city has operational uses that would require Secretary of the Interior approval. HREI board representatives and volunteers described the organization's programming, regional reach (serving school districts across Eastern Washington, northern Idaho and western Montana), its volunteer supervision capacity and partnerships with local nonprofits and first responders.

Councilmembers who voted in favor emphasized the community role of HREI and the desire not to leave the building vacant and incurring city utility and maintenance costs. Those who voted no said they were uncomfortable with the city acting as a landlord to an organization with several years of unpaid or undocumented rent credits and argued for a shorter interim arrangement or stricter rent repayment terms.

The council’s formal action allows HREI to remain in the building for the approved term. Staff will return with findings on alternative uses and any recommended lease amendments or future disposition options before the lease expires.

Votes at a glance: The motion to approve the lease as presented for a three-year term and with staff direction to study the building’s highest-and-best use passed 4–3. Recorded votes (from roll call): Mayor McKeggers — yes; Councilmember Miller — yes; Councilmember Evans — yes; Councilmember Gabriel — yes; Councilmember Gookin — no; Councilmember English — no; Councilmember Wood — no.

Council and staff identified several follow-up items: (1) staff review of the documentation supporting HREI’s claimed capital improvement credits; (2) an 18–12‑month (council members suggested varying timeframes) staff study of highest-and-best use that includes identifying potential tenants and whether any city operational needs might require Secretary of the Interior approval; (3) continued monitoring of HREI’s financial and maintenance obligations under the new lease.

The council’s packet lists the property as historically tied to railroad and federal conveyances; staff said altering the parcel’s recreational use could require a lengthy federal review process. HREI representatives asked the council to approve the lease to ensure continuity of services that they said include school-based anti-bullying programs, supervision of community service hours, and educational outreach.

The council’s action does not change federal restrictions on the property and does not constitute an application to the Department of the Interior or BLM for a change of use. If the city later seeks to repurpose the parcel for non-recreational city operations, staff told council the city would need to pursue the federal approval process.