FITCHBURG, Wis. - The state Natural Resources Board voted unanimously Wednesday to buy the Rainbow Flowage in northern Oneida and Vilas counties for $7 million to preserve almost 5,200 acres of primarily undeveloped forest land.
Gov. Jim Doyle, who must give final approval to the purchase, urged the board to approve the deal funded by the state's Stewardship Fund. He said it was an important step in preserving pristine land for the public's enjoyment.
"This is really a very important step for us to protect that forest from future fragmentation and development," Doyle said.
The Wisconsin Valley Improvement Co. has owned the land, within the Northern Highland-American Legion State Forest in far northern Wisconsin, for almost 70 years. It created the flowage when it built a dam on the Wisconsin River to control the flow of water to the hydroelectric plants downstream.
The company, partly owned by firms in Canada and Finland, is now required to sell because of state restrictions on foreign ownership of Wisconsin land.
Company president Bob Gall said the state has had a standing interest in purchasing the land, which the company has managed in conjunction with Wisconsin officials to protect the habitat for eagles, osprey and other waterfowl.
The parcel includes 5,167 acres of undeveloped forest land and 63 miles of frontage on the Rainbow Flowage and nearby Pickerel Lake. The deal works out to about $1,400 an acre.
Gall said the land was appraised for between $900 and more than $5,000 an acre for some of more choice parts of the property. He said the company had solid offers from private developers for some of the land but wanted to see it preserved.
The company has also agreed to donate about 3,639 acres submerged under the man-made lake created by the dam. The company also agreed to donate 6,400 submerged acres at the nearby Willow Flowage.
The money for the purchase comes from the Stewardship Fund, which the state uses to pay off the long-term debt from bonds issued to buy land for conservation purposes.
Some officials in the area have complained the state has purchased too much land for preservation, keeping it off property tax rolls and limiting their ability to increase the tax base.
Vilas County Board chairman Charles Rayala said the DNR owns too much property in the area, but he didn't oppose the state purchasing the flowage because of the sensitive nature of the land.
"The stuff that they're buying probably shouldn't be developed anyway, and I don't have a problem with that," Rayala said.
Municipalities in the area also were receiving about $4 per acre in local taxes on the property because it was owned by a utility. After the purchase, they will receive between $18 and $19 per acre because the Stewardship Fund makes payments to local governments in lieu of property taxes for land preserved through the program.
