Feb. 24—The Idaho State Board of Education on Tuesday will vote on an amended ground lease between the University of Idaho and Palouse Mall.

The ground lease of 44 acres has existed since 1973. It was last updated in 2006. In 2023, the ground lease generated $345,544 in annual revenue for UI, according to board of education meeting materials.

The amendment would extend the terms of the ground lease to 2096. It also gives the mall permission to allow residential uses on a nearby site occupied by a long vacant movie theater facility.

“Such permission allows the development of highly demanded housing in the community while serving to improve the overall economic viability of the entire property,” the meeting agenda says.

UI does not own any of the buildings on the property, nor does it operate the mall or manage the mall’s tenants. The mall is not presented or advertised as a business partner or affiliate of UI.

The lease extension and new retail leasing conditions are intended to make the mall “reliable and long term source of UI income, and maintaining a vibrant retail center able to serve the University community,” the meeting agenda says.

This item is part of Tuesday’s consent agenda. The meeting begins 10:30 a.m. at Boise State University.