The port commissioners shall have full power and authority to improve, use for all port purposes and/or let lands belonging to the state of Idaho within the area encompassed by the port district's plan of harbor improvement and port development, and/or its plan for industrial development in the same manner and under the same procedure as herein provided for the improvement, use and/or letting of land belonging to the port district provided that such real property is not then being utilized by the state or any legal subdivision or agency thereof, in which case the said rights shall not accrue to the port district until the said real property becomes surplus to such entity; provided further, in case of such leasing, the port commission shall determine which portion of the resulting rental is allocable to the land belonging to the state, and which is allocable to improvements placed, or to be placed, thereon, and that portion allocable to the land shall be paid by the port, as received, to the state treasurer; provided further, should the state question the allocation as made by the port commission, then the matter shall be determined by appraisal, the state and the port district each choosing disinterested appraisers, and the two (2) so chosen choosing a third; the decision of a majority of the appraisers concerning such allocation of rental shall be determinative of the matter, unless the same be modified or changed by the district court of the judicial district in which is situate the city for which the port is named, after hearing upon petition of either body, and after such notice as such court shall direct; provided further, that all bonds given to secure the payment of rentals, and the performance of any such lease, shall be payable jointly to the port district and the state of Idaho as their interest appears, based upon such allocation. Payment by a lessee of the amount of each periodic rental payment set by the port commission upon such property shall discharge such lessee and/or the lessee's sureties pro tanto from any further liability as to each such rental payment made, and the allocation thereof between such port district and the state shall impose no liability or obligation upon such lessee and/or surety, nor shall any dispute or litigation as to such allocation in any way cause an increase in or otherwise affect the payment to be made by such lessee during the leasehold period.
Idaho Code § 70-1617