Alaska Admin. Code tit. 17, § 42.225 – Land lease term or term extension

(a) This section does not apply to a land lease or to an extension of an existing land lease if the lessee is a government agency.
(b) In setting or extending the term for a land lease, the airport manager shall consider
1. (1) the applicant's actual or proposed development and use of the premises;
2. (2) sound airport planning and anticipated needs for security, safety, maintenance, and operation of the airport;
3. (3) future development needs of the airport;
4. (4) applicable covenants running with the land and restrictions in the state's title to airport property;
5. (5) the amount of investment, purchase price, fair market value, useful life, or remaining useful life of permanent improvements documented in the application, as applicable;
6. (6) the applicant's plan for remediation of any environmental contamination if the applicant did not cause or materially contribute to the contamination;
7. (7) the proposed method and terms of financing the applicant's investment; and
8. (8) the best interest of the state.
(c) Subject to the limitations in 17 AAC 42.215 and in 17 AAC 42.220, after considering the factors described in (b) of this section, the airport manager shall grant a term for a new lease or a term extension that will not exceed the greatest of
1. (1) the number of years shown in the table in (h) or (i) of this section, as applicable, that corresponds to the amount of the applicant's initial investment or additional investment, as applicable and excluding financing costs, in
  1. (A) premises, boundary, and as-built surveys;
  2. (B) site preparation, including excavating, filling, grading, fill material, gravel, and pavement;
  3. (C) permanent improvements on the premises or, if constructed for immediate state ownership, off the premises; and
  4. (D) remediation of contamination on or that migrated from the premises and that was not caused or materially contributed to by the applicant;
2. (2) the number of years shown in the table in (h) or (i) of this section, as applicable, that corresponds to the appraised fair market value or purchase price of permanent improvements owned by the applicant on the premises, as applicable and excluding financing costs; or
3. (3) the number of years of useful life of proposed permanent improvements on the premises or the number of years of remaining useful life of existing permanent improvements owned by the applicant on the premises; if more than one applicant-owned permanent improvement is proposed or exists on the premises, the improvement with the longest useful life or remaining useful life shall be used to determine the length of a new lease or term extension.
(d) If more than one of the methods provided in (c) of this section for determining the maximum term length could be applied, the lessee has the option to choose which method the airport manager must use to determine the allowable term of the new lease or lease term extension.
(e) Subject to the limitations in 17 AAC 42.215 and in 17 AAC 42.220, the airport manager may grant a lease term extension before the last year of the term of a lease only if and to the extent the applicant satisfies the requirements of this subsection and (f) of this section. To qualify for a lease term extension before the last year of the term of a lease, an applicant must
1. (1) either do or commit in writing to do one of the following that the manager did not previously consider in setting the initial term of the lease or any subsequent lease term extension:
  1. (A) make an additional investment in the premises that is approved by the manager in an airport building permit issued under 17 AAC 42.280; or
  2. (B) purchase existing permanent improvements on the premises; or
2. (2) have made an additional investment in the premises that the manager approved in an airport building permit or other written approval issued, under 17 AAC 42.280 or under 17 AAC 40 in effect before January 14, 2001.
(f) An applicant who seeks to qualify for a lease term extension under (e) of this section must support the request with the information required under 17 AAC 42.210(b), as applicable.
(g) Subject to 17 AAC 42.220, the term of any extension that the airport manager grants under this section must be added to the end of any remaining term of the lease, including any earlier extensions.
(h) If the premises are located in a general aviation use area, the airport manager shall use the following table, subject to 17 AAC 42.220, to determine the maximum potential lease term or lease term extension the manager may grant under (c)(1) or (2) of this section: Fair Market Value, Purchase Price, or Investment of at Least the Following Dollar Amount Term of Years $057,500615,000722,500830,000937,5001045,0001152,5001260,0001337,5001475,0001582,5001690,0001797,50018105,00019112,50020120,00021127,50022135,00023142,50024150,00025157,50026165,00027172,50028180,00029187,50030195,00031202,50032210,00033217,50034225,00035232,50036240,00037247,50038255,00039262,50040270,00041277,50042285,00043292,50044300,00045307,50046315,00047322,50048330,00049337,50050345,00051352,50052360,00053367,50054375,00055
(i) If the premises are not located in a general aviation use area, the airport manager shall use the following table, subject to 17 AAC 42.220, to determine the maximum potential lease term or lease term extension that the manager may grant under (c)(1) or (2) of this section: Fair Market Value, Purchase Price, or Investment of at Least the Following Dollar Amount Term of Years $0525,000650,000775,0008100,0009125,00010150,00011175,00012200,00013225,00014250,00015275,00016300,00017325,00018350,00019375,00020400,00021425,00022450,00023475,00024500,00025525,00026550,00027575,00028600,00029625,00030650,00031675,00032700,00033725,00034750,00035775,00036800,00037825,00038850,00039875,00040900,00041925,00042950,00043975,000441,000,000451,025,000461,050,000471,075,000481,100,000491,125,000501,150,000511,175,000521,200,000531,225,000541,250,00055

(Eff. 1/14/2001, Register 157; am 2/10/2001, Register 157; am 1/17/2016, Register 217; am 5/25/2017, Register 222)

Authority: AS 02.15.020, AS 02.15.060, AS 02.15.090, AS 02.15.210