Title 17 . Transportation and Public Facilities

Chapter 42 . Miscellaneous Provisions

Section 210. Application for or material amendment to a lease, permit, concession, or other interest

17 AAC 42.210. Application for or material amendment to a lease, permit, concession, or other interest

(a) A person seeking a lease, permit, concession, or other interest for use of airport property or seeking a material amendment to an interest the person already holds may submit an application under this section. The person must submit the application in writing to the airport manager and must include

(1) a description of the property or interest requested;

(2) a description of the proposed activity or business and, if the person proposes a business use, the applicant's business plan;

(3) a description, site plan, cost estimate, and method of financing for the proposed improvements;

(4) a list of any aircraft that the applicant intends to base on the airport;

(5) any application fee established under 17 AAC 42.125; and

(6) the length of term or extension requested.

(b) If an applicant applies for either a land lease or a land lease term extension based on investment, purchase price, fair market value, useful life, or remaining useful life of the permanent improvements, the applicant shall submit with the application

(1) a statement of the dollar amount, excluding financing costs, of any proposed investment in the premises and the applicant's written agreement to make that investment for, as applicable,

(A) construction of permanent improvements on the premises, including the cost of design, labor, materials, shipping, permits, equipment, soil testing, and environmental assessments directly related to the construction;

(B) premises boundary and as-built surveys;

(C) earthwork, including excavating, filling, and grading;

(D) fill material, gravel, and pavement;

(E) remediation of environmental contamination, except that, if the applicant caused or materially contributed to the contamination, the applicant may not include the costs of remediation to justify all or part of the term of a land lease or land lease term extension under this section or 17 AAC 42.225; and

(F) costs related to utility infrastructure development or connection;

(2) documentation of the purchase price, excluding financing costs, of permanent improvements that the applicant acquired from a previous lessee and that are located on the premises;

(3) documentation of the additional investment, excluding financing costs, the applicant has previously made for work on the premises described in (1)(A) - (E) of this subsection if the airport manager

(A) approved that work in an airport building permit or other written approval under 17 AAC 42.280 or under 17 AAC 40 in effect before January 14, 2001; and

(B) did not previously consider that work in setting the initial term of the lease or any subsequent lease term extension;

(4) a written appraisal, prepared in accordance with 17 AAC 42.230(a) (3), of the fair market value of the permanent improvements that the applicant owns or has contracted to acquire that are located on the premises;

(5) a written opinion, prepared in accordance with 17 AAC 42.230(a) (4), of the useful life of new permanent improvements the applicant proposes to construct on the premises; or

(6) a written opinion, prepared in accordance with 17 AAC 42.230(a) (5), of the remaining useful life of the existing permanent improvements that the applicant owns or has contracted to acquire that are located on the premises.

(c) An application for a succeeding land lease or for a land lease term extension may not be submitted earlier than one year before the expiration of the lease term unless the applicant

(1) proposes to make an additional investment in the premises and submits the information and agreement described at (b)(1) of this section supporting that investment;

(2) has purchased permanent improvements on the premises and submits the information described at (b)(2) of this section to document that purchase; or

(3) has made an additional investment in the premises that the airport manager did not previously consider in setting the initial term of the lease or any subsequent lease term extension and submits the information described at (b)(3) of this section to document that investment.

History: Eff. 1/14/2001, Register 157

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.090