Title 17 . Transportation and Public Facilities

Chapter 42 . Miscellaneous Provisions

Section 230. Documentation of costs, purchase price, opinion of useful life or remaining useful life, or fair market value of permanent improvements

17 AAC 42.230. Documentation of costs, purchase price, opinion of useful life or remaining useful life, or fair market value of permanent improvements

(a) If an applicant or lessee requests a lease term for a new lease or an extension of an existing lease based on

(1) costs the applicant or lessee incurred for matters described in 17 AAC 42.225(c) (1), the applicant or lessee must document those costs, excluding financing costs, in

(A) a statement of project costs signed by the contractor who performed the work;

(B) a statement of project costs signed by a certified public accountant;

(C) a copy of a contractor payment schedule specific to the project;

(D) a notarized affidavit signed by the applicant or lessee attesting to the project costs, with an itemized listing of site costs and copies of invoices reflecting payment of those costs; or

(E) if the information described at (A) - (D) of this paragraph is not available as evidence of the cost, an estimate of project costs prepared and signed by a contractor or an architect or engineer registered under AS 08.48 or a general real estate appraiser certified under AS 08.87; this estimate must reflect costs as of the date of construction completion and must include cost data to support the estimate;

(2) purchase price of permanent improvements owned by the applicant or lessee, the applicant or lessee must document the purchase price in

(A) a copy of an executed bill of sale or sales contract that reflects the amount, excluding financing costs, the applicant or lessee paid for permanent improvements on the premises; the value of any leasehold transferred or purchased will not be considered toward the setting of a lease term; or

(B) a notarized affidavit signed by both the applicant or lessee, as purchaser, and the former lessee, as seller, stating the purchase price, excluding financing costs, of permanent improvements on the premises, but only if the applicant or lessee is unable to submit a bill of sale or sales contract;

(3) fair market value of permanent improvements that the applicant or lessee owns and are located on the premises, the applicant or lessee must document the fair market value in a written appraisal by a general real estate appraiser certified under AS 08.87; the appraisal must be based on generally accepted professional standards;

(4) useful life of permanent improvements that the applicant or lessee proposes to construct on the premises, the applicant or lessee must document the useful life in a written opinion; the opinion must

(A) be prepared by an architect or engineer registered under AS 08.48 or a general real estate appraiser certified under AS 08.87;

(B) be based on generally accepted professional standards; and

(C) analyze all relevant factors, including physical, functional, and economic obsolescence; or

(5) remaining useful life of existing permanent improvements the applicant or lessee owns that are located on the premises, the applicant or lessee must document the remaining useful life in a written opinion; the opinion must

(A) be prepared by an architect or engineer registered under AS 08.48 or a general real estate appraiser certified under AS 08.87;

(B) be based on generally accepted professional standards; and

(C) analyze all relevant factors including physical, functional, and economic obsolescence.

(b) The airport manager shall accept an appraisal of fair market value or an opinion of useful life or remaining useful life prepared under (a) of this section if the appraisal or opinion meets generally accepted professional standards.

(c) The applicant or lessee shall obtain at the applicant's or lessee's sole expense any appraisal of fair market value or opinion of useful life or remaining useful life submitted under (a) of this section.

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

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.090