17 AAC 45.270. Sublease

(a) Unless the lease, permit, or concession expressly provides otherwise, a lessee, permittee, or concessionaire may not sublease all or a portion of a lease, permit, or concession premises without the prior written consent of the department under 17 AAC 45.275. A sublease made contrary to the requirements of this section and 17 AAC 45.275 is void.

(b) A request for consent to a sublease must be submitted in writing and must include

(1) the name, address, and telephone contact number of the proposed sublessee;

(2) a description of property to be subleased;

(3) a description of the proposed sublessee's intended use of the premises;

(4) the expiration date of the sublease;

(5) a statement of the proposed sublease rent to be paid per month of occupancy;

(6) three originals of the executed sublease documents with notarized signatures of the sublessee and the sublessor;

(7) a binder for insurance covering the operations and activities of the sublessee to the same extent that the sublessee would be required to maintain insurance if the sublessee were a direct lessee under the lease;

(8) a guarantee of indemnification by the sublessee under which the sublessee provides to the state the same level of indemnity that the sublessee would provide to the state if the sublessee were a direct lessee under the lease; and

(9) a non-refundable $50 sublease processing fee.

(c) Except to the extent otherwise provided in the department's written consent, a sublease is subject to all of the terms and conditions of the lease, permit, or concession governing the property being subleased.

(d) A sublessee of a lease, permit, or concession may not occupy the premises before the department consents to the sublease in writing.

(e) A sublessee must maintain the same insurance and provide the indemnity that the sublessee would be required to maintain and provide if the sublessee were a direct lessee, permittee, or concessionaire under the lease, permit, or concession, as applicable. The department may waive the requirement that the sublessee maintain insurance, including the binder required under (b)(7) of this section, if the department concludes that the sublessee's activities on the airport are covered under the lessee's insurance to the full extent stated in this subsection or are not likely to pose more than negligible risks to the state.

(f) A sublease may not relieve a lessee, permittee, or concessionaire of responsibility for providing the department with evidence of insurance that meets the requirements of the lease, permit, or concession with respect to operations on the premises, including those of the sublessee. However, if a lessee, permittee, or concessionaire subleases the entire premises under a sublease to which the department has given consent under 17 AAC 45.275 and the lessee, permittee, or concessionaire requires the sublessee to provide insurance coverage that meets the requirements of the lease, permit, or concession, the department will accept evidence of that insurance from the sublessee if the insurance meets the requirements of the lease, permit, or concession and lists the lessee, permittee, or concessionaire as an additional insured. The department will notify the lessee, permittee, or concessionaire if the evidence of insurance provided by a sublessee is insufficient, incorrect, or not timely received.

(g) The consent of the department under 17 AAC 45.275 is required for each sublease of all or any portion of a lease, permit, or concession, including a further sublease of a sublease for which the department's consent has already been given.

(h) Consent to a sublease by the department under 17 AAC 45.275 does not relieve or otherwise alter the obligations of the lessee, permittee, or concessionaire under the lease, permit, or concession. Any sublease provision that purports to relieve a lessee, permittee, or concessionaire of a responsibility to the department under a lease, permit, or concession, as applicable, is of no effect as to the department.

(i) A lessee, permittee, or concessionaire may request that the department informally review a proposed sublease before the sublease documents are executed. However, a sublease of a lease, permit, or concession is effective only if the department consents to the sublease in writing under 17 AAC 45.275 after receiving a written request submitted under (b) of this section.

(j) The department's consent to a sublease under 17 AAC 45.275 is specific to only the sublease reviewed by the department and only the sublessee considered by the department. A sublease of a lease under this chapter may not be assigned.

History: Eff. 3/28/2002, Register 161

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.090

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