17 AAC 45.295. Rent adjustment

(a) Unless otherwise specified in a lease, permit, or concession and subject to (b) of this section, 17 AAC 45.297(f) , and 17 AAC 45.300(e) , the department will adjust the rent for a lease, permit, or concession if applying the applicable rental rate in the fee schedule established under 17 AAC 45.127 results in an increase or decrease in the rent for that lease, permit, or concession.

(b) The department will not adjust the rent for a lease, permit, or concession under (a) of this section more often than once in a twelve-month period and will not adjust the rent for a lease, permit, or concession with a term of more than 10 years during the first five years of that term.

(c) Unless otherwise specified in a lease, permit, or concession and subject to (d) and (e) of this section, in making a rent adjustment for a premises the department will

(1) determine the new rate applicable to the lease, permit, or concession under the fee schedule established under 17 AAC 45.127;

(2) establish the effective date of the rent adjustment; the effective date may not be earlier than 30 days after the date of the department's notice of rent adjustment under (3) of this subsection; and

(3) send to the lessee, permittee, or concessionaire a written rent adjustment notice that identifies the lease, permit, or concession that is the subject of the rent adjustment, the amount of the adjusted rent, the effective date of the adjustment, and the procedure for protesting the rent adjustment.

(d) Unless otherwise provided in the lease, permit, or concession, a rent adjustment under this section will not increase the rent applicable to a lease, permit, or concession by more than 10 percent per year, compounded for each year since the date the rent for that lease, permit, or concession was last set or adjusted, and will not result in rent greater than fair market rent.

(e) A rent adjustment under this section may not be applied to a competitively awarded lease, permit, or concession for an auxiliary or nonaviation use if the adjustment would result in a reduction of the fee or rent to below the rate established by competitive bid or proposal when the lease, permit, or concession was awarded.

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

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.090

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