11 AAC 63.100. Issuance of aquatic farmsite lease

(a) The commissioner will issue an aquatic farmsite lease if the commissioner finds in accordance with AS 38.05.035 (e) and 11 AAC 63.050 - 11 AAC 63.060 that it is in the state's best interest. The commissioner will issue a lease at its appraised fair market rental value without competitive bid, or for the amount of the high bid at auction.

(b) Repealed 6/14/98.

(c) The term of an aquatic farmsite lease that was not awarded at auction is 10 years. The commissioner will, in the commissioner's discretion, require a boundary survey if needed to resolve an apparent boundary conflict or a dispute over acreage leased. The commissioner will require a survey meeting the requirements of AS 38.04.045 before issuing a lease for a term longer than 10 years.

(d) Before a lease is issued, security must be posted as required by 11 AAC 63.080.

(e) Before a lease is issued, a lease development plan must be approved by the commissioner, and will be incorporated as a provision of the lease. For a lease offered at auction, the commissioner will require the high bidder to propose a lease development plan for the commissioner's approval. The development plan must result in commercial use of the site, as defined in 11 AAC 63.030(b) , beginning no later than the fifth year of the lease and continuing for the rest of the lease term.

(f) Repealed 6/14/98.

(g) Before a lease is issued, the future lessee shall pay the rent that is due under the first year of the lease. Lease rent for each subsequent year must be paid annually on or before the anniversary date of the lease.

History: Eff. 7/1/89, Register 110; am 6/14/98, Register 146

Authority: AS 38.04.045

AS 38.05.020

AS 38.05.035

AS 38.05.083

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