CSHB 543(TRA): "An Act establishing the procedures and conditions for lessees of state airport and air navigational facility land, including holdover lessees, to receive a new lease of the land; relating to the purposes for which a person, municipality, or the federal government may use or improve state airport or air navigational facilities under contract, lease, or other arrangement with the state; and relating to the ownership of leasehold improvements made under an airport or air navigational facility lease."
00CS FOR HOUSE BILL NO. 543(TRA) 01 "An Act establishing the procedures and conditions for lessees of state airport 02 and air navigational facility land, including holdover lessees, to receive a new 03 lease of the land; relating to the purposes for which a person, municipality, or 04 the federal government may use or improve state airport or air navigational 05 facilities under contract, lease, or other arrangement with the state; and relating 06 to the ownership of leasehold improvements made under an airport or air 07 navigational facility lease." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. FINDINGS AND STATEMENT OF PURPOSE. (a) The legislature finds 10 that 11 (1) it often takes considerable commitment, time, and resources for a lessee 12 to establish a fully developed revenue-producing business or noncommercial enterprise on 13 leased land on an airport owned and operated by the state; 14 (2) a developed business by an airport lessee produces a stable long-term flow
01 of revenue to the local community and the state in the form of income from jobs created and 02 taxes paid; 03 (3) a developed business by an airport lessee usually has established a positive 04 reputation with its clientele that enhances future tourism and commerce in this state; 05 (4) a developed business by an airport lessee is better positioned to generate 06 more federal passenger entitlement money for the airport and the state; 07 (5) a developed business or noncommercial enterprise on an airport land lease 08 generally maximizes the use of the airport infrastructure, and this maximization makes the 09 airport's operation more economical; and 10 (6) providing a right and option to lessees of airport land to make the first 11 offer for a new lease of the land will encourage and enhance compliance with state law and 12 airport leases, and this compliance will benefit the overall operations of the state airport 13 system. 14 (b) It is the purpose of the legislature to create, for qualifying land lessees who are 15 in compliance with state law and airport leases, a right and option to make the first offer, 16 consistent with sound airport planning, to continue to lease the land in order to continue their 17 businesses and in order to promote a strong aviation industry in this state with long-term 18 benefits to local communities, the airports, and the state. 19 * Sec. 2. AS 02.15.090(a) is amended to read: 20 (a) In operating an airport or air navigation facility owned or controlled by the 21 state, the department may enter into contracts, leases, and other arrangements covering 22 periods not exceeding 55 years with a person, municipality, or the United States, 23 granting the privilege of using or improving an airport or air navigation facility or a 24 portion of it or space in it for commercial, governmental, or other public purposes, 25 including private aviation use [PLANE TIE DOWN]; or conferring the privilege of 26 supplying goods, commodities, services, or facilities at an airport or air navigation 27 facility. The department may establish the terms and conditions and fix the charges, 28 rentals, and fees for the privileges or services that are reasonable and uniform for the 29 same class of privilege or service. Charges, rentals, or fees authorized by this 30 subsection may be fixed for the international airports by order of the commissioner or 31 by negotiated or competitively offered contract. Notwithstanding AS 37.10.050(a), the
01 fixing of charges, rentals, or fees as permitted under this subsection is not subject to 02 the adoption of regulation provisions of AS 44.62 (Administrative Procedure Act). 03 The terms, conditions, charges, rentals, and fees shall be established with due regard 04 to the property and improvements used and the expense of operation to the state. 05 However, use of state land and buildings by the Alaska Wing, Civil Air Patrol and its 06 squadrons shall be permitted without rental charges. The department shall provide for 07 public notice and an opportunity to comment before a charge, rental, or fee is fixed 08 by order of the commissioner as permitted under this subsection. Except as provided 09 in (c) of this section, the [THE] public may not be deprived of its rightful, equal, and 10 uniform use of the airport, air navigation facility, or a portion of them. 11 * Sec. 3. AS 02.15.090 is amended by adding new subsections to read: 12 (c) The department shall offer the holder of an existing lease, including a 13 holdover lease, the right and option to make the first offer on a new lease for an 14 extended term within a reasonable period of time for the same land if the department 15 determines that 16 (1) the lessee was in compliance with the terms and conditions of the 17 expiring lease; and 18 (2) the continued use of the land is consistent with state law, sound 19 airport operations and policies, and is otherwise in the state's best interest. 20 (d) Under (c) of this section, the department shall make the offer not less than 21 180 days before the expiration of the existing lease, and the holder of the existing 22 lease shall respond to the department's offer not less than 90 days before the expiration 23 of the existing lease. In this subsection, "lease" does not include a holdover lease. 24 (e) All leases must include a provision that provides for the disposition of any 25 improvements made to the land at the expiration, termination, or cancellation of the 26 lease.