CSHB 543(FIN)(TITLE AM): "An Act establishing the procedures and conditions for lessees of land leases at state airport and air navigational facilities, including leases in holdover status to receive a new lease of the same land or an extended term of the existing lease; and relating to the title and ownership, and the sale, removal, and other disposition, of permanent improvements made to a leasehold under an airport or air navigational facility lease."
00CS FOR HOUSE BILL NO. 543(FIN)(title am) 01 "An Act establishing the procedures and conditions for lessees of land leases at 02 state airport and air navigational facilities, including leases in holdover status 03 to receive a new lease of the same land or an extended term of the existing 04 lease; and relating to the title and ownership, and the sale, removal, and other 05 disposition, of permanent improvements made to a leasehold under an airport 06 or air navigational facility lease." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. FINDINGS AND STATEMENT OF PURPOSE. (a) The legislature finds 09 that 10 (1) it often takes considerable commitment, time, and resources for a lessee 11 to establish a fully developed revenue-producing business or noncommercial enterprise on 12 leased land on an airport owned and operated by the state; 13 (2) a developed business or noncommercial enterprise by an airport lessee 14 produces a stable long-term flow of revenue to the local community and the state in the form
01 of income from jobs created and taxes paid; 02 (3) a developed business by an airport lessee usually has established a positive 03 reputation with its clientele that enhances future tourism and commerce in this state; 04 (4) a developed business by an airport lessee is better positioned to generate 05 more federal passenger entitlement money for the airport and the state; 06 (5) a developed business or noncommercial enterprise on an airport land lease 07 generally maximizes the use of the airport infrastructure, and this maximization makes the 08 airport's operation more economical; and 09 (6) providing a right and option to lessees of airport land to continue to lease 10 the land will encourage and enhance compliance with state law and airport leases, and this 11 compliance will benefit the overall operations of the state airport system. 12 (b) It is the purpose of the legislature to preserve and establish, for qualifying land 13 lessees who are in compliance with state law and airport leases, a right, consistent with sound 14 airport planning, to continue to lease the land in order to continue their businesses and 15 noncommercial enterprises and in order to promote a strong aviation industry in this state with 16 long-term benefits to local communities, the airports, and the state. 17 * Sec. 2. AS 02.15.090 is amended to read: 18 Sec. 02.15.090. OPERATION AND USE PRIVILEGES. (a) In operating an 19 airport or air navigation facility owned or controlled by the state, the department may 20 enter into contracts, leases, and other arrangements covering periods not exceeding 55 21 years with a person, municipality, or the United States, granting the privilege of using 22 or improving an airport or air navigation facility or a portion of it or space in it for 23 commercial, governmental, or other public purposes, including private aviation uses 24 [PLANE TIE DOWN]; or conferring the privilege of supplying goods, commodities, 25 services, or facilities at an airport or air navigation facility. The department may 26 establish the terms and conditions and fix the charges, rentals, and fees for the 27 privileges or services that are reasonable and uniform for the same class of privilege 28 or service. Charges, rentals, or fees authorized by this subsection may be fixed for the 29 international airports by order of the commissioner or by negotiated or competitively 30 offered contract. Notwithstanding AS 37.10.050(a), the fixing of charges, rentals, or 31 fees as permitted under this subsection is not subject to the adoption of regulation
01 provisions of AS 44.62 (Administrative Procedure Act). The terms, conditions, 02 charges, rentals, and fees shall be established with due regard to the property and 03 improvements used and the expense of operation to the state. However, use of state 04 land and buildings by the Alaska Wing, Civil Air Patrol and its squadrons shall be 05 permitted without rental charges. The department shall provide for public notice and 06 an opportunity to comment before a charge, rental, or fee is fixed by order of the 07 commissioner as permitted under this subsection. The public may not be deprived of 08 its rightful, equal, and uniform use of the airport, air navigation facility, or a portion 09 of them. 10 (b) The department may by contract or other arrangement, upon a 11 consideration fixed by it, grant to a qualified municipality or person for a reasonable 12 period of time the privilege of operating, as agent of the state or otherwise, an airport 13 owned or controlled by the state. A municipality or person granted that privilege may 14 not operate the airport other than as a public airport or enter into any contract, lease 15 or other arrangement in connection with the operation that the department may not 16 have undertaken under [(a) OF] this section. 17 * Sec. 3. AS 02.15.090 is amended by adding new subsections to read: 18 (c) Notwithstanding the right of the public to rightful, equal, and uniform use 19 under (a) of this section, before the expiration of a land lease, including the 20 termination of a lease in holdover status, entered into under this section, the lessee may 21 apply for a new lease, or for an extended term under the existing lease, for the same 22 land. The commissioner shall approve the application for a new land lease or an 23 extended term under this section without offering the land to other persons for leasing 24 if 25 (1) the lessee is in compliance with the terms and conditions of the 26 existing or holdover lease; and 27 (2) the continued use of the leasehold is consistent with written airport 28 operation policies and is in the state's best interest. 29 (d) A land lessee owns title to the permanent improvements that the lessee 30 constructed or purchased during the term of the lease, unless the lease expressly 31 provides that the state is the owner of the permanent improvements.
01 (e) At the expiration, termination, or cancellation of a land lease entered into 02 under this section, 03 (1) a lessee who owns the improvements under (d) of this section shall 04 continue to own the permanent improvements that the lessee constructed or purchased 05 on a leasehold if the lessee is granted under (c) of this section a new lease or an 06 extended term for the same land; 07 (2) a lessee may sell the permanent improvements owned by the lessee 08 to a succeeding lessee of the same land; 09 (3) at the option of the lessee, the permanent improvements owned by 10 the lessee may be sold by the state at public auction with the proceeds from the sale 11 of the improvements going to the lessee, less administrative costs of the auction and 12 obligations owed under the lease to the state; the successful bidder has the same right 13 to enter into a new lease under (c) of this section without the department offering the 14 land to other persons for leasing; 15 (4) after notice by the department, the permanent improvements owned 16 by the lessee shall be removed at the lessee's sole expense if 17 (A) the permanent improvements do not comply with written 18 airport operational policies or are not in the state's best interest; 19 (B) the permanent improvements are not sold under (e)(2) or (3) 20 of this section; or 21 (C) the department makes written findings that the permanent 22 improvements are a hazard to the public health and safety; 23 (5) title to the permanent improvements vests in the department if the 24 state purchases or otherwise contracts for the ownership of the permanent 25 improvements, or if the lessee abandons the permanent improvements.