Legislature(2023 - 2024)ADAMS 519
03/07/2023 12:30 PM House LEGISLATIVE BUDGET & AUDIT
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| Audio | Topic |
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| Start | |
| Approval of Subordination Agreement | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
LEGISLATIVE BUDGET AND AUDIT COMMITTEE
March 7, 2023
12:35 p.m.
MEMBERS PRESENT
Representative Ben Carpenter, Chair
Representative DeLena Johnson
Representative Sarah Vance
Representative Andy Josephson
Senator Bill Wielechowski
Senator James Kaufman
Senator Scott Kawasaki
MEMBERS ABSENT
Senator Bert Stedman, Vice Chair
Representative Frank Tomaszewski
Senator Lyman Hoffman
Representative Mike Cronk (alternate)
Senator Click Bishop (alternate)
COMMITTEE CALENDAR
APPROVAL OF SUBORDINATION AGREEMENT
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
KRIS CURTIS, Legislative Auditor
Legislative Audit Division
Legislative Agencies and Offices
Juneau, Alaska
POSITION STATEMENT: Offered information regarding the
subordination, non-disturbance and attornment agreement.
EMILY NAUMAN, Deputy Director
Legislative Legal Services
Legislative Affairs Agency
Juneau, Alaska
POSITION STATEMENT: Answered questions pertaining to the
approval of the subordination, non-disturbance and attornment
agreement.
ACTION NARRATIVE
12:35:00 PM
CHAIR BEN CARPENTER called the Legislative Budget and Audit
Committee meeting to order at 12:35 a.m. Representatives D.
Johnson, Vance, Josephson, and Carpenter and Senators
Wielechowski, Kaufman, and Kawasaki were present at the call to
order.
^APPROVAL OF SUBORDINATION AGREEMENT
APPROVAL OF SUBORDINATION AGREEMENT
12:35:31 PM
CHAIR CARPENTER announced that the only order of business would
be the approval of a subordination, non-disturbance and
attornment agreement.
CHAIR CARPENTER invited Kris Curtis to define "subordination,
non-disturbance and attornment agreement" and explain why it was
before the committee today.
12:36:03 PM
KRIS CURTIS, Legislative Auditor, Legislative Audit Division,
Legislative Agencies and Offices, explained the effect of a
subordination, non-disturbance and attornment agreement. She
said the tenant, which in this case, was the Legislative Audit
Division, would agree to subordinate its lease to the mortgage
in exchange for the lender agreeing not to disturb the tenant if
the lender were to foreclose its interest in the real property.
She noted that without the protection of a nondisclosure
agreement, a subordinate lease was potentially terminable in
foreclosure. She conveyed that the landlord was refinancing the
office building, adding that the [subordination] agreement was a
standard real estate agreement. Nonetheless, procurement
procedures required approval from the Legislative Budget and
Audit Committee, despite the committee approving the lease in
2015. She stated that the lease was a 10-year lease, noting
that neither the term nor payment would be changed with the
approval of the subordination agreement. She relayed that
Legislative Legal Services was supportive.
12:37:15 PM
CHAIR CARPENTER requested confirmation from Legislative Legal
Services.
12:37:26 PM
EMILY NAUMAN, Deputy Director, Legislative Legal Services,
Legislative Affairs Agency (LAA), confirmed that Legislative
Legal Services had reviewed the contract, as required by the
procurement code, and approved it to form.
12:37:54 PM
REPRESENTATIVE VANCE moved that the Legislative Budget and Audit
Committee authorize the legislative auditor to approve the
subordination, non-disturbance and attornment agreement related
to the Legislative Audit Division's Anchorage office space
lease. There being no objection, the agreement was approved.
12:38:21 PM
ADJOURNMENT
There being no further business before the committee, the
Legislative Budget and Audit Committee meeting was adjourned at
12:38 p.m.
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