Title 17 . Transportation and Public Facilities

Chapter 45 . Miscellaneous Provisions

Section 127. Rents and fees

17 AAC 45.127. Rents and fees

(a) Except as otherwise specifically provided in this section or another applicable provision of this chapter, the department will charge and an airport user shall pay, the following annual rental rates for the stated use of airport land:

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(b) Except as otherwise determined under (h) or (i) of this section, the following annual land rental rates apply to the following listed airports:

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(c) Subject to (d) and (e) of this section, if the department determines in writing that any of the following conditions apply to a premises, the department will reduce the applicable rent established for the premises under (a) or (b) of this section by 10 percent for each of not more than two conditions that apply:

(1) substantial fill or excavation by the lessee, permittee, or concessionaire is necessary for the premises to be used for its intended purpose; a rent reduction under this paragraph based on the need for substantial fill does not apply if fill material is made available to the lessee, permittee, or concessionaire by the department either on the airport or within 10 miles of the airport by a road that is generally accessible from June through September;

(2) no part of the premises is within 200 feet of the nearest reasonable point of connection to a public utility sewer system and that connection to a public utility sewer system is available within 200 feet of other premises on the airport;

(3) no part of the premises is within 200 feet of the nearest reasonable point of connection to a public utility water system and that connection to a public utility water system is available within 200 feet of other premises on the airport;

(4) no part of the premises is within 500 feet of the nearest reasonable point of connection to a public utility electric power distribution source and that connection to a public utility electric power distribution source is available within 500 feet of other premises on the airport;

(5) no part of the premises is within 200 feet of an existing public access road;

(6) the premises is an aviation premises otherwise suitable for use by fixed wing aircraft, and no part of the premises is within 200 feet of a public-use runway, taxiway, or apron.

(d) An aggregate rent reduction under (c) of this section may not exceed 20 percent.

(e) A rent reduction under (c) of this section applies only during the shorter of

(1) the first half of the initial term of the lease, permit, or concession term; or

(2) the first ten years of the lease, permit, or concession term.

(f) Notwithstanding (e) of this section, in no event will a rent reduction apply after the date on which

(1) a public utility extends a sewer system to within 200 feet of the premises boundary, in the case of a rent reduction granted under (c)(2) of this section;

(2) a public utility extends a water system to within 200 feet of the premises boundary, in the case of a rent reduction granted under (c)(3) of this section;

(3) a public utility extends an electric power distribution system to within 500 feet of the premises boundary, in the case of a rent reduction granted under (c)(4) of this section;

(4) the department or other government agency extends a public road to within 200 feet of the premises boundary, in the case of a rent reduction granted under (c)(5) of this section;

(5) the department or other government agency extends a public-use runway, taxiway, or apron to within 200 feet of the premises boundary, in the case of a rent reduction granted under (c)(6) of this section; or

(6) in the case of a rent reduction granted under (c)(5) or (c)(6) of this section, the department assumes maintenance responsibility for a public access road or public-use runway, taxiway, or apron extended to within 200 feet of the premises boundary by a person other than the department or other governmental agency.

(g) The following annual rental rates apply to land at the Deadhorse Airport:

(1) $0.137 per square foot for undeveloped land with a nonaviation use;

(2) $0.271 per square foot for land with a state-owned gravel pad and a nonaviation use;

(3) $0.114 per square foot for undeveloped land with an aviation use; and

(4) $0.248 per square foot for land with a state-owned gravel pad and an aviation use.

(h) If the department has accepted an appraisal of a premises under 17 AAC 45.297 within the previous three years, in place of the rent determined under (a)-(g) of this section, the department will charge fair market rent for use of the appraised premises as determined by the appraisal, unless after the appraisal improvements to the airport have upgraded the airport to a higher type under (a) of this section.

(i) At department-owned seaplane floats and turnaround facilities, excluding assigned space designated by the department for float-equipped aircraft under 17 AAC 45.500 - 17 AAC 45.590, the department will charge fair market rent, as determined by appraisal, for the use of land, tideland, dock frontage, and float space.

(j) In addition to the rent payable under this section for any land leased with the building, the department may establish the rent charged for use of, or use of space in, a department-owned building on an airport by

(1) performing a market survey of the rent charged by the owners of reasonably comparable property; as part of the market survey the department will collect orally or in writing, from at least three market participants at a particular airport or at one or more comparable airports or off-airport properties, information regarding current fees and rentals being paid for comparable space or privileges as of the effective date of the survey; if the market survey indicates a fair market rent

(A) of $2,000 or less per month, the department will charge the rent determined by the market survey;

(B) in excess of $2,000 per month, the department will establish the rent by appraisal; or

(2) pro-rating the department's actual or estimated costs of operating the building, plus a rate of return of not less than five percent nor more than 15 percent as the department determines is reasonable for economic circumstances at the airport, to the rentable square footage in the building; for purposes of this paragraph, the department's costs include administration, maintenance, repair, security, insurance or risk management, utilities, and capital amortization.

(k) When granting a concession at an airport, the department may charge a concession fee in place of, as part of, or in addition to, land rent, building rent, or a business activity fee under this section. The department will establish the concession fee as a percentage of the concessionaire's gross sales of goods or services taking into consideration the concession fee charged for similar concessions at

(1) other airports operated by the department;

(2) airports operated by others in the United States; or

(3) private-sector shopping centers in this state.

(l) The department will charge the following annual rent for the agricultural use of airport land if the department allows such use after considering airport planning, operation, and management issues, including any potentially associated bird or wildlife hazard and other safety and security matters:

(1) for land used only for crop cultivation purposes, $50 per acre; and

(2) for land used only for livestock grazing or harvesting uncultivated vegetation, excluding timber, $5 per acre.

(m) Except where a different fee is specified in this chapter, such as for a boundary crossing permit fee under (n) of this section, a commercial passenger vehicle permit fee under 17 AAC 45.095(k) , and a business activity permit fee under (r) of this section, the minimum charge for all rents and fees assessed under this section, including any concession fee, is

(1) $200 for a permit with a term of 120 days or less;

(2) $500 for a lease, permit, or concession with a term of 121 days to one year; and

(3) $500 per year for a lease, permit, or concession with a term of more than one year.

(n) Subject to (o) and (p) of this section, the department will charge and a permittee must pay an annual fee for a boundary crossing permit issued under 17 AAC 45.285 based on the following schedule:

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(o) A personal-use boundary crossing permit fee will be assessed under (n) of this section if the use of the boundary crossing is solely for a personal or a non-governmental not-for-profit purpose. A commercial use boundary crossing permit fee will be assessed if the use of the boundary crossing is for or in connection with a for-profit business activity or a government agency function.

(p) The department may perform an appraisal to determine the fee to be charged for a boundary crossing permit. If the fee based on an appraisal is higher than the fee charged under (n) of this section, the department will charge the annual fee for a boundary crossing permit based on the appraisal.

(q) A person who holds a lease, permit, or concession that authorizes operation of a commercial fueling service at an airport must pay to the department a fuel flowage fee in addition to the rent or other fee charged in the person's lease, permit, or concession. The fuel flowage fee is two cents per gallon of fuel dispensed or delivered by or on behalf of the person or otherwise under the person's authorization at the airport. The fuel flowage fee applies only once on a gallon of fuel at an airport. Unless the lease, permit, or concession provides otherwise, delivery of fuel to an aircraft for carriage manifested as cargo in a container not connected to the aircraft's engine and off-loading of fuel carried aboard an aircraft in that manner if off-loaded to or in a storage or transport container are exempt from the fuel flowage fee.

(r) A person required to hold a business activity permit under 17 AAC 45.105 on an airport shall pay a non-refundable annual permit fee of $500.

(s) Repealed 11/23/2003.

(t) An appraisal for purposes of this section must be performed by a person who is certified under AS 08.87 as a general real estate appraiser. The department may establish written instructions for the appraiser that are reasonable and consistent with generally accepted real estate appraisal practices.

(u) Unless otherwise provided in this chapter, all fees, including an application fee for a lease, permit, or concession under this chapter, are non-refundable.

(v) The department may charge an applicant, bidder, or proposer under this chapter a reasonable amount calculated to cover the cost of reproduction, printing, mailing, and distribution of relevant contract and solicitation documents.

(w) Repealed 11/23/2003.

(x) For purposes of this section, "public utility" means an entity that provides sewer, water, or electrical services that are available to all persons located within the area in which those services are provided.

History: Eff. 3/28/2002, Register 161; am 11/23/2003, Register 168

Authority: AS 02.15.020

AS 02.15.060

AS 02.15.070

AS 02.15.090

AS 44.42.020