Section 17.45.127. Rental and fee rates.  


Latest version.
  • 	(a)  Except as otherwise specified in this section, 17 AAC 45.205, or another applicable provision of this chapter, the department will charge and an airport user shall pay, the following annual rental rates in United States Dollars, for the stated use of airport land:   
    		(1) repealed 3/20/2016;  
    		(2) repealed 3/20/2016;  
    		(3) repealed 3/20/2016;  
    		(4) repealed 3/20/2016;  
    		(5) beginning January 1, 2015, the annual rental rates are as follows:  
    Airport Type                                   Rate Per Square Foot
                                        Aeronautical            Non-Aeronautical
                                         Land Uses                  Land Uses
    Airports where the longest
    runway is under 5,000 feet
    long between thresholds is
    unpaved and unlighted                                   $0.055          $0.066
    unpaved and lighted                                      0.071           0.086
    paved and unlighted                                      0.071           0.086
    paved and lighted                                        0.082           0.099
    Airports where the longest
    runway is 5,000 feet or longer
    between thresholds and is
    unpaved and unlighted                                   $0.082          $0.099
    unpaved and lighted                                      0.107           0.129
    paved and unlighted                                      0.107           0.129
    paved and lighted                                        0.123           0.148
    	(b)  Except as otherwise determined under (f) or (g) of this section, the following annual land rental rates apply to the following listed airports:  
    		(1) repealed 3/20/2016;  
    		(2) repealed 3/20/2016;  
    		(3) repealed 3/20/2016;  
    		(4) repealed 3/20/2016;  
    		(5) beginning January 1, 2015, the annual rental rates are as follows:  
    Airport Location                               Rate Per Square Foot
                                        Aeronautical            Non-aeronautical
                                         Land Uses                  Land Uses
    Barrow                                 $0.123                    $0.213
    Bethel                                 0.123                      0.213
    Bettles (including                     0.043                      0.040
    Bettles VOR
    Lake)
    Big Lake                               0.065                      0.042
    Cold Bay                               0.080                      0.048
    Cordova                                0.123                      0.109
    Dillingham                             0.123                      0.104
    Galena                                 0.080                      0.052
    Gulkana                                0.074                      0.031
    Gustavus                               0.123                      0.100
    Haines                                 0.087                      0.099
    Homer                                  0.123                      0.130
    Iliamna                                0.071                      0.078
    King Salmon                            0.123                      0.145
    Kodiak                                 0.123                      0.213
    Kotzebue                               0.123                      0.213
    Nome                                   0.123                      0.140
    Northway                               0.100                      0.100
    Petersburg                             0.123                      0.208
    Sitka                                  0.123                      0.213
    St. Mary's                             0.095                      0.057
    Tok                                    0.068                      0.032
    Unalaska                               0.082                      0.142
    Valdez                                 0.123                      0.039
    Willow                                 0.065                      0.042
    Wrangell                               0.123                      0.156
    	(c)  The following annual rental rates apply to the land at the Deadhorse Airport:  
    		(1) repealed 3/20/2016;  
    		(2) repealed 3/20/2016;  
    		(3) repealed 3/20/2016;  
    		(4) repealed 3/20/2016;  
    		(5) beginning January 1, 2015, the annual rental rates are as follows:  
    			(A) $0.123 per square foot for an aeronautical use on undeveloped land;  
    			(B)  $0.268 per square foot for an aeronautical use on land with a state-owned gravel pad;  
    			(C) $0.178 per square foot for a non-aeronautical use on undeveloped land; and  
    			(D) $0.352 per square foot for a non-aeronautical use on land with a state-owned pad.  
    	(d)  If the department determines in writing that any of the conditions described in this subsection apply to a premises under a lease, permit, or concession, the department will reduce the rental rate established for the premises under (a), (b), or (c) of this section by the amount indicated for each of the conditions that applies. The conditions that will justify a rental rate reduction under this subsection, and the rental rate reductions allowed for each condition are as follows:  
    		(1) 10 percent, if  
    			(A) at any location, except Deadhorse, substantial fill or excavation by the lessee, permittee, or concessionaire is necessary so that the premises may be used in the manner authorized by the department; and  
    			(B) the department did not make fill material on the airport available at no charge to the lessee, permittee, or concessionaire;  
    		(2) 10 percent, if no part of the premises is within 200 feet of the nearest reasonable point of connection to a public utility sewer system or to a public utility water system and that connection to a public utility sewer or water system is available within 200 feet of other premises on the airport;  
    		(3) 10 percent, if no part of the premises is within 200 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 200 feet of other premises on the airport;  
    		(4) 10 percent, if no part of the premises is within 200 feet of an existing public access road;  
    		(5) 10 percent, if the premises are aeronautical 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.  
    	(e)  A rent reduction applied to a lease, permit, or concession under (d)(1) of this section does not apply to a successive lease, permit, or concession having substantially the same premises.  
    	(f)  If within the previous three years the department has accepted an appraisal of a premises under 17 AAC 45.205(d) or 17 AAC 45.297, in place of the rental rate determined under (a) - (c) of this section, the department will charge fair market rent, as determined by the appraisal, for use of the appraised premises, unless improvements to the airport made after the appraisal have upgraded the airport to a higher type under (a) of this section. If the department enters into a successive lease or a new lease for substantially the same uses on a premises for which the fair market rental rate is established by appraisal under this subsection, the appraisal-based rate remains in effect for three years from the date that rental rate took effect, unless the department determines by a more recent appraisal that the appraisal is no longer the best estimate of fair market rent.   
    	(g)  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 for the use of land, tideland, dock frontage, and float space.  
    	(h)  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)   prorating the department's actual or estimated costs of operating the building, plus a rate of return of not less than five percent or 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.  
    	(i)    In addition to the rental rate of any premises used, the department may charge a concession fee for the value of the department's authorization to conduct a non-aeronautical business opportunity on airport premises. Except as limited by any existing contract right, the department will require any lease or permit authorizing the sale on a department-operated airport of food and non-alcoholic beverages, alcoholic beverages, goods, or lodging to include an obligation to pay a concession fee calculated as a percentage of the gross sales of the authorized business in addition to land rent, building rent, or a business activity permit fee under this section. The concession fee on all sales of alcoholic beverages under the lease or permit is 12 percent of gross sales. The concession fees on gross combined sales of food and non-alcoholic beverages, goods, and lodging in excess of $50,000 in a calendar year, or in excess of a proportional amount for any partial calendar year at the beginning or end of the concession, are the following percentages:   
    		(1) food and non-alcoholic beverages, six percent;  
    		(2) goods, eight percent;  
    		(3) lodging, five percent.  
    	(j)  The department will charge the following annual rent for the agricultural use of airport land if the department allows the 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, $55 per acre; and  
    		(2) for land used only for livestock grazing or harvesting uncultivated vegetation, excluding timber, $5 per acre.  
    	(k)  Except where a different fee is specified in this chapter, such as for an airport boundary crossing permit fee under (l) of this section, a commercial passenger vehicle permit fee under 17 AAC 45.095(k), and a business activity permit fee under (p) of this section, the minimum charge for all rents and fees assessed under this section, including any concession fee, is  
    		(1) $220 for a permit with a term of 120 days or less;  
    		(2) $550 for a lease, permit, or concession with a term of 121 days to one year; and  
    		(3) $550 per year for a lease, permit, or concession with a term of more than one year.  
    	(l)  Subject to (m) and (n) of this section, the department will charge and a permittee must pay each year the greater of $150 or the applicable land rental rate for the square footage area of any right-of-way used for access across airport land between the airport boundary and a public road or aircraft operation area on the airport, plus an annual fee, in United States dollars, for an airport boundary crossing permit issued under 17 AAC 45.285 based on the following schedule:  
                                          Personal Use           Commercial Use
    Type of Airport                        Permit Fee              Permit Fee
    Airport where the longest
    runway is under 5,000 feet
    long between thresholds and is
    unpaved and unlighted                     $275                    $550
    unpaved and lighted                        360                     715
    paved and unlighted                        360                     715
    paved and lighted                          415                     825
    Airport where the longest
    runway is 5,000 feet or
    longer between thresholds and
    is
    unpaved and unlighted                     $415                    $825
    unpaved and lighted                        540                    1,075
    paved and unlighted                        540                    1,075
    paved and lighted                          625                    1,240
    	(m)  A personal-use airport boundary crossing permit fee will be assessed under (l) 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 airport 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.  
    	(n)  The department may perform an appraisal to determine the fee to be charged for an airport boundary crossing permit.  If the fee based on an appraisal is higher than the fee charged under (l) of this section, the department will charge the annual fee for an airport boundary crossing permit based on the appraisal.  
    	(o)  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 2.2 cents per gallon of fuel sold, 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, the following are exempt from the fuel flowage fee:  
    		(1) fuel to be used exclusively for building heating;  
    		(2) fuel delivered to an aircraft for carriage off the airport as manifested cargo in a container not connected to the aircraft's engine;  
    		(3) fuel carried to an airport aboard an aircraft if off-loaded to or in a storage or transport container for use only off the airport.  
    	(p)  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 $550.  
    	(q)  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.  
    	(r)  Unless otherwise provided in this chapter, all fees, including an application fee for a lease, permit, or concession under this chapter, are non-refundable.  
    	(s)  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.  
    	(t)  The rental rate for any portion of an area specifically designated under 17 AAC 45.020(c), 17 AAC 45.135, 17 AAC 45.140, or 17 AAC 45.145 for aeronautical or non-aeronautical land use may not be lower than the rate applicable to the class of use for which the land is designated.  The provisions of this subsection apply regardless of authorized or actual use under the lease, unless, when aeronautical use land is not available, the department approves aeronautical use for land designated for non-aeronautical use.  In these circumstances, the department may charge the rental rate for aeronautical use even if lower than the rental rate for the designated use.   
    	(u)  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.  
    

Authorities

02.15.020;02.15.060;02.15.070;02.15.090;44.42.020

Notes


Authority
AS 02.15.020 AS 02.15.060 AS 02.15.070 AS 02.15.090 AS 44.42.020
History
Eff. 3/28/2002, Register 161; am 11/23/2003, Register 168; am 3/22/2008, Register 185; em am 6/16/2008 - 10/13/2008, Register 187; am 4/23/2009, Register 190; am 4/4/2013, Register 206; am 3/20/2016, Register 217