Section 17.45.270. Sublease.

	(a)  Unless the lease, airport boundary crossing permit issued under 17 AAC 45.285, or concession expressly provides otherwise, a lessee, airport boundary crossing permittee, or concessionaire may not sublease all or a portion of a lease, airport boundary crossing permit, or concession premises without the prior written consent of the department under 17 AAC 45.275. A permit issued under this chapter, other than an airport boundary crossing permit issued under 17 AAC 45.285, may not be subleased. A sublease made contrary to the requirements of this section and 17 AAC 45.275 is void.  
	(b)  A request for consent to a sublease must be submitted in writing and must include  
		(1) the name, address, and telephone contact number of the proposed sublessee;  
		(2) a description of property to be subleased;  
		(3) a description of the proposed sublessee's intended use of the premises;  
		(4) the expiration date of the sublease;   
		(5) a statement of the proposed sublease rent to be paid per month of occupancy;  
		(6) three originals of the executed sublease documents, or in the case of a sub-sublease, four executed originals of the sub-sublease, with notarized signatures of the sublessee and the sublessor;  
		(7) a binder for insurance covering the operations and activities of the sublessee to the same extent that the sublessee would be required under 17 AAC 45.425 to maintain insurance if the sublessee were a direct lessee, airport boundary crossing permittee,  or concessionaire under the lease, airport boundary crossing permit, or concession;  
		(8) a guarantee of indemnification by the sublessee under which the sublessee provides to the state the same level of indemnity that the sublessee would provide to the state if the sublessee were a direct lessee or concessionaire under the lease, airport boundary crossing permittee, or concession; and  
		(9) a non-refundable $55 sublease processing fee.  
	(c)  Unless the department's written consent provides otherwise, a sublease is subject to all of the terms and conditions of the lease, airport boundary crossing permit, or concession governing the property being subleased and must include language to that effect.  The activities of a sublessee on an airport are also subject to all applicable fees and charges established under 17 AAC 45.127, and the sublessee and the direct lessee remain jointly obligated for payment of all applicable fees and charges to the department.  
	(d)  A sublessee of a lease, airport boundary crossing permit, or concession may not occupy the premises before the department consents to the sublease in writing.  
	(e)  A sublessee must maintain the same insurance and provide the indemnity that the sublessee would be required to maintain and provide if the sublessee were a direct lessee, airport boundary crossing permittee,  or concessionaire under the lease, airport boundary crossing permit, or concession, as applicable. The department may waive the requirement that the sublessee maintain insurance, including the binder required under (b)(7) of this section, if the department determines that the sublessee's activities on the airport are covered under the lessee's insurance to the full extent stated in this subsection or are not likely to pose more than negligible risks to the state.  
	(f)  A sublease does not relieve a lessee, airport boundary crossing permittee, or concessionaire of the responsibility for providing the department with evidence of insurance that meets the requirements of the lease, airport boundary crossing permit, or concession with respect to operations on the premises, including those of the sublessee. However, if a lessee, airport boundary crossing permittee,  or concessionaire subleases the entire premises under a sublease to which the department has given consent under 17 AAC 45.275 and the lessee, airport boundary crossing permittee,  or concessionaire requires the sublessee to provide insurance coverage that meets the requirements of the lease, airport boundary crossing permit, or concession, the department will accept evidence of that insurance from the sublessee if the insurance meets the requirements of the lease, airport boundary crossing permit,  or concession and lists the lessee, airport boundary crossing permit,  or concessionaire as an additional insured. The department will notify the lessee, airport boundary crossing permittee, or concessionaire if the evidence of insurance provided by a sublessee is insufficient, incorrect, or not timely received.  
	(g)  The consent of the department under 17 AAC 45.275 is required for each sublease of all or any portion of a lease, airport boundary crossing permit, or concession, including a further sublease of a sublease for which the department's consent has already been given.  
	(h)  Consent to a sublease by the department under 17 AAC 45.275 does not relieve or otherwise alter the obligations of the lessee, airport boundary crossing permittee, or concessionaire under the lease, airport boundary crossing permit, or concession. Any sublease provision that purports to relieve a lessee, airport boundary crossing permittee, or concessionaire of a responsibility to the department under a lease, airport boundary crossing permit, or concession, as applicable, is of no effect as to the department.  
	(i)  A lessee, airport boundary crossing permittee, or concessionaire may request that the department informally review a proposed sublease before the sublease documents are executed. However, a sublease of a lease, airport boundary crossing permit, or concession is effective only if the department consents to the sublease in writing under 17 AAC 45.275 after receiving a written request submitted under (b) of this section.  
	(j)  The department's consent to a sublease under 17 AAC 45.275 applies to only the specific sublease transaction reviewed and considered by the department.  
	(k)  An assignment of a sublease is subject to the requirements of 17 AAC 45.260 and 17 AAC 45.275.  

Authorities

02.15.020;02.15.060;02.15.090

Notes

Reference

17 AAC 45.275

Authority

AS 02.15.020 AS 02.15.060 AS 02.15.090

History

Eff. 3/28/2002, Register 161; am 3/22/2008, Register 185; am 4/23/2009, Register 190