Section 38.05.810. Public and charitable use.

   (a) Except as otherwise provided in AS 38.05.183(h), the (1) lease, sale, or other disposal of state land or resources may be made to a state or federal agency or political subdivision, (2) lease, sale, or disposal of coal deposits suitable for mining may be made to a utility owned and operated by a government agency or nonprofit cooperative association organized to participate under the Federal Rural Electrification Act for the purpose of generating electric power and energy or the production of process steam, or both, (3) sale or other disposal of state land may be made to a tax-exempt, nonprofit corporation, association, club, or society organized and operated for the management of a cemetery or a solid waste or other public facility, or (4) sale or other disposal of land within a state subdivision may be made to that subdivision's nonprofit, tax-exempt homeowners' association, for less than the appraised value as determined by the director and approved by the commissioner to be fair and proper and in the best interests of the public, with due consideration given to the nature of the public services or function rendered by the applicant, and of the terms of the grant under which the land was acquired by the state. The commissioner shall ensure, by regulation, deed restriction, covenant, or otherwise, that disposals of land under this subsection serve a public purpose and are in the public interest.
   (b) Notwithstanding AS 38.05.070 - 38.05.080 and 38.05.095, the director, upon application filed by an applicant eligible under (b) - (d) of this section, may, by negotiation and without competitive bid in the manner prescribed in (b) - (d) of this section, lease state land for a term of not more than 55 years. Before leasing, the director shall prepare a land use plan and a land classification to ensure that the proposed use is compatible with area utilization. Before the land may be leased under (b) - (d) of this section, it must be shown to the satisfaction of the director that the land is to be used for an established or definitely proposed project, and that the eligible applicant has the financial ability to carry out the project. The commissioner may establish limitations on the acreage that may be leased under (b) - (d) of this section to an applicant.
   (c) Eligible applicants under (b) - (d) of this section are limited to nonprofit corporations, associations, clubs, or societies organized and operated exclusively for charitable, religious, scientific, or educational purposes, or for the promotion of social welfare, if the project for which the land is desired conforms to those objectives and not commercial development.  No lease of land may be granted under this section for a project closed to the use and enjoyment of the general public.  In every case the applicant shall submit evidence that it is exempt from payment of federal income tax. As a condition of and in consideration of the rights acquired under a lease granted under (b) - (d) of this section, each eligible organization and its parent or subsidiary organizations shall (1) maintain and preserve books, accounts, and records that the director prescribes by regulation as necessary and appropriate; and (2) accord at all reasonable times to the state and its authorized agents and auditors the right of access to those books, accounts and records for the purpose of inspecting, examining and copying them.  Any information provided the state in the course of an audit becomes a matter of public record.
   (d) The director may lease the land to an eligible applicant at a reasonable annual rental, taking into consideration the purposes for which the land is to be used and the financial resources of the applicant.  The rental may not be less than one percent of the fair market value on land acquired primarily for development, or less than five percent of the fair market value on acquired land.  Rent may not be charged for state land leased for a youth encampment.  For the purposes of this subsection, "youth encampment" shall be defined by the commissioner by regulation.  Renewal leases may be issued at the discretion of the director upon the expiration of a primary or renewal term.  Each lease shall contain a provision for its termination as to all or part of the land upon a finding by the director that the land or a part of it has not been used by the lessee for the purpose specified in the lease for a period of two years.  No lease may be assigned or subleased except with the consent of the director, and in any case may only be transferred to an applicant eligible under (b) - (d) of this section.  A lessee may not change the use specified in the lease to another or additional use except with the consent of the director.  If, at any time after the land is leased, the lessee attempts to assign the lease or transfer control over the land to another, or if the land is devoted to a use other than that for which the land was leased without the consent of the director, the lease automatically terminates.
   (e) The lease, sale, or other disposal of state land at appraised fair market value may be negotiated with a licensed public utility or a licensed common carrier by the director with the approval of the commissioner if the utility or carrier reasonably requires the land for the conduct of its business under its license. Notwithstanding AS 38.05.550 - 38.05.565, the sale of materials necessary for construction, use, or maintenance of property leased, sold, or disposed of under this section may be negotiated by the director. A lease with a licensed public utility that is an electric utility entered into under this subsection may not include, as part of the rent or other fee that is negotiated or charged, an amount that is based on or determined by a percentage of gross revenue for renewable energy produced by the electric utility.
   (f) The commissioner shall lease state land for telephone or electric transmission and distribution lines for less than the appraised value of the land if the lessee is a nonprofit cooperative association organized under AS 10.25.  The commissioner may lease state land that is not located within the boundary of a municipality for the disposal of garbage, refuse, trash, or other waste material for less than the appraised value of the land if the lessee is a licensed public utility authorized to collect and dispose of garbage, refuse, trash, or other waste material outside the boundaries of a municipality. Before determining the annual rental, the commissioner shall consider the nature of the public service rendered by the nonprofit cooperative association or licensed public utility and the terms of the grant under which the land was acquired by the state.  A nonprofit cooperative association may not construct improvements other than transmission or distribution lines and substations on land leased under this subsection.  A licensed public utility may not construct permanent improvements on land leased under this subsection that are not related to the purpose of the lease.
   (g) The commissioner shall retain a reversionary interest on each sale or other disposal granted under (a) or (e) of this section. The commissioner may waive the reversionary interest on a written determination that the waiver is in the public interest.
   (h) The commissioner may issue permits to the Alaska Aerospace Corporation for purposes of down range space vehicle or payload overflight, booster retrieval, and recovery. The commissioner may, if it is in the best interests of the state, lease land to the Alaska Aerospace Corporation for other space-related purposes for, or at less than the appraised market value.
   (i) Subject to AS 38.05.820, the commissioner may lease undeveloped state land, including tideland, to a port authority established under AS 29.35.600 - 29.35.730, if the state land is within the physical boundaries of the authority and is needed by the authority for purposes provided in AS 29.35.600 - 29.35.730. The commissioner may lease developed state land, including tideland, to a port authority established under AS 29.35.600 - 29.35.730 only if, (1) the developed state land is within the physical boundaries of the authority; (2) the developed state land is needed by the authority for purposes provided in AS 29.35.600 - 29.35.730; and (3) the legislature approves the lease. A lease of state land under this subsection may be for less than the appraised market value.

Authorities

19.40.200;29.35.722;29.65.100;38.05.095;38.05.315;38.05.550;38.05.555;38.05.565;42.45.310

Notes

Implemented As

11 AAC 58.410
11 AAC 58.825
11 AAC 58.830
11 AAC 58.910

References

11 AAC 55.040
11 AAC 58.410
11 AAC 58.830
11 AAC 71.015
11 AAC 71.020
11 AAC 71.090
11 AAC 86.135
AS 19.40.200 Disposal of land or materials.
AS 29.35.722 Ownership or operation of certain state facilities prohibited.
AS 29.65.100 Public purpose and expansion needs.
AS 38.05.095 Subleases.
AS 38.05.315
AS 38.05.550 Disposal of materials.
AS 38.05.555 Negotiated sales and personal use of materials.
AS 38.05.565 Sale or disposal of materials for special purposes.
AS 42.45.310 Acquisition of power project.

History

(Sec. 4 art III ch 169 SLA 1959; am Sec. 1 ch 155 SLA 1960; am Sec. 1 ch 137 SLA 1962; am Sec. 1 ch 36 SLA 1976; am Sec. 12 ch 257 SLA 1976; am Sec. 1 ch 76 SLA 1980; am Sec. 34, 35 ch 113 SLA 1981; am Sec. 1 ch 86 SLA 1984; am Sec. 42 ch 152 SLA 1984; am Sec. 4 ch 55 SLA 1986; am Sec. 11 ch 75 SLA 1987; am Sec. 1 ch 54 SLA 1991; am Sec. 9 ch 88 SLA 1991; am Sec. 5 ch 97 SLA 1992; am Sec. 24 ch 91 SLA 1997; am Sec. 11 ch 22 SLA 2001; am Sec. 12 ch 83 SLA 2010; am Sec. 19, 20 ch 27 SLA 2012)