Alaska Administrative Code
Title 17 - Transportation and Public Facilities
Chapter 45 - Rural Airports
Article 2 - Authorization for Use of Rural Airport Property
17 AAC 45.230 - Documentation of costs, purchase price, opinion of remaining useful life, or fair market value of permanent improvements
Universal Citation: 17 AK Admin Code 17 AAC 45.230
Current through August 30, 2024
(a) If an applicant or lessee requests a lease term for a new lease or an extension of an existing lease based on
(1) reasonable local market
rate costs the applicant or lessee incurred for items described in
17 AAC 45.225(c) (1)(C), the applicant or lessee must document
those costs, excluding financing costs, by providing
(A) a statement of project costs signed by
the contractor who performed the work;
(B) a statement of project costs signed by a
certified public accountant;
(C) a
copy of a contractor payment schedule specific to the project;
(D) a notarized affidavit signed by the
applicant or lessee attesting to the project costs, with an itemized listing of
site costs and copies of invoices reflecting payment of those costs;
or
(E) if the information described
at (A) - (D) of this paragraph is not available as evidence of the cost, an
estimate of project costs prepared and signed by a contractor or an architect
or engineer registered under AS 08.48 or a general real estate appraiser
certified under AS 08.87; this estimate must reflect costs as of the date of
construction completion and must include cost data to support the
estimate;
(2) purchase
price of permanent improvements owned by the applicant or lessee, the applicant
or lessee must document the purchase price by providing
(A) a copy of an executed bill of sale or
sales contract that reflects the amount, excluding financing costs, the
applicant or lessee paid for permanent improvements on the premises; the value
of any leasehold transferred or purchased will not be considered toward the
setting of a lease term; or
(B) a
notarized affidavit signed by both the applicant or lessee, as purchaser, and
the former lessee, as seller, stating the purchase price, excluding financing
costs, of permanent improvements on the premises, but only if the applicant or
lessee is unable to submit a bill of sale or sales contract;
(3) fair market value of permanent
improvements that the applicant or lessee owns and are located on the premises,
the applicant or lessee must document the fair market value in a written
appraisal by a general real estate appraiser certified under AS 08.87; the
appraisal must be based on generally accepted professional standards;
or
(4) remaining useful life of
existing permanent improvements the applicant or lessee owns that are located
on the premises, the applicant or lessee must document the remaining useful
life in a written opinion; the opinion must
(A) be prepared by an architect or engineer
registered under AS 08.48 or a general real estate appraiser certified under AS
08.87;
(B) be based on generally
accepted professional standards; and
(C) analyze all relevant factors including
physical, functional, and economic obsolescence.
(b) The department will accept an appraisal of fair market value or an opinion of remaining useful life prepared under (a) of this section if the appraisal or opinion meets generally accepted professional standards and is prepared in accordance with any instructions established by the department consistent with those standards.
(c) The applicant or lessee must obtain and submit any appraisal of fair market value or opinion of remaining useful life under (a) of this section at the applicant's or lessee's sole expense.
Authority:AS 02.15.020
AS 02.15.060
AS 02.15.090
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