00 Enrolled SB 106 01 Providing for certain individuals who have erected a building on land leased from the state to 02 receive a preference right to purchase certain state land without competitive bid. 03 _______________ 04 * Section 1. AS 38.05.035(f) is amended to read: 05 (f) The director shall grant a preference right to the purchase or lease without 06 competitive bid of up to five acres of state land to an individual who has erected a 07 building on the land and used the land for bona fide business purposes for five or more 08 years under a federal permit or without the need for a permit and, after selection by the 09 state, under a state use permit or lease, if the business produced no less than 25 percent 10 of the total income of the applicant for the five years preceding the application to 11 purchase or lease the land. The director shall sell or lease the land at a price 12 determined by the director to represent the current fair market value of the unimproved 13 land but in no event less than the cost of administration including survey if required. If 01 the director determines in a written finding that the purchase or lease of the land would 02 interfere with public use by residents of the area, the director may condition the 03 purchase or lease to mitigate the adverse effects on the public use or may reject the 04 application for the preference right. A lease granted under this subsection may not be 05 for a period in excess of 50 years. [IN THIS SUBSECTION, "BUSINESS 06 PURPOSES" MEANS A PURPOSE PERMITTED UNDER THE 07 CLASSIFICATION OF THE LAND AT THE TIME THE LAND WAS ENTERED.] 08 * Sec. 2. AS 38.05.035 is amended by adding new subsections to read: 09 (p) Where there is a valid municipal entitlement selection on state land under 10 AS 29.65.010 - 29.65.030 that has a state-issued land lease that has been issued 11 competitively under AS 38.05.070 and before the decision to approve the municipal 12 entitlement land selection, the director shall grant a preference right to purchase 13 without further competitive bid of up to five acres of the state land to an individual 14 who has erected a building approved by a lease on the state land and used the land for 15 bona fide business purposes for 10 or more years under a state lease, if the business 16 produced not less than 25 percent of the total income of the applicant for the 10 years 17 preceding the application to purchase the land. An application for a preference right 18 under this section must be filed with the director within 120 days after notice to the 19 lessee of the municipal entitlement land selection. If the director grants the preference 20 right, the director shall sell the land at a price determined by the director to represent 21 the current fair market value of the unimproved land determined by an appraisal under 22 AS 38.05.840 and a survey, both at the cost of the applicant. If the director determines 23 that the purchase of the land would interfere with public use by residents of the area, 24 the director may condition the purchase to mitigate the adverse effects on the public in 25 the written finding under (e) of this section or may reject the application if those 26 effects cannot be avoided or mitigated. If the preference right application is approved, 27 the amount of land within the overall municipal entitlement under AS 29.65.010 - 28 29.65.030 shall be reduced by the amount of land covered under this section; however, 29 subject to appropriation, the revenue from the purchase of the parcel will be given to 30 the municipality if the municipal entitlement land selection is approved. 31 (q) In (f) and (p) of this section, 01 (1) "building" means a permanent type of structure not less than 500 02 square feet in size with solid walls, foundation, and roof; 03 (2) "business purposes" means a purpose consistent with the 04 classification of the land at the time the land was entered.