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28th Legislature(2013-2014)

Bill Text 28th Legislature


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.                                                      
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