§ 13.05.090. Renewal of expiring lease.

A.

Airport lands with improvements currently under lease may be renewed upon expiration of the lease term if the land continues to be eligible for a lease.

B.

An application submitted by an existing tenant for renewal of the tenant's lease shall be subject to the requirements and procedures of this chapter. Such applications are due at least 90 days in advance of the lease expiration date. Renewals of expiring leases shall be executed on the then current standard lease agreement or as otherwise provided in herein for non-standard council approved lease agreements.

C.

Unless the city determines a shorter lease term is in the best interest of the city, the length of term for renewal of an expiring lease shall be based on borough assessed value or a city-approved appraisal of the value of the permanent improvements on the property as set forth in the table in subsection B.1. of Section 13.05.080. The option chosen shall be at the sole discretion of the city manager. If appraisal is the valuation method selected, it shall be performed by an independent appraiser certified under Alaska Statute 8.87 with experience appraising airport improvements. The appraisal shall be paid for by the lessee.

D.

No lease renewal term shall exceed the remaining useful life of the principle structures built on the leased premises. Remaining useful life shall be determined in the appraisal of value or by other means acceptable to the city.

E.

Notwithstanding subsections B. through D. of this section, the council may by resolution grant a lessee the contractual right to a lease renewal upon such terms and conditions as it determines are in the best interests of the city.

(Ord. No. 2012-001, § 2(Att.), 7-25-2012)