17 AAC 45.242 - Damage to lessee-owned permanent improvements
(a) If, within five
years before the expiration of the lease, the lessee-owned permanent
improvements on the premises are damaged to the extent that at least 50 percent
of the improvements are rendered unusable, the lessee may terminate the lease
by 30 days' written notice to the department after removing the damaged
improvements and restoring the premises to a clean and neat physical condition
acceptable to the department.
(b)
Except as provided in (a) of this section, if lessee-owned permanent
improvements on the premises are damaged or destroyed, the lessee shall repair,
rebuild or replace the improvements to function normally within two years after
the date on which the improvements were damaged or destroyed. If the lessee
materially fails to complete the repair, reconstruction, or replacement of the
damaged or destroyed improvements within the allowed time, the department will
(1) unilaterally reduce the term of the lease
so that the total term from the beginning of the lease is consistent with the
cost or value of the undamaged improvements remaining on the premises, using
the table in
17 AAC 45.225(j);
or
(2) grant an extension of time
for the lessee to complete the repair, reconstruction, or replacement of
damaged or destroyed improvements on the premises for good cause shown by the
lessee and upon a finding that the action would be consistent with the best
interest of the state.
(c) Repair, rebuilding, or replacement of
damaged or destroyed lessee-owned permanent improvements under this section
constitutes new investment for purposes of term extension.
Notes
Authority:AS 02.15.020
AS 02.15.060
AS 02.15.090
AS 02.15.210
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