17 AAC 45.275 - Approval or denial of an assignment, assignment for security purposes, or sublease

(a) This section applies to approval or denial of a request for consent to an assignment under 17 AAC 45.260, an assignment for security purposes under 17 AAC 45.265, or a sublease under 17 AAC 45.270.

(b) The department will consent to a request to assign or sublease all or a portion of a lease or concession if the department determines that

(1) the assignment or sublease is authorized under the lease or concession and this chapter;

(2) the proposed assignee or sublessee has demonstrated acceptable financial responsibility;

(3) the proposed assignee or sublessee has demonstrated its ability to perform under the lease or concession;

(4) denial of the request is not required under 17 AAC 45.010(g) with respect to either party to the assignment or sublease;

(5) the assignment or sublease would provide the proposed assignee or sublessee with no greater rights, privileges, or authorities than those granted in the lease or concession being assigned or subleased;

(6) the proposed assignee's or sublessee's proposed use of the premises is authorized by the lease or concession being assigned or subleased;

(7) the terms and conditions of the proposed assignment or sublease adequately recognize and protect the department's interests under the lease or concession;

(8) the assignment or sublease is in the best interest of the state; and

(9) the premises subject to the assignment or sublease, when combined with the premises subject to other leases or concessions on the airport held by the assignee or sublessee, will not

(A) exceed the proposed assignee's or sublessee's needs, including reasonable future expansion; or

(B) result in the monopolization of an aeronautical use held by the proposed assignee or sublessee on the airport.

(c) The department will approve or deny a request under this section in writing. If the department denies the request, the department will state the reasons for the denial in writing. The department will make a determination on a request for consent to assignment, assignment for security purposes, or sublease within 60 days after the assignor or sublessor has submitted a complete request.

(d) A lessee, permittee, or concessionaire may protest a denial of an assignment, assignment for security purposes, or sublease in accordance with 17 AAC 45.910.

Notes

17 AAC 45.275

Eff. 3/28/2002, Register 161; am 3/22/2008, Register 185; am 3/20/2016, Register 217, April 2016

Authority:AS 02.15.020

AS 02.15.060

AS 02.15.090