Section 17 AAC 42.240 - Agreement to complete construction or remediation(a) If the airport manager grants a lessee, permittee, or concessionaire a lease term or lease term extension based on proposed construction or remediation on the premises, the lessee, permittee, or concessionaire must agree to complete the construction or remediation within the following periods: (1) in the case of construction, the time that the manager sets in the lease, permit, or concession; the time set may not exceed two years unless the lessee shows to the airport manager's satisfaction that a longer period of time is required considering the cost, type, and phasing of construction and any required remediation under 17 AAC 42.225(b) (6) and that granting a longer period of time to complete the construction or remediation is not inconsistent with the best interest of the state; or(2) in the case of remediation, the time set in a remediation plan that the lessee, permittee, or concessionaire submits under 17 AAC 42.225(b) (6) and that the manager approves.(b) The airport manager shall require a performance bond, deposit, personal guarantee, or other security if the manager determines security is necessary or prudent to ensure completion of the construction or remediation within the time period set under (a) of this section. The manager shall determine the form and amount of the security considering the nature and scope of the construction or remediation and the financial responsibility of the lessee, permittee, or concessionaire.(c) The lessee, permittee, or concessionaire shall, within 90 days after completion of construction or remediation, submit to the airport manager written documentation that the construction or remediation has been completed as required.(d) If the lessee shows good cause to the airport manager and if it is not inconsistent with the best interest of the state, the manager shall grant an extension that is sufficient to allow for the completion of the construction or remediation or for submission of documentation that the construction or remediation has been completed under this section.(e) If within the time required under (a) and (c) of this section or as the airport manager has extended under (d) of this section, a lessee, permittee, or concessionaire fails to complete the construction or remediation or to submit documentation that the construction or remediation has been completed, the manager shall (1) execute the forfeiture of the performance bond, deposit, personal guarantee, or other security posted by the lessee, permittee, or concessionaire;(2) cancel the lease, permit, or concession; or(3) reduce the term of the lease, permit, or concession to a period that is consistent with the portion of the construction timely completed.(f) An action that the airport manager takes under (e) of this section must be in writing and must state the reasons for the action taken.Eff. 1/14/2001, Register 157; am 1/17/2016, Register 217, April 2016Authority:AS 02.15.020
AS 02.15.060
AS 02.15.090