The charge for the lease will be based
on a fair market value appraisal or the division's current
fee schedule. In order to qualify for the fee schedule,
the proposed site must meet certain criteria. Please
refer to the fee schedule located at to determine if
your site meets those requirements. The current fee schedule
for aquatic farmsites is $ 450 for the first acre or
portion thereof, plus an additional $ 125 per acre, or
portion thereof, paid annually. Also if you have related
facilities, such as a floating caretaker facility or
upland site for housing or storage, you will be charged
fees for those uses as set out in the above-mentioned
fee schedule. As with any lease, you have the option
to have an appraisal done, if you prefer. The appraisal
is done in accordance with appraisal instructions issued
by the department.
A performance bond is also
required to be posted and maintained during the lease
term. The amount of the bond is determined by such factors
as
projected
site cleanup and restoration, and any associated cleanup costs after
termination of the lease, including any unpaid rentals
or other obligations accruing
until site restoration is complete. The minimum bond amount is $2,500.
However, the bond amount may be larger after considering such items
as, travel costs to reach the site for cleanup or inspection;
the planned size
and extent or improvements; whether the improvements, including associated
facilities on state land could be towed away for use by other operators,
burned onsite, or disposed of at an authorized landfill; and whether
heavy equipment would be needed for upland site restoration.
The bond amount
could change based on changes to the existing operation, new information,
or other appropriate factors.
A lessee may reduce the bond amount if three or more lessees
post an association bond to cover all of their leases.
The minimum-security amount is 50 percent of the amount
individually calculated for each lease. The association
must designate an agent for notification purposes and has
the right to be notified of the termination of a lease
covered by its bond. If neither the former lessee not the
association completes the site restoration as required
by AS 38.05.090, the department will use the association
bond for this purpose, up to 100 percent of the amount
individually calculated for that particular lease. The
association may remove a lease that is in good standing
from the coverage of the bond after 60 days notice to the
department, during which time the affected lessee must
make other arrangements to comply with this requirement.
A lease that is in default or that has been terminated
with site restoration still pending, may not be removed
from the coverage of an association bond.
In addition to the annual fee and performance bond, you
may also be required to pay for a boundary survey. Currently,
surveys are not required for aquatic farmsites. However,
the department has the authority to require one in the
future to resolve disputes over boundary conflicts or acreage.
The survey is done in accordance with survey instructions
issued by the department.
