Opinion ID: 2518074
Heading Depth: 4
Heading Rank: 2

Heading: Alaska Statute 38.05.075(c)

Text: The Alaska Land Act was substantially revised in 1984, including changes to the leasing program. [68] A provision was added under which an upland owner would be entitled to acquire a lease for the [adjacent] tide and submerged land without competitive bidding regardless of the value of the lease if DNR made certain determinations. [69] This modification to the leasing program was proposed by an executive of the Sealaska Native Corporation who testified before the Senate Resources Committee. [70] After noting that the development of Sealaska's 1,000 miles of coastal property was dependent on access to state-owned tidelands, the witness suggested that the creation of an upland owner's preference would facilitat[e] transportation and commerce from adjacent uplands, which is vital to upland economic development. [71] The provision was presented and adopted at the next meeting of the Resources Committee. [72] The provision, proposed by an owner of a large amount of land bordering tideland and submerged land, was meant to expand the rights of littoral owners by entitling them to noncompetitive leases for adjacent property, not to restrict their rights by authorizing DNR to lease tideland and submerged land to them when they could not do so before. Support for this interpretation of AS 38.05.075(c) and DNR's authority to enter into leases with upland owners prior to its enactment can be found in the Senate Resources Committee files. The text of the provision proposed by Sealaska, which specifically related to upland owner leases, was circulated among committee members prior to its adoption with the following note from committee staff: Leases for tide and submerged lands are currently available through the competitive bidding process. Under current statute, any lease for a term of less than 5 years and valued at less than $250 annually may be negotiated. [73] After the amendment had been adopted by the committee, a summary of major provisions of the amendments to the Alaska Land Act described it as [p]rovid[ing] a mechanism for DNR to negotiate leases for tide and submerged lands with upland land owners without competitive bidding, whereas under the former leasing procedures, [l]easing is made at auction to the highest qualified bidder. [74] In 1997, AS 38.05.075(c) was amended to authorize DNR to grant preference rights to riparian owners leasing adjacent shorelands in addition to owners leasing adjacent tidelands and submerged lands. [75] In its current form, the provision states: The owner or lessee of land that fronts on shoreland, tideland, or submerged land of the state may be granted a preference right to a lease for the shoreland, tideland, or submerged land without competitive bidding if the director makes certain determinations. Alaska Statute 38.05.075(c) clearly authorizes DNR to directly negotiate leases of any value with upland owners who construct wharves. [76] We therefore reject Alaska Riverways' argument that DNR is not authorized by statute to require it to enter into a lease for its exclusive use of state-owned shoreland.