Opinion ID: 1360563
Heading Depth: 1
Heading Rank: 19

Heading: Whether DNR exceeded its statutory authority in acquiring the Anchorage Times Property.

Text: CG argues that DNR lacks the statutory authority to enter into the ACS/DNR lease. The State responds, arguing that the plain meaning of the statutory authority authorizing DNR to enter into leases is broad. Further, the State argues that the Legislature was notified of the ACS/DNR lease-purchase agreement, and while exercising its oversight authority regarding future lease-purchase agreements, the Legislature provided specific statutory authority for DNR to proceed with the ACS/DNR lease. The applicable statutes authorizing ACS and DNR to enter into lease-purchase agreements provide: AS 36.30.080. Leases. [11] .... (b) The department, legislative branch, or judicial branch may enter into lease-purchase agreements, including lease-financing agreements. A lease-purchase agreement must provide that lease payments are subject to annual appropriation. (c) If the department, legislative branch, or judicial branch intends to enter into or renew a lease of real property with an annual rent to the department, legislative branch, or judicial branch that is anticipated to exceed $1,000,000, or with total lease payments that exceed $10,000,000 for the full term of the lease, the department, legislative branch, or judicial branch shall provide notice to the legislature. AS 38.05.035. Powers and Duties of the Director. (a) The director shall .... (2) manage, inspect and control state land and improvements on it belonging to the state and under the jurisdiction of the division; .... (12) be the certifying agent of the state to select, accept, and secure by deed whatever action is necessary in the name of the state, by deed, sale, gift, devise, judgment, operation of law, or other means any land, of whatever nature or interest available to the state. 1994 SLA Ch. 75 § 12(b): (b) [T]he Department of Natural Resources may continue to enter into lease-purchase or lease-financing agreements ... but only if the Department of Natural Resources is the lessor of the property and the judicial branch is lessee. When read together, the above statutes provide DNR with a broad grant of authority to purchase land for the State before December 31, 1994 for any purpose by means of a lease-purchase agreement, as long as the agreement is subject to annual appropriation, the lessor is DNR and the lessee is ACS. The court finds that the plain meaning of the above statutes provides DNR with the authority to enter into the ACS/DNR lease-purchase agreement.