Opinion ID: 1362228
Heading Depth: 1
Heading Rank: 1

Heading: Rentals to Union Oil and Radio Station KINY

Text: Appellant argues that under the provisions of AS 38.05.320 appellee must itself have used, occupied and controlled the tide and submerged land for business or other beneficial purposes and that the use, occupancy and control of Union Oil and KINY of the particular portion of the rock fill occupied by them is not the use, occupancy and control of appellee. We are of the view that as to the areas leased by Union Oil and KINY appellee has satisfied the requirements of the statutes and regulations. It is conceded that appellee, by dumping rock and fill in the area performed basic development work which created land suitable, in fact desirable, for certain business uses. There is no contention that appellee ever evidenced an intent to abandon any portion of the premises, in fact the evidence is that appellee at all times exercised control over the area. After creating the land, appellee then leased portions to Union and KINY who erected whatever buildings and structures were necessary for their particular business uses. The uses made of their leaseholds by Union and KINY were beneficial to them and to the public. The beneficial uses made by the lessees accrued to the benefit of appellee in its application for a preference by reason of that portion of AS 38.05.320(d) (1) following (F) [11] which provides that occupancy of the land by one other than the owner of the improvements is the occupancy of the owner. Appellant argues that appellee did not and still does not own the improvements consisting of tanks, radio towers, etc., which belong to lessees. The answer is that under the particular facts of this case, the rock fill itself, by reason of its suitability and utilization for a business use and the procurement of such a use by appellee, became a permanent improvement owned by appellee to the extent that it could be owned within the meaning of the statute.