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Lease (Business, Residential, Sand & Gravel)

If you are interested in leasing restricted Native land, our office needs a letter of intent from you. The letter of intent should include:

  1. The purpose of the lease
  2. The initial term, plus any renewals
  3. A preliminary map or sketch of the lease area
  4. The name and address of the lessee
  5. The name and title of the person authorized to sign documents for the lessee
  6. The name and contact information of the primary contact of the lessee
  7. The initial monetary offer
  8. Other valid information

Once we receive your letter, a Realty Specialist will be assigned to work on the lease transaction. It is important that you keep the contact information of this Realty Specialist.

The Realty Specialist will order a Title Status Report (TSR). The TSR will show if there are multiple owners and if there are clouds on the title. If there are multiple owners, all owners must agree to lease the land. If there are any clouds on the title it can delay approval of the lease.

Once we determine that all owners are agreeable to the lease, you will need to submit a survey to the BLM Indian Lands Surveyor (BILS) for review and approval. It is the responsibility of the lessee or the landowner to arrange and pay for the survey. Contact BILS at (907) 271-1612 to get information about survey requirements. Once the survey has been approved by BILS, the Realty Specialist will send requests for the following:

1. Archeology Section 106 Review: This request is for a BIA Archeologist to conduct an inventory of the property to determine if there are any artifacts or historic sites. If artifacts or historic sites are located on the property, they must be excavated, cataloged, and preserved. This may delay lease approval. Like the appraisal, these investigations are usually done in the summer.

2. Environmental Assessment (EA): If you provide the Environmental Assessment, the Realty Specialist will submit it to the BIA Regional Environmental Scientist who reviews, approves, and forwards the report to the Regional Director for approval. This request is to determine any impact the lease may have on the environment.

3. Appraisal: The appraisal request is sent to the Office of Appraisal Services (OAS). Appraisal site visits are usually done in the summer. The landowner or lessee can pay for a private appraisal, but the appraisal must be reviewed by an OAS Appraiser. If you choose to order your own appraisal you need to let the Realty Specialist know and contact the OAS at 907-271-1556.

Once our office has received these reports, the lease process can continue with final compensation negotiation and the lease document. The BIA lease regulations can be found at 25 CFR Part 162, but other provisions can be added. For example, if the lease term is over five (5) years then compensation adjustments need to be done every 5 years. This can be done by the appraisal method, using the Consumer Price Index (CPI) or other agreed upon terms; such as specifying an increase in the monetary amount or percentage of the rent.

The lease package must be complete before the Regional Director is able to approve it. Please review 25 CFR Part 162, Leases and Permits. If the package is incomplete, it cannot be processed for approval. Please ensure to include the following so that your package may be considered complete:

  1. Permanent Improvement Plan with Construction Schedule (if applicable)
  2. Restoration and Reclamation Plan (if applicable)
  3. Certificate of Liability Insurance (unless waived)
  4. Bond (unless waived)
  5. Other documents may be required by the BIA

Once a complete lease package has been submitted and the Regional Director has approved the lease, then payment must be made. It is the responsibility of the lessee to obtain any other necessary permits and clearances required for activities taking place on the premises.

 

MAIL THE LETTER OF INTENT TO:

US Department of the Interior

BIA AK Regional Office MC 304

3601 C St., Ste. 1200

Anchorage, AK 99503-5947

 

FOR FURTHER INFORMATION, CONTACT:

Bureau of Indian Affairs Alaska Region

Real Estate Services

3601 C Street, Suite 1200 MC-304

Anchorage, Alaska 99503-5947

(800) 645-8465, Extension 2-1

(907) 271-4104

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