DNR approves 25-year lease renewal for Alaska Fun Center as purchase bid waits

The Alaska Department of Natural Resources on Friday approved a 25-year renewal of Gabriele and William Larry's lease on the 0.688-acre state parcel at 1817 College Road in Fairbanks, where they run the Alaska Fun Center. The decision would extend the lease, which expires Nov. 16, through Nov. 16, 2051.

The Larrys' August 2025 application to buy the land outright is still under review, the decision says.

The parcel sits across from the Tanana Valley Fairgrounds along Noyes Slough. It was first leased in 1971, and both that lease and state law at the time gave the leaseholders a right to renew if they followed the lease terms and applied on time. DNR found the Larrys did both.

The new lease will not be issued until the Larrys provide an appraisal, which the state will use to set annual rent at fair market value, with reappraisals every five years. Until then, a three-year entry authorization lets them keep using the site at an estimated $3,958.74 a year, the current rent.

DNR waived the required $30,000 performance guaranty, which would pay for corrective action and site restoration if the lessees failed to, because the Larrys intend to buy the property. The waiver ends if the sale is denied or the application withdrawn.

DNR also chose not to reserve a public access easement along the slough. It said one would force removal of significant infrastructure and that the public can reach the water nearby.

Anyone affected can appeal to the DNR commissioner within 20 calendar days.