State approves 25-year renewal of College Road lease, with rent to reset to market value

The state on Friday renewed for 25 years the lease on the College Road land under the Alaska Fun Center in Fairbanks, and the rent, about $4,000 a year under a lease that dates to 1971, will reset to market value.

The Alaska Department of Natural Resources approved the renewal for Gabriele and William Larry, who hold the lease on the 0.688-acre parcel at 1817 College Road, across from the Tanana Valley Fairgrounds. The new term runs through Nov. 16, 2051. The Larrys also applied in August 2025 to buy the land outright, and that request is still under review.

The original lease and state law at the time gave leaseholders a right to renew if they kept up the lease and applied on time. DNR found the Larrys did both.

Under the 1971 lease, the rent could go up only once every 10 years, by no more than half. The last adjustment, in 2023, was made without an appraisal. The current rent is $3,958.74 a year.

Before the new lease is issued, the Larrys must provide an appraisal, and DNR will set the rent at the land's fair market value, then reappraise it every five years. Until then, a three-year entry permit lets them keep using the site at an estimated $3,958.74 a year, with any difference settled once the appraisal is done.

DNR also waived a $30,000 bond meant to pay for cleanup and restoring the site if the leaseholders fail to, because the Larrys plan to buy the land. The bond would be required if the sale is denied or withdrawn, or if a sale is approved but makes no real progress within five years.

The parcel borders Noyes Slough. DNR chose not to require a public access easement along the water, saying it would force removal of significant infrastructure and that people can reach the slough nearby, including from the College Road right of way.

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