Legislative Council approves Fairbanks LIO lease extension with Global Federal Credit Union
March 18, 2026 | 2026 Legislature Alaska, Alaska
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The Legislative Council voted unanimously on March 18 to approve a lease extension between the Legislative Affairs Agency and Global Federal Credit Union for Fairbanks office space, in the amount of $242,151.24.
Procurement officer JC Kestel told the council the agency obtained a market value report for the property at 1292 Sather Way and determined the market rental value for the full space at $2.55 per square foot on a full-service basis. Kestel said the agency negotiated a rate of $2.23 per square foot, a 12.5% savings below market, which permits the legislature to extend the lease under procurement statute 36.30.083. Kestel said the full-service lease covers utilities, janitorial and related building services.
Senator Giesel moved the motion to approve the extension; after a brief opportunity for discussion Chair Hannan removed an initial objection and asked for a roll-call vote. Miss Truitt called the roll; the motion passed 11 yeas, 0 nays. Those recorded in the roll call were Representative Kerrick, Speaker Edgmon, Representative Johnson, Representative Kopp, Representative Shroggy, Representative Stutes, Senator Clayman, Senator Giesel, Senator Grama Jackson, Senator Kiel and Chair Hannan.
During discussion, a council member asked whether the lessor had been consulted; Kestel said negotiations with Global Federal Credit Union had occurred and that finalizing the extension remained contingent on council approval. Representative Cara thanked Kestel for locating appropriate space and noted the Fairbanks LIO is heavily used by the Interior Delegation and other members during the interim.
The approved extension is structured as a five-year extension with five separate one-year renewal options, meaning the arrangement could extend up to ten years in total if renewal options are exercised. The council approved the lease by roll-call vote and recorded the procurement documentation and the market-value report in the meeting materials.
The council immediately moved on to an executive session after the vote.
Procurement officer JC Kestel told the council the agency obtained a market value report for the property at 1292 Sather Way and determined the market rental value for the full space at $2.55 per square foot on a full-service basis. Kestel said the agency negotiated a rate of $2.23 per square foot, a 12.5% savings below market, which permits the legislature to extend the lease under procurement statute 36.30.083. Kestel said the full-service lease covers utilities, janitorial and related building services.
Senator Giesel moved the motion to approve the extension; after a brief opportunity for discussion Chair Hannan removed an initial objection and asked for a roll-call vote. Miss Truitt called the roll; the motion passed 11 yeas, 0 nays. Those recorded in the roll call were Representative Kerrick, Speaker Edgmon, Representative Johnson, Representative Kopp, Representative Shroggy, Representative Stutes, Senator Clayman, Senator Giesel, Senator Grama Jackson, Senator Kiel and Chair Hannan.
During discussion, a council member asked whether the lessor had been consulted; Kestel said negotiations with Global Federal Credit Union had occurred and that finalizing the extension remained contingent on council approval. Representative Cara thanked Kestel for locating appropriate space and noted the Fairbanks LIO is heavily used by the Interior Delegation and other members during the interim.
The approved extension is structured as a five-year extension with five separate one-year renewal options, meaning the arrangement could extend up to ten years in total if renewal options are exercised. The council approved the lease by roll-call vote and recorded the procurement documentation and the market-value report in the meeting materials.
The council immediately moved on to an executive session after the vote.
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