To ensure that as few leases as possible go into holdover, the commission should continue to implement its newly established holdover reduction procedures and periodically evaluate whether its new procedures are having their intended effect of reducing the number of leases in holdover.
Response: Staff has continued to follow the holdover reduction procedures and it has been extremely successful. Of the more than 1,400 rent-generating leases, there are currently only 18 such leases in holdover (a 99% compliance rate). Over the past three years since the holdover procedures have been in place, the Commission has held 18 meetings, bringing more than 600 compliance/enforcement related items, resulting in an additional $4 million in revenues for the state. The majority of these are not one-time revenues, but increased annual rent. Those leases still in holdover have been brought current on rental valuation and are being held up by other factors often beyond the Commissions control such as completion of environmental documents or issuance of permits or approvals from other regulatory agencies.
Commission staff believes this recommendation is fully implemented.
Commission staff will continue to examine processes and leverage the reporting and workflow capabilities of the SLIC database to enhance holdover reduction procedures to ensure that notifications of lease expirations are timely.
Agency responses received after June 2013 are posted verbatim.