(a) Notwithstanding any other provision of law to the contrary, and except as otherwise provided in section Lease restrictions” class=”unlinked-ref” datatype=”S” sessionyear=”2023″ statecd=”HI”>171-192, a lessee of public land within the Hilo community economic district that is classified as hotel, resort, or commercial and industrial use pursuant to § 171-10, and that is subject to the management, administration, or control of the board may, during the last ten years of the term of the original lease, submit a written request to the board to initiate a request for interest process as provided in this section.
Land: includes all interests therein and natural resources including water, minerals, and all such things connected with land, unless otherwise expressly provided. See Hawaii Revised Statutes 171-1
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Person: includes individual, partnership, corporation, and association, except as otherwise defined in this chapter. See Hawaii Revised Statutes 171-1
(b) Within one hundred eighty days of a lessee’s written request to initiate a request for interest, the board shall:
(1) Appraise the value of the land and any improvements to the land that existed as of the date of the written request pursuant to section 171-17(a) and require the awardee of a new lease executed pursuant to this section to reimburse the department for the appraisal; and(2) Publish a request for interest and request for qualifications notice inviting persons to express their interest in leasing the land and their qualifications as potential lessees and describing any improvements to the land that exist as of the date of the written request. The notice shall be given at least once statewide and at least once in the county where the land is located and shall contain:
(A) The qualifications required of eligible lessees which shall conform to department policy for new leases;(B) A general description of the land, including the address and tax map key, the termination date of the existing lease, and of any improvements to the land that existed as of the date of the written request;(C) That the land to be leased is classified as hotel, resort, or commercial and industrial use pursuant to § 171-10;(D) The appraised value of the land and of any improvements to the land that existed as of the date of the written request;(E) The closing date and manner by which a person shall indicate interest and submit a statement of qualifications; and(F) Notice that a current business plan is a prerequisite to participate at time of auction or direct negotiation, if applicable, and shall be made a term of the lease.(c) Within ninety days after the closing date specified in the notice, the board shall determine if any persons have qualified under the terms of the request for qualifications and shall notify all persons who expressed interest as to whether they qualified. Qualified bidders shall be required to deposit an amount equal to one per cent of the value of the leasehold improvements as determined by appraisal, but not less than $1,000, to be held in an interest bearing account as deposit by the department and returned to the applicant at the applicant’s cancellation of interest, the applicant’s unsuccessful bid at auction, or as a credit against the applicant’s successful bid at auction. The board shall also notify the current lessee as to whether any other persons qualified.(d) The board shall proceed to dispose of the land in accordance with section 171-41.6.
