REPORT TITLE:
Land Exchange; Motor Speedway


DESCRIPTION:
Approves the exchange of public lands in North Kona for private
lands along the Kona coast owned by Hawaii International Motor
Speedway. (HB806 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        806
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO LAND EXCHANGE.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that it is in the public
 
 2 interest to enter into a land exchange with the Hawaii
 
 3 International Motor Speedway involving private lands along the
 
 4 Kona coast of the island of Hawaii for public lands in the North
 
 5 Kona District of Hawaii.
 
 6      The state lands are in the vicinity of Kona International
 
 7 Airport and the Hawaii Electric Company power station at Keahole,
 
 8 at the location identified as TMK 7-2-5:8.  This location is
 
 9 ideally suited for the development and operation of an
 
10 international motor speedway.  Fee simple ownership of a site is
 
11 important to secure capital and financing for a project of this
 
12 size.  It is estimated that the construction of the speedway
 
13 would employ three hundred full-time and one thousand part-time
 
14 employees.  Projected total annual revenues over a five-year
 
15 period are estimated at $77,000,000.  
 
16      Currently, the investors for the Hawaii International Motor
 
17 Speedway do not own any lands in Hawaii.  These investors are
 
18 prepared to acquire private lands along the Kona Coast of Hawaii
 
19 that are suitable for exchange with the State.  The exact
 
20 location of these lands will need to be negotiated with the
 

 
Page 2                                                     806
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 department of land and natural resources and approved by the
 
 2 board of land and natural resources.
 
 3      The purpose of this Act is to allow the exchange of private
 
 4 and public lands for the development of a new motor speedway
 
 5 industry in Hawaii.
 
 6      SECTION 2.  Notwithstanding section 171-50(b), Hawaii
 
 7 Revised Statutes, the legislature approves the land exchange
 
 8 involving private lands along the Kona coast of the island of
 
 9 Hawaii, owned by the Hawaii International Motor Speedway, and
 
10 public lands in North Kona, Hawaii, identified as TMK 7-2-5:8;
 
11 provided that:
 
12      (1)  The public lands shall be less than or of substantially
 
13           equal "fair market" value to that of the private lands;
 
14      (2)  The "fair market" value of the private lands and the
 
15           public lands shall be separately determined by a
 
16           disinterested qualified appraiser or appraisers, and
 
17           the cost shall be borne equally between the owner and
 
18           the board of land and natural resources; and
 
19      (3)  No payment by the State shall be required should the
 
20           value of the private lands exceed the value of the
 
21           public lands, but any difference in the value of the
 
22           public lands over the private lands shall be paid to
 
23           the State at the time of the exchange; provided that no
 

 
Page 3                                                     806
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1           exchange shall be made should the value of the public
 
 2           lands exceed one hundred twenty per cent of the value
 
 3           of the private lands.
 
 4      SECTION 3.  Notwithstanding section 171-50(c), Hawaii
 
 5 Revised Statutes, the legislature approves the land exchange
 
 6 involving private lands along the Kona coast of Hawaii, owned by
 
 7 the Hawaii International Motor Speedway for the purpose of this
 
 8 exchange, and public lands in North Kona, Hawaii, identified as
 
 9 TMK 7-2-5:8; provided that an exchange deed shall be executed
 
10 between the parties and contain the following:
 
11      (1)  The location and area of the parcels of land to be
 
12           exchanged;
 
13      (2)  The value of the lands to be conveyed by the State and
 
14           the private parties;
 
15      (3)  The name or names of the appraiser or appraisers
 
16           involved; and
 
17      (4)  The date of the appraisal or appraisals, which shall
 
18           not be more than six months prior to the date of the
 
19           final approval of the land exchange by the board of
 
20           land and natural resources.
 
21      SECTION 4.  This Act shall take effect on July 1, 2010.