Report Title:

Kokee, Residential Leases, Improvements

 

Description:

Provides that if a Kokee residential lessee has made permanent improvements to the leased property that the new lessee will reimburse the former lessee for the cost of the improvements.

HOUSE OF REPRESENTATIVES

H.B. NO.

2373

TWENTY-FIRST LEGISLATURE, 2002

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO KOKEE STATE PARK.

 

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

SECTION 1. Kokee state park on Kaua`i contains several residences leased from the State that are set to expire in 2005. Some of the existing lessees have made improvements to their lots that have added substantial value to these state-owned properties. It is fair and equitable that these lessees be reimbursed for the permanent value they have added to the property.

The purpose of this Act is to permit the Kokee residential lessees to be reimbursed by their successor lessees for their permanent improvements to the property.

SECTION 2. If a lessee of one of the Kokee state park residential leases set to expire in 2005 has made permanent improvements to the lot, and does not wish to remove them at lessee's expense at the conclusion of the lease, the lessee shall notify the State ninety days prior to the termination of the lease.

The lessee shall pay for an appraisal of the current fair market value of any permanent improvements made to the lots. The appraisal shall be done by an appraiser selected by mutual agreement between the lessee and the State in conformance with chapter 658A, and shall be done before the termination of the lease to give fair notice to potential successor lessees of the cost of the improvements. The fair market value of the improvements shall be a public record and shall be disclosed in the same way and at the same time as the lease rent for the lot.

If the lessee renews the lease for the same property, the lessee retains the same rights to the improvements as it had during the pendency of the prior lease.

If the lessee does not renew the lease for the same property, the successor lessee shall reimburse the lessee for the fair market value of the improvements. A successor lessee shall then own the improvements and may retain, add to, or remove them as the successor lessee chooses. The appraisal, notification, and reimbursement provisions of this Act shall apply to all successor leases.

No lessee shall have any cause of action against the State for the failure of the successor lessee to reimburse the lessee for the fair market value of the improvements.

SECTION 3. This Act shall take effect upon its approval.

INTRODUCED BY:

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