THE SENATE

S.C.R. NO.

9

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

H.D. 1

   


SENATE CONCURRENT

RESOLUTION

 

SUBMITTING TO THE LEGISLATURE OF THE STATE OF HAWAII FOR REVIEW OF ACTION TAKEN BY THE BOARD OF LAND AND NATURAL RESOURCES ON LAND EXCHANGES.

 

WHEREAS, section 171-50, Hawaii Revised Statutes, provides that land exchanges of public land for private land are subject to disapproval by the Legislature by two-thirds vote of either the Senate or the House of Representatives or by majority vote of both in any regular or special session; and

WHEREAS, the State owns approximately 226 acres of public land in Lahaina, Maui, identified as Tax Map Keys: (2)4-3-01:05, 06, 07, and 08 ("Maui Lands"); and

WHEREAS, these parcels of public land are almost entirely surrounded by lands owned by Maui Land & Pineapple Company, Inc. (ML&P), have been in agricultural use for many years and are now rented for pineapple cultivation yielding $6,060 in annual revenues; and

WHEREAS, the Land Study Bureau classifies these lands as having Type C (average) and Type D (below average) agricultural productivity ratings and the majority of these lands (177 acres) consist of gulch lands which are not suitable for cultivation; and

WHEREAS, ML&P is proposing a land exchange to acquire these 226 acres of public land for the purpose of combining portions of these lands with its adjacent privately-owned lands for its Kapalua Mauka project, a master-planned residential, commercial, and golf course development project; and

WHEREAS, most of the remaining acreage will remain in open space; and

WHEREAS, in exchange, ML&P would convey to the State three vacant lots in the Mill Town Center, an industrial park located in Waikele, Ewa, Oahu, identified as Tax Map Keys: (1)9-4-166:01, 02, and 03; and

WHEREAS, these lots are zoned for light industrial use, have county standard roadways and all utility infrastructure and will generate estimated annual rents of $98,400 to $131,200; and

WHEREAS, the parcels being conveyed to the State of Hawaii will provide the State with revenue-generating properties in exchange for remnant, poor quality agricultural land generating nominal rents; and

WHEREAS, proceeds from the leasing of the parcels to be acquired will be used for Public Land Trust purposes; and

WHEREAS, ML&P intends to utilize the makai parcel identified as Tax Map Key: (2)4-3-01:05 as open space, park- and recreational-type uses ("Makai Parcel");

WHEREAS, ML&P does not intend to construct residential dwellings on the mauka parcels identified as Tax Map Key: (2) 4-3-01:06, 07, and 08 ("Mauka Parcels"):

WHEREAS, ML&P and the Department of Land and Natural Resources (DLNR) have agreed that use restrictions to reflect these intended uses should be placed on the Maui Lands; and

WHEREAS, if ML&P desires to remove these use restrictions in the future, pursuant to section 171-63, HRS, the Board of Land and Natural Resources may amend or waive the conditions restricting the use of land contained in any deed or grant only upon the condition that the grantee pay to the State the difference between the fair market value of the land based upon its restricted use and the fair market value with the restrictive condition amended or waived; now, therefore,

BE IT RESOLVED by the Senate of the Twenty-second Legislature of the State of Hawaii, Regular Session of 2004, the House of Representatives concurring, that the following exchange, approved by the Board of Land and Natural Resources (Board), be reviewed and is hereby approved by the Legislature:

EXCHANGE OF LAND BETWEEN STATE OF HAWAII AND MAUI LAND & PINEAPPLE COMPANY, INC.

Statute: Section 171-50, Hawaii Revised Statutes, as amended.

Purpose: Acquisition of income-producing land to generate revenues for Public Land Trust purposes.

Date of Board Approval: October 24, 2003.

I. MAUI LAND & PINEAPPLE COMPANY, INC. TO CONVEY TO THE STATE OF HAWAII

Location Tax Map Key Area Appraised Value

Waikele (1)9-4-166:01 0.573 acre $ 600,000

Waikele, (1)9-4-166:02 0.378 acre $ 430,000

Waikele, (1)9-4-166:03 0.504 acre $ 580,000

Oahu

Total 1.455 acre $1,610,000

II. THE STATE OF HAWAII TO CONVEY TO MAUI LAND & PINEAPPLE COMPANY, INC.

Location Tax Map Key Area Appraised Value

Lahaina, (2)4-3-01:05,

Maui 06, 07, 08 226.545 acre $1,510,000

III. NAME OF DISINTERESTED APPRAISERS WHO APPRAISED THE PROPERTIES

Public Land

Medusky & Co., Inc., pursuant to appraisal report dated November 14, 2003.

Private Land

Medusky & Co., Inc., pursuant to appraisal reports dated October 31, 2003 and January 19, 2004.

BE IT FURTHER RESOLVED that such approval shall be subject to a restriction on the Makai Parcel limiting its use to open space, park- and recreational-type uses and a restriction on the Mauka Parcels prohibiting residential dwellings, which restrictions shall be incorporated into the exchange deed; and

BE IT FURTHER RESOLVED that if Maui Land & Pineapple Company, Inc. desires to remove the use restrictions on the Maui Lands, the Board of Land and Natural Resources may amend or waive the conditions restricting the use of the land only if Maui Land & Pineapple Company, Inc. pays to the State the difference between the fair market value of the land based upon its restricted use and the fair market value of the land with the restrictive conditions amended or waived; and

BE IT FURTHER RESOLVED that the Department of Land and Natural Resources is requested to notify in writing the Senate President and the Speaker of the House of Representatives of any request by Maui Land & Pineapple Company, Inc., to amend or waive the restrictions, and subsequently, the pertinent details, including but not limited to the appraisal values and proposed payment adjustment; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Chairperson of the Board of Land and Natural Resources and the Chairperson of the Board of Directors of Maui Land & Pineapple Company, Inc.

Report Title:

Land Exchange between the State and Maui Land & Pineapple Company, Inc.