HOUSE OF REPRESENTATIVES

H.B. NO.

2923

TWENTY-FIFTH LEGISLATURE, 2010

H.D. 1

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO PUBLIC LANDS.

 

 

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

 


SECTION 1. The Hawaiian Homes Commission Act, 1920, as amended, is amended by adding a new section to be appropriately designated and to read as follows:

" Commercial, hotel, industrial, or resort leases; extension of term. (a) This section shall apply to all developments subject to sections 204, 204.5, and 220.5.

(b) Notwithstanding any law to the contrary, the department may extend the term of a lease of Hawaiian home lands for commercial, industrial, business, and multipurpose projects upon the approval by the department of a written agreement proposed by the lessee, or the lessee and developer, to either:

(1) Make substantial improvements to the leased property; or

(2) Obtain financing from financial institutions that will be used for the improvement of the leased lands.

(c) Prior to entering into a written agreement, the lessee, or the lessee and developer, shall submit to the department the plans and specifications for the total development being proposed. The department shall review the plans and specifications and determine:

(1) Whether the development proposed in the written agreement is of sufficient worth and value to justify the extension of the lease;

(2) The estimated period of time to complete the improvements and expected date of completion of the improvements; and

(3) The minimum revised annual rent based on the fair market value of the lands to be developed, as determined by an appraiser for the department, and percentage rent where gross receipts exceed a specified amount.

No lease extension shall be approved until the department and the lessee, or the lessee and developer, mutually agree to the terms and conditions of the written agreement.

(d) No construction shall commence until the lessee, or the lessee and developer, have filed with the department a good and sufficient bond or other financial guaranty satisfactory to the department.

(e) The extension of the lease pursuant to this section shall be based upon the substantial improvements made and shall be no longer than thirty-four years.

(f) As used in this section, "substantial improvements" means any renovation, rehabilitation, reconstruction, or construction of the property, including minimum requirements for off-site and on-site improvements."

SECTION 2. The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2010.



 

 

Report Title:

Public Lands; Extension of Leases

 

Description:

Authorizes the Department of Hawaiian Home Lands to extend leases of Hawaiian home lands for commercial or industrial uses for 34 years upon a development agreement to improve the leased land. (HB2923 HD1)

 

 

 

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