HOUSE OF REPRESENTATIVES

H.C.R. NO.

14

TWENTY-SEVENTH LEGISLATURE, 2014

 

STATE OF HAWAII

 

 

 

 

 

HOUSE CONCURRENT

RESOLUTION

 

 

AUTHORIZING THE ISSUANCE OF A LEASE AND EASEMENT OF CERTAIN SUBMERGED LANDS AT MANELE BAY, LANAI, TO LANAI RESORTS, LLC.

 

 


     WHEREAS, section 171-53(c), Hawaii Revised Statutes, requires approval of the Governor and authorization of the Legislature by concurrent resolution for the leasing of state submerged land; and

 

     WHEREAS, Lanai Resorts, LLC (Lanai Resorts), a Hawaii limited liability company doing business as Pulama Lanai purchased the Lanai assets of Castle & Cooke Resorts, LLC, in 2012; and

 

     WHEREAS, the asset purchase included a lease and easement issued to Castle & Cooke Resorts, LLC, that included a requirement to design and construct certain improvements including additional harbor slips at Manele Small Boat Harbor; and

 

     WHEREAS, after close review by the Department of Land and Natural Resources, Division of Boating and Ocean Recreation, after the tsunami events in 2010 and 2011 resulted in damage to the infrastructure at Manele Bay, it was determined that the original planned marina in the submerged Castle & Cooke Resorts, LLC, lease was neither practical nor unfeasible; and its design would not withstand future tsunami events and may impede safe navigation within the channel; and

 

     WHEREAS, in consideration of today's growth with Lanai as a destination point, the Division of Boating and Ocean Recreation has determined that a floating loading dock is much needed at the harbor and could be built to withstand another tsunami of moderate impact; and

 

     WHEREAS, the Board of Land and Natural Resources voted on November 8, 2013, to authorize the termination of the lease and easements executed with Castle & Cooke Resorts, LLC, and to authorize the issuance of a new fifty-five year lease and easement by way of direct negotiation with Lanai Resorts of certain submerged lands and fast lands at Manele Small Boat Harbor on the island of Lanai identified as tax map key (2) 4-9-17:06; and

 

     WHEREAS, the new lease will provide for the construction, maintenance, and use of submerged lands for a floating and loading dock, as well as mooring approved by the Division of Boating and Ocean Recreation; and

 

     WHEREAS, Lanai Resorts agrees to pay all costs and expenses for a floating and loading dock to be constructed and installed by the Division of Boating and Ocean Recreation, which is estimated to be between $500,000 and $600,000, to:

 

     (1)  Allow mooring and commercial activities for boats under Lanai Resorts' control and authority; and

 

     (2)  Provide temporary use for Expeditions (ferry service between Lahaina and Manele Small Boat Harbor) and Trilogy (commercial boating activities) while tsunami restoration work is being performed on the Expeditions and Trilogy dock; and

 

     WHEREAS, Lanai Resorts agrees to complete, at its sole cost and expense, a topographical map of Manele Small Boat Harbor's submerged floor and a cultural resource survey of the surrounding land areas of the harbor to determine the possibilities for harbor expansion; and

 

     WHEREAS, the lease will include a non-exclusive easement for the use of portions of the adjacent fast lands for utilities, landscaping, and maintenance; and

 

     WHEREAS, as a lessee, Lanai Resorts would:

 

     (1)  Maintain the utilities, floating and loading dock, and related improvements;

 

     (2)  Maintain Manele Small Boat Harbor landscaping along the roadways and ferry passenger waiting areas; and

 

     (3)  Pay base rent plus a percentage of revenues; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-seventh Legislature of the State of Hawaii, Regular Session of 2014, the Senate concurring, that the Board of Land and Natural Resources is authorized to issue a term lease of fifty-five years and non-exclusive easement covering a portion of submerged and fast lands identified as tax map key (2) 4-9-17:06 for the construction and maintenance of a floating and loading dock; moorings; and utilities, landscaping, and maintenance pursuant to section 171-53, Hawaii Revised Statutes; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution by transmitted to the Chairperson of the Board of Land and Natural Resources.

 

 

 

 

OFFERED BY:

_____________________________

 

 

Report Title: 

Submerged Lands Lease; DLNR; Manele Bay