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Notice #: 0000038609-01
Public Notices



Property Location: Moanalua, Shafter Flats, Island of Oahu

The Department of Hawaiian Home Lands (DHHL) is seeking applications from qualified individuals or entities to enter into general lease agreements for the use of two (2) separate industrial lots and related facilities on Hawaiian home lands further described below. As authorized by §204(a)(2), Hawaiian Homes Commission Act, 1920, as amended, all parties interested in leasing one or both of the properties herein described shall have 45 days from the date this “NOTICE OF PROPOSED DISPOSITION” is first published, that date being Friday, June 6, 2008, in which to submit completed applications for DHHL consideration.

Interested applicants may obtain a prospectus (“Information Packet”) beginning on Friday, June 6, 2008. All completed applications received by no later than 4:00 p.m. (HST), Monday, July 21 , 2008, shall be reviewed and only those applicants that meet DHHL’s initial objectives and criteria shall be notified in writing as being “eligible” for further consideration of their proposals. Eligible applicants shall then be required to submit detailed development plan information and an earnest money deposit to DHHL by no later than 4:00 p.m. (HST), Thursday, September 4, 2008. After DHHL reviews the detailed development plan information, those eligible applicants who meet DHHL’s additional objectives and criteria shall be deemed “qualified”. Qualified applicants will be invited to attend the voice bid auctions for either one or both of the lots, to be conducted at DHHL’s Kapolei Office, Hale Kalanianaole, located at, 91-5420 Kapolei Parkway, Kapolei, Hawaii on Tuesday, September 16, 2008, at 10:00 a.m. (HST).

Information Packets containing an application form, property information and other requirements for completing the application process will be made available through the internet or for pick up by prospective applicants during regular office hours at DHHL’s Kapolei Office, Hale Kalanianaole, located at 91-5420 Kapolei Parkway, Kapolei, Hawaii or at DHHL’s district offices located on the neighbor islands. The appraisal report(s), which shall not be removed from DHHL’s offices, may be reviewed during regular office hours. Please call (808) 620-9456 (Honolulu) for the locations of neighbor island district offices and/or to make an appointment to review the appraisal report(s).

Land to be disposed: The two lots to be leased are located adjacent to each other; the first at 650 Kakoi Street hereinafter referred to as “Property A” and the second at 664 Kakoi Street hereinafter referred to as “Property B“; both in Moanalua, Shafter Flats Subdivision, Island of Oahu, Hawaii. Property A and Property B are identified by Tax Map Key Nos. (1) 1-1-064: 010 and 011, and further described as Lot 8 and Lot 9, respectively. Property A is approximately .946 acres (41,187 square feet) and Property B is approximately 1.01 acres (44,000 square feet) in land area. Each lot has existing buildings which must be purchased at the amounts stated in the Information Packet.

Purpose/Use: Both properties are being offered for Industrial Use (I-2 Intensive Industrial) development. Improvements and uses shall conform to those allowed in an I-2 zoning district and all applicable permit requirements consistent therewith.

Lease Term: The qualified applicant may propose any length of lease that is not less than twenty five (25) years but not more than fifty five (55) years.

Lease Rent: The disposition will be conducted by a voice bid auction in which an qualified applicant may make multiple rent bids until the highest bidder is determined. The bidding will start with Property A and once a successful bidder is determined the auctioneer will begin taking bids for Property B.

Minimum Upset Rent: For each property, the bidding shall start at the Minimum Upset Rent for the first year of the lease, as follows:
Property A (650 Kakoi Street) – first year Minimum Upset Rent is $220,800.00.
Property B (664 Kakoi Street) – first year Minimum Upset Rent is $236,000.00.

The highest bid, equal to or greater than the Minimum Upset Rent, shall be the determining factor in selecting the Successful Bidder who will be offered the opportunity to negotiate a lease for use of the lot(s).

After determining the highest bid, rent for the first twenty-five years of the lease shall be determined as follows:

Property A Annual Rent
Years 1-10 highest bid (equal to or greater than $220,800.00)
Years 11-15 Year 10 rent multiplied by 1.2801
Years 16-20 Year 15 rent multiplied by 1.1314
Years 21-25 Year 20 rent multiplied by 1.1314

Property B Annual Rent
Years 1-10 highest bid (equal to or greater than $236,000.00)
Years 11-15 Year 10 rent multiplied by 1.2801
Years 16-20 Year 15 rent multiplied by 1.1314
Years 21-25 Year 20 rent multiplied by 1.1314

If the term of either lease extends beyond 25 years, the rent shall be re-determined by an independent appraisal prior to commencement of the 26th, 36th, and 46th year.

Utilities: All public utilities, including water, sewer and electricity are available to the subject properties along and within surrounding public roadways. Connection to all utilities and related services are the sole responsibility of the successful bidder.

Special Condition: Both lots have existing buildings that must be purchased “as is” for amounts stated in the Information Packet. The purchase of these improvements by the successful bidder is mandatory and shall be considered as a separate financial commitment from the annual lease rent. A lump sum payment for these building improvements shall be due within ninety (90) days from the date lease negotiations are completed and the lease is fully executed. Upon payment, the Lessee shall then be the rightful owner of any and all improvements on the leasehold property and may determine if the improvements are to be renovated or demolished prior to redevelopment and occupancy of the property.

Telecommunication Service: Sandwich Isles Communications, Inc. (SIC) will provide telephone and broadband services to the property(s) at a time when such services are needed.

Chapter 343, Environmental Assessment: Pursuant to Section 11-200-8 (a) (1), Exempt Classes of Action of the Environmental Impact Statement Rules of the Hawaii Administrative Rules, the action is exempt from the preparation of an environmental assessment. This section exempts “operations, repairs, or maintenance of existing structures, facilities, equipment, or topographical features, involving negligible, or no expansion or change of use beyond that previously existing.” The successful bidder may be required to complete compliance with Chapter 343 of the Hawaii Revised Statutes, as amended, if future or planned uses significantly differ from the existing use.

The Department of Hawaiian Home Lands reserves the right to cancel or modify this disposition from time to time as to all or any of the items listed hereunder by public announcement to that effect by order of the Chairman, Hawaiian Homes Commission.

For additional information and/or inquiry, you may contact Ryan Fujitani, Land Agent, Department of Hawaiian Home Lands, Land Management Division, at (808) 620-9459 on Oahu.

Date: Honolulu, Hawaii _____________________________

State of Hawaii

Micah A. Kane, Chairman
Hawaiian Homes Commission

(SB38609 6/6/08)~