NOTICE OF SALE
PUBLIC AUCTION SALE OF FOUR STATE OF HAWAII LEASES AND ONE LICENSE
ON THE ISLAND OF HAWAII
The Department of Land and Natural Resources (“DLNR”), Land Division, Hawaii District Branch, will be conducting a public auction sale of four (4) leases and one (1) license for State lands at the following date and location:
DATE & TIME Thursday, November 13, 2008 at 10:00 a.m. *
PLACE West Lanai of the State Office Building, 75 Aupuni Street, Hilo, Hawaii 96720
* The date, time and/or place of auction are subject to change by DLNR.
The leases and license to be auctioned on the above date are as follows:
ITEM I
Location Portion of the Government land of Kaiaakea situated at Kaiaakea, North Hilo, Island of Hawaii, Hawaii as shown and described on Government Survey Map C.S.F. No. 24,394 dated January 26, 2007
Tax Map Key (3) 3-4-003:011, :038 and :039
Land Area 68.15 gross acres and a net area of 66.07 acres, more or less
Permitted Use Solely for intensive agriculture purposes allowed under the County of Hawaii zoning ordinance
Lease Term 30 years
Minimum Upset
Annual Rent $6,374 per annum, payable semi-annually in advance
Rental Reopening At the end of the 10th and 20th years of the lease term
Performance Bond Twice the amount of the annual rental payable
Special Management
Area A portion of tax map key (3) 3-4-003-011 is located within the County of Hawaii Special Management Area (SMA). The successful bidder at the auction shall comply with all applicable SMA laws, ordinances, rules and regulations, and shall obtain any special management area permit required by the County
ITEM II
Location Portion of the Government (Crown) Land of Waiakea situated at Waiakea, South Hilo, Island of Hawaii, Hawaii as shown and described on Government Survey Map C.S.F. No. 24,345 dated September 20, 2006
Tax Map Key (3) 2-4-041:045
Land Area 2.894 acres, more or less
Permitted Use Solely for commercial and/or multi-family residential purposes allowed under the County of Hawaii zoning ordinance for theCN-10
Neighborhood Commercial district
Lease Term 65 years
Minimum Upset
Annual Rent $98,280 per annum, payable semi-annually in advance
Step-Ups in Base Rent Fixed for the first 10 years. Minimum base rent for Years 11 through 15 shall be equal to the base rent for the first year multiplied by 1.150. Minimum base rent for Years 16 through 20 shall be equal to the base rent for the first year multiplied by 1.225
Percentage Rent 3.5% of annual gross revenues from any of the following uses conducted on the premises, including uses conducted by any sublessee: catering establishments, convenience stores, restaurants, bars, nightclubs, self-storage facilities, theaters, home improvement centers, any other retail establishments permitted on the leased premises under the County of Hawaii zoning code, as such zoning code may be amended from time to time. Percentage rent shall apply to the extent it exceeds the annual minimum base rent
Rent Waiver Lease rent for the first twelve (12) months after the commencement date of the lease shall be waived
Rental Reopening(s) At the end of the 20th, 30th, 40th, and 50th years of the lease term
Performance Bond Twice the amount of the annual rental payable
Minimum Improvements Lessee to construct improvements with a cost of at least $3,000,000 within the first three (3) years of the lease term
ITEM III
Location Portion of Government lands of Kaapahu situated at Kaapahu, Hamakua, Island of Hawaii, Hawaii as shown and described on Government Survey Map C.S.F. No. Hawaii File Carton 78 dated August 3, 2007
Tax Map Key (3) 4-4-013:011
Land Area 20.878 acres, more or less
Permitted Use Solely for pasture purposes allowed under the County of Hawaii zoning ordinance for the A-5a Agriculture district
Lease Term 20 years
Minimum Upset
Annual Rent $480 per annum, payable semi-annually in advance
Rental Reopening At the end of the 10th year of the lease term
Performance Bond Twice the amount of the annual rental payable
ITEM IV
Location Portion of Government lands of Hionaa, Hokukano and Kaalaiki situated at Hionaa, Hokukano, Kaalaiki, Kau, Island of Hawaii, Hawaii as shown and described on Government Survey Map C.S.F. No. 24,186 dated January 6, 2006
Tax Map Key (3) 9-5-015:003
Land Area 2,230.54 gross acres and a net area of 2,197.29 acres, more or less
Permitted Use Agriculture purposes to include intensive agriculture, pasture, commercial timber and other agricultural uses as allowed under County of Hawaii zoning, excluding, however, residential use, poultry and swine operations
Lease Term 30 years
Minimum Upset
Annual Rent $48,200 per annum, payable semi-annually in advance
Rental Reopening At the end of the 10th and 20th years of the lease term
Performance Bond Twice the amount of the annual rental payable
Encumbrance Executive Order No. 4126, signed October 3, 2005, and subject to legislative review, sets aside an easement for access to the Ka’u Forest Reserve, through a portion of land situate at Kaalaiki, Kau, Island of Hawaii, containing an area of 107,282 square feet, for access by the State of Hawaii, Department of Land and Natural Resources, Division of Forestry and Wildlife. Applicants may, at their own cost, order a title report for the property
ITEM V
Location Portion of Government (Crown) land of Waiakea, situated at Waiakea, South Hilo, Island of Hawaii, Hawaii, as shown and described on Government Survey Map C.S.F. No. 24,448 dated May 24, 2007
Tax Map Key (3) 2-1-013:002 por
Land Area 14.990 acres, more or less
Permitted Use To enter and quarry, crush, stockpile, and remove rock and waste deposits for commercial use provided the operation of a rock crusher(s) on and within the license area shall be a permitted use
License Term 20 years
Minimum Upset Annual
License Fee $18,000 per annum, payable semi-annually in advance
Royalty Rate $0.65 per ton, payable where the royalties are higher than the annual license fee of $18,000
Rental Reopening The license fee and royalty rate to be reopened at the end of the 10th year of the license term
Performance Bond Twice the amount of the annual rental payable
Special Condition Licensee shall not under any condition, remove more than 60,000 cubic yards of material per year from said license area
APPLICATION AND BIDDING INFORMATION
Any person wishing to bid and purchase a lease or license for the items described above must first qualify to bid under the general qualifying criteria and the pre-qualifying criteria as described in the Public Auction Bid Packet. Eligibility to bid shall be determined by the information supplied by prospective bidders in the Application and Qualification Questionnaire form (“Application“) provided as Appendix A of the Public Auction Bid Packet.
Applications by prospective bidders for the above listed items must be received by DLNR no later than 4:00 pm on Wednesday, October 22, 2008 at any one of the District Land Offices listed below. Applicants shall submit one (1) original and four (4) copies of the Application (including copies of all required attachments). Any person who has failed to submit the completed Application and all required attachments (and required copies) by this date and time will not be allowed to bid. Each applicant shall be informed in writing in advance of the auction date as to the applicant’s eligibility to bid at the public auction. See Public Auction Bid Packet for further instructions.
The Public Auction Bid Packet (which describes the auction sale procedures, bidder qualification requirements and other requirements, and contains the Application form, memorandum of lease, and other relevant information) and a draft of the lease document (which contains a survey map and description of the subject property) may be obtained from any of the District Land Offices listed below or downloaded from the DLNR website at www.hawaii.gov/dlnr/land/publicnotices.
Oahu District Land Office
1151 Punchbowl Street, Room 220, Honolulu, Oahu 96813 (808) 587-0433
Hawaii District Land Office
75 Aupuni Street, Room 204, Hilo, Hawaii 96720 (808) 974-6203
Maui District Land Office
54 South High Street, Wailuku, Maui 96793 (808) 984-8103
Kauai District Land Office
3060 Eiwa Street, Room 306, Lihue, Kauai 96766 (808) 274-3491
Prospective bidders are responsible to thoroughly read and understand the covenants, terms, reservations and conditions contained in the Public Auction Bid Packet and draft lease document. The property is to be leased in an “AS IS” condition, and prospective bidders are responsible to inspect the property and complete their due diligence prior to submitting an application.
All bidders or authorized representatives must be present in person at the auction. DLNR reserves the right to cancel the public auction, to postpone or change the date of the public auction or any other deadlines, to reject any and all Applications or request the submittal of additional information, and to waive any defects when, in the opinion of the Chairperson of the Board of Land and Natural Resources, such action will be in the best interest of the State.
Information related to this auction may be reviewed during the office hours at the Department of Land and Natural Resources, Land Division at 1151 Punchbowl Street, Rm. #220, Honolulu, Oahu, and at 75 Aupuni Street #204, Hilo, Hawaii. Call, or write to any of these offices to request information in an alternate format.
DONE at the office of the Department of Land and Natural Resources, State of Hawaii this 18th day of September, 2008.
BOARD OF LAND AND NATURAL RESOURCES
Laura H. Thielen, Chairperson
(SB70460 9/24/08)~