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Notice #: 0000100343-01
Legal Notices



Property Location: Kalaoa, North Kona, Island of Hawaii

The Department of Hawaiian Home Lands (DHHL) is seeking applications from qualified individuals or entities to enter into a general lease agreement for the construction, operation and management of an industrial/commercial mixed-use development and related facilities on Hawaiian home lands further described below. As authorized by §220.5, Hawaiian Homes Commission Act, 1920, as amended, all parties interested in leasing the property herein described shall have ninety (90) days from the date this “NOTICE OF PROPOSED DISPOSITION” is last published, that date being Friday, February 20, 2009, in which to submit completed applications for DHHL consideration.

Interested applicants may obtain a prospectus (“Information Packet”) beginning on Friday, February 6, 2009. Only completed applications submitted and received by DHHL by no later than 4:00 p.m. (HST), Thursday, May 21, 2009, shall be reviewed to determine which applicants have met DHHL’s initial objectives and criteria to be eligible for selection as a potential developer of the property. Said review and determination shall be conducted within the next 45 days, including the review of additional information requested, if any. By no later than Monday, July 6, 2009, all applicants will be informed if they have or have not been selected as a potential developer of the property. If only one qualified applicant meets the final objectives and criteria for selection as the developer, DHHL shall begin to negotiate the details of a Project Developer Agreement with the selected applicant. If DHHL determines that there is more than one qualified applicant, DHHL shall re-evaluate all the relevant facts of the disposition, which may include requiring each qualified applicant to submit additional information, and shall select the qualified applicant who submitted the best proposal within the next forty-five (45) days. By no later than Thursday, August 27, 2009, DHHL shall select the qualified applicant who submitted the “best” proposal. After notification to all qualified applicants, DHHL may then commence negotiating all the details of the disposition with the selected developer, including but not limited to base rents, percentage rents, sub-lease participation and providing benefits to promote native Hawaiian social-economic advancement, provided the terms of the project developer agreement and lease are not less than those proposed by the selected developer in the initial application.

Information Packets containing an application form, property information and other requirements for completing the application process are available for pick up by prospective applicants during regular office hours at DHHL’s Kapolei Office located at 91-5420 Kapolei Parkway, or at the district offices located on the neighbor islands. The appraisal report, which shall not be removed from DHHL’s office, may be reviewed during regular office hours. Please call 808.620.9456 (Kapolei) for the locations of neighbor island district offices and/or to make an appointment to review the appraisal report.

Land to be disposed: The properties to be offered under a general lease disposition is located in the Kalaoa, North Kona region on the Island of Hawaii and identified as Tax Map Key Nos. (3) 7-3-10: 39 & :40. The parcels contain a total combined area of approximately 152.51 acres (6,642,900 square feet) of land.

Purpose/Use: The property is being offered for Industrial/Commercial Mixed Use development. Improvements and uses shall conform to those allowed in an MCX zoning district and all applicable permit requirements consistent therewith.

Lease Term: The maximum term of the lease shall be sixty-five (65) years.

Minimum Upset Rent: The minimum upset rent for the first year of the lease is TWO MILLION EIGHT HUNDRED EIGHTY-SIX THOUSAND AND NO/100 ($2,860,000.00). Rent for the second year and up to a maximum of the twenty-fifth (25th) year shall be set during lease negotiations, provided that no negotiated rent shall be less than that of the preceding year. Rent negotiations shall include, but not be limited to, provisions for step increases, sublease rent participation and percentage rent.

Rent Reopening: After the set rent period, future rent shall be determined by an independent appraisal at subsequent ten (10) and fifteen (15) year intervals.

Earnest Money “Bid” Deposit: Payment in the amount of two hundred eighty-six thousand and no/dollars ($286,000.00) (equal to ten percent (10%) of the Minimum Upset rent) in the form of a cashier’s or certified check payable to the Department of Hawaiian Home Lands for assurance of selected applicant’s commitment to the project.

Utilities: Availability and capacity of all public utilities, including water, sewer and electricity are unknown at this time. Connection and capacity to all utilities will need to be further examined and shall be the sole responsibility of the prospective applicant.

Telecommunication Service: DHHL and Sandwich Isles Communications, Inc. (“SIC”) has an exclusive agreement to provide all telephone and broadband services on Hawaiian Home Lands and will provide such services when needed.

Chapter 343, Environmental Assessment: The selected applicant shall be required to complete compliance with Chapter 343 of the Hawaii Revised Statutes, as amended, prior to the start of any demolition or construction activity on the site. Such compliance shall assess the impacts that the proposed development will have on the surrounding environment, such as infrastructure, traffic, parking, noise, etc.

The Department of Hawaiian Home Lands reserves the right to cancel or modify this disposition of its lands at its sole discretion.

For additional information and/or inquiry, contact Peter “Kahana” Albinio, Jr., Property Development Agent, Department of Hawaiian Home Lands, Land Management Division, at 808.620.9454 on Oahu or email

Date: Honolulu, Hawaii January 28, 2009

State of Hawaii

Micah A. Kane, Chairman
Hawaiian Homes Commission
(SB100343 2/6, 2/13, 2/20/09)