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Notice #: 0000118210-01
Public Auctions


The Department of Land and Natural Resources (“DLNR”), Land Division, Oahu District Branch, will be conducting a public auction sale of one (1) lease for State lands at the following date and location:

DATE & TIME: June 29, 2009; 10:00 a.m.

PLACE: Kalanimoku Building, 1151 Punchbowl Street
DLNR Board Room, Makai Wing, Room 131
Honolulu, Oahu, Hawaii 96813

The above date, time and/or place of auction are subject to change by DLNR. The lease to be auctioned on the above date is as follows:

Location: Portion of Royal Patent 4889, Land Commission Award 35, Fort Land, Apana 2 to Mahuka situated at Waikiki, Honolulu, Oahu, Hawaii as shown and described on Government Survey Map C.S.F. No. 24,024 dated April 29, 2005.

Tax Map Key: (1) 2-7-036:004 and 016

Land Area: 24,407 square feet, more or less

Permitted Uses: Solely for commercial parking lot or garage. No ancillary structures or uses shall be permitted except as authorized by the Chairperson.

Lease Term: Fifteen (15) years

Minimum Upset
Annual Base Rent: $80,000 per annum, payable semi-annually in advance.

Step-Ups in Annual
Base Rent: Minimum annual base rent shall increase by ten percent (10%) after the initial ten (10) years of the lease term.

Percentage Rent: For the first ten (10) years, rent shall be the greater of the minimum annual base rent or annual percentage rent, if any. The annual percentage rent is three percent (3%) of gross annual revenues, if the percentage rent exceeds the minimum annual base rent. Percentage rent, if any, is to be paid annually in arrears, no later than sixty (60) days after the close of the Lessee’s fiscal year.

Percentage rent shall be based on the gross annual revenues generated from, on, or within the leased premises, including but are not limited to, monthly parking, hourly parking, and any other revenues from the use of the leased premises.

Performance Bond: Twice the amount of the minimum annual base rent.

Encumbrances: Lessee shall comply with all such conditions and restrictions imposed by that certain Unilateral Agreement and Declaration for Conditional Zoning dated June 1, 2007 and recorded in the State of Hawaii Bureau of Conveyances as Document No. 2007-099010 (“UA”). Lessee shall submit to DLNR an annual status report by October 30th of each year describing Lessee’s progress towards complying with each condition of the UA, which report may be incorporated into DLNR’s annual status report to the City required under UA Condition 5.

Special Conditions: The City and County of Honolulu, Department of Planning and Permitting has recommended the Lessee make a good faith effort to obtain an easement over the adjacent mauka property identified as tax map key (1) 2-7-036:003 to allow access to the premises from the existing signalized Kapahulu/Campbell Avenue intersection. Lessee shall make such efforts to obtain an easement over the adjacent property and provide a written report to DLNR detailing such efforts and the results of such efforts. The report shall be submitted to DLNR within thirty (30) days of the lease commencement date, and DLNR may request further reports updating Lessee’s efforts to obtain an easement.


Any person wishing to bid and purchase a lease for the item 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 May 28, 2009 at any one of the District Land Offices listed below. Applicants shall submit one (1) original and five (5) 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 descriptions of the subject property, may be examined at any of the District Land Offices listed below or downloaded from the DLNR website at Any person requiring special accommodation or information in an alternate format is asked to contact the Oahu District Land Office at (808) 587-0433 by May 14, 2009.

Oahu District Land Office, 1151 Punchbowl Street, Room 220, Honolulu, Oahu 96813
Telephone (808) 587-0433

Hawaii District Land Office, 75 Aupuni Street, Room 204, Hilo, Hawaii 96720
Telephone (808) 974-6203

Maui District Land Office, 54 S High Street, Room 101, Wailuku, Maui 96793
Telephone (808) 984-8103

Kauai District Land Office, 3060 Eiwa Street, Room 306, Lihue, Kauai 96766
Telephone (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.

DONE at the office of the Department of Land and Natural Resources, State of Hawaii this 28th day of April, 2009.
Laura H. Thielen, Chairperson
(SB118210 4/28/009)