PROPOSED DISPOSITION OF HAWAIIAN HOME LANDS
FOR BUSINESS MIXED-USE DEVELOPMENT
Lot B, of Proposed East Kapolei I Fire Station Conveyance Subdivision
Honouliuli (Kapolei), Ewa, Oahu, Hawaii

As authorized by §220.5, Hawaiian Homes Commission Act, 1920, as amended, the Department of Hawaiian Home Lands (DHHL) invites interested persons to submit applications to be selected as the developer or developers and proposals for the development of the land described herein. Individuals, partnerships, corporations or other business entities interested in developing the property shall have 30 days from the date this “NOTICE OF PROPOSED DISPOSITION” is last published, that date being September 18, 2009, in which to submit completed applications, including development proposals for DHHL consideration.

Only completed applications received by 4:00 p.m. on Monday, October 19, 2009, shall be reviewed to determine which applicants have met DHHL’s all objectives and criteria to be qualified for selection as a potential developer of the property. Within the next forty-five (45) days, but not later than Thursday, December 3, 2009, said review shall be completed, including the review of additional information requested, if any. Within seven (7) days of completing said review, but by no later than Thursday, December 10, 2009, notices shall be sent to all applicants informing them if they are or are not qualified to be selected as a potential developer of the property. If only one applicant is qualified, DHHL may begin to negotiate the details of a Project Developer Agreement and lease with that qualified applicant. If there are two or more qualified applicants who meet the objectives and criteria for selection, DHHL may set additional criteria and shall consider all relevant facts of the disposition or contract, the proposals submitted by each qualified applicant, including any additional information requested and submitted, and the experience and financial capacity of each qualified applicant. By no later than 4:00 p.m. on Thursday, December 17, 2009, DHHL shall select the qualified applicant who submitted the “best” proposal. DHHL shall then negotiate the details of the Project Developer Agreement and lease, which may include all rent provisions above or in addition to the minimum upset rent (base rent), such as, lease premiums, sub-lease participation, and percentage rent; and providing benefits to promote native Hawaiian socio-economic advancement; provided that the rent negotiated shall not be less than the base rent initially proposed by the selected applicant.

Information Packets containing an application form, property information, objectives and criteria, and other requirements for completing the application process are available on DHHL’s website: http://hawaii.gov/dhhl/commercial or for pick up by prospective applicants during regular office hours at DHHL’s Oahu Office located at 91-5420 Kapolei Parkway, Kapolei, HI, 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 Marla at (808) 620-9456 (Honolulu) for the locations of neighbor island district offices or for an appointment to review the appraisal report.

Land to be disposed: The property to be disposed, identified as a portion of Tax Map Key No. (1)9-1-16:108 (or 140, pending), contains approximately 2.186 acres (95,222 square feet) of vacant land, and is located near the intersection of the North/South Road and Kapolei Parkway in Honouliuli, Ewa, Oahu, Hawaii (also known as East Kapolei).

Term: The applicant may propose a length of lease that is within the minimum term of 25 years and the maximum term of 65 years.

Rent: The minimum upset rent for the first year of the lease is $227,500.00. Annual rent for each of the next twenty-four (24) years shall be set during lease negotiations provided the rent for any subsequent year is not less than that for the year immediately preceding.

Rent Reopening: If the lease term extends beyond 25 years, the rent shall be re-determined by an independent appraisal prior to commencement of the 26th, 36th, 46th, and/or 56th years.

Purpose/Use: The property is being offered for commercial, retail development as allowed under a business mixed-use, BMX-3, zoning district and all applicable permit requirements consistent therewith, except that residential development shall not be acceptable.

Telecommunication Service: All telecommunications for the site shall be provided by Sandwich Isles Communications, Inc. (SIC) at a time when such services are needed.

Chapter 343, Environmental Assessment: The selected developer shall be required to complete compliance with Chapter 343 of the Hawaii Revised Statutes, as amended, prior to the start of any construction activity on the site. Such compliance shall assess the impacts that the proposed development will have on the surrounding community and environment.

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 to schedule a site inspection, you may contact Noel Akamu Property Development Manager, at (808) 620-9453 on Oahu.

Date: Honolulu, Hawaii _____________________________
State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS