The Department of Hawaiian Home Lands (DHHL) is seeking applications from qualified individuals or entities to enter into a general lease agreement for the use of one (1) industrial lot and purchase of existing 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 the property herein described shall have 45 days from the date this “NOTICE OF PROPOSED DISPOSITION” is first published, that date being Friday, September 18, 2009, in which to submit completed applications for DHHL consideration.

Interested applicants may obtain a prospectus (“Information Packet”) beginning on Friday, September 18, 2009. All completed applications received by no later than 4:00 p.m. (HST), Monday, November 2 , 2009, 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), Friday, December 11, 2009. 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 opening of the sealed rent proposals for the property, to be conducted at DHHL’s Kapolei Office, Hale Kalanianaole, located at 91-5420 Kapolei Parkway, Kapolei, Hawaii on Tuesday, December 22, 2009, 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, 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.

Land to be disposed: The lot to be leased is located at: 86-220 Farrington Highway, Lualualei, Waianae, Island of Hawaii, hereinafter referred to as the “Property”. The property is further identified by Tax Map Key Nos. (1) 8-6-001: 022 and consists of approximately 2.670 acres (116,305 square feet) in land area. There are several existing buildings on the property consisting of various service sheds, office, open vehicle ports, and a caretaker’s residence. A sizeable portion of the property is paved with asphalt. In addition to the ground lease, these building improvements must be purchased separately.

Purpose/Use: The property is being offered under the existing I-2 Intensive Industrial county land use zoning designation. 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 determined by sealed bid in which the Qualified Applicant shall submit a rent proposal sealed in a separate envelope and marked accordingly. The sealed rent proposal (sealed bid) shall only include the rent the Qualified Applicant proposes to pay for the first year of the lease. All rent beyond the first year of the lease shall be negotiated, including step increases, sub-lease participation, and re-determination, through future market value appraisals, provided no annual rent shall be less than the rent for the year immediately preceding.

Minimum Upset Rent: The Minimum Upset Rent for the first year of the lease which shall be:

$47,400.00 per annum.

The highest sealed rent proposal, equal to, or greater than the Minimum Upset Rent (whichever is higher), shall determine which Qualified Bidder is selected as the Successful Bidder who will be offered the opportunity to negotiate a lease for use of the property.

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

Special Condition: All existing buildings and/or improvements must be purchased “as is” for not less than $940,000.00. The purchase of these improvements by the Successful Bidder is mandatory and shall be considered a separate financial commitment from the annual lease rent. Payment options for purchasing the improvement are further described in Section I of the information packet.

Telecommunication Service: Sandwich Isles Communications, Inc. (SIC) must 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 exists.” 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
DEPARTMENT OF HAWAIIAN HOME LANDS