NOTICE OF SALE
PUBLIC AUCTION SALE OF A STATE OF HAWAII LEASE
ON THE ISLAND OF OAHU

The Department of Land and Natural Resources (“DLNR”), Land Division, will be conducting a public auction sale of one lease for State land at the following date and place:

DATE & TIME Tuesday, August 20, 2013 at 10:00 AM (HST)
PLACE Kalanimoku Building, 1151 Punchbowl St., Rm. #220
Honolulu, 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 covers the following parcel located at the corner of Kilihau Street and Kakoi Street, Moanalua, Island of Oahu.

Location: Portions of Government Lands situated at Moanalua, Honolulu, as shown and described on Government Survey Map CSF No. 22,279.
Tax Map Key: (1) 1-1-064:006
Land Area: 9,005 square feet
Permitted Uses: Industrial uses permitted under the City and County of Honolulu Land Use Ordinance, or any other uses permitted under the City and County of Honolulu Land Use Ordinance, as amended. Residential uses shall not be permitted.

Environmental Prior to issuance of the lease, the successful bidder must, at its sole cost, comply
Assessment and FONSI, with Chapter 343 Hawaii Revised Statutes, as amended, which may require the
or Environmental Impact successful bidder to prepare and process an Environmental Assessment (“EA”) Statement: resulting in a Finding of No Significant Impact (“FONSI”), or an Environmental Impact Statement (“EIS”). Additional terms and conditions that may be required are provided in the Public Auction Bid Packet (“Bid Packet”).

Lease Term: Sixty-five (65) years
Commencement Date: The commencement date of the lease shall be no later than thirty (30) calendar days from the date DLNR transmits the lease to the successful bidder for execution pursuant to as described in Section 10 of the Bid Packet; provided that if such date is not on the first day of any month, the commencement date shall be the first day of the month following such date; and further provided that the Chairperson of the Board of Land and Natural Resources (“Chairperson”) may amend the commencement date for good cause.
Upset Minimum $61,600.00 per annum, payable semi-annually in advance
Annual Rent:
Fixed Increases in 30 years known rent subject to fixed increases in the annual rent:
Annual Rent: First 10 Years = Fixed
Years 11 – 20 = First Year’s Rent x 1.30
Years 21 – 30 = First Year’s Rent x 1.60
Rental Reopenings: The annual rent shall be reopened, and readjusted at the endings of the thirtieth (30th), fortieth (40th), fiftieth (50th), and sixtieth (60th) years of the lease term.
Rent Waiver: Within thirty (30) calendar days from the date of the auction, the successful bidder shall submit to the DLNR for the Chairperson’s approval plans for any proposed improvement, a schedule for the planning and construction of any proposed improvement, and the period of rent waiver being requested in connection with the construction of the proposed improvement. Within fifteen (15) days of submission of the above, the DLNR will notify the successful bidder of the approved period of the rent waiver which shall not exceed the first twelve (12) months of the lease. If the period of rent waiver approved by the Chairperson is different than the period of rent waiver requested, the successful bidder shall have until the end of the Due DiligencePeriod as described in Section 13 of the Bid Packet to notify DLNR if it will not proceed with the proposed improvement.

APPLICATION AND BIDDING INFORMATION
Any person wishing to bid and purchase the lease described above must first qualify to bid under the general qualifying criteria and the pre-qualifying criteria as described in the Bid Packet. Eligibility to bid shall be determined by the information supplied by prospective bidders in the Application and Qualification Questionnaire (“Application”) provided as Appendix A of the Bid Packet.

Applications by prospective bidders for the above listed lease must be received by DLNR no later than Tuesday, July 16, 2013; 4:00 PM (HST) 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 Bid Packet for further instructions.

The Bid Packet describes the auction sale procedures, bidder qualifications and other requirements, and contains the Application form, memorandum of lease, draft lease document (including survey map and descriptions of the subject premises), and other relevant information. The Bid Packet may be examined at any of the District Land Offices listed below or downloaded from the DLNR website at www.hawaii.gov/dlnr/land/publicnotices. Any person requiring special accommodation or information in an alternate format is asked to contact:

Oahu District Land Office
1151 Punchbowl Street, Room 220, Honolulu, Hawaii 96813 Phone (808) 587-0433
Hawaii District Land Office
75 Aupuni Street, Room 204, Hilo, Hawaii 96720 Phone (808) 961-9590
Maui District Land Office
54 South High Street, Room 101, Wailuku, Hawaii 96793 Phone (808) 984-8103
Kauai District Land Office
3060 Eiwa Street, Room 208, Lihue, Hawaii 96766 Phone (808) 274-3491

Prospective bidders are responsible to thoroughly read and understand the covenants, terms, reservations, and conditions contained in the Bid Packet and draft lease document. The premises are to be leased in an “as is” condition, and prospective bidders are solely responsible to complete their own 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, 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 18th day of June 2013.

BOARD OF LAND AND NATURAL RESOURCES
William J. Aila, Jr., Chairperson
(SA525243 6/18/13)~