LEGAL PUBLIC NOTICE

PROPOSED DISPOSITION OF HAWAIIAN HOME LANDS
BY NEGOTIATION OF A GENERAL LEASE
FOR LIGHT INDUSTRIAL-USE DEVELOPMENT

Property Location: Pulehunui and Waikapu (Puunene),
Wailuku, Island of Maui

The Department of Hawaiian Home Lands (DHHL) is seeking applications from interested individuals or entities to enter into a general lease for the construction, operation and management of a light industrial development and related facilities on Hawaiian home lands as 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 Monday, January 15, 2007, in which to submit their completed applications for DHHL consideration.

All completed applications received not later than 4:00 p.m. (HST) on Thursday, March 1, 2007 shall be reviewed. Only those applicants that meet DHHL’s initial development objectives and criteria will be notified in writing as being “eligible” for further consideration of their proposals. Eligible applicants shall then be required to submit a detailed development plan, a sealed rent proposal and an earnest money deposit to DHHL by no later than 4:00 p. m. (HST) on Monday, April 30, 2007.

After DHHL reviews the detailed development plan information, those eligible applicants meeting DHHL’s additional objectives and criteria shall be deemed “qualified” and invited to attend the opening of all qualifying sealed rent proposals to be conducted at DHHL’s Honolulu Office located at Alii Place, 1099 Alakea Street, 12th Floor conference Room, Honolulu, Hawaii on Tuesday, May 15, 2007, at 10:30 a.m. (HST).

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 Honolulu Office located at 1099 Alakea Street, Suite 1230, or at DHHL District Offices located on the neighbor islands. Please call (808) 586-3858 (Honolulu) for the locations of neighbor island district offices and/or to make an appointment to view the appraisal report which is the basis for setting the minimum upset rent shown herein. Said appraisal report may be reviewed during regular office hours, but shall not be removed from DHHL’s office.

Land to be disposed: The property to be disposed is an approximate 79-Acre portion of an 80-Acre parcel of land identified by Tax Map Key (2) 3-8-08:036, located south of the Animal Shelter Facility at Pulehunui and Waikapu, in South Central Maui between Mokulele Highway and Mehameha Loop. The land is currently in sugar cultivation.

Wastewater: All applicants are advised to check with the County of Maui, Public Works prior to submitting a proposal to lease the subject property.

Water: Preliminary information indicates that there are county water lines along Mehameha Loop and Mokulele Highway. DHHL has not obtained a commitment for water service to the subject property. Prior to submitting a proposal to lease the subject property, all prospective applicants are advised to check with the county water department with regard to obtaining water commitments as may be needed for the proposed project.

Purpose/Use: The property is being offered for Light Industrial use. The construction of improvements and uses shall conform to those allowed in a M-1 zoning district and all applicable permit requirements consistent therewith.

Term: The term of the lease shall be a minimum of twenty (20) years but not to exceed a maximum of sixty-five (65) years. Applicant’s proposal shall indicate the length of lease desired within the above parameters.

Rent: Eligible applicants must submit a sealed rent proposal that proposes prepayment of the annual rent in one “lump sum” payment to be made shortly after execution of the lease. Said lump sum payment shall prepay the rent for the first twenty (20) years of the lease and shall not be lower than the present value of the minimum upset rent determined by independent market appraisal, discounted at 4.5% per annum (shown below). The qualified applicant who proposes the highest lump sum rent prepayment, equal to or greater than the Present Value amount shown below may be deemed the “Successful Bidder” qualified to negotiate a lease agreement for the subject property.

The minimum upset rent for the first 20 years is as follows:

Years 1 to 10 – $1,631,000 per annum
Years 11 to 15 – $2,038,750 per annum
Years 16 to 20 – $2,293,594 per annum

MINIMUM LUMP SUM PREPAYMENT of rent for first 20 years of the lease:

Present Value (Discounted at 4.5%) $24,945,827.61

Rent Reopening: If the term of the lease extends beyond 20 years, the rent shall be re-determined by an independent fair market appraisal prior to commencement of the twenty-first (21st), thirty-first (31st), forty-first (41st), and fifty-first (51st) years, including step-ups at each five-year interval.

Telecommunication Service: Sandwich Isles Communications, Inc. (SIC) will provide telephone and broadband services to the project at the time when such services are needed.

Chapter 343, Environmental Assessment: The successful bidder 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.

For clarification of this notice, to schedule a site inspection, or to request an Information Packet containing the application form and other pertinent information, contact Carolyn Darr, Land Agent, Land Management Division, (808) 587-6430 on Oahu.

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

Date: Honolulu, Hawaii, January 8, 2007

State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS
Approved as to form:
By_______________________ Micah A. Kane, Chairman
Deputy Attorney General Hawaiian Homes Commission
State of Hawaii (SB05526872 1/15/07)