LEGAL NOTICE

PROPOSED DISPOSITION OF HAWAIIAN HOME LANDS
BY PUBLIC AUCTION OF A GENERAL LEASE
FOR BUSINESS MIXED-USE DEVELOPMENT

Property Address: 820 Isenberg Street, Honolulu, Hawaii

The Department of Hawaiian Home Lands (DHHL) intends to dispose of lands by public auction. As authorized by §204(a)(2), Hawaiian Homes Commission Act, 1920, as amended, individuals or corporations 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 February 8, 2008, in which to submit completed applications for DHHL consideration.

All completed applications received by 4:00 p.m. on Monday, March 24, 2008, shall be reviewed and only those applicants that meet DHHL’s initial objectives and eligibility 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 a sealed rent proposal to DHHL by no later than 4:00 p.m. on Friday, June 20, 2008. After DHHL reviews the detailed development plan information, those meeting DHHL’s additional objectives and qualification criteria shall be deemed “qualified” and invited to attend the opening of all qualifying sealed rent proposals to be conducted at DHHL’s Oahu Office on Friday, July 18, 2008, at 10:00 a.m.

Information Packets containing an application form, requirements for completing an acceptable application, and other property information are available for prospective applicants during regular office hours at DHHL’s Honolulu Office located at 1099 Alakea Street, Suite. 1230, or at the district offices located on the neighbor islands.

Land to be disposed: The property to be disposed, identified by Tax Map Key Nos. (1)2-7-08:18 and 20, contains approximately 82,493 square feet (1.89 acres) of land, and is located at 820 Isenberg Street, in the McCully-Moiliili district of Honolulu.

Purpose/Use: The property is being offered for business mixed-use development. Improvements and uses shall conform to those allowed in a BMX-3 zoning district and all applicable permit requirements consistent therewith.

Term: The minimum term shall be 25 years and the maximum term shall be 65 years.

Rent: The minimum upset rent for the first 25 years is as follows:

Years 1-10 – $1,224,000.00 per annum
Years 11-15 – $1,640,160.00 per annum
Years 16-20 – $1,968,192.00 per annum
Years 20-25 – $2,361,830.00 per annum

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

Telecommunication Service: Sandwich Isles Communications, Inc. (SIC) will provide telephone and broadband services to the project at a 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 final execution of the lease and the start of any construction activity on the site. Such compliance shall assess the impacts that the proposed development will have on the surrounding environment, such as traffic, parking, noise, etc.

Other Information: Reports, such as a market value appraisal, a Phase I site assessment, and an environmental assessment will be available for review in DHHL’s offices during normal office hours, however, these reports cannot be removed from the office and will not be reproduce as handouts to prospective applicants.

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

Please call (808) 586-3858 (Honolulu) for the locations of neighbor island district offices and/or to make an appointment to review reports (referred to in Other Information above). For additional information, questions and/or to schedule a site inspection, you may contact Noel Akamu at Department of Hawaiian Home Lands, Property Development Manager, (808) 587-6432 on Oahu.

Date: Honolulu, Hawaii

State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS

By___________________________
Micah A. Kane, Chairman
Hawaiian Homes Commission
(SB05534039 2/8/08)