LAND MANAGEMENT DIVISION

January 8, 2009
Date

ADDENDUM NO. 1
TO

This addendum is hereby made a part of the October 3, 2008, RFP/Information Packet as referenced above, and shall amend and clarify the said RFP/Information Packet as detailed within this Addendum document.

APPROVED:

State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS
Micah A. Kane, Chairman
Hawaiian Homes Commission

A. SEALED RENT BIDS (pg. 4) and SECTION V. CONDUCT OF DISPOSITION, C. DETERMINATION AND DUTIES OF SUCCESSFUL BIDDER, ITEM NO. 2 (pg. 19-20).

1. DHHL/DLNR will exercise its authority in using a present value basis to compare sealed bids. A present value factor of 4.0% will be applied to determine the highest bid.

Bidders may deviate from the minimum upset rent structure as established and reflected in the RFP/Information Packet dated October 3, 2008, under MINIMUM UPSET RENT on Pg. 3, provided, however, that the present value of the total rent payments for the first 25 years of the lease contained in the sealed bid shall equal or exceed the present value of the total minimum upset rent payments on Pg. 3.

B. SPECIAL CONDITION (pg. 4) and SECTION V. CONDUCT OF DISPOSITION, D. EXTENSION OF NEGOTIATIONS; FAILURE, ITEM NO. 1 (pg.20) and SECTION VI. GENERAL PROPERTY INFORMATION, Special Condition (pg. 23).

1. The time period for negotiation and execution of both general leases shall be amended from one hundred twenty (120) days to one hundred eighty (180) days. If for good cause shown, an extension of time to the negotiation period may be granted at the sole discretion of the Chairman of the Hawaiian Homes Commission and the Chairperson of the Board of Land and Natural Resources. Any extension beyond the 180 day period may, at the Chairpersons’ sole discretion be subject to an extension fee, which fee shall not exceed one percent (1%) of the annual rent amount bid per every thirty (30) days the deadline is extended.

The amended time period allows for the “successful bidder” to immediately commence the consolidation and re- subdivision of the DLNR parcels to avoid any unnecessary delays with its planned development.

C. SIGNIFICANT DATES (pg. 10)

1. Step Two Deadline Final Proposals will be due on Friday, February 6, 2009, at 4:00 p.m., HST, in lieu of Friday, January 16, 2009.

2. Sealed Bid Opening will be held on Friday, February 27, 2009, at 10:00 a.m., HST, in lieu of Friday, February 6, 2009.

3. DHHL/DLNR reserves the right to postpone or change the dates of any deadlines by order of the Chairman of the Hawaiian Homes Commission or the Chairperson of the Board of Land and Natural Resources.

D. OPEN ZONING DESIGNATION (pg 3 and 22, and all other references in the RFP/Information Packet to the zoning designation of the Subject Properties.)

1. For clarification purposes, there is a 40ft. setback buffer from Kanoelehua Highway running along the entire western boundary of the subject properties. This 40ft setback has been designated “Open” (O) zoning by the County of Hawaii.

With regard to the portion of the 40ft buffer within the DHHL Parcel, by way of its Memorandum of Agreement with the County of Hawaii dated December 27, 2002, DHHL intends to exercise its authority, and designate the 40ft buffer within the DHHL Parcel as Industrial/Commercial Mixed Use (MCX).