NOTICE TO INTERESTED PARTIES REQUEST FOR QUALIFICATIONS (“RFQ”) / REQUEST FOR PROPOSALS (“RFP”) FOR THE: (1) DEMOLITION / PARTIAL DEMOLITION AND / OR REPAIR / RENOVATION; AND (2) OPERATION OF THE FORMER UNCLE BILLY’S HILO BAY HOTEL The State of Hawaii (“State”) Department of Land and Natural Resources (“DLNR”), is issuing a Request for Qualifications (“RFQ”) / Request for Proposals (“RFP”) inviting qualified applicants to submit qualifications and proposals for the: (1) demolition / partial demolition and/or repair / renovation; and (2) operation (“renovation / operation”) of existing hotel and accessory buildings on four parcels of State land in Waiakea, South Hilo, Island of Hawaii, Hawaii, designated as Tax Map Keys: (3) 2-1-005:033, 034, 035 and 045 (the “Parcels”). The Parcels are located on Banyan Drive on Waiakea Peninsula in Hilo with a street address of 87 Banyan Drive, Hilo, Hawaii 96720. This RFQ/RFP is intended to facilitate the renovation / operation of the improvements on the Parcels through the issuance of a new lease for hotel/apartment purposes to a qualified applicant who submits the best proposal to the State. DLNR intends to select the applicant and renovation / operation proposal that best satisfies DLNR’s objectives and selection criteria. The selected applicant will enter into exclusive negotiations with DLNR for a development agreement that will allow the selected applicant to lease the Parcels and: (1) demolish / partially demolish and/or repair / renovate; and (2) operate the improvements thereon upon satisfaction of the terms and conditions of the development agreement. The lease term will be up to sixty-five (65) years. The selected applicant will be responsible for obtaining all required land use entitlements and government approvals/permits under the development agreement, as well as approval of the Board of Land and Natural Resources before a lease may be issued. DLNR will hold a briefing for interested parties at 10:00 a.m. on September 1, 2020, to explain the RFQ/RFP process and objectives, and answer questions. The briefing will be held virtually by Zoom or other virtual meeting platform. Interested parties can obtain the link to the briefing by emailing dlnr.land@hawaii.gov at least twenty-four (24) hours in advance of the briefing time. Attendance by potential applicants is encouraged, but not required. To be eligible for consideration in the RFQ/RFP process, interested parties must first complete and submit a Notice of Intent form to any of the DLNR Land Division offices listed below by no later than 4:00 p.m., September 11, 2020. Any interested party who fails to complete and submit a Notice of Intent form by this deadline will not be eligible to submit its qualifications and proposal and therefore will not be considered for this project. The Notice of Intent form is included in this RFQ/RFP. The next step of the RFQ/RFP process is the submission of statements of qualifications by applicants, which must be submitted by no later than 4:00 p.m., September 30, 2020, to any of the DLNR Land Division offices listed below. DLNR will determine which applicants meet the qualification criteria (and may form a short list of the most qualified applicants), and those applicants will be invited to participate in the next phase of the RFQ/RFP process. This portion of the process will invite applicants who are deemed to be qualified to submit a detailed renovation / operation proposal for the improvements on the Parcels. DLNR will evaluate the submitted proposals and select the applicant whose proposal best satisfies DLNR’s renovation / operation objectives and selection criteria as provided in this RFQ/RFP. Upon the Board of Land and Natural Resources’ approval of the selected applicant and renovation / operation proposal, the selected applicant and DLNR will commence negotiations of the development agreement and lease. Additional deadlines and significant dates are set forth in this RFQ/RFP. Copies of this RFQ/RFP may be obtained at the following DLNR Land Division offices or downloaded from the DLNR website at: https://dlnr.hawaii.gov/ld/RFQ-RFP-unclebillys. Land Division Administration Maui District Land Office 1151 Punchbowl Street, Room 220 130 Mahalani Street Honolulu, Hawaii 96813 Wailuku, Hawaii 96793 Telephone: (808) 587-0419 Telephone: (808) 984-8103 Hawaii District Land Office Kauai District Land Office 75 Aupuni Street, Room 204 3060 Eiwa Street, Room 208 Hilo, Hawaii 96720 Lihue, Hawaii 96766 Telephone: (808) 961-9590 Telephone: (808) 274-3491 DLNR reserves the right to cancel this RFQ/RFP and reject any and all submissions when it is in the best interest of DLNR or the State of Hawaii. If there are any inquiries regarding this RFQ/RFP, or if any person requires a special accommodation (e.g., large print materials, sign language interpreters), please contact Land Division Assistant Administrator Kevin Moore at (808) 587-0426. /s/Suzanne D. Case, Chairperson Board of Land and Natural Resources (HTH1292761 8/23/20)