LEGAL NOTICE OF PUBLIC AUCTION
PROPOSED DISPOSITION OF HAWAIIAN HOME LANDS’
INDUSTRIAL LEASES,
SOUTH HILO, ISLAND OF 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, companies and/or corporations interested in leasing the properties herein described shall have forty-five (45) days from the date this “LEGAL NOTICE OF PUBLIC AUCTION” is first published, that date being August 11, 2023, in which to submit completed applications for DHHL consideration.
All completed applications received by 4:00 p.m. on Monday, September 25, 2023, shall be reviewed and only those applications that meet DHHL’s initial objectives and criteria shall be notified in writing as being qualified to attend and bid at the scheduled Public Auction as follows:
DATE & TIME: Wednesday, October 4, 2023 at 10:00 a.m.
LOCATION: DHHL East Hawaii District Office
160 Baker Avenue, Hilo, Hawaii 96720
Basic Lease Terms
The industrial leases offered by DHHL shall include the following basic terms:
A. Land to be disposed:
1. Two (2) individual industrial lots in the Kaei Hana I Industrial Subdivision, situate at Panaewa Tract I, Waiakea, South Hilo, Island and County of Hawaii.
Lot No. Tax Map Key Land Area Upset Rental Per Annum
63 (3) 2-2-060:19 24,896 sf $26,559.00 1-10 years
$33,998.00 11-20 years
28 (3) 2-2-060:45 14,059 sf $15,648.00 1-10 years
$20,030.00 11-20 years
2. Character of Use: The leased premises shall be allowed to be used under the existing County Zoning regulation for “Limited Industrial – ML-20” purposes only. Operation of a scrap metal yard, junk yard and similar type operations, and bulk storage of flammable and explosive products shall be prohibited.
3. Lease Term: 55 Years; to commence from the first day of the calendar month following the execution of a general lease document.
4. Rental Payment: Monthly, in advance.
5. Improvement Requirements:
Lot 63 is vacant and ready for development.
Lot 28 is improved with a 4,405 square feet steel-frame warehouse/office building and storage space. The information is from tax office records and subject to verification. The condition is unknown and deemed to have no value. Applicant can either demolish or renovate these improvements for its use.
The Lessee shall submit improvement plans within six (6) months from commencement date of the lease. The Lessee shall have thirty (30) months from date of the Lessor’s approval of the plans to complete construction of new improvements for an amount no less than $500,000.00 or renovate existing improvements on the subject leased premises, for an amount no less than $200,000.00 using new material and in full compliance with all laws, ordinances, rules and regulations of the Federal, State and County governments. No Quonset hut or similar type of building will not be permitted.
6. Rental Reopenings: The net annual rental shall be reopened and redetermined at the expiration of the twentieth (20th), thirtieth (30), fortieth (40th) year(s) of the term. For each of the ten-year reopened period, a level annual rental shall be determined for the first five (5) years and a stepped-up annual rental for the remaining five (5) years. For the final fifteen (15) years, rent shall be reopened and redetermined for each of the 5-year period.
7. Ingress, Egress and Utilities: The Lessee shall, at its own cost and expense, be required to provide its own ingress, egress and utilities to the demised premises.
8. Assignment/Subletting: The Lessee’s ability to assign the lease or sublet the leased premises shall be limited by the terms of the lease and by statutes. The Lessor shall have the right to revise the rent based upon the rental rate charged to the sublessee(s).
9. Bond and Other Terms and Conditions: Refer to Conduct of Disposition and Draft of Lease Document.
B. Additional 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 Kapolei Office located at 91-5420 Kapolei Parkway, Kapolei 96707 or can be downloaded from DHHL’s official website. This Legal Notice of Public Auction, Application and Qualification Form, Applicant Qualification Criteria, Conduct of Disposition, and a draft of the lease document, including maps and description of the lots for complete and detailed terms, covenants and conditions to be observed and performed by the respective lessees, and public auction procedures are on file for public inspection during regular hours at the office of the Department of Hawaiian Home Lands, 91-5420 Kapolei Parkway, Kapolei, Hawaii, and at the District Offices in Waimea, Hilo, Molokai, Maui and Kauai, or by visiting DHHL’s website (dhhl.hawaii.gov), which are by this reference incorporated herein and made a part hereof.
This proposed disposition is authorized by and may be cancelled, postponed or continued from time to time as to all or any of the items listed hereunder by public announcement to that effect by order of the Chairman, Hawaiian Homes Commission.
The Application Form with all required information and attachments are due by September 25, 2023, at 4:00 p.m. Only those applicants who have submitted applications by the above deadline and have been qualified by DHHL will be invited to participate in the public auction. Each applicant shall be informed, in writing, in advance of the auction date as to their eligibility to bid at the auction.
For additional information please contact Peter “Kahana” Albinio, Jr., Acting Administrator at the Department of Hawaiian Home Lands, Land Management Division, at (808) 620-9451 or by email at peter.k.albinio.jr@hawaii.gov.
DATE: Honolulu, Hawaii, August 1, 2023
State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS
Kali Watson, Chairman
Hawaiian Homes Commission
Star Advertiser
Hawaii Tribune-Herald
Website: dhhl.hawaii.gov
Date: August 11, 2023
(SA/HTH1426099 8/11/23)
