NOTICE OF PUBLIC AUCTION
PIER 7, HONOLULU HARBOR, 65-YEAR LEASE
DEPARTMENT OF TRANSPORTATION
Notice is hereby given that the State of Hawaii, Department of Transportation (STATE), shall conduct a public auction (Public Auction) for lands located at Pier 7, Honolulu Harbor, Island of Oahu, State of Hawaii.
Pursuant to Chapters 171-15 and 171-16, Hawaii Revised Statutes, the STATE hereby gives notice of a Public Auction for a sixty-five (65) year lease situated at Pier 7, Honolulu Harbor.
The Public Auction will be conducted via sealed bids:
1. General Description and Location of the Premises. The Premises is comprised of 5 easements situated at Pier 7, Honolulu Harbor, Island of Oahu, Tax Map Key Nos. (1) 2-1-001:057 (P) and (1) 2-1-001:058 (P). The 5 easements are as follows:
a. Parcel IA: 1,290 sq. ft., nonexclusive use
b. Parcel IB: 15,345 sq. ft., exclusive use
c. Parcel IC: 2,000 sq. ft., exclusive use
d. Parcel ID: 6,500 sq. ft, nonexclusive use
e. Parcel IF: 2,800 sq. ft., nonexclusive use
2. Term of Use. The term of the Premises Lease (Lease) shall be for 65 years, commencing upon execution of the Lease. The Lease premises shall be used for a museum and related facilities, with a harbor and wharfage operation component, that allows for pier and space availability for harbor and wharfage operations.
3. Upset Rent. The upset annual rent for the first ten years will be fixed at the highest Lease rent offered above THREE HUNDRED THOUSAND AND NO/100 DOLLARS, ($300,000.00) from a pre-qualified bidder. A pre- qualified bidder shall have a verified minimum Altman Z-Score of 3.0 and a financial position to invest a minimum of $15 million. Additionally, the minimum investment of $15 million toward improvements of the area and its direct surroundings must be completed within three years and guaranteed by a $15 million performance bond until construction completed. Please go to our website https://hidot.hawaii.gov/harbors/ for additional rental information.
4. Information relating to this property including the Notice of Public Auction, map, description of parcels, Public Auction Documents, and Bid Intent Package may be viewed and obtained from the State at https://hidot.hawaii.gov/harbors/ or by appointment at Department of Transportation, Harbors, located at 79 S. Nimitz Highway, Honolulu, Hawaii, 96813. Please email, dot.har-pm.@hawaii.gov to request an appointment.
5. Bidding. Each prospective bidder will be required to complete the Bid Intent Package consisting of a Qualification Questionnaire, submission of financial statements, and completion of the minimum qualifications required of applicants listed below. Please return entire package with requested documents by 12:00 p.m. (HST) on Wednesday, June 21, 2023.
Any qualified individual, corporation, limited liability company, partnership, joint venture, or other entity may bid at the Public Auction after timely submission of an acceptable Bid Intent Package. Sealed bids are due by 12:00 p.m. (HST) on Tuesday, August 8, 2023. Participants will be notified within 1 week of bid opening.
6. The STATE reserves the right to cancel the Public Auction, or to postpone or continue the same from time-to-time, as it may deem necessary, by publication of notice to that effect or by public announcement at the time scheduled therefore.
Minimum qualifications required of applicants are as follows:
Individual/Company must be legally registered to conduct business in the State of Hawaii
Individual/Company shall have a minimum computed Altman Z-score of 3.0 and the financial position to invest $15 million. The State of Hawaii will accept the financial records of an affiliate individual/company or similar financial records of a recently registered individual/company to conduct business in the State of Hawaii that is supported by the affiliated individual’s guarantee or the affiliated company’s Board Resolution guaranteeing and accepting any and all legal and financial obligations of the bid at auction.
Applicant will be subject to any Environmental Assessment, Traffic Study, HRS 6E review, etc., requirements for the Applicant’s proposed use and purpose.
Must be in good standing with Department of Commerce and Consumer Affairs
Will be required to obtain current State Tax Clearance Form
Will be required to obtain current City and County of Honolulu Tax Clearance Form
Has not had during the five (5) years preceding the date of this public auction, a previous sale, lease, license, permit, or easement covering public lands canceled for failure to satisfy the terms, conditions, and covenants thereof.
Please submit all Bid Intent Packages and Sealed Bids (by respective deadlines stated above) to Department of Transportation, Harbors, 79 S. Nimitz Highway, Attn: Property Management (Public Auction), Honolulu, Hawaii 96813 or via email at email@example.com.
(SA/TGI/HTH/WHT1414461 5/08, 5/22/23)