LEGAL PUBLIC NOTICE
LEGAL PUBLIC NOTICE FOR
PROPOSED DISPOSITION OF GENERAL LEASES BY NEGOTIATION
FOR LIMITED INDUSTRIAL (ML-20) USE PROPERTY
Property Location: Kaei Hana I Industrial Subdivision, Waiakea, 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 property herein described shall have forty-five (45) days from the date this “LEGAL NOTICE OF PUBLIC AUCTION” is first published, that date being November 7, 2025, in which to submit completed applications for DHHL consideration.
All applications submitted by 4:00 p.m. on Monday, December 22, 2025, will undergo review. Only those applications that satisfy DHHL’s initial objectives and criteria and are deemed “qualified” will receive written notification by Monday, January 5, 2026, confirming their qualification to participate in the Auction process. Qualified applicants may then attend and bid at the scheduled Public Auction as outlined below:
DATE & TIME: Wednesday, February 4, 2026, 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. One (1) industrial assemblage (8.30 acres), situate at Kaei Hana I Industrial Subdivision, Hilo, Island of Hawai’i. The minimum upset ground rent as shown in the Table below will be basis for the interested and qualified applicant/bidder to bid on for Year 1 of the lease term. There are no existing warehouse/office buildings on the property; the lease will be for raw land to be improved by the successful bidder.
Tax Map Key Land Area Upset Rental Escalation_________
(3) 2-2-060:001-010 & 085-089 361,548/sf $162,700.00 13.14% step up every five (5) years
2. Sealed Rent Bids: This disposition will be conducted by sealed bid for the Subject Property. Applicants must submit sealed lease rent bids for the single 8.30-acre assemblage. Each lease rent bid shall be adjusted and escalate by a 13.14% step-up every five (5) years from the successful sealed bid for the initial 20 years of the lease, and must be in an amount equal to or greater than the minimum upset rent stated above for Year 1. The applicant that submits the highest conforming sealed bid for the lease will be deemed the “successful bidder” and will enter exclusive negotiations with DHHL for a general lease.
3. Earnest Money “Bid” Deposits: Eligible applicants shall, together with their detailed development plan and sealed rent proposal, remit earnest money deposits consisting of one (1) separate payment in the form of cashier’s or certified checks for assurance of successful bidder’s commitment to this proposed disposition. With respect to the subject properties being offered payments shall be made payable to the Department of Hawaiian Home Lands as follows:
Tax Map Key Earnest Money “Bid” Deposit
(3) 2-2-060:001-010 &
085-089 $40,675.00
Earnest money deposits shall be held uncashed by DHHL until the successful bidder has been determined. Earnest money deposits submitted by unsuccessful bidders shall be returned.
4. Character of Use: The leased premises shall be allowed to be used under the existing County zoning regulation for “ML-20 Limited Industrial District” purposes only. Operation of any scrap metal yard, junk yard and similar type operations, and bulk storage of flammable and explosive products shall be prohibited.
5. Lease Term: Sixty-Five (65) Years; to commence from the first day of the calendar month following the execution of the general lease document.
6. Rental Payment: Monthly, in advance.
7. Improvement Requirements: Successful applicants shall submit a development plan for the leased premises, with total on-site improvements valued at no less than $2,000,000.00, within six (6) months from commencement of the lease, and shall complete construction within thirty (30) months from plan approval using new materials and in full compliance with all applicable Federal, State, and County laws, ordinances, rules, and regulations.
8. Rental Reopening’s: Annual lease rent shall remain at the successful sealed bid amount for Years 1–5, and shall be adjusted by a 13.14% step-up at the commencement of Year 6, Year 11, and Year 16 (covering Years 6–10, 11–15, and 16–20). Thereafter, the annual rental shall be re-determined by independent appraisal prior to commencement of the 21st, 41st, and 61st lease years, with rent for each appraisal period subject to step-ups at intervals through the end of the sixty-five (65) year term.
9. 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.
10. 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).
11. 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 review by prospective applicants during regular office hours at DHHL’s Kapolei Office located at 91-5420 Kapolei Parkway, Kapolei 96707 and can be downloaded from DHHL’s official website. This Legal Notice of Public Auction, Application Qualification, Criteria, and Guidelines, Applicant and Qualification Form, Public Auction Guidelines, Conduct of Disposition, General Property Information, including maps and description of the lots, and a draft of the lease document 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 Chairperson, Hawaiian Homes Commission.
The Application Form with all required information and attachments is due by December 22, 2025, 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, by Monday, January 5, 2026, to their eligibility to bid at the auction.
For additional information please contact Andrew Sante, Land Agent at the Department of Hawaiian Home Lands, Land Management Division, at (808) 730-0336 or by email at andrew.r.sante@hawaii.gov.
DATE: 10.27.2025
State of Hawaii
DEPARTMENT OF HAWAIIAN HOMELANDS
By: Kali Watson, Chairperson
Hawaiian Homes Commission
Honolulu StarAdvertiser
Website: https://dhhl.hawaii.gov/asset-management/publicauctions/
(Local Newspaper Publication)
Date: November 7, 2025
(HTH1510235 11/7/25)
