II. LEGAL PUBLIC NOTICE
LEGAL PUBLIC NOTICE FOR
PROPOSED DISPOSITION OF GENERAL LEASE BY NEGOTIATION FOR INDUSTRIAL USE PROPERTY
Property Location: Kaei Hana II, Kawaihae, 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 May 8, 2026, in which to submit completed applications for DHHL consideration.
All applications submitted by 4:00 p.m. on Monday, June 22, 2026, will undergo review. Only those applications that satisfy DHHL’s initial objectives and criteria and are deemed “qualified” will receive written notification by Monday, July 6, 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, August 5, 2026, at 10:00 a.m.
LOCATION: DHHL West Hawaii District Office
64-756 Mamalahoa Highway, Kamuela, Hawaii
Basic Lease Terms
The industrial lease offered by DHHL shall include the following basic terms:
A. Land to be disposed:
1. Industrial lot situated in the Kaei Hana II Industrial Subdivision of Kawaihae, Island and County of Hawaii. The minimum upset ground rent as shown in the Table will be the basis for the interested and qualified applicant/bidder to bid on for Year 1 of the lease term. There are existing improvements consisting of two steel warehouse buildings containing approximately 7,200 square feet and 5,600 square feet, respectively, for a combined total area of approximately 12,800 square feet.
Tax Map Key Land Area Upset Rental Escalation____________
(3) 6-1-006:008 87,120/sf $65,300.00 2.6% annually for initial 20 years
2. Sealed Rent Bids: This disposition will be conducted by sealed bid for the subject property situated in the Kaei Hana II Industrial Subdivision of Kawaihae, Island and County of Hawai’i. The minimum upset ground rent as shown in the Table will be the basis for the interested and qualified applicant/bidder to bid on for Year 1 of the lease term, and all sealed bids must be in an amount equal to or greater than the minimum upset rent stated above. The successful sealed bid shall escalate by 2.6% annually for the initial twenty (20) years of the lease term, with the rent to be redetermined in the 21st, 31st, and 41st year. The interested and qualified applicant/bidder submitting the highest conforming sealed bid shall be deemed the “successful bidder” and will enter into 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 property being offered payments shall be made payable to the Department of Hawaiian Home Lands as follows:
__ __Tax Map Key_ Earnest Money “Bid” Deposit___
(3) 6-1-006:008 $16,325.00
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 “General Industrial (MG-1a)” 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: Fifty-five (55) years.
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 $200,000.00, within six (6) months from commencement of the lease, and shall complete construction within thirty-six (36) 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 Reopenings: Annual lease rent shall remain at the successful sealed bid amount for Year 1 and shall thereafter be adjusted by 2.6% annually during the initial twenty (20) years of the lease term. Thereafter, the annual lease rent shall be re-determined by independent appraisal prior to the commencement of the 21st, 31st, and 41st lease years, with rent for each reappraisal period subject to adjustments at intervals established at the time of such re-determination through the end of the lease 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 lot, 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 June 22, 2026, 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, July 6, 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: April 27, 2026
State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS
By: Kali Watson, Chairperson
Hawaiian Homes Commission
Honolulu StarAdvertiser
Hawaii Tribune-Herald
Website: https://dhhl.hawaii.gov/asset-management/listings/
(Local Newspaper Publication)
Date: May 8, 2026
(SA1527417 5/8/26)
