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Notice #: 0001525094-01
Legal Notices

LEGAL PUBLIC NOTICE FOR
PROPOSED DISPOSITION OF HAWAIIAN HOME LANDS
FOR BUSINESS MIXED-USE DEVELOPMENT
Property Location: Lot 18699-B, East Kapolei I Fire Station Conveyance Subdivision
Honouliuli, East Kapolei, Oahu, Hawaii

As authorized by §220.5, Hawaiian Homes Commission Act, 1920, as amended, the Department of Hawaiian Home Lands (DHHL) invites interested persons to submit their applications, qualifications and experience and proposals for the development of the land described herein (the "Property"). Individuals, partnerships, corporations, limited liability companies or other business entities interested in developing the Property shall have forty-five (45) days from the date this Legal Notice is published, that date being April 10, 2026, in which to submit the following for DHHL consideration

1. Sealed Rent Proposal
2. Development Plan and Conceptual Drawings
3. Proforma Development Budget and Schedule
4. Applicant Qualifications and Development Experience
5. Financial Capacity Documentation
6. Native Hawaiian Community Support Commitment
7. Earnest Money Deposit

Only complete submission packages (with all seven submission items) received by 4:00 p.m. on Monday, May 25, 2026, shall receive full consideration by DHHL. Within ten (10) days of the submission package deadline, said initial review shall be completed and DHHL will promptly thereafter notify the applicants determined not to be qualified.

On Friday, June 5, 2026, completed applications shall be reviewed to determine which applicants have met all DHHL’s objectives and criteria to be qualified for selection as project developer for the property. If only one applicant has been determined to be qualified, DHHL may proceed to negotiate the details of a Project Developer Agreement ("PDA") and Lease with that qualified applicant. If there are two or more qualified applicants, then DHHL shall, within the next forty-five (45) days – i.e., by not later than Monday, July 20, 2026 – review, score and rank the respective submission packages in their entirety (i.e., considering all of submission items 1-7) and notify the qualified applicant with the highest ranking submission package of their selection to negotiate the details of a PDA and Lease. If DHHL and the initial qualified applicant selected for negotiation are not able to agree upon final terms of a PDA and lease within sixty (60) days of their selection for negotiation – i.e., by not later than Friday, September 18, 2026, subject to extension by mutual agreement of the negotiating parties, then DHHL may successively select the qualified applicant with the next highest ranking submission package for negotiation of the details of a PDA and lease, subject to the same 60-day negotiation period with extension by mutual agreement.

Information Packets containing an application form, a request for a statement of qualifications and experience, property information, objectives and criteria, and other requirements for completing the submission package process are available on DHHL’s website: https://dhhl.hawaii.gov or for pick up by prospective applicants during regular office hours at DHHL’s Oahu office located at 91-5420 Kapolei Parkway, Kapolei, HI, or at DHHL’s District Offices in Hilo and Waimea, Hawai’i; Hoolehua, Molokai; Wailuku, Maui and Lihue, Kauai.

Land to be Disposed:

1. The property identified as Tax Map Key No. (1) 9-1-151:058, contains approximately 2.189 acres (95,353 square feet) of vacant land, and is located near the intersection of the Kualakai Parkway and Kapolei Parkway in Honouliuli, Ewa, Oahu, Hawaii (also known as East Kapolei).

Lot No. Tax Map Key Land Area Upset Rental___
18699-B (1) 9-1-151:058 95,353 square feet $429,000

2. Sealed Rent Proposal: Applicants shall submit a sealed rent proposal stating the rent proposed to be paid for the first year of the lease, which must be equal to or greater than the minimum upset rent stated above. The sealed rent proposal will be considered as part of the overall evaluation of proposals; however, selection will not be based solely on the highest rent proposed. Instead, the applicant whose proposal best satisfies DHHL’s objectives and selection criteria will be selected for negotiation of a Project Developer Agreement and Lease pursuant to Section 220.5 of the Hawaiian Homes Commission Act.

3. Earnest Money Deposit: Eligible applicants shall submit, together with their application materials and sealed rent proposal, an earnest money deposit in the form of a cashier’s check or certified check payable to the Department of Hawaiian Home Lands as assurance of the applicant’s commitment to proceed with the proposed development if selected for negotiation. The earnest money deposit will be applied toward amounts due under the lease if the applicant is selected and successfully enters into a Project Developer Agreement and Lease. Earnest money deposits submitted by unsuccessful applicants will be returned following completion of the developer selection process.

Tax Map KeyEarnest Money Deposit
9-1-151:058 $107,250

Nature of Development; Permitted Use: The property is being offered for commercial development consistent with the Business Mixed Use (BMX-3) zoning designation and all applicable permit requirements consistent therewith. For purposes of this solicitation, development proposals shall be limited to office, medical, and similar business uses compatible with the surrounding area. Retail establishments intended for direct consumer sales, residential development, the operation of a scrap metal yard, junk yard, or similar salvage-type operations, and bulk storage of flammable or explosive materials shall NOT be permitted.

Term: The PDA and lease shall be co-terminus at fifty-five (55) years from the commencement of commercial operations (to be defined in the agreements) and shall be cross-defaulted such that the termination of one agreement shall automatically terminate the other(s).

Rental Reopenings: Annual lease rent shall remain at the successful sealed rent proposal for Years 1–10. Rent shall be adjusted at the commencement of Year 11 and Year 16 based on market-supported increases reflected in the independent appraisal (approximately 28.0% and 13.1%, respectively, based on the appraisal midpoint).

Thereafter, the annual rental shall be re-determined by independent appraisal prior to commencement of the 21st year and at intervals of not less than every ten (10) years for the remainder of the lease term, with rent for each appraisal period subject to interim step-ups as negotiated.

PDA Due Diligence: The PDA will provide a right to enter the property to conduct customary due diligence activities for a maximum one hundred twenty (120) day due diligence period. If the Developer opts in writing to proceed with the Project on or before the end of the due diligence period, then it shall promptly: (i) file with DHHL a good and sufficient bond conditioned upon the full and faithful performance of all the terms, covenants and conditions of the PDA; and (ii) execute and deliver the lease and comply with providing all deliverables thereunder, including proof of holding the required types and coverages of liability insurance.

Chapter 343 Environmental Assessment: Prior to commencement of any demolition or construction at the site, the Developer shall comply with Chapter 343 of the Hawaii Revised Statutes, as amended, which requires that an assessment be made to determine the impacts of the proposed development may have on the surrounding community and environment. Such compliance shall be considered complete upon the issuance of a Finding of No Significant Impact (FONSI) or final approval and acceptance of an Environmental Impact Statement (EIS), whichever is applicable.

No State Funds: The Developer shall be responsible for all funds needed to develop the Property. No State of Hawai’i funds shall be used in the development of the Property.

"As-ls": The Developer will accept the Property "As-Is", with all conditions, encumbrances, faults and deficiencies, known or unknown. Without limiting the foregoing, the Developer shall acknowledge that the presence of cultural/archaeological sites, and unpermitted occupation and use by a "homeless" community are suspected or known conditions present on and affecting the Property.

Community Benefits: The Developer will be required to engage in community outreach and to negotiate a benefits package to be provided by the Developer to promote native Hawaiian socioeconomic advancement, including support for community development, job training, and placement, and educational and/or cultural programs for residents of Hawaiian Home Lands on the Island of Oahu.

DHHL reserves the right to modify or cancel this disposition of its lands at its sole discretion.

The Application Form with all required information and attachments is due by May 25, 2026, at 4:00 p.m.

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 1, 2026

State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS

By Kali Watson, Chairperson
Hawaiian Homes Commission

Honolulu StarAdvertiser
Website: https://dhhl.hawaii.gov/listings/
(Local Newspaper Publication)
Date:
April 10, 2026
(SA1525094 4/10/26)