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Notice #: 0001481027-01
Legal Notices

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 January 17, 2025, in which to submit completed applications for DHHL consideration.

All applications submitted by 4:00 p.m. on Monday, March 3, 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, March 17, 2025, 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, April 16, 2025, at 10:00 a.m.

LOCATION: DHHL East Hawaii District Office
160 Baker Avenue, Hilo, Hawaii 96720

Basic Lease Terms
The industrial lease offered by DHHL shall include the following basic terms:

A. Land to be disposed:

1. Industrial lot situated 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 is an existing building on the subject property.

Lot No. Tax Map Key Land Area Upset Rental Per Annum
B-5 (3) 6-1-006:016 49,397 sf $31,356.00 1-10 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 subject property they are interested in. The lease rent bid shall be in an amount equal to or greater than the minimum upset rents stated above. The applicant that submits the highest total 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:

_____Lot No. Tax Map Key Earnest Money “Bid” Deposit
B-5 (3) 6-1-006:016 $7,839.00

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 a 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; to commence from the first day of the calendar month following the execution of a general lease document.

6. Rental Payment: Monthly, in advance.

7. Improvement Requirements: Successful applicants shall submit a construction plan for the improvements to the leased premises, in an amount of no less than $200,000.00, within six (6) months from commencement of the lease and complete the project within thirty (30) months from plan approval using new material and in full compliance with all laws, ordinances, rules and regulations of the Federal, State and County government.

8. Rental Reopenings: For the initial twenty (20) years of the lease term, the annual ground lease rent shall be fixed for the first ten (10) years. For the subsequent periods, rent shall increase at a compounded rate of 2.6 percent per annum, with stepped-up annual rentals determined for years eleven (11) through fifteen (15) and years sixteen (16) through twenty (20).

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. Any assignment or sublease shall require the prior consent of DHHL, which may be given or withheld in its sole and absolute discretion. 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.

A. 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 Chairperson, Hawaiian Homes Commission.

The Application Form with all required information and attachments is due by Monday, March 3, 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, March 17, 2025, of the auction date as 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, by email at andrew.r.sante@hawaii.gov or by phone at (808) 730-0336.

DATE: January 10, 2025

State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS

By: Kali Watson, Chairperson
Hawaiian Homes Commission

West Hawaii Today
Hawaii Tribune-Herald
Website:
https://dhhl.hawaii.gov/asset-management/publicauctions/
(Local Newspaper Publication)
Date:
January 17, 2025
(SA1481027 1/17/25)