§171-17 Appraisals. (a) The appraisal of public lands for sale or lease at public auction for the determination of the upset price may be performed by an employee of the board of land and natural resources qualified to appraise lands, or by one but not more than three disinterested appraisers whose services shall be contracted for by the board; provided that the upset price or upset rental shall be determined by disinterested appraisal whenever prudent management so dictates. No such lands shall be sold or leased for a sum less than the value fixed by appraisal; provided that for any sale or lease at public auction, the board may establish the upset sale or rental price at less than the appraisal value set by an employee of the board and the land may be sold or leased at that price. The board shall be reimbursed by the purchaser or lessee for the cost of any appraisal required to be made by a disinterested appraiser or appraisers contracted for by the board.
(b) The sale price or lease rental of lands to be disposed of by drawing or by negotiation shall be no less than the value determined by:
(1) An employee of the board qualified to appraise lands; or
(2) A disinterested appraiser or appraisers whose services shall be contracted for by the board, and the appraisal, and any further appraisal with the approval of the board, shall be at the cost of the purchaser;
provided that the sale price or lease rental shall be determined by disinterested appraisal whenever prudent management so dictates; provided further that if the purchaser does not agree upon the sale price or lease rental, the purchaser may appoint an appraiser who shall conduct an appraisal on behalf of the purchaser. If, after the purchaser's appraisal, the board and the purchaser do not agree on the sale price or lease rental, the parties shall make a good faith effort to resolve the dispute through nonbinding mediation by a single mediator, appointed by mutual agreement of the parties. The cost of mediation shall be borne equally by the parties. If mediation does not resolve the dispute, the purchaser's appraiser together with the board's appraiser shall appoint a third appraiser, and the sale price or lease rental shall be determined by arbitration as provided for in chapter 658A, which shall be final and binding. The purchaser shall pay for all appraisal costs, except that the cost of the third appraiser shall be borne equally by the purchaser and the board.
(c) In the repurchase of any land by the board, the board shall have the option to repurchase the land for the original sale price or the fair market value at the time of repurchase, whichever is the lower. Any improvements affixed to the realty shall be purchased at their fair market value. At the time of the repurchase, the fair market value of the land, and the improvements, if any, shall be determined by a qualified appraiser whose services shall be contracted for by the board; provided that if the owner does not agree upon the value, the owner may appoint the owner's own appraiser who shall conduct an appraisal on behalf of the owner. If, after the owner's appraisal, the board and the owner do not agree on the sale price, the parties shall make a good faith effort to resolve the dispute through nonbinding mediation by a single mediator, appointed by mutual agreement of the parties. The cost of mediation shall be borne equally by the parties. If mediation does not resolve the dispute, the owner's appraiser together with the board's appraiser shall appoint a third appraiser, and the value shall be determined by arbitration as provided in chapter 658A. The owner shall pay for all appraisal costs, except that the cost of the third appraiser shall be borne equally by the owner and the board.
(d) If a reopening of the rental to be paid on a lease occurs, the rental for any ensuing period shall be the fair market rental at the time of reopening. At least six months prior to the time of reopening, the fair market rental shall be determined by:
(1) An employee of the department qualified to appraise lands; or
(2) A disinterested appraiser whose services shall be contracted for by the board;
and the lessee shall be promptly notified of the determination and provided with the complete appraisal prepared by the board or the board's appraiser; provided that if the lessee does not agree upon the fair market rental, the lessee may appoint the lessee's own appraiser and the lessee shall provide the board with the complete appraisal prepared by the lessee's appraiser. Each party shall pay for its own appraiser. If the board's and the lessee's appraisers do not agree upon the lease rental, the lessee and the board shall in good faith attempt to resolve the dispute by nonbinding mediation by a single mediator mutually agreed upon by the parties. If the dispute is not resolved by the mediation, the fair market rental shall be determined by arbitration as provided in chapter 658A, which shall be final and binding. Either the board or the lessee may initiate arbitration by a written demand to the other party. The arbitration shall be conducted by a single arbitrator, who shall be an attorney licensed in the State, a person with experience in contracts and real estate valuation, or another qualified person, who shall be mutually agreed upon by the parties. If an arbitrator is not selected within fifteen days of the demand for arbitration, appointment of an arbitrator may be requested by either party by motion made to the circuit court in the circuit in which the land is located. The cost of mediation or arbitration shall be borne equally by the lessee and the board. Any language in present leases to the contrary notwithstanding, the provisions of this subsection, when possible and notwithstanding the six-month notice required, shall apply to leases with original lease rental reopening dates effective before and after July 1, 1996.
(e) Complete appraisal reports, including all comparables relied upon in the appraisal reports, shall be available for study by the public. All complete appraisal reports shall be provided to the opposing party prior to the commencement of mediation or arbitration, if applicable, of the valuation dispute. [L 1962, c 32, pt of §2; am L 1963, c 135, § §1, 2, 3; am L 1965, c 239, §10; Supp, §103A-17; HRS §171-17; am L 1976, c 147, §1; am L 1985, c 116, §1; gen ch 1985; am L 1986, c 48, §1; am L 1993, c 132, §1; am L 1996, c 233, §1 and c 234, §1; am L 2001, c 265, §4; am L 2014, c 168, §2]
Note
The amendment made by L 2014, c 218, §8 is not included in this section.
Structure Hawaii Revised Statutes
Title 12. Conservation and Resources
171. Public Lands, Management and Disposition of
171-2 Definition of public lands.
171-3 Department of land and natural resources.
171-4.5 Aha moku advisory committee; established.
171-5 Meetings, regular, special; quorum.
171-6.4 General administrative penalties.
171-7 General duties of the board.
171-8 Land agents and other employees.
171-8.6 Risk assessment working group.
171-11 Public purposes, lands set aside by the governor; management.
171-12 Permanent register of applicants for public lands.
171-13 Disposition of public lands.
171-14.5 Auction pre-qualification; agricultural and pasture leases.
171-19 Special land and development fund.
171-20 Notice of breach or default.
171-21 Rights of holder of security interest.
171-23 Land patents and deeds, issued when.
171-24 Land conveyances, preparation, signing, record, copies.
171-26 Rights-of-way to the sea, game management areas, and public hunting areas.
171-28 Government-owned Hawaiian fishponds; sale prohibition.
171-29 Report to legislature on all dispositions.
171-30 Acquisition of real property; general.
171-31 Depository for documents; filing, record.
171-31.5 Disposition of abandoned or seized property.
171-34 Planning; intensive agricultural and pasture uses.
171-35 Lease provisions; generally.
171-36 Lease restrictions; generally.
171-36.1 Reservation of rights to prehistoric and historic remains on leased public lands.
171-36.2 Public lands for historic preservation and restoration.
171-36.5 Commercial, industrial, resort, mixed-use, or government leases; extension of term.
171-37 Lease restrictions; intensive agricultural and pasture uses.
171-37.5 Withdrawal or taking of leased land; fair compensation.
171-38 Condemnation of leases.
171-40 Expired leases; holdover.
171-41 Commercial, industrial, and other business uses.
171-41.5 Amendment of commercial, hotel, or industrial lease.
171-41.6 Lessees within the last ten years of their lease terms; requests for interest
171-43 Lease of campsites or sites for youth athletic and/or educational activities.
171-43.1 Lease to eleemosynary organizations.
171-44 Lease for recreation-residence use.
171-45 Residence lots; sale or leases.
171-46 Residential sales or leases; planning.
171-47 Residence lots; improvement districts.
171-48 Residence lots, requirements.
171-49 Residence lots: unsold; forfeited; surrendered.
171-49.5 Resale, first offer to board; limitation on resale price.
171-49.7 Public lands suitable and available for residential development; inventory.
171-50.1 Acquisition of lands for exchange under chapter 516.
171-50.2 Exchanges for conversion of leasehold lands to fee simple ownership.
171-53 Reclamation and disposition of submerged or reclaimed public land.
171-56 Contract or license for concessions or concession space.
171-57 Reserved rights and easements.
171-58 Minerals and water rights.
171-59 Disposition by negotiation.
171-60 Development through private developer.
171-61 Cancellation, surrender.
171-62 Sales; payment, default.
171-63 Waiver of restrictions.
171-64 Covenants against discrimination.
171-64.5 Nonconventional uses; department of health; approval and authorization; Waimano ridge.
171-64.7 Legislative approval of sale or gift of lands.
171-65 Leases, leases with option to purchase, sales permitted; when.
171-67 Restrictions; conditions.
171-68 Applicants; qualifications of.
171-70 Findings and declaration of necessity.
171-72 Subdivision, improvement and lease of public lands.
171-73 Term, rent, and other conditions of residential leases.
171-74 Qualifications of lessees.
171-75 Persons disqualified to take residential leases.
171-76 Preference right to residential lease.
171-79 Purchase of fee title by lessee.
171-80 Cancellation of leases.
171-83 Costs of, and realization from, residential leasing.
171-84 Leases to certain developers of housing for low and moderate income families.
171-87 Disposition to victims of natural disaster, when.
171-91 Notice of availability of leases; selection of lessees.
171-92 Existing public leases.
171-94 Persons dispossessed or displaced.
171-95.1 Authority of board to extend leases under certain circumstances.
171-95.3 Renewable energy producers; lease of public lands without public auction.
171-95.5 Lease to public charter schools.
171-96 Lease to foreign governments.
171-98 Release of restrictions.
171-100 Successor determination program.
171-117 Public lands; agricultural park lands.
171-121 Molokai forest lands, management program established.
171-132 Designation of industrial park.
171-133 Authority to plan, improve, develop, operate, and maintain industrial parks.
171-134 Industrial park development.
171-135 Joint venture or development agreement.
171-136 Disposition of public lands within industrial park.
171-141 Lease for eligible permittee in industrial park.
171-142 Lease for lessees dislocated by condemnation proceedings.
171-144 Issuance of revenue bonds.
171-153 Beach restoration plan.
171-154 Authority to lease coastal lands.
171-155 Development of public coastal lands.
171-156 Beach restoration special fund.
171-172 Turtle Bay conservation easement special fund.
171-173 Turtle Bay appraisal and due diligence.
171-174 Lease of Turtle Bay lands.
171-193 Lessees within the last ten years of their lease terms; request for interest.