§171-18.5 Sugarcane lands conveyed for the development of housing projects. (a) This section applies to the amount to which the department of Hawaiian home lands is entitled pursuant to article XII, section 1 of the state constitution, from land as designated in subsection (e) previously cultivated as sugarcane land under any provision of law that is conveyed by the department to the Hawaii housing finance and development corporation for the development of housing projects as defined under section 201H-1. The amount to which the department of Hawaiian home lands is entitled shall be determined by multiplying the fair market value of the land by thirty per cent. For the purpose of this section:
"Fair market value" means the amount of money that a purchaser willing but not obliged to buy the land would pay to an owner willing but not obliged to sell it, taking into consideration the highest and best use of the land.
"Highest and best use" means the most profitable, probable, and legal use to which the land can be put.
(b) Fair market value shall be determined on a per acre basis pursuant to appraisals performed in conformance with the uniform standards of professional appraisal practice as adopted by the department of commerce and consumer affairs, not more than ninety days before the conveyance of the land to the Hawaii housing finance and development corporation. The appraisals shall be performed by two disinterested appraisers each of whose services shall be contracted by the department and the department of Hawaiian home lands, respectively. If the land is sugarcane lands and of the public land trust, as defined in section 10-2, the department of Hawaiian home lands and the office of Hawaiian affairs shall contract the services of one appraiser. The parties shall contract the services of the two appraisers within thirty days after the department gives written notice to the department of Hawaiian home lands, together with the office of Hawaiian affairs if the land is sugarcane lands and of the public land trust, of the proposed conveyance of the land to the Hawaii housing finance and development corporation.
If any party fails or refuses to contract the services of an appraiser, then the other party may petition the circuit court in the county where the land is located to appoint the other of the two appraisers. If the two appraisers are unable to agree on a fair market value, then within thirty days thereafter, the department and the department of Hawaiian home lands, together with the office of Hawaiian affairs if the land is sugarcane lands and of the public land trust, shall contract for the services of a mutually agreed upon third appraiser and the decision of the majority of the appraisers shall be final with respect to determination of the fair market value of the land. If the department and the department of Hawaiian home lands, together with the office of Hawaiian affairs if the land is sugarcane lands and of the public land trust, are unable to agree on the selection of the third appraiser, any party may petition the circuit court in the county where the land is located to appoint the third appraiser.
(c) The amount due to the department of Hawaiian home lands shall be due and payable by the State on the date of conveyance of the land to the Hawaii housing finance and development corporation. Payment to the department of Hawaiian home lands may be in the form of public lands or moneys. If payment is to be made in the form of public lands, the lands shall be mutually agreed upon by the department of land and natural resources and the department of Hawaiian home lands, and shall be of value comparable to the amount due to the department of Hawaiian home lands. Any monetary payment shall be an obligation of the Hawaii housing finance and development corporation. Any portion of that amount that is not paid on the date of conveyance shall be subject to simple interest annually, established pursuant to the fifteen year treasury rate at the time of the conveyance and payable annually by the State to the department of Hawaiian home lands.
(d) Thirty per cent of the revenue received by the Hawaii housing finance and development corporation from commercial, industrial, or other nonresidential use of the land shall be paid annually to the department of Hawaiian home lands; provided that:
(1) The department of Hawaiian home lands shall not receive payment under this subsection until the Hawaii housing finance and development corporation recovers all moneys previously paid to the department of Hawaiian home lands for that portion of land used for commercial, industrial, or other nonresidential purposes;
(2) If borrowed moneys are used to finance the development of land for commercial, industrial, or other nonresidential purposes, annual payments due to the department of Hawaiian home lands under this subsection shall be made pursuant to the following order of priority:
(A) The Hawaii housing finance and development corporation satisfies as a first priority the amount computed annually on the pro rata portion (not the total debt service over the life of the debt) of its total debt service on the borrowed moneys;
(B) The Hawaii housing finance and development corporation satisfies as a second priority its operating expense obligations directly incurred from the development and operating of land used for commercial, industrial, or other nonresidential purposes in an amount not exceeding one per cent of revenues; and
(C) After the first and second priorities are satisfied, the Hawaii housing finance and development corporation shall make annual payments due to the department of Hawaiian home lands under this subsection from any remaining revenues; and
(3) In the event of a sale of land used for commercial, industrial, or other nonresidential purposes, the department of Hawaiian home lands shall receive thirty per cent of the revenue received by the Hawaii housing finance and development corporation.
(e) This section shall only apply to the Hawaii housing finance and development corporation's developments known as the villages of Leali €˜i, Maui, and villages of La €˜i €˜opua, Hawaii. [L 1992, c 317, §1; am L 1997, c 350, § §14, 15; am L 2005, c 196, §26(b); am L 2006, c 180, §16; am L 2007, c 249, §12]
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.