§171-59 Disposition by negotiation. (a) A lease of public land may be disposed of through negotiation upon a finding by the board of land and natural resources that the public interest demands it. Where the public land is being sought under this section by a sugar or pineapple company, and the company is the owner or operator of a mill or cannery, then, for the purposes of this section, the economic unit shall be that acreage of public land which when taken together with the lands already owned or controlled or available to the company, when cultivated is found by the board to be necessary for the company's optimum mill or cannery operation. In all other cases, public land to be sold under this section shall be an economic unit as provided in section 171-33(3).
After a determination is made to negotiate the disposition of a lease, the board shall:
(1) Give public notice as in public auction, in accordance with the procedure set forth in section 171-16(a), of its intention to lease public land through negotiation setting forth the minimum conditions thereunder, the use for which the public land will be leased. Any person interested in securing the lease shall file an application with the board not later than forty-five days after the first publication of the notice;
(2) Establish reasonable criteria for the selection of the lessee; provided that where the intended use of the land is agriculture, the department of agriculture shall establish the criteria;
(3) Determine the applicants who meet the criteria for selection set by the board or the department of agriculture, as the case may be, and notify all applicants of its determination. Any applicant may examine the basis of the determination, which shall be in writing, to ascertain whether or not the conditions and criteria established by the board or the department of agriculture were followed; provided that if any applicant does not notify the board of the applicant's objections, and the grounds therefor, in writing, within twenty days of the receipt of the notice, the applicant shall be barred from proceeding to seek legal remedy for any alleged failure of the board to follow the conditions and criteria.
If only one applicant meets the criteria for selection of the lessee, the board may, after notice as provided in (3), above, dispose of the lease by negotiation.
If two or more applicants meet the criteria for the selection of the lessee, the board shall select the lessee who submits the highest offer contained in a sealed bid deposited with the board.
(b) Disposition of public lands for airline, aircraft, airport-related, agricultural processing, cattle feed production, aquaculture, marine, maritime, and maritime-related operations may be negotiated without regard to the limitations set forth in subsection (a) and section 171-16(c); provided that:
(1) The disposition encourages competition within the aeronautical, airport-related, agricultural, aquaculture, maritime, and maritime-related operations;
(2) The disposition shall not exceed a maximum term of thirty-five years, except in the case of:
(A) Maritime and maritime-related operations, which may provide for a maximum term of seventy years; and
(B) Aquaculture operations, which may provide for a maximum term of sixty-five years; provided that aquaculture operations in good standing may seek to renew a lease issued under this section and, during the lease term, may engage in supportive activities that are related to or integrated with aquaculture; and
(3) The method of disposition of public lands for cattle feed production as set forth in this subsection shall not apply after December 31, 1988.
For the purposes of this subsection:
"Agricultural processing" means the processing of agricultural products, including dairying, grown, raised, or produced in Hawaii.
"Airport-related" means a purpose or activity that requires air transportation to achieve that purpose or activity; or an activity that generates revenue for the airport system as provided in section 261-7.
"Aquaculture" means the propagation, cultivation, or farming of aquatic plants and animals in controlled or selected environments for research, commercial, or stocking purposes, including aquaponics or any growing of plants or animals with aquaculture effluents.
"Maritime-related" means a purpose or activity that requires and is directly related to the loading, off-loading, storage, or distribution of goods and services of the maritime industry. [L 1962, c 32, pt of §2; Supp, §103A-56; am L 1967, c 189, §6; HRS §171-59; am L 1970, c 101, §2; am L 1980, c 48, §1; am L 1984, c 278, §1; gen ch 1985; am L 1992, c 283, §2; am L 2001, c 77, §2; am L 2003, c 127, §2; am L 2008, c 200, §2; am L 2011, c 232, §2; am L 2012, c 47, §2]
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.