Bill Text: HI SB1335 | 2010 | Regular Session | Introduced
Bill Title: Maximum Commercial Lease Term; Hawaiian Homes Commission Act
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Introduced - Dead) 2009-05-11 - Carried over to 2010 Regular Session. [SB1335 Detail]
Download: Hawaii-2010-SB1335-Introduced.html
Report Title:
Maximum Commercial Lease Term; Hawaiian Homes Commission Act
Description:
Extends the maximum term on commercial leases on Hawaiian home lands from sixty-five to ninety-nine years.
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THE SENATE |
S.B. NO. |
1335 |
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TWENTY-FIFTH LEGISLATURE, 2009 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the hawaiian homes commission act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the rental income from department of Hawaiian home lands' commercial projects provides a crucial flow of revenue to the beneficiaries of Hawaiian home lands, providing needed support for beneficiary programs such as the homesteading program. Ensuring this steady flow of revenue is crucial, especially since settlement moneys that have provided funding for commercial projects in past years will be depleted soon.
The legislature also finds that the continued development of commercial projects by the department of Hawaiian home lands is critical to the State and its residents. These commercial projects create a multitude of jobs, services, and opportunities for economic development, direly needed by the local economy, especially during these times of economic recession and uncertainty.
Currently, the department of Hawaiian home lands, through the department of land and natural resources, is able to issue leases for properties for a total of sixty-five years. However, in today's financial market, commercial lenders are looking for longer leases to secure the amount of money borrowed, especially for large commercial projects.
The purpose of this Act is to grant the department of Hawaiian home lands the authority to negotiate and extend commercial leases for an aggregate lease term of up to ninety-nine years.
SECTION 2. Section 220.5, Hawaiian Homes Commission Act, 1920, as amended, is amended by amending subsection (d) to read as follows:
"(d) Any project developer agreement entered into pursuant to this section may provide for options for renewal of the term of the project developer agreement; provided that:
(1) The [term] initial term and any
extension thereof of any one project developer agreement shall not exceed [sixty-five]
ninety-nine years[;] altogether;
(2) Any lands disposed of under a project developer agreement shall be subject to withdrawal at any time during the term of the agreement, with reasonable notice; and
(3) The rental shall be reduced in proportion to the value of the portion withdrawn and the developer shall be entitled to receive from the department the proportionate value of the developer's permanent improvements so taken in the proportion that they bear to the unexpired term of the agreement, with the value of the permanent improvements determined on the basis of fair market value or depreciated value, whichever is less; or the developer, in the alternative, may remove and relocate the developer's improvements to the remainder of the lands occupied by the developer."
SECTION 3. The provisions of the amendments made by this Act to the Hawaiian Homes Commission Act, 1920, as amended, are declared to be severable, and if any section, sentence, clause, or phrase, or the application thereof to any person or circumstances is held ineffective because there is a requirement of having the consent of the United States to take effect, then that portion only shall take effect upon the granting of consent by the United States and effectiveness of the remainder of these amendments or the application thereof shall not be affected.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2009.
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INTRODUCED BY: |
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