Hawaii-2013-HB1262-Introduced

SECTION 1. The legislature finds that Act 140, Session Laws of Hawaii 2008, authorized the governor to negotiate on behalf of the State with private interested parties to purchase the resort property located in Kahuku, Oahu, owned by Oaktree Capital Management, LLC, through its subsidiary Kuilima Resort Company and their successor in interest. The subject property under negotiation includes the lands known as the Turtle Bay Hotel and Resort ("Property"). However, despite two separate attempts to acquire the land, nothing has been successfully completed and the purchase is still pending.

The legislature further finds it is in the public's best interest to protect and preserve Hawaii's historic and cultural heritage. The proposed expansion of the Property located in the ahupuaa of Hana Kaoe in Kahuku on the island of Oahu is contrary to this public interest. Therefore, the legislature believes that it is in the public's best interest to continue efforts to acquire the Property for preservation by purchasing those lands, exercising the State's power of eminent domain to acquire the Property, or participating in a cooperative agreement to acquire the Property.

The purpose of this Act is to appropriate funds and to authorize the governor, or the governor's designee, to continue efforts to acquire the maximum undeveloped areas surrounding the existing hotel and condominium in and adjacent to the Property by purchasing them outright, by exercising the State's power of eminent domain, or by entering into a cooperative agreement to acquire the Property.

SECTION 2. The governor or the governor's designee shall immediately continue to initiate negotiations with Kuilima Resort Company, Oaktree Capital Management, LLC, any other entity or person that holds an interest in the Property, and their successors in interest, to acquire properties held by Kuilima Resort Company, a Hawaii general partnership; Oaktree Capital Management, LLC; and their successors in interest, inclusive of those parcels mauka of Kamehameha highway. The financing of the acquisition may be by one or more of the following means:

(1) Appropriations made by the legislature from the general fund or any special funds;

(2) General obligation bonds authorized by the legislature;

(3) Exchange of public lands or transfer of development rights, to the extent authorized by law;

(4) Federal or county funds;

(5) Private funds, financing, or donations; or

(6) Any other means of financing the governor or the governor's designee may negotiate.

The lands to be acquired shall include the unimproved lands that are not used for the existing occupied hotel and condominiums or any appurtenant uses thereto, including the unoccupied areas that could be relocated, such as the golf courses, stables, parking areas, and nurseries. Specifically, the lands to be acquired shall generally include that unimproved land:

(1) Located between the western edge of the improved portion of the Turtle Bay property toward Kawela Bay to the western boundary between the Turtle Bay property and the private property at Kawela Bay;

(2) Located between the eastern edge of the improved portion of the Turtle Bay property towards Kahuku point to the eastern boundary of the property, including Kahuku point;

(3) Located mauka of Kamehameha highway; and

(4) Adjacent to the resort that have significant conservation or historic value if the acquisition would better protect coastal and natural resources from Malaekahana state recreation area to Kawela.

SECTION 3. If the governor, or the governor's designee finds that it is not feasible for the State to acquire sole interest of the Property identified in section 2 of this Act, the governor, or the governor's designee, shall seek out and, if possible, enter into a cooperative agreement or agreements with private or other public entities interested in preserving those unimproved portions of the identified property in their unimproved state for the purpose of cooperatively acquiring the Property.

SECTION 4. The governor, or the governor's designee, shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2014 regarding its efforts to acquire the aforementioned lands and its recommendations for financing the purchase of the Property.

SECTION 5. If an agreement to acquire the Property is not reached within a reasonable time, as determined by the governor, or the governor's designee, the governor, or the governor's designee, shall exercise the power of eminent domain to acquire the unimproved lands. For purposes of this Act, condemnation of those lands shall not be subject to legislative disapproval.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2013-2014 and the same sum or so much thereof as may be necessary for fiscal year 2014-2015 for the purchase of the property commonly known as the Turtle Bay Hotel and Resort and the surrounding unimproved property, as identified in this Act, or to commence the condemnation process of those lands.

The sums appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 7. The appropriations made for the land acquisition authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriations are made; provided that all moneys from the appropriation unencumbered as of June 30, 2018, shall lapse as of that date.

SECTION 8. This Act shall take effect upon its approval; provided that section 6 shall take effect on July 1, 2013.

INTRODUCED BY:	_____________________________

HOUSE OF REPRESENTATIVES	H.B. NO.	1262
TWENTY-SEVENTH LEGISLATURE, 2013
STATE OF HAWAII