Bill Text: HI SB608 | 2011 | Regular Session | Introduced
Bill Title: Public Lands; Sand Island
Spectrum: Partisan Bill (Democrat 12-0)
Status: (Engrossed - Dead) 2011-04-01 - (H) The committee(s) recommends that the measure be deferred. [SB608 Detail]
Download: Hawaii-2011-SB608-Introduced.html
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THE SENATE |
S.B. NO. |
608 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to public lands.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that in 1992, the department of land and natural resources entered into a fifty‑five year lease with the Sand Island Business Association for the Sand Island industrial park, which covers approximately seventy-four acres divided into one hundred and twelve lots. The lease required the Sand Island Business Association to develop the infrastructure improvements, sublease the lots to existing lessees, and manage the Sand Island industrial park on behalf of the department of land and natural resources. In 1999, the Sand Island Business Association completed the infrastructure improvements at a cost of more than $41,000,000. In addition, the members of the Sand Island Business Association have invested more than $20,000,000 in leasehold improvements to the individual lots.
As a result of these substantial investments, members of the Sand Island Business Association have expressed a strong interest in purchasing the fee interest of their leasehold lots. In addition to securing these investments, as the lease period shortens, it becomes more difficult for the members to rely on the leasehold as an asset when attempting to secure bank loans for additional improvements.
The legislature understands that the department of land and natural resources relies on the lease revenue from the Sand Island industrial park to support the operations and management of public lands programs, and that the lease revenue constitutes nearly one half of all lease revenues supporting the special land and development fund.
The purpose of this Act is to require the department of land and natural resources to consider the sale or exchange of Sand Island parcels to leaseholders, and to report its findings and recommendations to the legislature.
SECTION 2. (a) The department of land and natural resources shall review and consider:
(1) The current terms of the lease between the department and the Sand Island Business Association;
(2) Lease income to date; projected income through the twenty-five year fixed-rent period, which ends in 2017; and estimated income after the fixed-rent period;
(3) The uses of the lease revenues to date, pursuant to section 171-19, Hawaii Revised Statutes; and any projected uses of future lease revenues;
(4) Alternative sources of revenue to replace the lease revenues, such as proceeds of a sale of all or a portion of the leased property, interest on investment of the proceeds of a sale, income from lands exchanged for all or a portion of the Sand Island parcel, or others; and
(5) Any other considerations that would impact a decision to proceed with the sale or exchange of Sand Island parcels to leaseholders.
(b) The department of land and natural resources shall report to the legislature no later than twenty days prior to the convening of the regular session of 2012, on its review and consideration of the sale or exchange of Sand Island parcels to leaseholders, and its recommendations for further action.
SECTION 3. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Public Lands; Sand Island
Description:
Requires the department of land and natural resources to consider the sale or exchange of Sand Island parcels to leaseholders; requires a report of findings and recommendation to the legislature.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
