§53-12  Sale and lease of acquired lands;
preference.  The redevelopment agency shall sell or lease real property
acquired by it for a redevelopment project at its fair value for use in
accordance with the redevelopment plan notwithstanding the value may be less
than the cost of acquiring and preparing the property for redevelopment.  The
property may be sold or leased to one or more individuals, corporations, or
public bodies or to a redevelopment corporation under such limitations,
restrictions, requirements, or covenants as will insure its being developed and
continued in use in accordance with the redevelopment plan, and in a manner
that will best promote the interests and welfare of the urban area in which the
project is situated; provided that where a redevelopment corporation is the
purchaser or lessee, the contract or conveyance shall include a statement of
the tax exemption, if any, which will be allowable under section 53-38, and any
other terms necessary to carry into effect the provisions of this part relating
to redevelopment corporations; provided further that before making a contract
to sell land in a project area planned for single family residential
development, the agency shall give published notice of intention so to
contract, or to sell the property, and within sixty days after the first
publication of the notice, any individual or individuals, who owned land in the
project area immediately before acquisition thereof by the agency, shall be
entitled to preference in the purchase of one residential homesite therein; and
provided further that if the agency decides to lease any of the acquired
property, the following requirements and limitations shall apply:



(1)  The minimum size of the lots to be leased shall
be five thousand square feet.



(2)  The lease term shall not be more than
seventy-five years, and in the case of leases for single or multiple
residential sites involving federal financial assistance, for such longer term
as may be required.



(3)  The lessee shall be given an option to purchase
the leased property during the first twenty years of the lease.  During the
balance of the term of the lease, the lessee shall have the first right of
refusal to purchase the leased property, provided that the leased property
shall not be sold by the agency to any person or corporation except to the
lessee during the first twenty years of the lease.  In the event that the
lessee shall not exercise the first right of refusal as set forth above, the
agency may sell the leased property to any person or corporation at fair value
subject to the lease.



(4)  The agency shall notify the council of its
decision to lease the property.  Within thirty days of the notification, the
council may disapprove the agency's decision to lease by an affirmative vote of
five of its members.



The agency shall enforce the limitations,
restrictions, requirements, and covenants throughout their duration by
injunction, or other action at law or in equity, or by any other appropriate
means.  The limitations, restrictions, requirements, or covenants shall have
the effect of covenants running with the land for such period and with such
exceptions as may be provided in the deeds or contracts relating to such sale
or leasing.  In making the sale or lease the agency shall impose and require
among other things a reasonable time limit for initiating construction of the
redevelopment project. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; RL
1955, §143-12; am L 1959, c 44, §2; am L 1965, c 101, §1(i); HRS §53-12]



 



Rules of Court



 



  One form of action, see HRCP rules 1, 2, 81(i).