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

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

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

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

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

The agency shall enforce the limitations,restrictions, requirements, and covenants throughout their duration byinjunction, or other action at law or in equity, or by any other appropriatemeans.  The limitations, restrictions, requirements, or covenants shall havethe effect of covenants running with the land for such period and with suchexceptions as may be provided in the deeds or contracts relating to such saleor leasing.  In making the sale or lease the agency shall impose and requireamong other things a reasonable time limit for initiating construction of theredevelopment project. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; RL1955, §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).