§171-17  Appraisals.  (a)  The appraisal
of public lands for sale or lease at public auction for the determination of
the upset price may be performed by an employee of the board of land and
natural resources qualified to appraise lands, or by one but not more than
three disinterested appraisers whose services shall be contracted for by the
board; provided that the upset price or upset rental shall be determined by
disinterested appraisal whenever prudent management so dictates.  No such lands
shall be sold or leased for a sum less than the value fixed by appraisal;
provided that for any sale or lease at public auction, the board may establish
the upset sale or rental price at less than the appraisal value set by an
employee of the board and the land may be sold or leased at that price.  The
board shall be reimbursed by the purchaser or lessee for the cost of any
appraisal required to be made by a disinterested appraiser or appraisers
contracted for by the board.



(b)  The sale price or lease rental of lands to
be disposed of by drawing or by negotiation shall be no less than the value
determined by:



(1)  An employee of the board qualified to appraise
lands; or



(2)  A disinterested appraiser or appraisers whose
services shall be contracted for by the board, and such appraisal, and any
further appraisal with the approval of the board, shall be at the cost of the
purchaser;



provided that the sale price or lease rental shall
be determined by disinterested appraisal whenever prudent management so
dictates; provided further that should the purchaser fail to agree upon the
sale price or lease rental, the purchaser may appoint an appraiser who together
with the board's appraiser shall appoint a third appraiser, and the sale price
or lease rental shall be determined by arbitration as provided for in chapter
658A which shall be final and binding.  The purchaser shall pay for all
appraisal costs, except that the cost of the third appraiser shall be borne
equally by the purchaser and the board.



(c)  In the repurchase of any land by the
board, the board shall have the option to repurchase the land for the original
sale price or the fair market value at the time of repurchase, whichever is the
lower.  Any improvements affixed to the realty shall be purchased at their fair
market value.  At the time of the repurchase, the fair market value of the
land, and the improvements, if any, shall be determined by a qualified
appraiser whose services shall be contracted for by the board; provided should
the owner fail to agree upon the value, the owner may appoint the owner's own
appraiser who together with the board's appraiser shall appoint a third
appraiser, and the value shall be determined by arbitration as provided in
chapter 658A.  The owner shall pay for all appraisal costs, except that the
cost of the third appraiser shall be borne equally by the purchaser and the
board.



(d)  In the event of reopening of the rental to
be paid on a lease, the rental for any ensuing period shall be the fair market
rental at the time of reopening.  At least six months prior to the time of
reopening, the fair market rental shall be determined by:



(1)  An employee of the department qualified to
appraise lands; or



(2)  A disinterested appraiser whose services shall be
contracted for by the board;



and the lessee shall be promptly notified of the
determination; provided that should the lessee fail to agree upon the fair
market rental, the lessee may appoint the lessee's own appraiser who together
with the board's appraiser shall appoint a third appraiser and the fair market
rental shall be determined by arbitration as provided in chapter 658A.  The
lessee shall pay for the lessee's own appraiser, the board shall pay for its
appraiser, and the cost of the third appraiser shall be borne equally by the
lessee and the board.  Any language in present leases to the contrary
notwithstanding, the provisions of this subsection, when possible and
notwithstanding the six-month notice required, shall apply to leases with
original lease rental reopening dates effective before and after July 1,
1996.



(e)  Whenever more than one appraiser is
appointed each shall prepare and submit an independent appraisal.  All
appraisal reports shall be available for study by the public. [L 1962, c 32, pt
of §2; am L 1963, c 135, §§1, 2, 3; am L 1965, c 239, §10; Supp, §103A-17; HRS
§171-17; am L 1976, c 147, §1; am L 1985, c 116, §1; gen ch 1985; am L 1986, c
48, §1; am L 1993, c 132, §1; am L 1996, c 233, §1 and c 234, §1; am L 2001, c
265, §4]



 



Case Notes



 



Decisions under prior law.



  Payment.  25 H. 406.