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

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

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

(2)  A disinterested appraiser or appraisers whoseservices shall be contracted for by the board, and such appraisal, and anyfurther appraisal with the approval of the board, shall be at the cost of thepurchaser;

provided that the sale price or lease rental shallbe determined by disinterested appraisal whenever prudent management sodictates; provided further that should the purchaser fail to agree upon thesale price or lease rental, the purchaser may appoint an appraiser who togetherwith the board's appraiser shall appoint a third appraiser, and the sale priceor lease rental shall be determined by arbitration as provided for in chapter658A which shall be final and binding.  The purchaser shall pay for allappraisal costs, except that the cost of the third appraiser shall be borneequally by the purchaser and the board.

(c)  In the repurchase of any land by theboard, the board shall have the option to repurchase the land for the originalsale price or the fair market value at the time of repurchase, whichever is thelower.  Any improvements affixed to the realty shall be purchased at their fairmarket value.  At the time of the repurchase, the fair market value of theland, and the improvements, if any, shall be determined by a qualifiedappraiser whose services shall be contracted for by the board; provided shouldthe owner fail to agree upon the value, the owner may appoint the owner's ownappraiser who together with the board's appraiser shall appoint a thirdappraiser, and the value shall be determined by arbitration as provided inchapter 658A.  The owner shall pay for all appraisal costs, except that thecost of the third appraiser shall be borne equally by the purchaser and theboard.

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

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

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

and the lessee shall be promptly notified of thedetermination; provided that should the lessee fail to agree upon the fairmarket rental, the lessee may appoint the lessee's own appraiser who togetherwith the board's appraiser shall appoint a third appraiser and the fair marketrental shall be determined by arbitration as provided in chapter 658A.  Thelessee shall pay for the lessee's own appraiser, the board shall pay for itsappraiser, and the cost of the third appraiser shall be borne equally by thelessee and the board.  Any language in present leases to the contrarynotwithstanding, the provisions of this subsection, when possible andnotwithstanding the six-month notice required, shall apply to leases withoriginal lease rental reopening dates effective before and after July 1,1996.

(e)  Whenever more than one appraiser isappointed each shall prepare and submit an independent appraisal.  Allappraisal reports shall be available for study by the public. [L 1962, c 32, ptof §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, c48, §1; am L 1993, c 132, §1; am L 1996, c 233, §1 and c 234, §1; am L 2001, c265, §4]

 

Case Notes

 

Decisions under prior law.

  Payment.  25 H. 406.