Ā§171-18.5 Ā Sugarcane lands conveyedfor the development of housing projects.Ā  (a)Ā  This section applies to theamount to which the department of Hawaiian home lands is entitled pursuant toarticle XII, section 1 of the state constitution, from land as designated insubsection (e) previously cultivated as sugarcane land under any provision oflaw that is conveyed by the department to the Hawaii housing finance anddevelopment corporation for the development of housing projects as definedunder section 201H-1.Ā  The amount to which the department of Hawaiian homelands is entitled shall be determined by multiplying the fair market value ofthe land by thirty per cent.Ā  For the purpose of this section:

"Fair market value" means the amountof money that a purchaser willing but not obliged to buy the land would pay toan owner willing but not obliged to sell it, taking into consideration thehighest and best use of the land.

"Highest and best use" means the mostprofitable, probable, and legal use to which the land can be put.

(b)Ā  Fair market value shall be determined on aper acre basis pursuant to appraisals performed in conformance with the uniformstandards of professional appraisal practice as adopted by the department ofcommerce and consumer affairs, not more than ninety days before the conveyanceof the land to the Hawaii housing finance and development corporation.Ā  Theappraisals shall be performed by two disinterested appraisers each of whoseservices shall be contracted by the department and the department of Hawaiianhome lands, respectively.Ā  If the land is sugarcane lands and of the publicland trust, as defined in section 10-2, the department of Hawaiian home landsand the office of Hawaiian affairs shall contract the services of oneappraiser.Ā  The parties shall contract the services of the two appraiserswithin thirty days after the department gives written notice to the departmentof Hawaiian home lands, together with the office of Hawaiian affairs if theland is sugarcane lands and of the public land trust, of the proposedconveyance of the land to the Hawaii housing finance and developmentcorporation.

If any party fails or refuses to contract theservices of an appraiser, then the other party may petition the circuit courtin the county where the land is located to appoint the other of the twoappraisers.Ā  If the two appraisers are unable to agree on a fair market value,then within thirty days thereafter, the department and the department ofHawaiian home lands, together with the office of Hawaiian affairs if the landis sugarcane lands and of the public land trust, shall contract for theservices of a mutually agreed upon third appraiser and the decision of themajority of the appraisers shall be final with respect to determination of thefair market value of the land.Ā  If the department and the department ofHawaiian home lands, together with the office of Hawaiian affairs if the landis sugarcane lands and of the public land trust, are unable to agree on theselection of the third appraiser, any party may petition the circuit court inthe county where the land is located to appoint the third appraiser.

(c)Ā  The amount due to the department ofHawaiian home lands shall be due and payable by the State on the date ofconveyance of the land to the Hawaii housing finance and developmentcorporation.Ā  Payment to the department of Hawaiian home lands may be in theform of public lands or moneys.Ā  If payment is to be made in the form of publiclands, the lands shall be mutually agreed upon by the department of land andnatural resources and the department of Hawaiian home lands, and shall be ofvalue comparable to the amount due to the department of Hawaiian home lands.Ā Any monetary payment shall be an obligation of the Hawaii housing finance and developmentcorporation.Ā  Any portion of that amount that is not paid on the date ofconveyance shall be subject to simple interest annually, established pursuantto the fifteen year treasury rate at the time of the conveyance and payableannually by the State to the department of Hawaiian home lands.

(d)Ā  Thirty per cent of the revenue received bythe Hawaii housing finance and development corporation from commercial,industrial, or other nonresidential use of the land shall be paid annually tothe department of Hawaiian home lands; provided that:

(1)Ā  The department of Hawaiian home lands shall notreceive payment under this subsection until the Hawaii housing finance anddevelopment corporation recovers all moneys previously paid to the departmentof Hawaiian home lands for that portion of land used for commercial,industrial, or other nonresidential purposes;

(2)Ā  If borrowed moneys are used to finance thedevelopment of land for commercial, industrial, or other nonresidentialpurposes, annual payments due to the department of Hawaiian home lands underthis subsection shall be made pursuant to the following order of priority:

(A)Ā  The Hawaii housing finance and developmentcorporation satisfies as a first priority the amount computed annually on thepro rata portion (not the total debt service over the life of the debt) of itstotal debt service on the borrowed moneys;

(B)Ā  The Hawaii housing finance and developmentcorporation satisfies as a second priority its operating expense obligationsdirectly incurred from the development and operating of land used forcommercial, industrial, or other nonresidential purposes in an amount notexceeding one per cent of revenues; and

(C)Ā  After the first and second priorities aresatisfied, the Hawaii housing finance and development corporation shall makeannual payments due to the department of Hawaiian home lands under thissubsection from any remaining revenues; and

(3)Ā  In the event of a sale of land used forcommercial, industrial, or other nonresidential purposes, the department ofHawaiian home lands shall receive thirty per cent of the revenue received bythe Hawaii housing finance and development corporation.

(e)Ā  This section shall only apply to theHawaii housing finance and development corporation's developments known as thevillages of Lealiā€˜i, Maui, and villages of Laā€˜iā€˜opua, Hawaii. [L 1992, c 317,Ā§1; am L 1997, c 350, Ā§Ā§14, 15; am L 2005, c 196, Ā§26(b); am L 2006, c 180, Ā§16;am L 2007, c 249, Ā§12]

 

Note

 

Ā  Applies only tohousing finance and development corporation's developments known as Kealakeheand Lahaina.Ā  L 1992, c 317, Ā§2.

 

Cross References

 

Ā  Other applications onKealakehe and Lahaina developments, see Ā§10-13.6.