§171-37  Lease restrictions; intensiveagricultural and pasture uses.  In addition to the restrictions provided insection 171-36, the following restrictions shall apply to all leases forintensive agricultural and pasture uses:

(1)  The lease term shall be not less than fifteenyears nor more than thirty-five years, except that if the type of dispositionrequires the lessee to occupy the premises as the lessee's own personalresidence, it may be longer than thirty-five years, but not in excess of seventy-fiveyears, and except in the case of a tree-crop orchard lease the term of whichshall not be in excess of forty-five years.

(2)  If the land being leased is not immediatelyproductive and requires extensive expenditures for clearing, conditioning ofthe soil, the securing of water, the planting of grasses, or the constructionof improvements, as the result of which a longer term is necessary to amortizethe lessee's investment, then the lease term may be longer than thirty-fiveyears, but not in excess of fifty-five years.

(3)  The land leased hereunder, or any portionthereof, shall be subject to withdrawal by the board of land and naturalresources at any time during the term of the lease with reasonable notice andwithout compensation, except as provided herein, for public uses or purposes,including residential, commercial, industrial, or resort developments, forconstructing new roads or extensions, or changes in line or grade of existingroads, for rights-of-way and easements of all kinds, and shall be subject tothe right of the board to remove soil, rock, or gravel as may be necessary forthe construction of roads and rights-of-way within or without the demisedpremises; provided that upon the withdrawal, or upon the taking which causesany portion of the land originally demised to become unusable for the specificuse or uses for which it was demised, the rent shall be reduced in proportionto the value of the land withdrawn or made unusable, and if any permanentimprovement constructed upon the land by the lessee is destroyed or madeunusable in the process of the withdrawal or taking, the proportionate valuethereof shall be paid based upon the unexpired term of the lease; providedfurther that no withdrawal or taking shall be had as to those portions of theland which are then under cultivation with crops until the crops are harvested,unless the board pays to the lessee the value of the crops; and providedfurther that upon withdrawal any person with a long-term lease shall becompensated for the present value of all permanent improvements in place at thetime of withdrawal that were legally constructed upon the land by the lessee tothe leased land being withdrawn.  In the case of tree crops, the board shallpay to the lessee the residual value of the trees taken and, if there areunharvested crops, the value of the crops also.

"Tree-crop", as used in this section,shall be exclusive of papaya and banana. [L 1962, c 32, pt of §2; am L 1965, c239, §19; Supp, §103A-37; am L 1967, c 234, §15; HRS §171-37; am L 1973, c 68,§1; am L 1982, c 198, §1; gen ch 1985; am L 1987, c 88, §1]

 

Case Notes

 

Decisions under prior law.

  Land may not be withdrawn from lease for exchange unlesslease so states.  30 H. 210.