§171-41.5  Amendment of commercial, hotel,or industrial lease.  (a)  The board of land and natural resources, afternotification and public hearing as provided in subsection (b), may amend theheight, density, and other building restrictions or requirements and thespecific use or uses contained in a lease for hotel, commercial, or industrialuse of public land to another or an additional specific hotel, commercial, orindustrial use or uses, or restriction; provided that the lease has been ineffect twenty years or more, and upon:

(1)  The application of the lessee;

(2)  Consent of each holder of record having asecurity interest in any improvements made by the lessee to the leased publicland;

(3)  A finding by not less than two-thirds of thetotal membership of the board that the amended use or uses or restriction is inthe public interest; and

(4)  Agreement by the lessee that the lessee,commencing from the effective date of the amendment, shall pay a revised annualrent equal to the annual fair market rental value of the land based on theamendment.  The annual fair market value of the land shall be determined andset by the board.  Such amendments shall not be construed to permit theconstruction of improvements not otherwise permitted by county zoningregulations applicable to the public land.

(b)  Before any amendment to a state lease, theboard of land and natural resources shall give no fewer than fourteen days'public notice statewide and, in addition, in the county where the subjectproperty is situated.  A full hearing shall be given by the board of land andnatural resources, to all who desire to be heard upon the subject matter of thenotice.  The hearing shall be public, on the island where the subject propertyis situated, and shall be conducted under rules that the board may adopt. [L1986, c 252, §2; am L 1990, c 73, §1; am L 1998, c 2, §37]