§171-61  Cancellation, surrender.  When
public land is disposed of with a building requirement and, thereafter, prior
to the erection of the building, the land becomes or is discovered to be unfit
for the erection of the building, or by change of conditions it becomes
impossible or impractical to erect the building, the board of land and natural
resources may cancel the disposition, repossess the land, and return to the
party from the special land and development fund, notwithstanding the order of
priority set forth, the aggregate amount of principal and interest theretofore
paid by the party.



Whenever land or a portion thereof under lease
can be re-leased or sold for a higher and better use, or for the existing use
to a greater economic benefit to the State, the board, subject to the consent
of the lessee, the lessee's successors, or assigns, and each holder of record
having a security interest, may cancel the lease without compensation to the
lessee or withdraw a portion of the land from the lease and re-lease or sell
the same; provided that in the event of withdrawal of a portion, the board may
in its discretion allow a proportionate reduction in rent; and provided further
that in the event buildings and improvements have been erected by the lessee,
as permitted under the lease, on the land or portion thereof under lease
affected by the cancellation or withdrawal, the board shall pay to the lessee a
sum not to exceed the replacement value, less depreciation at the rates used
for real property tax purposes. [L 1962, c 32, pt of §2; Supp, §103A-57; am L
1967, c 234, §12; HRS §171-61; am L 1973, c 49, §1; gen ch 1985]