§171-61  Cancellation, surrender.  Whenpublic land is disposed of with a building requirement and, thereafter, priorto the erection of the building, the land becomes or is discovered to be unfitfor the erection of the building, or by change of conditions it becomesimpossible or impractical to erect the building, the board of land and naturalresources may cancel the disposition, repossess the land, and return to theparty from the special land and development fund, notwithstanding the order ofpriority set forth, the aggregate amount of principal and interest theretoforepaid by the party.

Whenever land or a portion thereof under leasecan be re-leased or sold for a higher and better use, or for the existing useto a greater economic benefit to the State, the board, subject to the consentof the lessee, the lessee's successors, or assigns, and each holder of recordhaving a security interest, may cancel the lease without compensation to thelessee or withdraw a portion of the land from the lease and re-lease or sellthe same; provided that in the event of withdrawal of a portion, the board mayin its discretion allow a proportionate reduction in rent; and provided furtherthat in the event buildings and improvements have been erected by the lessee,as permitted under the lease, on the land or portion thereof under leaseaffected by the cancellation or withdrawal, the board shall pay to the lessee asum not to exceed the replacement value, less depreciation at the rates usedfor real property tax purposes. [L 1962, c 32, pt of §2; Supp, §103A-57; am L1967, c 234, §12; HRS §171-61; am L 1973, c 49, §1; gen ch 1985]