§171-87  Disposition to victims of naturaldisaster, when.  Notwithstanding any law to the contrary, the board of landand natural resources may dispose of public land to victims of a naturaldisaster by negotiation and without recourse to public auction for purposesother than the personal residences of the victims or for agricultural purposesas hereinafter provided.

To effectuate disposition for the purpose ofrelocating victims onto public lands and placing them in circumstances similarto those which existed prior to the natural disaster the board shall:

(1)  Subdivide and improve public lands, including theconstruction of roads, in conformity with applicable county or city and countyzoning and subdivision requirements and good planning;

(2)  Lease the lands at fair market rental asdetermined by the board, based on appraisals by at least one but not more thanthree disinterested appraisers, provided that the board shall waive rental forthe first two years of the terms of the lease;

(3)  Limit the size of any lot leased under this partin accord with need and use, provided that such lot shall not exceed four acresof usable land;

(4)  Lease only one lot to a person eligible underthis part; provided that if the person owned, leased, or occupied another lotin the devastated area which was used for a different purpose, the board maylease a maximum of two lots to the person if there is a different use for eachlot;

(5)  Include in the instrument of lease, in additionto other terms and conditions, the following:

(A)  The lessee, for the first five years ofthe term of the lease, shall use the leased land for the same business use orundertaking as that in which the lessee was engaged at the time of the naturaldisaster or for a use approved by the board;

(B)  The lessee shall complete the constructionof improvements required under the lessee's lease within one year from thecommencement of the lease, unless the board extends the time of completion, andif the lessee defaults with respect to the construction of the improvements andfails to remedy or cure the default after proper notice thereof as provided insection 171-20, the board may, at its option, subject to the provisions ofsection 171-21, declare a forfeiture of all the right, title, and interest ofthe lessee in and to the leased land;

(C)  The lessee shall not assign, mortgage, orsublet the whole of the leasehold premises, without the prior approval of theboard, provided that the lessee may sublet a part of the leasehold premiseswithout approval of the board; and

(D)  The lease rental shall be subject toredetermination and renegotiation during the lease term in the manner and atsuch intervals as the board may specify in the lease. [L 1962, c 32, pt of §2;Supp, §103A-82; HRS §171-87; gen ch 1985]