§171-88  Option to purchase.  Any ownerin fee simple of private land in a disaster area who leases or who presentlyhas a lease of public land under this part shall be entitled to an option topurchase in fee simple the public land so leased if the owner's private landwas or is condemned or purchased for a public purpose by a governmental agencyat any time between the date of the natural disaster and the date of expirationof the first two years of the term of the lease to the person.

If private land in a disaster area owned at thetime of the natural disaster by a lessee under this part is not condemned orpurchased for a public purpose by a governmental agency at the expiration ofthe first two years of the term of the lease of the lessee, the person shall beentitled to an option to purchase in fee simple the public land leased underthis part, provided that the lessee first offers the board of land and naturalresources a period of six months in which to exercise an option to purchase infee simple the lessee's private land in the disaster area which the lessee heldat the time of the natural disaster.  The offer shall be made to the board bythe lessee within thirty calendar days next following the first two years ofthe term of the lease of the lessee.  The lessee shall then have a period ofsix months next following the board's rejection or exercise of its option inwhich to reject or exercise the lessee's option to purchase the public lands. The acquisition or purchase of the private lands in a disaster area by theboard under this part is declared to be for a public purpose.

During the period that the board and the lesseeare considering their respective options to purchase, the board shall waive thelease rental of the lessee.

Public land under lease shall be sold andprivate land of the lessee shall be purchased at fair market value asdetermined by appraisal as set forth in section 171-17.  The fair market valueshall not include the value of improvements erected by the lessee and shall bedetermined as if the premises were not subject to the lease or to any mortgagemade by the lessee. [L 1962, c 32, pt of §2; Supp, §103A-83; am L 1966, c 27,§2; HRS §171-88; gen ch 1985]