§206-8  Development of lands acquired. Where lands are acquired by the board of land and natural resources with itsown funds, it shall subdivide and develop the lands into residence lots, ordwellings and lots in a manner best designed to carry out the purposes of thischapter.

The board may contract with any privatedeveloper to provide for the financing of the acquisition of lands, thesubdivision and development of acquired lands, and the disposition of residencelots, or the construction of dwellings on the lots and the disposition ofboth.  The contracts may be entered into after published advertisement forsealed tenders, setting forth the terms of the proposed contract, includingnecessary plans, specifications, and time schedules.  The contract shallprovide for the establishment of such sale prices of the residence lots, ordwellings and lots as will repay to the developer the amount of the actual costor expense incurred in the acquisition and development of the land togetherwith a reasonable developer's profit computed thereon as determined by theboard.  The contract shall also provide for the sale of residence lots, ordwellings and lots only to persons entitled to purchase from the board, uponthe terms and conditions provided in sections 206-9 to 206-12 with respect tosales by the board.  Every contract shall be made with the responsible bidderwhose proposal complies with the requirements of the call for tenders andstates the lowest rate of developer's profits; provided that the board mayreject all tenders if it deems that the lowest rate of developer's profit isunreasonable.  Publication of the call for tenders shall be made by publishinga call for tenders not less than three times in a newspaper of generalcirculation printed and published within the State.  No more than one of thesepublications shall be made on any one day or on two consecutive days.  The timefor opening of the tenders shall be not less than thirty days after the lastpublication. [L 1961, c 6, §9; am L 1965, c 157, §3; Supp, §98J-9; HRS §206-8;am L Sp 1993, c 8, §18]