REPORT TITLE:
Public Lands


DESCRIPTION:
Authorizes the board of land and natural resources to extend or
issue new leases for the Banyan Drive resort area.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           718
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO PUBLIC LANDS.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The purpose of this Act is to stimulate tourism
 
 2 in east Hawaii by creating incentives for reinvestment in the
 
 3 resort infrastructure of the Banyan Drive resort area in Hilo,
 
 4 Hawaii, by authorizing the board of land and natural resources to
 
 5 extend or issue new leases to the lessees of the area.
 
 6      Specifically, this Act provides a five-year window of
 
 7 opportunity for lessees within the Banyan Drive resort area to
 
 8 apply to the board of land and natural resources for an extension
 
 9 of the existing lease or for a new lease; provided that any
 
10 extension or new lease shall not be for more than fifty-five
 
11 years from the effective date of this Act, and that any
 
12 additional terms and conditions insure and promote the demised
 
13 premises as an integral part of the Banyan Drive resort area.
 
14      SECTION 2.  Chapter 171, Hawaii Revised Statutes, is amended
 
15 by adding a new section to be appropriately designated and to
 
16 read as follows:
 
17      "§171-    Lease extensions; Banyan Drive resort area.  (a)
 
18 Anything to the contrary notwithstanding, the board shall invite
 
19 lessees holding leases within the Banyan Drive resort area of
 

 
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                                     S.B. NO.           718
                                                        
                                                        

 
 1 Hilo, Hawaii, defined as the area between the intersections of
 
 2 Kamehameha Avenue and Banyan Drive and Lihiwai Street and Banyan
 
 3 Drive, to apply for a lease extension or a new lease within sixty
 
 4 days from the effective date of this Act.  The board shall
 
 5 negotiate an extension or a new lease at a rental rate and on
 
 6 terms and conditions that will encourage and enable the lessee to
 
 7 secure long-term financing for major rebuilding or refurbishing
 
 8 of the demised premises; provided that, with the consent of the
 
 9 lessee, the extension or new lease shall provide for a term of at
 
10 least fifty-five years from the effective date of the extension
 
11 or a new lease; and provided further that extensions or new
 
12 leases shall otherwise be negotiated so as to encourage the
 
13 continuation of the Banyan Drive resort area as a significant
 
14 resort facility for east Hawaii.
 
15      (b)  Lessees shall have until June 30, 2004, to apply for an
 
16 extension of the existing lease or a new lease."
 
17      SECTION 3.  New statutory material is underscored.
 
18      SECTION 4.  This Act shall take effect upon its approval.
 
19 
 
20                           INTRODUCED BY:  _______________________