STAND. COM. REP. NO.1011-02

Honolulu, Hawaii

, 2002

RE: H.R. No. 111

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.R. No. 111 entitled:

"HOUSE RESOLUTION REQUESTING THE DEPARTMENT OF LAND AND NATURAL RESOURCES TO ADDRESS THE CONCERNS OF KOKEE STATE PARK LESSEES WITH EXPIRING LEASES,"

begs leave to report as follows:

The purpose of this measure is to have the Department of Land and Natural Resources adopt rules which would:

a) Enable lessees to be reimbursed for the costs of permanent

improvements to leasehold residences at Kokee State Park,

b) Consider a fair and equitable extension of the term of

leases, and

c) Consider repealing the surrender clause provisions of

existing leases to ensure that no private property is

taken without compensation.

The Maui Architectural Group, Inc., and the Kokee Leaseholder's Association provided supporting testimony. The Department of Land and Natural Resources opposed this measure.

Your committee finds that existing lessees have made improvements to their lots that have added substantial value to these state-owned lands. At the conclusion of the present leases, lessees choose not to renew their leases or are not offered the opportunity to renew their leases will have lost significant personal resources.

Your committee has amended this measure by:

(1) Stating that a comprehensive master plan of the Kokee

and Waimea Canyon State Parks is in progress with a

preliminary draft due in February 2003, and final

completion by April 2004; and that a status report be

submitted to the legislature prior to the convening of

the 2003 session.

(2) Requesting adoption of a policy which would enable an

existing lessee who is outbid at auction to recover

improvement costs at current appraised value from the successful bidder.

(3) Reporting on other recommendations in state land-lease

policy that would fairly and equitably meet the needs of

lessees while protecting the state's interests.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 111, as amended herein, and recommends that it be referred to the Committee on Finance, in the form attached hereto as H.R. No. 111, H.D. 1.

 

Respectfully submitted on behalf of the members of the Committee on Water and Land Use,

 

____________________________

EZRA KANOHO, Chair