THE SENATE

S.C.R. NO.

25

TWENTY-FOURTH LEGISLATURE, 2007

S.D. 1

STATE OF HAWAII

 

 

 

 

 

SENATE CONCURRENT

RESOLUTION

 

 

AUTHORIZING THE ISSUANCE OF A TERM, NON-EXCLUSIVE SURFACE EASEMENT AT KAHALUU, NORTH KONA, HAWAII.

 

 

 


     WHEREAS, due to certain Hawaii Supreme Court rulings regarding shoreline boundaries, it was held that foundation pilings installed in the construction of the original Keauhou Beach Hotel (Hotel) were encroaching onto state lands at Kahaluu, North Kona, Hawaii, identified as Tax Map Key: (3) 7‑8‑013:43; and

 

     WHEREAS, the Board of Land and Natural Resources on February 7, 1969, and by way of public auction, granted a term, non-exclusive surface easement for the encroachment identified as General Lease S-4227 to Island Holidays, Ltd.; and

 

     WHEREAS, in connection with a sale of the Hotel in 1983, the easement was assigned to Hoomahele, Ltd. and concurrently assigned to Kona Joint Venture I, Ltd. on August 31, 1983; and

 

     WHEREAS, as a result of a bankruptcy case, the easement was then assigned to Azabu USA (Kona) Co., Ltd. in 1987; and

 

     WHEREAS, in connection with another sale of the Hotel, the easement was again assigned, from Azabu USA (Kona) Co., Ltd. to SWVP Keauhou, LLC in 1998; and

 

     WHEREAS, at its March 24, 2006, meeting the Board of Land and Natural Resources approved the further assignment of the easement, from SWVP Keauhou, LLC to KBH, Inc.; and

 

     WHEREAS, KBH, Inc., seeks to enter into a new sixty-five year ground lease with the Kamehameha Schools, the owner of the fast land portion of the property that the Hotel sits on; and

 

     WHEREAS, KBH, Inc., is simultaneously seeking cancellation of General Lease S-4227 and issuance of a new term, non-exclusive surface easement for sixty-five years from the Board of Land and Natural Resources to run concurrently with the sixty-five year ground lease it hopes to attain from the Kamehameha Schools; and

 

     WHEREAS, on January 12, 2007, under agenda item D-2, the Board of Land and Natural Resources approved the simultaneous cancellation of General Lease S-4227 and the direct issuance of a term, non-exclusive surface easement to KBH, Inc. for the use of public lands, subject to certain terms and conditions; and

 

     WHEREAS, section 171-53, Hawaii Revised Statutes, requires the prior approval of the Governor and prior authorization of the Legislature by concurrent resolution to lease submerged public lands; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-fourth Legislature of the State of Hawaii, Regular Session of 2007, the House of Representatives concurring, that the Board of Land and Natural Resources is hereby authorized to lease a term, non-exclusive surface easement at Kahaluu, North Kona, Hawaii, pursuant to section 171-53, Hawaii Revised Statutes; and

 

     BE IT FURTHER RESOLVED that the Department of Land and Natural Resources is requested to submit a written report to the Legislature on the appraised value of the portion of the State-owned submerged lands the term the non-exclusive easement will cover, and the compensation for the easement when both of these values are determined; and

 

     BE IT FURTHER RESOLVED that a certified copy of this Concurrent Resolution be transmitted to the Chairperson of the Board of Land and Natural Resources.

Report Title:

Surface Easement; Kahaluu, North Kona; Legislative Approval