SB2423 SD1

SECTION 1. The legislature finds that it is in the public interest to protect and preserve Hawaii's historic and cultural heritage. The proposed expansion of the Turtle Bay Hotel and Resort located in the ahupua‘a of Hana Kaoe, in Kahuku on the island of Oahu is contrary to the public interest.

The legislature therefore declares that it is in the public interest to acquire private lands currently owned by Kuilima Resort Company, Oaktree Capital Management, LLC, and their successors in interest for preservation by purchasing those lands, exercising the State's power of eminent domain to acquire those lands, or by participating in a cooperative agreement to acquire those lands.

The purpose of this Act is to appropriate funds and to authorize the department of land and natural resources or the appropriate agency to either acquire the area commonly known as the Turtle Bay Hotel and Resort and the accompanying undeveloped property outright, by exercising the State's power of eminent domain, or by entering into a cooperative agreement to acquire the property.

SECTION 2. The department of land and natural resources or any appropriate entity of the State shall immediately initiate negotiations with Kuilima Resort Company, Oaktree Capital Management, LLC, any other entity or person which holds an interest in the property, and their successor in interest, to acquire properties held by Kuilima Resort Company, a Hawaii general partnership, Oaktree Capital Management, LLC, and their successors in interest, inclusive of those parcels mauka of Kamehameha highway.

Provided that the land to be acquired shall include the unimproved lands that are not used for the hotel and resort proper or any appurtenant uses thereto, including, but not limited to golf courses, stables, condominiums, parking areas, nurseries, and physical plant. Specifically, the land to be acquired shall include that unimproved land:

(1) Located between the western edge of the improved portion of the Turtle bay property towards Kawela bay to the western boundary between the Turtle bay property and the private property at Kawela bay;

(2) Located between the eastern edge of the improved portion of the Turtle Bay property towards Kahuku point to the eastern boundary of the property, including Kahuku point; and

(3) Located mauka of Kamehameha highway.

SECTION 3. If the board of land and natural resources, or the appropriate entity, finds that it is not feasible for the State to acquire sole interest of the property identified in section 2 of this Act, the board of land and natural resources or appropriate entity shall seek out and, if possible, enter into a cooperative agreement or agreements with private or other public sector entities interested in preserving those unimproved portions of the identified property in their unimproved state for the purpose of cooperatively acquiring the property.

SECTION 4. The department of land and natural resources or the appropriate entity of the State shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2009 regarding its efforts to acquire the aforementioned lands and its recommendations for financing the purchase of the property.

SECTION 5. If an agreement to acquire the property is not reached within a reasonable time as determined by the department of land and natural resources or any other appropriate entity of the State, the state agency shall exercise its power of eminent domain to acquire the unimproved property. For purposes of this Act, condemnation of the property shall not be subject to legislative disapproval.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2008-2009 for the purpose of negotiating with Kuilima Resort Company, Oaktree Capital Management, LLC, any person holding an interest in the property, or their successor in interest for the purchase of the property identified in this Act that specifically includes, but is not limited to, those unimproved lands surrounding the Turtle Bay Hotel and Resort or to commence the condemnation process of said lands.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 7. The director of finance is authorized to issue general obligation bonds in the sum of $ or so much thereof as may be necessary is appropriated for fiscal year 2008-2009 for the purchase of the property commonly known as the Turtle Bay Hotel and Resort and the surrounding unimproved property, as identified in this Act.

SECTION 8. The appropriation made for the land acquisition authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all

moneys from the appropriation unencumbered as of June 30, 2010, shall lapse as of that date.

SECTION 9. This Act shall take effect on July 1, 2008.

THE SENATE	S.B. NO.	2423
TWENTY-FOURTH LEGISLATURE, 2008		S.D. 1
STATE OF HAWAII