REPORT TITLE:
Pub Lands; Banyan Drive, Hilo


DESCRIPTION:
Authorizes the department of land and natural resources to enter
into 55-year leases for property within the Banyan Drive resort
area.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                            827         
HOUSE OF REPRESENTATIVES                H.B. NO.           
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.  The Act provides authority for the board of land and
 
 5 natural resources to extend or issue new leases to lessees of the
 
 6 Banyan Drive resort area as an integral part of preserving and
 
 7 enhancing the tourism base of east Hawaii.
 
 8      Specifically, this Act provides a five-year window of
 
 9 opportunity for lessees within the Banyan Drive resort area to
 
10 apply to the board of land and natural resources for an extension
 
11 of the existing lease or for a new lease, provided that any
 
12 extension or new lease shall not be for more than fifty-five
 
13 years from the effective date of this Act, and that any
 
14 additional terms and conditions insure and promote the demised
 
15 premises as an integral part of the Banyan Drive resort area.
 
16      SECTION 2.  Chapter 171, Hawaii Revised Statutes, is amended
 
17 by adding a new section to be appropriately designated and to
 
18 read as follows:
 
19      "�171-     Resort area lease extensions.  (a)  Any law to
 

 
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                                     H.B. NO.           
                                                        
                                                        


 1 the contrary notwithstanding, lessees holding leases within the
 
 2 Banyan Drive resort area of Hilo, Hawaii, defined as the area and
 
 3 portion of Banyan Drive between the Kamehameha Highway and
 
 4 Lihiwai Street intersections, shall have until June 30, 2004 to
 
 5 apply to the board for an extension of the existing lease or for
 
 6 a new lease; and the board may extend the lease or issue a new
 
 7 lease; provided that an extension or a new lease shall:
 
 8      (1)  Not be for more than fifty-five years from the
 
 9           effective date of this Act; and
 
10      (2)  Be subject to the rules of the board, and any
 
11           additional terms and conditions which shall insure and
 
12           promote the demised premises as an integral part of the
 
13           Banyan Drive resort area.
 
14      (b)  The board shall negotiate the extensions or new leases
 
15 on such terms and conditions as will encourage and enable the
 
16 lessee to secure long-term financing for major re-building or re-
 
17 furbishing of the demised premises.  Extensions or new leases
 
18 shall otherwise be negotiated so as to encourage the continuation
 
19 of the Banyan Drive resort area as a significant resort facility
 
20 for east Hawaii."
 
21      SECTION 3.  New statutory material is underscored.
 
22      SECTION 4.  This Act shall take effect upon its approval.
 
23 
 
24                              INTRODUCED BY:______________________