Hawaii Administrative Rules › Title 4 - DEPARTMENT OF AGRICULTURE › Subtitle 8 - DIVISION OF AGRICULTURAL RESOURCE MANAGEMENT › Chapter 158 - NON-AGRICULTURAL PARK LANDS PROGRAM RULES › Subchapter 2 - TRANSFER OF NON-AGRICULTURAL PARK LANDS › Section 4-158-10 - Term, rent, and condition of extension

Current through June, 2024
(a) Terms of
				  extension shall not be for a longer term period than sixty-five years, that
				  includes the aggregate of the existing term period with the extension term
				  period cumulatively summed.
(b) All
				  extensions shall require the determination of the base rent and additional
				  rents. The rental value of the existing lease shall be based on the appraisal
				  conducted by a disinterested appraiser or appraisers contracted by the
				  administrator. Should the lessee disagree with the rental value, the lessee may
				  invoke provisions of section 4-158-21. In no case shall the base annual rent of
				  the existing encumbrance be reduced from its current rate.
(c) Conditions of the lease extension shall
				  remain the same or not less restrictive than those conditions specified in
				  subchapters four and five. The board may impose certain lease requirements or
				  condition the extension provisions to make whole any holders of security
				  interest in order that any outstanding loan status shall not be jeopardized or
				  foreclosed upon as a result of the extension.
(d) An extension may be granted to extend the
				  term of the lease to the extent necessary to qualify the lease for mortgage
				  lending or guaranty purposes with any federal mortgage lending agency, to
				  qualify the lessee for any state or private lending institution loan, private
				  loan guaranteed by the State, or any loan in which the State and any private
				  lender participates, or to amortize the cost of substantial improvements to the
				  demised premises that are paid for by the lessee without institutional
				  financing, such extension being based on the economic life of the improvements
				  as determined by the administrator or an independent appraiser; provided that
				  the approval of any extension shall be subject to the following:
(1) The demised premises are developed and
				  utilized according to a plan of utilization and development approved by the
				  department;
(2) The lessee is
				  otherwise in compliance with lease terms;
(3) The aggregate of the initial term and any
				  extension granted shall not be for more than sixty-five years;
(4) Proceeds of any mortgage or loan shall be
				  used solely for the operations or improvements on the demised
				  premises;
(5) Where improvements
				  are financed by the lessee, the lessee shall submit receipts of expenditures
				  within a time period specified by the board, otherwise the lease extension
				  shall be canceled;
(6) The rules of
				  the board, setting forth any additional terms and conditions, which shall
				  ensure and promote the purposes of the demised lands;
(7) The board may increase the rent and
				  adjust the rental period; and
(8)
				  Additional restrictions, terms, and conditions to insure and promote the
				  purposes of the demised lands, to the extent the board has reserved this right
				  in the lease.