Hawaii Administrative Rules › Title 4 - DEPARTMENT OF AGRICULTURE › Subtitle 8 - DIVISION OF AGRICULTURAL RESOURCE MANAGEMENT › Chapter 153 - AGRICULTURAL PARK PROGRAM RULES › Subchapter 10 - LEASE RESTRICTIONS › Section 4-153-33 - Lease restrictions; generally

Current through June, 2024
(a) Except as
				  otherwise provided, the following restrictions shall apply to all agricultural
				  park leases:
(1) Options for renewal of terms
				  shall be prohibited;
(2) No lease
				  shall be for a term of less than fifteen years nor more than fifty-five years,
				  including any extension granted for mortgage lending or guarantee
				  purposes;
(3) No lease shall be
				  made for any land under a lease which has more than two years to run;
(4) No lease shall be made to any person who
				  is in arrears in the payment of taxes, rents, or other obligations owing the
				  State or any of its political subdivisions; or to any person who, during the
				  five years preceding the date of disposition, has had a previous sale, lease,
				  license, permit, or easement covering public lands canceled for failure to
				  satisfy the terms and conditions thereof;
(5) Any transferee, assignee, or sublessee of
				  an agricultural park lease shall first qualify as an applicant under this
				  chapter. No lease or any interest therein, including corporate stock or
				  interest in a partnership or association, shall be transferred or assigned
				  without the consent of the board, except by devise, bequest, or intestate
				  succession and upon the further condition that there is a dwelling on the
				  property in which the devisee or heir resides or that more than fifty per cent
				  of the devisee's or heir's income is derived from the productive use of the
				  property. In the absence of or upon cessation of these conditions, the devisee
				  or heir shall surrender the lease and improvements, or any interest therein, to
				  the board pursuant to section 4-153-29;
(6) With the approval of the board, and
				  subject to the provisions of section 4-153-29, the assignment and transfer of a
				  lease or any interest therein, including stock of a corporation holding the
				  lease or an interest in a partnership or association holding the lease, may be
				  made if:
(A) The lease contains the principal
				  residence of the lessee;
(B) The
				  lessee becomes mentally or physically disabled;
(C) Extreme economic hardship is demonstrated
				  to the satisfaction of the board; or
(D) The assignment is to the corporate
				  successor of the lessee; provided that prior to the approval of any assignment
				  of lease permitted by this section, the board shall have the right to review
				  and approve the consideration to be paid by the assignee and may condition its
				  consent to the assignment of the lease on payment by the lessee of a premium
				  based on the amount by which the consideration for assignment, whether by cash,
				  credit or otherwise, exceeds the depreciated cost of improvements and trade
				  fixtures being transferred to the assignee; provided further that in the event
				  of foreclosure or sale, the premium, if any, shall be assessed only after the
				  encumbrances of record and any other advances made by the holder of a security
				  interest are paid; provided further that the board may adjust the base and
				  additional rental pursuant to the method outlined in section
				  4-153-18(d);
(7) The
				  lessee shall not sublet the whole or any part of the demised premises without
				  the approval of the board; provided that prior to the approval, the board shall
				  have the right to review and approve the rent to be charged to the sublessee;
				  provided further that where the lessee is required to pay rent based on a
				  percentage of its gross receipts, the rents paid to the lessee by the sublessee
				  shall be included as part of the lessee's gross receipts; provided further that
				  the board shall have the right to review and, if necessary, revise the rent and
				  percentage rental, if applicable, of the demised premises based upon the rental
				  rate charged to the sublessee; and provided further that the rent and
				  percentage rental may not be revised downward;
(8) The lease shall be for a specific use or
				  uses, and shall not include wastelands unless it is impractical to provide
				  otherwise.