Hawaii Administrative Rules › Title 4 - DEPARTMENT OF AGRICULTURE › Subtitle 8 - DIVISION OF AGRICULTURAL RESOURCE MANAGEMENT › Chapter 158 - NON-AGRICULTURAL PARK LANDS PROGRAM RULES › Subchapter 4 - DISPOSITION OF NON-AGRICULTURAL PARK LANDS › Section 4-158-19 - Lease restrictions, generally

Current through June, 2024
(a) Except as
				  otherwise provided, the following restrictions shall apply to all leases:
(1) No lease shall be for a term of less than
				  fifteen years nor more than sixty-five V years, including any extension granted
				  for mortgage lending or guarantee purposes;
(2) 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 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;
(3) Any transferee,
				  assignee, or sublessee of a non-agricultural park land 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 4-158-35;
(4) With the approval of the board, and
				  subject to the provisions of section 4-158-35, 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 lessee becomes mentally or
				  physically disabled;
(B) Extreme
				  economic hardship is demonstrated to the satisfaction of the board;
				  or
(C) The assignment is to the
				  corporate successor of the lessee;
(5) 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 4-15-21;
(6) The lessee shall not sublet the whole or
				  any part of the demised premised without the approval of the board; provided
				  that:
(A) Prior to the approval, the board
				  shall have the right to review and approve the rent to be charged to the
				  sublessee;
(B) In the case where
				  the lessee is required to pay rent based on a percentage of its gross receipts,
				  the rents paid by the sublessee shall be included as part of the lessee's gross
				  receipts; and
(C) The board shall
				  have the right to review and, if necessary, revise the rent of the demised
				  premises based upon the rental rate charged to the sublessee including the
				  percentage rent, if applicable, and provided that the rent may not be revised
				  downward; and
(7) The
				  lease shall be for a specific use or uses, and shall not include wastelands
				  unless it is impractical to provide otherwise.