LEGAL PUBLIC NOTICE FOR
PROPOSED DISPOSITION OF GENERAL LEASES BY NEGOTIATION
FOR INDUSTRIAL (I-2) USE PROPERTY
Property Location: Moanalua Kai, Shafter Flats, Honolulu, Island of Oahu
The Department of Hawaiian Home Lands (DHHL) intends to dispose of lands by public auction. As authorized by §204(a)(2), Hawaiian Homes Commission Act, 1920, as amended, individuals, companies and/or corporations interested in leasing the property herein described shall have forty-five (45) days from the date this “LEGAL NOTICE OF PUBLIC AUCTION” is first published, that date being June 3, 2024, in which to submit completed applications for DHHL consideration.
All applications submitted by 4:00 p.m. on Wednesday, July 17, 2024, will undergo review. Only those applications that satisfy DHHL’s initial objectives and criteria and are deemed “qualified” will receive written notification by Wednesday, July 31, 2024, confirming their qualification to participate in the Auction process. Qualified applicants may then attend and bid at the scheduled Public Auction as outlined below:
DATE & TIME: Friday, September 27, 2024, at 10:00 a.m.
LOCATION: DHHL Kapolei Office, Hale Pono’i
91-5420 Kapolei Parkway, Kapolei, Oahu
Basic Lease Terms
The industrial leases offered by DHHL shall include the following basic terms:
A. Land to be disposed:
1. Four (4) industrial lots (Lots 17 & 18 will be combined), situate at Shafter Flats Industrial Development, Moanalua, Island of Oahu. The minimum upset ground rent as shown in the Table below will be basis for the interested and qualified applicant/bidder to bid on for Year 1 of the lease term. There are existing warehouse/office buildings on each of the properties and will be included as part of the lease.
Lot No. Tax Max Key Land Area Upset Rental Per Annum
17 & 1 (1) 1-1-064:019 & 020 50,000/sf $425,000.00 2.5% escalation
20 (1) 1-1-064:022 25,000/sf $212,500.00 2.5% escalation
5 (1) 1-1-064:03 20,787/sf $181,900.00 2.5% escalation
2. Sealed Rent Bids: This disposition will be conducted by sealed bid for the Subject Properties. Applicants must submit sealed lease rent bids, for the subject property and/or properties they are interested in. Each lease rent bid shall be adjusted and escalate at 2-1/2% per annum from the successful sealed bid for the term of the lease, and must be in an amount equal to or greater than the minimum upset rents stated above. The applicant that submits the highest total bid for each respective lease will be deemed the “successful bidder” and will enter exclusive negotiations with DHHL for a general lease.
3. Earnest Money “Bid” Deposits: Eligible applicants shall, together with their detailed development plan and sealed rent proposal, remit earnest money deposits consisting of one (1) separate payment in the form of cashier’s or certified checks for assurance of successful bidder’s commitment to this proposed disposition. With respect to the subject properties being offered payments shall be made payable to the Department of Hawaiian Home Lands as follows:
___ _Lot No.____ _Tax Map Key_________Earnest Money “Bid” Deposit____ 17 & 18 (1) 1-1-064:019 & 020 $106,250.00
20 (1) 1-1-064:022 $53,125.00
5 (1) 1-1-064:031 $45,475.00
Earnest money deposits shall be held uncashed by DHHL until the successful bidder has been determined. Earnest money deposits submitted by unsuccessful bidders shall be returned.
4. Character of Use: The leased premises shall be allowed to be used under the existing County Zoning regulation for “I-2 Intensive Industrial District” purposes only. Operation of any scrap metal yard, junk yard and similar type operations, and bulk storage of flammable and explosive products shall be prohibited.
5. Lease Term: Thirty (30) Years; to commence from the first day of the calendar month following the execution of a general lease document.
6. Rental Payment: Monthly, in advance.
7. Improvement Requirements: Successful applicants shall submit a renovation plan for the improvements to the leased premises, in an amount of no less than $200,000.00, within six (6) months from commencement of the lease and complete the renovation within thirty (30) months from plan approval using new material and in full compliance with all laws, ordinances, rules and regulations of the Federal, State and County government.
Existing Improvements:
Lot 17 Warehouse of 14,873 sf, built in 1969, with an adjacent on-grade surface parking area
Lot 18 Warehouse of 14,873 sf, built in 1969, with an adjacent on-grade surface parking area Lot 20 Warehouse of 15,700 sf, built in 1969, with a 5,265 sf mezzanine, and an adjacent on-grade surface parking area
Lot 5 Warehouse and ancillary office building of 17,256 sf; built in 1972, with an adjacent on-grade surface parking area
All existing warehouse/office buildings and/or improvements will be included in the lease in “As Is” condition, with the Lessee assuming all responsibility in the repair and maintenance of the building improvements.
8. Rental Reopening’s: Annual lease rent shall be adjusted and escalate at 2.5% per annum from the successful sealed bid for the remaining of the term of the lease.
9. Ingress, Egress and Utilities: The Lessee shall, at its own cost and expense, be required to provide its own ingress, egress, and utilities to the demised premises.
10. Assignment/Subletting: The Lessee’s ability to assign the lease or sublet the leased premises shall be limited by the terms of the lease and by statutes. The Lessor shall have the right to revise the rent based upon the rental rate charged to the sublessee(s).
11. Bond and Other Terms and Conditions: Refer to Conduct of Disposition and Draft of Lease Document.
B. Additional Information
Packets containing an application form, property information and other requirements for completing the application process are available for pick up by prospective applicants during regular office hours at DHHL’s Kapolei Office located at 91-5420 Kapolei Parkway, Kapolei 96707 or can be downloaded from DHHL’s official website. This Legal Notice of Public Auction, Application Qualification, Criteria, and Guidelines, Applicant and Qualification Form, Public Auction Guidelines, Conduct of Disposition, General Property Information, including maps and description of the lots, and a draft of the lease document for complete and detailed terms, covenants and conditions to be observed and performed by the respective lessees, and public auction procedures are on file for public inspection during regular hours at the office of the Department of Hawaiian Home Lands, 91-5420 Kapolei Parkway, Kapolei, Hawaii, and at the District Offices in Waimea, Hilo, Molokai, Maui and Kauai, or by visiting DHHL’s website (dhhl.hawaii.gov), which are by this reference incorporated herein and made a part hereof.
This proposed disposition is authorized by and may be cancelled, postponed, or continued from time to time as to all or any of the items listed hereunder by public announcement to that effect by order of the Chairperson, Hawaiian Homes Commission.
The Application Form with all required information and attachments is due by July 17, 2024, at 4:00 p.m. Only those applicants who have submitted applications by the above deadline and have been qualified by DHHL will be invited to participate in the public auction. Each applicant shall be informed, in writing, by Wednesday, July 31, 2024, of the auction date as to their eligibility to bid at the auction.
For additional information please contact Peter “Kahana” Albinio, Jr., General Professional at the Department of Hawaiian Home Lands, Land Management Division, at (808) 620-9451 or by email at peter.k.albinio.jr@hawaii.gov.
DATE: 5/22/2024
State of Hawaii
DEPARTMENT OF HAWAIIAN HOME LANDS
By: Kali Watson, Chairperson
Hawaiian Homes Commission
Honolulu StarAdvertiser
Website: https://dhhl.hawaii.gov/asset-management/publicauctions/
(Local Newspaper Publication)
Date: June 3, 2024
(SA1456501 6/3/24)
