Haw. Code R. § 4-153-29 - Re-purchase right, first offer to board; limitation on re-purchase price
An agricultural park lease or any interest therein, including stock of a corporation holding the lease or an interest in a partnership or association holding the lease, shall not be transferred or assigned unless the lease and improvements, or any interest therein, are first surrendered to the board, as follows:
(1) The board shall have the option to
re-purchase the lease for the price paid by the current lessee, including
closing costs, or the fair market value, less appreciated value, at the time of
re-purchase, as determined in paragraph (3), whichever is the lower but not
less than zero. For the purposes of this subsection, "price paid by the current
lessee" means the consideration paid for the lease exclusive of improvements
and "appreciated value" means the replacement cost for developing the leased
premises. If the board does not exercise its option, the provisions of section
4-153-33(a)(6) shall apply.
(2) Any
improvements affixed to the realty, including trade fixtures and growing crops,
shall be re-purchased at their fair market value.
(3) At the time of the re-purchase, the fair
market value of the lease less appreciated value and the fair market value of
any improvements shall be determined by a qualified appraiser whose services
shall be contracted for by the department; provided that should the lessee
disagree with the values, the lessee may appoint the lessee's own appraiser who
together with the department's appraiser shall appoint a third appraiser, and
the fair market value shall be determined by arbitration as provided in chapter
658, Hawaii Revised Statutes. In this event, the lessee shall pay for the
lessee's own appraiser, the department shall pay for its appraiser, and the
cost of the third appraiser shall be borne equally by the lessee and the
department.
(4) The board may
re-purchase the lease and improvements with funds from the agricultural park
special fund or may accept a surrender of lease subject to the offer by a
qualified applicant to purchase the lease and improvements, including any
encumbrances, for not less than the amount to be paid therefor by the board;
provided that the purchase by a qualified applicant shall be subject to
sections 4-153-19 and 4-153-22.
(5)
Notwithstanding the conditions herein, the consideration for the applicant's
purchase of the lease as provided in paragraph (4) above shall not be less than
the total of all encumbrances that have been approved by the State at the time
of the re-purchase.
(6) This
section shall not apply to a holder of record having a security interest upon
foreclosure pursuant to section 4-153-35.
Notes
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