Haw. Code R. § 4-158-16 - Planning; joint ventures

(a) Prior to entering into a partnership agreement, the board shall:

(1) Determine:

(A) Whether the lands shall be developed by-disposition or contract;

(B) The location, area, and size of the lands to be developed;

(C) The use or uses to which the lands shall be put;

(D) The estimated period of time to construct and complete the development;

(E) Minimum requirements for on-site and off-site improvement, if any; and

(F) Such other terms and conditions as shall be deemed necessary by the board;

(2) Set the minimum or upset rental and additional rental, if any, on the basis of an appraisal report prepared by an appraiser for the board, determining the rental value of the lands for the use or uses for which they are to be developed using generally accepted appraisal methods; the appraised value may be adjusted as provided in section 4-158-21;

(3) Give notice of the proposed partnership agreement by publication at least once in each of three successive weeks in a newspaper of general circulation in the State. The notice shall invite interested persons to submit applications to be selected as the partner for the project. The notice shall also state in general terms the size, location, the minimum rental and additional rent, if any, of the area to be developed, the minimum requirements for any required off-site and on-site improvement, the maximum estimated period of time to install and complete the construction of any required improvement, the use or uses to which such lands shall be put, the last date on which applications will be received by the department, which date shall not be less than thirty days or more than ninety days after the last date of publication of such notice, and the times and places at which more detailed information with respect to the partnership agreement may be secured by interested persons;

(4) Require each interested person to include a financial statement, and performance and experience records in agricultural or related development; provided that the board may also, in its discretion, require the interested person to submit answers, under oath, to questions contained in a questionnaire prepared by the department;

(5) Require each interested person to submit a sealed bid, which shall include a development plan in as much detail as possible including but not limited to the following: the interested person's proposal as to how and when the person intends to develop the land in partnership with the board, including any permitted incremental development, the amount of money the person intends to commit to the total project, the method of recovery of the. interested person's costs and profits, the amount the person agrees to pay to develop the land, and the income the board will receive from leases;

(6) Establish reasonable criteria for the selection of a private party or parties as a partner; and

(7) Determine within forty-five days of the last day for filing applications the person or persons who meet the criteria for selection set by the board, and notify all persons who submitted applications of the board's determination within seven days of such determination. Any person may examine the basis of the determination, which shall be in writing, to ascertain whether or not the conditions and criteria established by the board were followed; provided that if any person does not notify the board of any objections and the grounds therefore, in writing, within ten days of such notice, the person shall be barred from proceeding to seek legal remedy for an alleged failure of the board to follow the conditions and criteria.

(b) If only one person meets the criteria for selection as the partner, the board then may enter into a partnership agreement with that persons-provided that the terms of the partnership agreement shall not be less than those proposed by the partner in the application. If two or more persons meet the criteria for selection, the board shall consider all of the relevant facts of the partnership agreement, the proposals submitted by each person, the experience and financial capability of each person, and shall within forty-five days from the date of selection of the persons that met the criteria, select the person who submitted the best proposal. The board then may negotiate the details of the partnership agreement; provided that the terms of the agreement shall not be less than those proposed by the partner in the application.

Notes

Haw. Code R. § 4-158-16

[Eff DEC 06 2007] (Auth: HRS § 141-1; § 166E-9) (Imp: HRS § 166E-6)