HB2794

Report Title:

Land Exchange; Kauai

Description:

Grants legislative approval for the exchange of public land for private land for public purposes.

HOUSE OF REPRESENTATIVES	H.B. NO.	2794
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

relating to a land exchange in kauai.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that it is in the public interest to enter into a land exchange with Falko Partners, LLC, a California limited liability company, involving private land located in Hanalei, Kauai, State of Hawaii.

The private land, found at the location identified as TMK No. (4)5-5-001:011, situated in Hanalei, County and Island of Kauai, State of Hawaii. This private beachfront parcel on Hanalei Bay has significant recreational value to the people of Hawaii. This private parcel is adjacent to public lands and the legislature finds that public acquisition of this private parcel would effect a consolidation of holdings of public lands and improve access to and use of the shoreline.

Falko Partners, LLC, has proposed to exchange the private land for an 83.63 acre parcel of public land at the location identified as TMK Nos. (4)4-6-09:44, 45, 46, and 28, situated in Kapaa, County and Island of Kauai, State of Hawaii. These public lands are of significantly less public value as they have very limited recreational or agricultural resources, and are located on a steep incline. The public land is located adjacent to property owned in fee simple by Falko Partners, LLC. The public land may be used for limited agricultural use, and the remainder of the public land will be left undeveloped.

This land exchange is consistent with the State’s commitment to expand public recreational resources along the shoreline through obtaining coastal lands of significant recreational, environmental, and cultural value.

The purpose of this Act is to allow the exchange of private and public lands located on Kauai.

SECTION 2. Notwithstanding section 171-50(b), Hawaii Revised Statutes, the legislature approves the land exchange involving private land at Hanalei, Kauai, Hawaii owned by Falko Partners, LLC, identified as TMK No. (4)5-5-001:011, and public lands located in Kapaa, Kauai, Hawaii, identified as TMK Nos. (4) 4-6-09:44, 45, 46, and 28; provided that:

(1) The public lands shall be less than or of substantially equal "fair market" value to that of the private lands;

(2) The "fair market" value of the private lands and the public lands shall be separately determined by a disinterested qualified appraiser or appraisers, and the cost of any additional appraisal shall be borne equally between Falko Partners, LLC, and the board of land and natural resources; and

(3) No payment by the State shall be required should the private lands exceed the value of the public lands, but any difference in the value of the public lands over the private lands shall be paid to the State at the time of the exchange; provided that no exchange shall be made should the value of the public lands exceed one hundred twenty per cent of the value of the private lands.

SECTION 3. Notwithstanding section 171-50(c), Hawaii Revised Statutes, the legislature approves the land exchange involving private land at Hanalei, Kauai, Hawaii, owned by Falko Partners, LLC, at the location identified as TMK No.

(4)5-5-01:011, and public lands located in Kapaa, Kauai, Hawaii, at the location identified as TMK Nos (4)4-6-09:44, 45, 46, and 28, provided that the following conditions are met:

(1) An exchange deed shall be executed between the parties and contain the following:

(A) The location and area of the parcels of land to be exchanged;

(B) The value of the lands to be conveyed by the State and Falko Partners, LLC;

(D) The date of the appraisal or appraisals which shall not be more than six months prior to the date of the final approval of the land exchange by the board of land and natural resources;

(2) All of the right, title, and interest in the approximately 32,162 square feet located at TMK No. (4) 5-5-001:011 obtained from Falko Partners, LLC, shall be conveyed in fee simple by deed to the state; and

(3) The lands transferred to the State by Falko Partners, LLC under this Act shall assume the same public land status as designated under Section 5 of the Admissions Act as the lands transferred to Falko Partners, LLC, by the State.

SECTION 4. This Act shall take effect upon its approval; provided that the approval granted to enter into a land exchange agreement by this Act shall be repealed on June 30, 2003. Any agreement executed between the State and Falko Partners, LLC, pursuant to this Act prior to July 1, 2003, shall remain in force and effect regardless of this Act's repeal.

INTRODUCED BY:	_____________________________