Report Title:
Negotiated Leases
Description:
Authorizes the BLNR to solicit proposals from private marina development and management firms to manage, operate, and improve boating facilities.
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THE SENATE |
S.B. NO. |
2799 |
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TWENTY-FIRST LEGISLATURE, 2002 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO NEGOTIATED LEASES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The State's small boat harbors are important assets that are constructed, maintained, and operated for the purposes of recreational boating, landing of fish, and commercial vessel activities. They also provide the primary means of public access to the State's ocean waters for fishing and ocean-based recreation by residents and visitors alike.
The cost of operating, maintaining, and managing state small boat harbors, including the amortization (both principal and interest) of capital improvements, is paid from the boating special fund. The primary source of special fund revenues is from mooring and other harbor use fees, and includes other sources such as lease rent and the state marine fuel tax. These state small boat harbors are centers of recreation and economic activity, and as such, must be managed in a manner to facilitate recreation and commercial activity, and generate sufficient revenue for this purpose.
The legislature finds that private management and operation of public marina facilities is a common practice in many state and local jurisdictions throughout the United States. The legislature also finds that the leasing of state small boat harbors may be a viable alternative to existing management practices to achieve streamlined services, improve facilities, and increase revenues, at reasonable cost to users. Existing restrictions that limit both the recreational and economic potential of these facilities should be examined and removed where appropriate.
The purpose of this Act is to authorize the board of land and natural resources to solicit proposals from private marina management firms to manage, operate, and improve small boat harbors as may be designated by the board, under a long-term lease disposed of through direct negotiation.
SECTION 2. Section 171-59, Hawaii Revised Statutes, is amended to read as follows:
"§171-59 Disposition by negotiation. (a) A lease of public land may be disposed of through negotiation upon a finding by the board of land and natural resources that the public interest demands it. Where the public land is being sought under this section by a sugar or pineapple company, and the company is the owner or operator of a mill or cannery, then, for the purposes of this section, the economic unit shall be that acreage of public land which when taken together with the lands already owned or controlled or available to the company, when cultivated is found by the board to be necessary for the company's optimum mill or cannery operation. In all other cases, public land to be sold under this section shall be an economic unit as provided in section 171-33(3).
After a determination is made to negotiate the disposition of a lease, the board shall:
(1) Give public notice as in public auction, in accordance with the procedure set forth in section 171-16(a), of its intention to lease public land through negotiation setting forth the minimum conditions thereunder, the use for which the public land will be leased. Any person interested in securing the lease shall file an application with the board not later than forty-five days after the first publication of the notice;
(2) Establish reasonable criteria for the selection of the lessee; provided that where the intended use of the land is agriculture, the department of agriculture shall establish the criteria;
(3) Determine the applicants who meet the criteria for selection set by the board or the department of agriculture, as the case may be, and notify all applicants of its determination. Any applicant 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 or the department of agriculture were followed; provided that if any applicant does not notify the board of the applicant's objections, and the grounds therefor, in writing, within twenty days of the receipt of the notice, the applicant shall be barred from proceeding to seek legal remedy for any alleged failure of the board to follow the conditions and criteria.
If only one applicant meets the criteria for selection of the lessee, the board may, after notice as provided in (3) above, dispose of the lease by negotiation.
If two or more applicants meet the criteria for the selection of the lessee, the board shall select the lessee who submits the highest offer contained in a sealed bid deposited with the board.
(b) Disposition of public lands for airline, aircraft, airport related, agricultural processing, cattle feed production, aquaculture, marine, and maritime operations may be negotiated without regard to the limitations set forth in subsection (a) and section 171-16(c); provided that:
(1) The disposition encourages competition within the aeronautical, airport related, agricultural, aquaculture, and maritime industries;
(2) The disposition shall not exceed a maximum term of thirty-five years; and
(3) The method of disposition of public lands for cattle feed production as set forth in this subsection shall not apply after December 31, 1988.
For the purpose of this subsection "agricultural processing" means the processing of agricultural products, including dairying, grown, raised, or produced in Hawaii, and "airport related" means a purpose or activity that requires air transportation to achieve that purpose or activity.
(c) Disposition of public lands for marina and yacht club purposes, including small boat harbors constructed, maintained, and operated in accordance with chapter 200, may be negotiated, provided that the disposition shall not exceed a maximum term of fifty-five years, and the disposition of selected boating facilities as may be designated by the board may be made only to qualified marina development or management firms.
After a determination is made to negotiate a lease for marina purposes, the board, without regard to the limitations set forth in subsection (a), section 171-53(c), sections 200-9 through 200-14, and section 200-16 or administrative rules adopted pursuant thereto, and chapters 76, 77, 102, 103, and 103D, shall:
(1) Give public notice in accordance with section 171-16(c);
(2) Establish reasonable criteria for the selection of the lessee; and
(3) Appoint a selection committee to determine which proposals, if any, meet the criteria for selection set by the board, and notify all applicants of its determination. Any applicant 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 applicant does not notify the board of the applicant's objections, and the grounds therefor, in writing, within twenty days of receipt of the notice, the applicant shall be barred from proceeding to seek any legal remedy for any alleged failure of the board to follow the conditions and criteria. The board shall have the right to reject part or all of any or all proposals.
If only one proposal meets the criteria for selection of the lessee, the board may, after notice as provided in paragraph (1), dispose of the lease for public lands, or designated small boat harbors, by negotiation.
If two or more proposals meet the criteria for selection of the lessee, the board shall select the lessee who submits the best offer, based on the selection criteria, in terms of proposed level of services, planned capital improvements, and revenue to the department, contained in a sealed bid deposited with the board."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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