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                DRAFT 1/17/12

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                HAWAII ADMINISTRATIVE RULES
D                           TITLE 13

       DEPARTMENT OF LAND AND NATURAL RESOURCES

                        SUBTITLE AA

            PUBLIC LAND DEVELOPMENT CORPORATION

                        CHAPTER YYY

             PUBLIC LAND DEVELOPMENT PROGRAM


             Subchapter 1     General Provisions


§13-YYY-1        Development by corporation
§13-YYY-2        Definitions
§13-YYY-3        Definitions applied
§13-YYY-4        Public information
§13-YYY-5        Public meeting or informational hearing
§13-YYY-6        Fees
§13-YYY-7        Recovery of administrative expenses and
                 attorneys fees


        Subchapter 2     Development of Projects


§13-YYY-11       Purpose
§13-YYY-12       Project proposal; who may submit
§13-YYY-13       Eligible developer, information
                   required; determination by
                   corporation

                             YYY-1
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§13-YYY-14    Letter of intent; Memorandum of




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                   understanding
§13-YYY-15    Community input on project proposals
§13-YYY-16    Project proposal; minimum requirements
§13-YYY-17    Review of application and project;
D               criteria for selection of proposals
§13-YYY-18    Processing of proposal
§13-YYY-19    Agreement with eligible developer or
              contractor; form of agreement


     Subchapter 3   Independent Development of Projects


§13-YYY-21    Purpose
§13-YYY-22    Qualified project; determination by
              corporation
§13-YYY-23    Required conditions of agreements
§13-YYY-24    Conditions imposed at discretion of
              corporation
§13-YYY-25    Processing of proposal; agreement with
              eligible developer



                       SUBCHAPTER 1

                    GENERAL PROVISIONS


     §13-YYY-1 Development role of corporation. The
corporation's role in the development of public lands
is to make optimal use of public land for the
economic, environmental, and social benefit of the
people of Hawaii by developing and administering an
appropriate and culturally-sensitive public land
development program. The corporation shall identify
the public lands that are suitable for development,
carry on marketing analysis to determine the best

                          YYY-2
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revenue-generating programs for those lands, enter




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into public-private agreements to appropriately
develop those lands, and provide the leadership for
the development, financing, improvement, or
enhancement of the selected development opportunities.
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The corporation may provide property management
services that are ancillary to its development
activities.
[Eff               ](Auth: HRS §§171C-1, 171C-3,
171C-4, 171C-6)


     §13-YYY-2 Definitions. (a) As used in this
chapter, unless the context requires otherwise:
     "Administrator" means the executive director
employed by the board or the executive director's
designated representative.
     "Applicant" means the person proposing a project
for consideration by the board.
     "Application" means the application submitted to
the board for a proposed project.
     "Assets" means total cash, securities, and real
and personal property less any outstanding liabilities
secured by the assets.
     "Board" means the board of directors of the
Hawaii public land development corporation established
under chapter 171C, HRS.
     "Chairperson" means the chairperson of the board
of directors of the Hawaii public land development
corporation.
     "Contractor" means a general engineering
contractor or general building contractor licensed
under chapter 444, HRS.
     "Corporation" means the Hawaii public land
development corporation established under chapter
171C, HRS.
     "County" includes the counties of Kauai, Maui,
Hawaii, and the city and county of Honolulu, and
unless the context requires a different meaning, it

                        YYY-3
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shall mean the county in which the project is




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situated.
     "Culturally sensitive" means being sensitive to
the culture and history of the lands to be developed.
     "Department" means that department of land and
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natural resources.
     "Develop" or "development" means the planning,
financing, acquisition of real property, demolition of
existing structures, clearance of real property,
construction, reconstruction, alteration, or repairing
of approaches, streets, sidewalks, utilities, and
services or other site improvements, or construction,
reconstruction, repair, remodeling, extension,
equipment, or furnishing of buildings or other
structures or any combination of the foregoing, of any
project. It also includes any and all undertakings
necessary therefor.
     "Eligible developer" means an individual,
partnership, cooperative, including limited equity
housing cooperatives (as defined in chapter 421H,
HRS), firm, nonprofit or profit corporation, limited
liability company, or public agency which the
corporation has determined:
     (1) To be qualified by experience and financial
          responsibility and support to construct
          improvements of the type described and of
          the magnitude encompassed by the given
          project;
     (2) To have submitted plans for a project
          adequately meeting the objectives of chapter
          171C, HRS, the maintenance of aesthetic
          values in the locale of the project, and the
          requirements of all applicable environmental
          statutes and rules; and
     (3) To meet all other requirements that the
          corporation deems to be just and reasonable,
          and all other requirements provided in
          chapter 171C, HRS, and these rules.
     "HRS" means the Hawaii Revised Statutes.

                        YYY-4
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     "Improvement" means an addition, renovation,




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replacement, repairs or maintenance which enhances the
value of the property, and for which labor and capital
are expended.
     "Party" means each person or agency named or
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admitted as a party.
     "Person" means as appropriate individuals,
partnerships, corporations, associations, or public or
private organizations of any character other than
agencies.
     "Petitioner" means the person or agency on whose
behalf a petition or application is made.
     "Plans and specifications" includes construction
plans and specifications and any other documents that
may be required by the county in the processing of the
plans and specifications for the issuance of permits
for construction and building of improvements within a
project.
     "Project" means a plan, design, or undertaking by
the corporation or an eligible developer for the
development or improvement of public lands under
chapter 171C, HRS, and includes all real and personal
property, buildings and improvements, commercial
space, lands for farming and gardening, community
facilities acquired or constructed or to be acquired
or constructed, and all tangible or intangible assets
held or used in connection with such development or
improvement.
     "Qualified appraiser" means a real estate
appraiser licensed or certified to practice in the
State of Hawaii subject to the requirements of section
466K-4, Hawaii Revised Statutes.
     "Rules" means these rules.
     "State" means the State of Hawaii.
     "Subdivision and construction documents" includes
all subdivision documents and plans and
specifications.
     "Subdivision documents" includes preliminary
maps, final maps, subdivision construction plans and

                        YYY-5
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specifications, and any other document that may be




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required by the State or county in the processing of
applications and permits relating to the development
of the project.
     "Subsidies" means the difference between all
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costs expended by the corporation, less any recoveries
by the corporation. It also includes unrecovered
development, land, financing and carrying costs.
     "Value" means the value of a property as
determined by a qualified appraiser.
[Eff                ] (Auth: HRS §171C-4)(Imp: HRS
§§171C-4)


     §13-YYY-3 Definitions applied. (a) Unless
otherwise specifically stated, the terms used in the
rules adopted by the board pursuant to powers granted
by statute shall have the meanings given them by such
statutes.
     (b) A rule which defines a term without express
reference defines the terms for all purposes as used
both in the statute and in these rules, unless the
context otherwise specifically requires.
[Eff               ] (Auth: HRS §171C-4) (Imp: HRS
§171C-4)


     §13-YYY-4 Development by corporation. (a) The
corporation may develop projects in accordance with
the provisions of chapter 171C, HRS:
     (1) On its own behalf;
     (2) On behalf of any other government agency; or
     (3) With an eligible developer or contractor.
     (b) The corporation may establish preferences
and other necessary requirements and conditions for
such projects on a project-by-project basis.
[Eff               ](Auth: HRS §171C-4) (Imp: HRS
§§171C-4, 171C-6, 171C-8)


                        YYY-6
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     §13-YYY-5 Public information. The administrator
may disseminate information and render assistance to
the public in order that the provisions of the
programs of the corporation may be understood and
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implemented effectively. [Eff                  ] (Auth:
HRS §171C-4) (Imp: HRS §171C-4)


     §13-YYY-6 Fees. The corporation shall have the
right to charge reasonable fees for processing any
instrument or taking any action required under this
chapter. These fees shall be nonrefundable. Such
fees shall be as prescribed by the exhibit at the end
of this chapter entitled "Fees", dated _____________,
and may by amended by the board.
[Eff                ] (Auth: HRS §§171C-4) (Imp: HRS
§§171C-4)


     §13-YYY-7 Recovery of administrative expenses
and attorneys fees. The corporation may recover all
relevant administrative expenses and attorneys' fees
from the developer in administering and implementing
this chapter. [Eff                ] (Auth: HRS
§171C-4) (Imp: HRS §171C-4)


                     SUBCHAPTER 2

                DEVELOPMENT OF PROJECTS


     §13-YYY-11 Purpose. The purpose of this
subchapter is to establish a procedure for the
corporation to initiate, by itself or with an eligible
developer or contractor, or to enter into agreements
with eligible developers or contractors for the
development of projects. This subchapter shall govern

                         YYY-7
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the development of real property and the construction




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of improvements thereon. [Eff                 ] (Auth:
HRS Chapter 171C) (Imp: HRS §171C-4)

     §13-YYY-12 Project proposal; who may submit.
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Any individual, partnership, profit or nonprofit
corporation, or public agency, upon having filed
application with the corporation as required by
section 13-YYY-13, may submit project proposals for
review and certification by the corporation.
[Eff               ] (Auth: HRS §171C-4) (Imp: HRS
§§171C-4, 171C-6, 171C-8)


     §13-YYY-13 Eligible developer, information
required; determination by corporation. (a) An
individual, partnership, limited liability company,
cooperative, firm, a profit or a nonprofit
corporation, or a public agency that desires to be
considered to develop a project, either together with
the corporation or independent of the corporation, and
who in connection with the development of a project,
will need assistance such as acquisition of land or
development rights to land, financing, subsidies,
exemptions from general excise taxes, or expedited
processing of a project under the provisions of
chapter 171C, HRS, and the rules promulgated
thereunder, shall submit to the corporation an
application, on forms provided by the corporation,
along with any additional information that the
corporation determines to be applicable. Information
requested may include, but is not necessarily limited
to:
     (1) Name, address, email address, and telephone
          number of the applicant and each member of
          the project team, and evidence of the
          applicant's status as a corporation,
          partnership, joint venture, sole


                        YYY-8
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      proprietorship or other business




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      organization;
(2)   A summary of the role and responsibilities
      of each team member as it pertains to the
      project;
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(3)   If the applicant is a corporation, certified
      copies of the articles of incorporation, and
      the names, addresses, email addresses, and
      telephone numbers of each of the officers
      and directors of the corporation, and of any
      shareholder of the corporation holding more
      than twenty-five per cent of the outstanding
      shares issued by the corporation. If the
      applicant is a partnership, joint venturer,
      or sole proprietorship, certified copies of
      the partnership agreement, joint venture
      agreement or evidence of ownership, as
      applicable, and the names, addresses, email
      addresses, and telephone numbers of each of
      the individual partners, joint venturers, or
      owners;
(4)   A resume of the applicant's experience in
      the development of projects including a list
      and a brief description of the projects in
      which the applicant participated;
(5)   The name, title, address, email address, and
      telephone number of the person to whom
      communications should be addressed;
(6)   Evidence of the applicant's legal authority
      to incur obligations and to sign and deliver
      such documents as may be necessary to
      finance, develop, and construct the project;
(7)   A current certificate of good standing from
      the department of commerce and consumer
      affairs, tax clearance from the department
      of taxation, and certification of compliance
      with department of labor and industrial
      relations requirements;


                    YYY-9
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(8)   Evidence of the applicant's capability to




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      develop, own, manage, and provide
      appropriate services in connection with the
      project;
(9)   Evidence of the applicant's credit
D     worthiness including the following financial
      information, which shall be kept
      confidential to the extent permitted by law:
      (A) The most recent year's financial
           statements. If the statements are
           unaudited, tax returns shall be
           provided. In the event the applicant
           is an entity not yet formed, federal
           and state tax returns and financial
           statements for the previous year of the
           principals, or additional information
           the corporation may require;
      (B) Interim balance sheets and income
           statements of the applicant and
           principal developer if the fiscal year-
           end data is over nine months old;
      (C) Tax returns if the applicant or
           guarantor is an individual;
      (D) Articles of incorporation, bylaws,
           resolutions, and certificates of good
           standing as are appropriate to support
           corporate actions;
      (E) Evidence of up front capitalization
           sufficient to demonstrate the
           developer's ability to complete the
           project; and
      (F) Any other financial data deemed
           appropriate by the corporation for
           proper credit-worthiness analysis;
      provided the board may accept alternate
      evidence for items (A), (B), (C), (D) and (E)
      that it determines to be appropriate for
      establishing credit worthiness;


                    YYY-10
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     (10) The applicant's ties to the community and




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          support from local community groups;
     (11) Description of all projects or facilities
          owned or operated by the applicant;
     (12) A description of any financial default,
D         modification of terms and conditions of
          financing, or legal action taken or pending
          against the applicant or its principals;
     (13) A description of the applicant's past or
          current business experience or involvement
          in any programs or of its provision of
          services, if any, that would give evidence
          of the applicant's management capabilities;
     (14) Evidence of ability to secure the necessary
          performance or payment bond or other
          evidence of surety and the ability to
          perform the work required to be performed in
          the proposed project;
     (15) A statement of the applicant's past or
          current involvement with the corporation or
          its predecessors, and the assistance, if
          any, received from those entities;
     (16) A project proposal in substantial compliance
          with section 13-YYY-16, which the applicant
          intends to submit to the corporation for
          approval; and
     (17) Any other information that the corporation
          deems necessary to determine the
          qualification of the applicant.
     (b) The board may certify that the applicant is
an eligible developer for the purposes of development
of projects approved by the corporation under chapter
171C, HRS, if the board finds that the applicant:
     (1) Has demonstrated compliance with all laws,
          ordinances, rules, and other governmental
          requirements that the applicant is required
          to meet;
     (2) Has the necessary experience;


                        YYY-11
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     (3)  Has adequate and sufficient financial




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          resources and support and has secured or has
          demonstrated the ability to secure a
          performance or payment bond, or other surety
          to develop projects of the size and type
D         which the applicant proposes to develop; and
     (4) Has met all other requirements that the
          corporation determines to be appropriate and
          reasonable.
     (c) The board may certify that the applicant is
an eligible developer for the purposes of development
of projects approved by the corporation under chapter
171C, HRS, if the board [Eff                   ] (Auth:
HRS §171C-4) (Imp: HRS §§171C-4, 171C-8)

     §13-YYY-14 Letter of intent; Memorandum of
understanding. Subject to the final approval of the
proposed project by the board, the administrator may
negotiate and execute a letter or intent, memorandum
of understanding, or other agreement committing
preliminarily to a proposed project if the applicant
is deemed to be an eligible developer pursuant to
section 13-YYY-13 and has provided a preliminary
proposal for the project. For purposes of this
section, "preliminary proposal" means a proposal for a
project that provides sufficient information for the
administrator to determine, on a preliminary basis,
the feasibility and suitability of the project for the
proposed site. [Eff               ](Auth: HRS
§§171C-4) (Imp: HRS §171C-4)

     §13-YYY-15 Community input on project proposals.
An eligible developer shall conduct or participate in
at least one public meeting in the community or
development plan area in which the proposed project is
located to solicit community input on the proposed
project. The public meeting shall take place prior to
corporation action on the project proposal. The
eligible developer shall consult with affected

                        YYY-12
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community groups such as neighborhood boards,




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homeowners' associations, surrounding property owners,
and the council member for the region. [Eff    ](Auth:
HRS §§171C-4) (Imp: HRS §§103-24.6, 171C-4)
D    §13-YYY-16 Project proposal; minimum
requirements. (a) A project proposal, whether
submitted by an applicant or eligible developer, or
initiated by the corporation for development by the
corporation, in order to be considered for approval by
the board for processing under the provisions of
chapter 171C, HRS, shall contain, as the corporation
may determine to be applicable, the following minimum
information:
     (1) Name and address of the eligible developer;
     (2) Evidence that the eligible developer has met
          the requirements of section 13-YYY-13 of
          these rules;
     (3) A master plan of the proposed project, which
          shall show all or as much of the following
          information as may be required by the
          corporation:
          (A) Evidence of site control (such as a
               deed, agreement of sale, commitment
               letter, or development agreement), and
               names and addresses of all legal and
               equitable holders of an interest in the
               land and a complete description of each
               holder's interest in the land;
          (B) An accurate description of the land,
               preferably the metes and bounds,
               boundary description of the property,
               file plan, or preliminary plat, its
               geographic and relative location within
               a larger tract of land, with
               descriptions of adjacent or surrounding
               subdivisions or other improvements on
               land;
          (C) The total area of the proposed project;

                        YYY-13
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      (D)  Site plan showing the general




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           development of the site, including the
           locations and descriptions of proposed
           and existing buildings, parking areas,
           and service areas; unusual site
D          features; proposed and existing major
           streets in and adjacent to the proposed
           project; and proposed and existing
           major drainage facilities;
      (F) Methods of sewage and solid waste
           disposal and sources of water and other
           utilities;
      (G) Description of land contours;
      (H) Location and description of existing
           historical or significant landmarks or
           their natural features within and
           adjacent to the proposed project;
      (I) Description of existing improvements
           within and adjacent to the proposed
           project, as well as off-site and on-
           site infrastructure and improvements
           requirements;
      (J) Proposed and existing uses of each
           phase of the proposed project, and
           existing uses of lots adjacent to the
           proposed project for parks and other
           public places or spaces within
           adjoining properties; and
      (K) Shoreline setbacks as may be required
           by chapter 205A, HRS.
(4)   Preliminary plans and specifications of the
      improvements in the project, including
      number and types of structures, the number
      of stories, any special features or
      amenities, natural resource conservation
      devices and energy efficient designs to be
      utilized, a description of the types of
      indigenous land plant species which shall be


                    YYY-14
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      used for the landscaping of the project, if




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      applicable, and the projected lease
      revenues, if any;
(5)   Proposed financing of the project,
      including:
D     (A) The manner in which the project will be
           financed during the development and
           construction of the project and upon
           completion of the project;
      (B) The sources of repayment of such
           financing;
      (C) Estimated start-up expenses and the
           sources of funds to meet these
           expenses;
      (D) The net equity, if any, which the
           developer intends to contribute to the
           proposed project; and
      (E) Budgets and cashflow requirements;
(6)   Development timetable, market analysis,
      marketing program, and other activities
      relating to a successful development of the
      project to completion;
(7)   Description of the land for the proposed
      project as to present use, soil
      classification, agricultural importance as
      determined by the land evaluation and site
      assessment commission, flood, and drainage
      conditions;
(8)   An assessment of the effects of the
      development of the proposed project upon the
      environment, agriculture, recreational,
      cultural, historic, scenic, flora and fauna,
      or other resources of the area;
(9)   Availability of public services and
      facilities such as schools, sewers, parks,
      water, sanitation, drainage, roads, police
      and fire protection, the adequacy thereof,
      and whether public agencies providing the
      services or facilities would be unreasonably

                    YYY-15
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       burdened by the development of the proposed




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       project;
(10)   Specific requests to the corporation for
       participation by the corporation for
       financial or other assistance, description
D      of the state subsidies required and applied
       for, and financial and other assistance
       provided for by other governmental agencies;
(11)   A summary of comments from the community or
       community groups;
(12)   If the proposal for the development will
       cause early termination of any lease, permit
       or easement and displacement of the holder
       of such interest prior to the existing
       termination date, the proposal shall include
       a relocation program or strategy for such
       displaced person;
(13)   Applicable provisions of existing state and
       county general plans, development plans,
       community development plans, and other
       comparable plans developed or adopted by the
       state or county government in which the
       proposed project is situated, county zoning
       of the area and other applicable land use
       requirements, and if known, any substantial
       difference in the proposed project from the
       respective county general plan or
       development, or community development plan,
       or other county plans and zoning and other
       land use requirements, and the reasons for
       varying from the respective county
       requirements;
(15)   Specific requests for exemption from
       existing laws, charter provisions,
       ordinances and rules relating to the
       proposed project, including requests for
       exemption from subdivision standards and
       building codes, density, height, set back,
       parking, street width, open space, park

                     YYY-16
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         dedication, and other specific land use




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         requirements;
    (16) Any other information that the corporation
         finds necessary to make an environmental
         assessment and to determine whether or not
D        the proposed project complies as closely as
         possible with existing laws, charter
         provisions, ordinances, and rules, and is
         suitable under and meets the intent and
         purposes of chapter 171C, HRS.
         [Eff               ] (Auth: HRS §§171C-4)
         (Imp: HRS §§103-24.6, 171C-4)


     §13-YYY-17 Review of application and project;
criteria for selection of proposals. The
administrator shall review the application and project
proposals to determine if the applicant qualifies by
experience and financial responsibility and support to
develop projects of the size and type proposed to be
developed, and to determine if the proposed project is
responsive to the following criteria, as follows:
     The proposed project:
     (1) Makes or seeks to make optimal use of public
          land for the economic, environmental, or
          social benefit of the people of Hawaii;
     (2) Is culturally and environmentally sensitive
          to the resources and community at or near
          the proposed location,
     (3) Is appropriate and suitable for the
          development at the proposed location;
     (4) Follows existing laws, charter provisions,
          ordinances, and rules and is consistent with
          master plan for the area, as closely as is
          practical;
     (5) Is consistent with minimum standards of good
          planning, zoning, and design;
     (6) Does not adversely affect surrounding
          property;

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    (7)  Does not unduly burden existing water




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         systems, sewage and other waste disposal
         systems, transportation systems, roadway,
         drainage, street lighting, open spaces,
         parks, and other recreational areas, public
D        utilities, and public services, or includes,
         as part of the proposed project, the
         development of such systems, facilities, and
         services at reasonable cost;
    (8) Utilizes natural resources as well as
         energy-conserving devices to the extent
         reasonable and practicable;
    (9) Utilizes indigenous species of plants
         whenever and wherever feasible in the
         landscaping of the project; and
    (10) Meets other minimum requirements established
         by the corporation. [Eff                  ]
         (Auth: HRS §§171C-4) (Imp: HRS §§103-24.6,
         171C-8)

     §13-YYY-18 Processing of proposal. (a) The
administrator shall, upon receipt of an application or
project proposal or both, time stamp the same as
received and review the application for completeness
and compliance with applicable rules under this
subchapter. An incomplete application shall be
returned to the applicant. The administrator shall,
within ninety days of certifying that the application
or project proposal is complete and is in compliance
with sections 13-YYY-23, 13-YYY-24, and 13-YYY-26 of
this subchapter, make a recommendation to the board
for approval, contingent approval or disapproval of
the project proposal. The administrator shall invite
comments from appropriate agencies in the review of
the proposal for appropriateness, technical
compliance, and feasibility.
     (b) Upon recommendation from the administrator
of a proposal for approval, contingent approval, or
disapproval, the board may reject, accept, or defer

                        YYY-18
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the proposal or the board may re-refer the proposal to




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the administrator for further review and
recommendation. [Eff                ] (Auth: HRS
§171C-4) (Imp: HRS §171C-8)
D    §13-YYY-19 Agreement with eligible developer or
contractor; form of agreement. (a) The
administrator, upon approval by the board, may enter
into an agreement with an eligible developer or
contractor, to develop a project.
     (b) The agreement shall be subject to
modification, and shall include, but not be limited to
the following applicable terms, conditions, and
covenants:
     (1) Purpose of the agreement;
     (2) A description of the role and responsibility
          of the corporation, the eligible developer
          or contractor, and other parties to the
          agreement, including the manner of
          compensating each party and the amount of
          profit for work performed;
     (3) Project concept and cost;
     (4) Time required to complete the project,
          including a projected schedule of work
          identifying appropriate milestones to ensure
          timely completion;
     (5) Anticipated rents, if any;
     (6) Construction agreements (when one of the
          parties is a contractor);
     (7) Insurance and bonding or surety
          requirements;
     (8) Inspection requirements and procedures; and
     (9) Such standard clauses that the corporation
          determines to be required, including, but
          not limited to, the following:
          (A) Indemnity;
          (B) Severability;
          (C) Termination; and
          (D) Assignability.

                        YYY-19
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       FT
[Eff      ] (Auth: HRS §§171C-4) (Imp:




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        HRS §171C-8)

D




          YYY-20
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                     SUBCHAPTER 3




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         INDEPENDENT DEVELOPMENT OF PROJECTS
D    §13-YYY-21 Purpose. The purpose of this
subchapter is to establish a procedure for eligible
developers to develop qualified projects pursuant to
agreements with the corporation.
[Eff                ] (Auth: HRS 171C-4) (Imp: HRS
§171C-4)

     §13-YYY-22 Qualified project; determination by
corporation. (a) A project shall be determined to be
culturally and environmentally sensitive to the
resources and community at or near the proposed
location and is appropriate and suitable for the
development at the proposed location, if the project
meets the requirements set forth in section 13-YYY-16,
and in addition meets the following requirements:
     (1) After considering the potential effects of
          the proposed project as provided by Chapter
          343, HRS, and Chapter 11-200, HAR, the Board
          finds that the project will probably have
          minimal or no significant adverse effect on
          the environment or is exempt from the
          preparation of an environmental assessment;
          and
     (2) After considering the potential effects of
          the proposed project on the cultural or
          historical resources and the community at or
          near the proposed location of the project,
          the Board finds that the project will
          probably have minimal or no significant
          adverse effect on those resources and the
          affected community.
     (b) An eligible developer may submit a project
proposal to the corporation for the corporation to
determine if the project is qualified, and whether the

                        YYY-21
12
             FT
corporation is willing to enter into an agreement with




    RA
the eligible developer for the project.
     (c) The project proposal to be submitted by the
eligible developer shall contain the information
required under section 13-YYY-16.
D    (d) An eligible developer shall conduct or
participate in at least one public meeting in the
community or development plan area in which the
proposed project is located to solicit community input
on the proposed project. The public meeting shall
take place prior to corporation action on the project
proposal. The eligible developer shall consult with
affected community groups such as neighborhood boards,
homeowners' associations, surrounding property owners,
and the council member for the region. [Eff         ]
(Auth: HRS §§171C-4) (Imp: HRS §171C-4)

     §13-YYY-23 Required conditions of agreements.
If the corporation determines that the proposed
project is qualified, and the corporation desires to
enter into an agreement with the eligible developer,
the agreement shall include the following conditions:
     (1) That if the corporation or the agency with
          the original jurisdiction or management
          control of the project site will assume
          control of the project upon completion, the
          eligible developer shall furnish a
          performance or material house bond, issued
          by sureties that shall be satisfactory to
          the corporation, in favor of the
          corporation, to assure the timely and
          complete performance of the project; and
     (2) That the project encompasses the use of
          lands adequately suited to size, design, and
          types of uses designated for projects
          primarily designed. [Eff                 ]
          (Auth: HRS §§171C-4) (Imp: HRS §171C-4)



                        YYY-22
12
             FT
     §13-YYY-24 Conditions imposed at discretion of




    RA
corporation. The corporation may include such
conditions as it may deem to be appropriate, to assure
that the project will be developed for the purposes
approved by the Board. [Eff                 ] (Auth:
D
HRS §§171C-4) (Imp: HRS §171C-4)

     §13-YYY-25 Processing of proposal; agreement
with eligible developer. Processing of proposals and
agreements with eligible developers shall be in
accordance with sections 13-YYY-17 and 13-YYY-18.
[Eff               ] (Auth: HRS §§171C-4) (Imp: HRS
§171C-4)




                        YYY-23
12
             FT
       DEPARTMENT OF LAND AND NATURAL RESOURCES




    RA
     The adoption of chapter 13-YYY, Hawaii
Administrative Rules, on the Summary Pages dated
_____________, 2012, took place on ______________,
D
2012, following a public hearing held on ____________,
2012, after public notice was given in the Honolulu
Star-Advertiser, The Garden Island, The Maui News,
West Hawaii Today, and Hawaii Tribune-Herald
newspapers on ____________, 2012.

     The adoption shall take effect ten days after
filing with the Office of the Lieutenant Governor.



                          ______________________________
                          KALBERT K. YOUNG
                          Chairperson
                          Hawaii Public Land
                          Development Corporation

                          APPROVED:



                          _____________________________
                          NEIL ABERCROMBIE
                          Governor
                          State of Hawaii

                          Date:    ______________________

APPROVED AS TO FORM:


_______________________
Deputy Attorney General
                          _____________________________

                          YYY-24
12
    FT
              Filed




RA
D




     YYY-25
12
             FT
    RA
                         FEES

            [Effective _________________]
D
Fees may be charged by the Hawaii Public land
development corporation as follows:

PURPOSE                               AMOUNT CHARGED


Consent to Mortgage                             $250.00
Lease Consent                                   $250.00
Assignment of Lease                             $250.00
Amendment of Lease                              $250.00
Extension of Lease Term                         $250.00
Release of Mortgage                             $250.00
Developer's Non-refundable ____
Application Fee                                 $2,000
Administrative Fee (assessed to       $0 to $2,500 per
developers)**                                     unit
** Fee may be adjusted by the Board
on a case-by-case basis.




                        YYY-26
12
          FT
PURPOSE             AMOUNT CHARGED




    RA
D




           YYY-27

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PLDC_ draft rules_2

  • 1. 12 FT DRAFT 1/17/12 RA HAWAII ADMINISTRATIVE RULES D TITLE 13 DEPARTMENT OF LAND AND NATURAL RESOURCES SUBTITLE AA PUBLIC LAND DEVELOPMENT CORPORATION CHAPTER YYY PUBLIC LAND DEVELOPMENT PROGRAM Subchapter 1 General Provisions §13-YYY-1 Development by corporation §13-YYY-2 Definitions §13-YYY-3 Definitions applied §13-YYY-4 Public information §13-YYY-5 Public meeting or informational hearing §13-YYY-6 Fees §13-YYY-7 Recovery of administrative expenses and attorneys fees Subchapter 2 Development of Projects §13-YYY-11 Purpose §13-YYY-12 Project proposal; who may submit §13-YYY-13 Eligible developer, information required; determination by corporation YYY-1
  • 2. 12 FT §13-YYY-14 Letter of intent; Memorandum of RA understanding §13-YYY-15 Community input on project proposals §13-YYY-16 Project proposal; minimum requirements §13-YYY-17 Review of application and project; D criteria for selection of proposals §13-YYY-18 Processing of proposal §13-YYY-19 Agreement with eligible developer or contractor; form of agreement Subchapter 3 Independent Development of Projects §13-YYY-21 Purpose §13-YYY-22 Qualified project; determination by corporation §13-YYY-23 Required conditions of agreements §13-YYY-24 Conditions imposed at discretion of corporation §13-YYY-25 Processing of proposal; agreement with eligible developer SUBCHAPTER 1 GENERAL PROVISIONS §13-YYY-1 Development role of corporation. The corporation's role in the development of public lands is to make optimal use of public land for the economic, environmental, and social benefit of the people of Hawaii by developing and administering an appropriate and culturally-sensitive public land development program. The corporation shall identify the public lands that are suitable for development, carry on marketing analysis to determine the best YYY-2
  • 3. 12 FT revenue-generating programs for those lands, enter RA into public-private agreements to appropriately develop those lands, and provide the leadership for the development, financing, improvement, or enhancement of the selected development opportunities. D The corporation may provide property management services that are ancillary to its development activities. [Eff ](Auth: HRS §§171C-1, 171C-3, 171C-4, 171C-6) §13-YYY-2 Definitions. (a) As used in this chapter, unless the context requires otherwise: "Administrator" means the executive director employed by the board or the executive director's designated representative. "Applicant" means the person proposing a project for consideration by the board. "Application" means the application submitted to the board for a proposed project. "Assets" means total cash, securities, and real and personal property less any outstanding liabilities secured by the assets. "Board" means the board of directors of the Hawaii public land development corporation established under chapter 171C, HRS. "Chairperson" means the chairperson of the board of directors of the Hawaii public land development corporation. "Contractor" means a general engineering contractor or general building contractor licensed under chapter 444, HRS. "Corporation" means the Hawaii public land development corporation established under chapter 171C, HRS. "County" includes the counties of Kauai, Maui, Hawaii, and the city and county of Honolulu, and unless the context requires a different meaning, it YYY-3
  • 4. 12 FT shall mean the county in which the project is RA situated. "Culturally sensitive" means being sensitive to the culture and history of the lands to be developed. "Department" means that department of land and D natural resources. "Develop" or "development" means the planning, financing, acquisition of real property, demolition of existing structures, clearance of real property, construction, reconstruction, alteration, or repairing of approaches, streets, sidewalks, utilities, and services or other site improvements, or construction, reconstruction, repair, remodeling, extension, equipment, or furnishing of buildings or other structures or any combination of the foregoing, of any project. It also includes any and all undertakings necessary therefor. "Eligible developer" means an individual, partnership, cooperative, including limited equity housing cooperatives (as defined in chapter 421H, HRS), firm, nonprofit or profit corporation, limited liability company, or public agency which the corporation has determined: (1) To be qualified by experience and financial responsibility and support to construct improvements of the type described and of the magnitude encompassed by the given project; (2) To have submitted plans for a project adequately meeting the objectives of chapter 171C, HRS, the maintenance of aesthetic values in the locale of the project, and the requirements of all applicable environmental statutes and rules; and (3) To meet all other requirements that the corporation deems to be just and reasonable, and all other requirements provided in chapter 171C, HRS, and these rules. "HRS" means the Hawaii Revised Statutes. YYY-4
  • 5. 12 FT "Improvement" means an addition, renovation, RA replacement, repairs or maintenance which enhances the value of the property, and for which labor and capital are expended. "Party" means each person or agency named or D admitted as a party. "Person" means as appropriate individuals, partnerships, corporations, associations, or public or private organizations of any character other than agencies. "Petitioner" means the person or agency on whose behalf a petition or application is made. "Plans and specifications" includes construction plans and specifications and any other documents that may be required by the county in the processing of the plans and specifications for the issuance of permits for construction and building of improvements within a project. "Project" means a plan, design, or undertaking by the corporation or an eligible developer for the development or improvement of public lands under chapter 171C, HRS, and includes all real and personal property, buildings and improvements, commercial space, lands for farming and gardening, community facilities acquired or constructed or to be acquired or constructed, and all tangible or intangible assets held or used in connection with such development or improvement. "Qualified appraiser" means a real estate appraiser licensed or certified to practice in the State of Hawaii subject to the requirements of section 466K-4, Hawaii Revised Statutes. "Rules" means these rules. "State" means the State of Hawaii. "Subdivision and construction documents" includes all subdivision documents and plans and specifications. "Subdivision documents" includes preliminary maps, final maps, subdivision construction plans and YYY-5
  • 6. 12 FT specifications, and any other document that may be RA required by the State or county in the processing of applications and permits relating to the development of the project. "Subsidies" means the difference between all D costs expended by the corporation, less any recoveries by the corporation. It also includes unrecovered development, land, financing and carrying costs. "Value" means the value of a property as determined by a qualified appraiser. [Eff ] (Auth: HRS §171C-4)(Imp: HRS §§171C-4) §13-YYY-3 Definitions applied. (a) Unless otherwise specifically stated, the terms used in the rules adopted by the board pursuant to powers granted by statute shall have the meanings given them by such statutes. (b) A rule which defines a term without express reference defines the terms for all purposes as used both in the statute and in these rules, unless the context otherwise specifically requires. [Eff ] (Auth: HRS §171C-4) (Imp: HRS §171C-4) §13-YYY-4 Development by corporation. (a) The corporation may develop projects in accordance with the provisions of chapter 171C, HRS: (1) On its own behalf; (2) On behalf of any other government agency; or (3) With an eligible developer or contractor. (b) The corporation may establish preferences and other necessary requirements and conditions for such projects on a project-by-project basis. [Eff ](Auth: HRS §171C-4) (Imp: HRS §§171C-4, 171C-6, 171C-8) YYY-6
  • 7. 12 FT RA §13-YYY-5 Public information. The administrator may disseminate information and render assistance to the public in order that the provisions of the programs of the corporation may be understood and D implemented effectively. [Eff ] (Auth: HRS §171C-4) (Imp: HRS §171C-4) §13-YYY-6 Fees. The corporation shall have the right to charge reasonable fees for processing any instrument or taking any action required under this chapter. These fees shall be nonrefundable. Such fees shall be as prescribed by the exhibit at the end of this chapter entitled "Fees", dated _____________, and may by amended by the board. [Eff ] (Auth: HRS §§171C-4) (Imp: HRS §§171C-4) §13-YYY-7 Recovery of administrative expenses and attorneys fees. The corporation may recover all relevant administrative expenses and attorneys' fees from the developer in administering and implementing this chapter. [Eff ] (Auth: HRS §171C-4) (Imp: HRS §171C-4) SUBCHAPTER 2 DEVELOPMENT OF PROJECTS §13-YYY-11 Purpose. The purpose of this subchapter is to establish a procedure for the corporation to initiate, by itself or with an eligible developer or contractor, or to enter into agreements with eligible developers or contractors for the development of projects. This subchapter shall govern YYY-7
  • 8. 12 FT the development of real property and the construction RA of improvements thereon. [Eff ] (Auth: HRS Chapter 171C) (Imp: HRS §171C-4) §13-YYY-12 Project proposal; who may submit. D Any individual, partnership, profit or nonprofit corporation, or public agency, upon having filed application with the corporation as required by section 13-YYY-13, may submit project proposals for review and certification by the corporation. [Eff ] (Auth: HRS §171C-4) (Imp: HRS §§171C-4, 171C-6, 171C-8) §13-YYY-13 Eligible developer, information required; determination by corporation. (a) An individual, partnership, limited liability company, cooperative, firm, a profit or a nonprofit corporation, or a public agency that desires to be considered to develop a project, either together with the corporation or independent of the corporation, and who in connection with the development of a project, will need assistance such as acquisition of land or development rights to land, financing, subsidies, exemptions from general excise taxes, or expedited processing of a project under the provisions of chapter 171C, HRS, and the rules promulgated thereunder, shall submit to the corporation an application, on forms provided by the corporation, along with any additional information that the corporation determines to be applicable. Information requested may include, but is not necessarily limited to: (1) Name, address, email address, and telephone number of the applicant and each member of the project team, and evidence of the applicant's status as a corporation, partnership, joint venture, sole YYY-8
  • 9. 12 FT proprietorship or other business RA organization; (2) A summary of the role and responsibilities of each team member as it pertains to the project; D (3) If the applicant is a corporation, certified copies of the articles of incorporation, and the names, addresses, email addresses, and telephone numbers of each of the officers and directors of the corporation, and of any shareholder of the corporation holding more than twenty-five per cent of the outstanding shares issued by the corporation. If the applicant is a partnership, joint venturer, or sole proprietorship, certified copies of the partnership agreement, joint venture agreement or evidence of ownership, as applicable, and the names, addresses, email addresses, and telephone numbers of each of the individual partners, joint venturers, or owners; (4) A resume of the applicant's experience in the development of projects including a list and a brief description of the projects in which the applicant participated; (5) The name, title, address, email address, and telephone number of the person to whom communications should be addressed; (6) Evidence of the applicant's legal authority to incur obligations and to sign and deliver such documents as may be necessary to finance, develop, and construct the project; (7) A current certificate of good standing from the department of commerce and consumer affairs, tax clearance from the department of taxation, and certification of compliance with department of labor and industrial relations requirements; YYY-9
  • 10. 12 FT (8) Evidence of the applicant's capability to RA develop, own, manage, and provide appropriate services in connection with the project; (9) Evidence of the applicant's credit D worthiness including the following financial information, which shall be kept confidential to the extent permitted by law: (A) The most recent year's financial statements. If the statements are unaudited, tax returns shall be provided. In the event the applicant is an entity not yet formed, federal and state tax returns and financial statements for the previous year of the principals, or additional information the corporation may require; (B) Interim balance sheets and income statements of the applicant and principal developer if the fiscal year- end data is over nine months old; (C) Tax returns if the applicant or guarantor is an individual; (D) Articles of incorporation, bylaws, resolutions, and certificates of good standing as are appropriate to support corporate actions; (E) Evidence of up front capitalization sufficient to demonstrate the developer's ability to complete the project; and (F) Any other financial data deemed appropriate by the corporation for proper credit-worthiness analysis; provided the board may accept alternate evidence for items (A), (B), (C), (D) and (E) that it determines to be appropriate for establishing credit worthiness; YYY-10
  • 11. 12 FT (10) The applicant's ties to the community and RA support from local community groups; (11) Description of all projects or facilities owned or operated by the applicant; (12) A description of any financial default, D modification of terms and conditions of financing, or legal action taken or pending against the applicant or its principals; (13) A description of the applicant's past or current business experience or involvement in any programs or of its provision of services, if any, that would give evidence of the applicant's management capabilities; (14) Evidence of ability to secure the necessary performance or payment bond or other evidence of surety and the ability to perform the work required to be performed in the proposed project; (15) A statement of the applicant's past or current involvement with the corporation or its predecessors, and the assistance, if any, received from those entities; (16) A project proposal in substantial compliance with section 13-YYY-16, which the applicant intends to submit to the corporation for approval; and (17) Any other information that the corporation deems necessary to determine the qualification of the applicant. (b) The board may certify that the applicant is an eligible developer for the purposes of development of projects approved by the corporation under chapter 171C, HRS, if the board finds that the applicant: (1) Has demonstrated compliance with all laws, ordinances, rules, and other governmental requirements that the applicant is required to meet; (2) Has the necessary experience; YYY-11
  • 12. 12 FT (3) Has adequate and sufficient financial RA resources and support and has secured or has demonstrated the ability to secure a performance or payment bond, or other surety to develop projects of the size and type D which the applicant proposes to develop; and (4) Has met all other requirements that the corporation determines to be appropriate and reasonable. (c) The board may certify that the applicant is an eligible developer for the purposes of development of projects approved by the corporation under chapter 171C, HRS, if the board [Eff ] (Auth: HRS §171C-4) (Imp: HRS §§171C-4, 171C-8) §13-YYY-14 Letter of intent; Memorandum of understanding. Subject to the final approval of the proposed project by the board, the administrator may negotiate and execute a letter or intent, memorandum of understanding, or other agreement committing preliminarily to a proposed project if the applicant is deemed to be an eligible developer pursuant to section 13-YYY-13 and has provided a preliminary proposal for the project. For purposes of this section, "preliminary proposal" means a proposal for a project that provides sufficient information for the administrator to determine, on a preliminary basis, the feasibility and suitability of the project for the proposed site. [Eff ](Auth: HRS §§171C-4) (Imp: HRS §171C-4) §13-YYY-15 Community input on project proposals. An eligible developer shall conduct or participate in at least one public meeting in the community or development plan area in which the proposed project is located to solicit community input on the proposed project. The public meeting shall take place prior to corporation action on the project proposal. The eligible developer shall consult with affected YYY-12
  • 13. 12 FT community groups such as neighborhood boards, RA homeowners' associations, surrounding property owners, and the council member for the region. [Eff ](Auth: HRS §§171C-4) (Imp: HRS §§103-24.6, 171C-4) D §13-YYY-16 Project proposal; minimum requirements. (a) A project proposal, whether submitted by an applicant or eligible developer, or initiated by the corporation for development by the corporation, in order to be considered for approval by the board for processing under the provisions of chapter 171C, HRS, shall contain, as the corporation may determine to be applicable, the following minimum information: (1) Name and address of the eligible developer; (2) Evidence that the eligible developer has met the requirements of section 13-YYY-13 of these rules; (3) A master plan of the proposed project, which shall show all or as much of the following information as may be required by the corporation: (A) Evidence of site control (such as a deed, agreement of sale, commitment letter, or development agreement), and names and addresses of all legal and equitable holders of an interest in the land and a complete description of each holder's interest in the land; (B) An accurate description of the land, preferably the metes and bounds, boundary description of the property, file plan, or preliminary plat, its geographic and relative location within a larger tract of land, with descriptions of adjacent or surrounding subdivisions or other improvements on land; (C) The total area of the proposed project; YYY-13
  • 14. 12 FT (D) Site plan showing the general RA development of the site, including the locations and descriptions of proposed and existing buildings, parking areas, and service areas; unusual site D features; proposed and existing major streets in and adjacent to the proposed project; and proposed and existing major drainage facilities; (F) Methods of sewage and solid waste disposal and sources of water and other utilities; (G) Description of land contours; (H) Location and description of existing historical or significant landmarks or their natural features within and adjacent to the proposed project; (I) Description of existing improvements within and adjacent to the proposed project, as well as off-site and on- site infrastructure and improvements requirements; (J) Proposed and existing uses of each phase of the proposed project, and existing uses of lots adjacent to the proposed project for parks and other public places or spaces within adjoining properties; and (K) Shoreline setbacks as may be required by chapter 205A, HRS. (4) Preliminary plans and specifications of the improvements in the project, including number and types of structures, the number of stories, any special features or amenities, natural resource conservation devices and energy efficient designs to be utilized, a description of the types of indigenous land plant species which shall be YYY-14
  • 15. 12 FT used for the landscaping of the project, if RA applicable, and the projected lease revenues, if any; (5) Proposed financing of the project, including: D (A) The manner in which the project will be financed during the development and construction of the project and upon completion of the project; (B) The sources of repayment of such financing; (C) Estimated start-up expenses and the sources of funds to meet these expenses; (D) The net equity, if any, which the developer intends to contribute to the proposed project; and (E) Budgets and cashflow requirements; (6) Development timetable, market analysis, marketing program, and other activities relating to a successful development of the project to completion; (7) Description of the land for the proposed project as to present use, soil classification, agricultural importance as determined by the land evaluation and site assessment commission, flood, and drainage conditions; (8) An assessment of the effects of the development of the proposed project upon the environment, agriculture, recreational, cultural, historic, scenic, flora and fauna, or other resources of the area; (9) Availability of public services and facilities such as schools, sewers, parks, water, sanitation, drainage, roads, police and fire protection, the adequacy thereof, and whether public agencies providing the services or facilities would be unreasonably YYY-15
  • 16. 12 FT burdened by the development of the proposed RA project; (10) Specific requests to the corporation for participation by the corporation for financial or other assistance, description D of the state subsidies required and applied for, and financial and other assistance provided for by other governmental agencies; (11) A summary of comments from the community or community groups; (12) If the proposal for the development will cause early termination of any lease, permit or easement and displacement of the holder of such interest prior to the existing termination date, the proposal shall include a relocation program or strategy for such displaced person; (13) Applicable provisions of existing state and county general plans, development plans, community development plans, and other comparable plans developed or adopted by the state or county government in which the proposed project is situated, county zoning of the area and other applicable land use requirements, and if known, any substantial difference in the proposed project from the respective county general plan or development, or community development plan, or other county plans and zoning and other land use requirements, and the reasons for varying from the respective county requirements; (15) Specific requests for exemption from existing laws, charter provisions, ordinances and rules relating to the proposed project, including requests for exemption from subdivision standards and building codes, density, height, set back, parking, street width, open space, park YYY-16
  • 17. 12 FT dedication, and other specific land use RA requirements; (16) Any other information that the corporation finds necessary to make an environmental assessment and to determine whether or not D the proposed project complies as closely as possible with existing laws, charter provisions, ordinances, and rules, and is suitable under and meets the intent and purposes of chapter 171C, HRS. [Eff ] (Auth: HRS §§171C-4) (Imp: HRS §§103-24.6, 171C-4) §13-YYY-17 Review of application and project; criteria for selection of proposals. The administrator shall review the application and project proposals to determine if the applicant qualifies by experience and financial responsibility and support to develop projects of the size and type proposed to be developed, and to determine if the proposed project is responsive to the following criteria, as follows: The proposed project: (1) Makes or seeks to make optimal use of public land for the economic, environmental, or social benefit of the people of Hawaii; (2) Is culturally and environmentally sensitive to the resources and community at or near the proposed location, (3) Is appropriate and suitable for the development at the proposed location; (4) Follows existing laws, charter provisions, ordinances, and rules and is consistent with master plan for the area, as closely as is practical; (5) Is consistent with minimum standards of good planning, zoning, and design; (6) Does not adversely affect surrounding property; YYY-17
  • 18. 12 FT (7) Does not unduly burden existing water RA systems, sewage and other waste disposal systems, transportation systems, roadway, drainage, street lighting, open spaces, parks, and other recreational areas, public D utilities, and public services, or includes, as part of the proposed project, the development of such systems, facilities, and services at reasonable cost; (8) Utilizes natural resources as well as energy-conserving devices to the extent reasonable and practicable; (9) Utilizes indigenous species of plants whenever and wherever feasible in the landscaping of the project; and (10) Meets other minimum requirements established by the corporation. [Eff ] (Auth: HRS §§171C-4) (Imp: HRS §§103-24.6, 171C-8) §13-YYY-18 Processing of proposal. (a) The administrator shall, upon receipt of an application or project proposal or both, time stamp the same as received and review the application for completeness and compliance with applicable rules under this subchapter. An incomplete application shall be returned to the applicant. The administrator shall, within ninety days of certifying that the application or project proposal is complete and is in compliance with sections 13-YYY-23, 13-YYY-24, and 13-YYY-26 of this subchapter, make a recommendation to the board for approval, contingent approval or disapproval of the project proposal. The administrator shall invite comments from appropriate agencies in the review of the proposal for appropriateness, technical compliance, and feasibility. (b) Upon recommendation from the administrator of a proposal for approval, contingent approval, or disapproval, the board may reject, accept, or defer YYY-18
  • 19. 12 FT the proposal or the board may re-refer the proposal to RA the administrator for further review and recommendation. [Eff ] (Auth: HRS §171C-4) (Imp: HRS §171C-8) D §13-YYY-19 Agreement with eligible developer or contractor; form of agreement. (a) The administrator, upon approval by the board, may enter into an agreement with an eligible developer or contractor, to develop a project. (b) The agreement shall be subject to modification, and shall include, but not be limited to the following applicable terms, conditions, and covenants: (1) Purpose of the agreement; (2) A description of the role and responsibility of the corporation, the eligible developer or contractor, and other parties to the agreement, including the manner of compensating each party and the amount of profit for work performed; (3) Project concept and cost; (4) Time required to complete the project, including a projected schedule of work identifying appropriate milestones to ensure timely completion; (5) Anticipated rents, if any; (6) Construction agreements (when one of the parties is a contractor); (7) Insurance and bonding or surety requirements; (8) Inspection requirements and procedures; and (9) Such standard clauses that the corporation determines to be required, including, but not limited to, the following: (A) Indemnity; (B) Severability; (C) Termination; and (D) Assignability. YYY-19
  • 20. 12 FT [Eff ] (Auth: HRS §§171C-4) (Imp: RA HRS §171C-8) D YYY-20
  • 21. 12 FT SUBCHAPTER 3 RA INDEPENDENT DEVELOPMENT OF PROJECTS D §13-YYY-21 Purpose. The purpose of this subchapter is to establish a procedure for eligible developers to develop qualified projects pursuant to agreements with the corporation. [Eff ] (Auth: HRS 171C-4) (Imp: HRS §171C-4) §13-YYY-22 Qualified project; determination by corporation. (a) A project shall be determined to be culturally and environmentally sensitive to the resources and community at or near the proposed location and is appropriate and suitable for the development at the proposed location, if the project meets the requirements set forth in section 13-YYY-16, and in addition meets the following requirements: (1) After considering the potential effects of the proposed project as provided by Chapter 343, HRS, and Chapter 11-200, HAR, the Board finds that the project will probably have minimal or no significant adverse effect on the environment or is exempt from the preparation of an environmental assessment; and (2) After considering the potential effects of the proposed project on the cultural or historical resources and the community at or near the proposed location of the project, the Board finds that the project will probably have minimal or no significant adverse effect on those resources and the affected community. (b) An eligible developer may submit a project proposal to the corporation for the corporation to determine if the project is qualified, and whether the YYY-21
  • 22. 12 FT corporation is willing to enter into an agreement with RA the eligible developer for the project. (c) The project proposal to be submitted by the eligible developer shall contain the information required under section 13-YYY-16. D (d) An eligible developer shall conduct or participate in at least one public meeting in the community or development plan area in which the proposed project is located to solicit community input on the proposed project. The public meeting shall take place prior to corporation action on the project proposal. The eligible developer shall consult with affected community groups such as neighborhood boards, homeowners' associations, surrounding property owners, and the council member for the region. [Eff ] (Auth: HRS §§171C-4) (Imp: HRS §171C-4) §13-YYY-23 Required conditions of agreements. If the corporation determines that the proposed project is qualified, and the corporation desires to enter into an agreement with the eligible developer, the agreement shall include the following conditions: (1) That if the corporation or the agency with the original jurisdiction or management control of the project site will assume control of the project upon completion, the eligible developer shall furnish a performance or material house bond, issued by sureties that shall be satisfactory to the corporation, in favor of the corporation, to assure the timely and complete performance of the project; and (2) That the project encompasses the use of lands adequately suited to size, design, and types of uses designated for projects primarily designed. [Eff ] (Auth: HRS §§171C-4) (Imp: HRS §171C-4) YYY-22
  • 23. 12 FT §13-YYY-24 Conditions imposed at discretion of RA corporation. The corporation may include such conditions as it may deem to be appropriate, to assure that the project will be developed for the purposes approved by the Board. [Eff ] (Auth: D HRS §§171C-4) (Imp: HRS §171C-4) §13-YYY-25 Processing of proposal; agreement with eligible developer. Processing of proposals and agreements with eligible developers shall be in accordance with sections 13-YYY-17 and 13-YYY-18. [Eff ] (Auth: HRS §§171C-4) (Imp: HRS §171C-4) YYY-23
  • 24. 12 FT DEPARTMENT OF LAND AND NATURAL RESOURCES RA The adoption of chapter 13-YYY, Hawaii Administrative Rules, on the Summary Pages dated _____________, 2012, took place on ______________, D 2012, following a public hearing held on ____________, 2012, after public notice was given in the Honolulu Star-Advertiser, The Garden Island, The Maui News, West Hawaii Today, and Hawaii Tribune-Herald newspapers on ____________, 2012. The adoption shall take effect ten days after filing with the Office of the Lieutenant Governor. ______________________________ KALBERT K. YOUNG Chairperson Hawaii Public Land Development Corporation APPROVED: _____________________________ NEIL ABERCROMBIE Governor State of Hawaii Date: ______________________ APPROVED AS TO FORM: _______________________ Deputy Attorney General _____________________________ YYY-24
  • 25. 12 FT Filed RA D YYY-25
  • 26. 12 FT RA FEES [Effective _________________] D Fees may be charged by the Hawaii Public land development corporation as follows: PURPOSE AMOUNT CHARGED Consent to Mortgage $250.00 Lease Consent $250.00 Assignment of Lease $250.00 Amendment of Lease $250.00 Extension of Lease Term $250.00 Release of Mortgage $250.00 Developer's Non-refundable ____ Application Fee $2,000 Administrative Fee (assessed to $0 to $2,500 per developers)** unit ** Fee may be adjusted by the Board on a case-by-case basis. YYY-26
  • 27. 12 FT PURPOSE AMOUNT CHARGED RA D YYY-27