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DLNR Testimony
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participants, regarding the need to account for OHA's and DHHL's share of certain public land <br /> revenues: <br /> By amending page 15, lines 3-5, to read as follows: <br /> "(1) Notwithstanding section 171-19, and subject to the Hawaiian Homes Commission <br /> Act of 1920, as amended, and section 5(f) of the Admission Act of 1959, fifty <br /> per cent of the revenues, income, and receipts of the department from the <br /> public lands in the designated district;" <br /> By amending page 17, line 6, to read as follows: <br /> "(1) Subject to the Hawaiian Homes Commission Act of 1920, as amended, and section <br /> 5(f) of the Admission Act of 1959, fifty per cent of the revenues, income, and <br /> receipts" <br /> And by amending the language found on page 27, lines 8-10, to read as follows: <br /> "(1) Describe the land subject to the development agreement, including the location, <br /> area, and size of the land, and whether the land is subject to section 5(f) of the <br /> Admission Act of 1959 or section 1 of the Hawaiian Homes Commission Act of <br /> 1920, as amended;" <br /> 3. Rent reductions or waivers for public land leases that require the removal of <br /> improvements should be applied only after the set aside of the amounts to which OHA <br /> and DHHL may be entitled, and rent reductions or waivers for the provision of <br /> infrastructure should be commensurate with the equity in such improvements to be <br /> recaptured by the state. <br /> Finally, OHA appreciates this measure's intent to provide the Board of Land and Natural <br /> Resources with flexibility in adjusting or waiving lease rent, based on a lessee's investments in <br /> removing old improvements or installing basic infrastructure. However, OHA notes that reductions in <br /> rent to facilitate the removal of old or dilapidated improvements that the state, as a prudent <br /> landowner and fiduciary, should have required of previous lessees, should not diminish public land <br /> revenue amounts to which OHA or DHHL would be otherwise entitled. As noted above, the state <br /> holds specific fiduciary obligations in its administration of lands, including public trust lands and <br /> "ceded" lands, with Native Hawaiians and the public as specifically named beneficiary classes. A <br /> failure on the state's part to apply basic principles of due diligence and prudence in requiring <br /> previous lessees to remove old and unwanted improvements should not be used to reduce the <br /> benefits that would otherwise be realized by its beneficiaries. Accordingly, OHA respectfully requests <br /> amendments that ensure that any reduction or waiver in rent for lessee's removal of improvements <br /> take place only after the set aside of amounts to which OHA and DHHL may be entitled. <br /> In addition, OHA notes that in some instances, rent reductions or waivers of up to 20 years <br /> may approach or exceed the useful life of certain types of infrastructure installed by lessees. In such <br /> cases, the full benefit of such infrastructure would be realized by lessees, with little to no equity left <br />
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