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HomeMy WebLinkAboutORD 1978-364 1976-1980BILL No. 392 COUNTY OF HAWAII - STATE OF HAWAII ORDINANCE N0.- 36 AN ORDINANCE AMENDING CHAPTER 2, ARTICLE 9, HAWAII COUNTY CODE, AS AMENDED, PROVIDING PROCEDURES FOR THE DISPOSITION OF REAL PROPERTY OWNED BY THE COUNTY OF HAWAII. BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAII: SECTION 1. Chapter 2, Article 9, Hawaii County Code, as amended (Ordinance No. 69, adopted on October 23, 1974), is hereby amended as follows: "ARTICLE 9 DISPOSITION [AND ACQUISITION] OF REAL PROPERTY "SEC. 1. DEFINITIONS. "As used in this article, unless the context clearly requires otherwise: "A. ['Real property' includes lands and structures or fixtures permanently attached thereto, owned by the County of Hawaii.] 'Lease' means the right to possess and use real property for a term of one year or more. "B. ['Lease' means the right to possess and use real property for a term of one year or more.] 'Real property' includes lands and structures or fixtures permanently attached thereto, owned b~ the County of Hawaii. "C. 'Remnant' means a parcel of land economical or physically unsuitable or undesirable for development or utilization as a separate unit ~ reason of location, size, shape, or other characteristics. A remnant m~ be: "(1) Land acquired which is in excess of the needs for which acquired; "(2) Vacated, closed, abandoned, or discontinued road, street or alley or walk, ditch, or other right- of-way. "SEC. 2, DISPOSITION OF REAL PROPERTY. "Except as otherwise provided by law and subject to other provisions of this article, the County Council may, by resolution approved by a majority of its members, direct the Finance Director or Chief Engineer: "A. To dispose of real property in fee simple [or] , by lease[;] license, or permit; "B. To grant easement for particular purposes, subject, however, to reverter to the county upon termination or abandonment of the specific purpose for which it was granted[.] provided that any easement m~ be granted by direct: negotiation and without recourse to public auction when the sale price of such easement is less than $1,000. "C. To exchange real property for private property. "SEC. 3. AUCTION. Unless the County Council finds substantial reasons to dispose of real property in some other manner, all disposition of real property shall be made at public auction, after public notice as provided in Sec. 7. All such auctions shall be held at the main entrance of the county building in which the main office of the Department of Finance is located or at such other place as is convenient in the district in which the real property is located, and shall be conducted by the Finance Director or by his authorized representative. ~, "SEC. 4. SEALED BIDS. "Whenever real property are to be sold or leased by call for sealed bids, the Finance Director shall notify by publication for a call for bids as provided in Sec. 7 with such details concerning the call for bids as he shall deem necessary and desirable. All bids shall be sealed and delivered to the Finance Director and shall be opened by him at the time and place stated in the call for bids. The Finance Director may reject azzy or all bids and waive any defects when in his opinion such rejection or waiver will be for the best interest of the public. "SEC. 5. NEGOTIATION. "A. Real property may be sold or leased through negotiation upon a finding by the County Council that the public interest demands it. "B. After a determination is made to negotiate the disposition, the Finance Director shall: "(1) Give public notice, in accordance with the procedure set forth in Sec. 7 of the County's intention to sell or lease real property through negotiation setting forth the minimum conditions thereunder. "(2) Establish reasonable criteria for the selection of the buyer or lessee. "(3) Determine the applicants who meet the criteria for selection, and notify all applicants of his 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 were followed; provided that, if any applicant does not notify the Finance Director 3. of his objections, and the grounds therefor, in writing, within twenty days of the receipt of the notice, he shall be barred from proceeding to seek legal remedy for any alleged failure of the Finance Director to follow the conditions and criteria. "C. If only one applicant meets the criteria for selection of the buyer or lessee, the Finance Director may, after notice as provided in Section SB(3) above, dispose of the real property by negotiation. If two or more applicants meet the criteria for the selection of the buyer or lessee, the Finance Director shall select the buyer or lessee who submits the highest offer contained in a sealed bid deposited with the Finance Director. "SEC. 6. EXCHANGES. "A. No exchange of real property for private property shall be made except for public purposes, including, but not limited to: (1) Consolidation of holdings of real property; (2) Straightening of boundaries of real property; or (3) Acquisition of adequate access for landlocked real property which have development potential. "B. Exchanges shall be effected without public auction. Public notice of any proposed exchange shall be given in accordance with the applicable provisions set forth in Sec. 7. "C. The real property exchanged shall be of substantially equal value to that of private land. In a~ exchange, the fair market value of the private land and the County-owned land shall be separately determined ~ a disinterested qualified 4. appraiser or appraisers and the cost thereof shall be borne equally between owner and the County. "SEC. 7. NOTICES. "A. Auctions. Notice of any proposed disposition by auction shall be published at least once in each of three successive weeks in a newspaper of general circulation in the county, the last publication to be not less than five days before the date of the auction. Notice of the auction shall contain the following: "(1) Time and place of auction; "(2) General description of the real property, including the address and tax map key; "(3) Specific use for which the disposition is intended; and "(4) Upset price or lease rental to be charged. The maps showing the metes and bounds description and the classi- fication of the land shall be kept in the Office of the Finance Director and shall be open for inspection at all reasonable hours. "B. Sealed Bids. Notice of any proposed disposition by sealed bids shall be published at least once in each of three successive weeks in a newspaper of general circulation in the county, the last publication to be not less than five days before the date set for the receipt of proposals. Notice of the call for sealed bids shall contain the following: "(1) Time and place for opening of sealed bids; "(2) General description of the real property, including the address and tax map key; "(3) Location where bid blanks and specifications may be secured. 5. "When deemed necessary by the Finance Director, bid deposits shall be prescribed in the public notices inviting bids. Unsuccessful bidders shall be entitled to return of bid deposits when the Finance Director has required such. A successful bidder shall forfeit any bid deposit required by the Finance Director upon failure on his part to enter into a required contract within ten days after the award. "C. Negotiation. Notice of a proposed disposition by negotiation shall be published at least once in each of three successive weeks in a newspaper of general circulation in the county. Such notice shall invite proposals anct state in general terms the size, location, and prices or lease rental of real property to be sold or leased, the terms of sale or lease, and the last date on which application will be received by the Finance Director, which date shall not be less than thirty days after the last date of publication of the notice. The notice shall also state the times and places at which more detailed information with respect to the sale or lease may be secured by interested persons. "D. Exchanges. Public notice of disposition of real property by a proposal to exchange real property for private property pursuant to Sec. 6 shall be published at least once in each of three successive weeks in a newspaper of general circulation in the county. The notice shall state in general terms the size and location of the public lands proposed to be disposed. "E. Notices are not required for license, ep rmits, disposition of remnants, and disposition to government agencies. 6. "SEC. 8. APPRAISALS. "A. Public Auction and Sealed Bids. The appraisal of real property for sale or lease at public auction or by sealed bids for the determination of the upset price may be performed by an employee of tl7e county qualified to appraise lands, or by a disinterested appraiser whose services shall be contracted for by the county. No such real property shall be sold or leased for a sum less than the value fixed by appraisal; provided, that for any sale or lease at public auction or by sealed bids, the=_ Finance Director may establish the upset sale or lease rental price at less than the appraisal value and the real property may be sold or leased at that price. "B. Negotiation. The sale price or lease rental of real property to be disposed of by negotiation shall be no less than the value determined by a disinterested appraiser whose services shall be contracted for by the county. "[D.] C. Whenever more than one appraiser is appointed each shall prepare and submit an independent appraisal. [All appraisal reports shall be available for study by the public.] "SEC. 9. REMNANTS. "A. No ap rcel shall be disposed of as a remnant solel for the reason that it lacks an adequate access. "B. Remnants or portions thereof may be disposed of without recourse to public auction in the manner set forth herein. ~ remnant or portion thereof to be disposed of shall be first offered for sale to the abutting owner for a reasonable period of time at a reasonable rp ice based on appraised value. If there is more than one abutting owner 7. who is interested in purchasing: the remnant, the remnant m~ be subdivided and a portion thereof sold to each abutting owner at the appraised value. "C. The value of the remnant or portion thereof shall be appraised by an independent appraiser, which appraisal shall take into consideration t:he limited market for the remnant and the resulting enhancement to an abutting owner's pro ert by the addition of the remnant. "SEC. 10. LICENSES AND PERMITS. "A. The Coin Council may, after consulting with the Chief Engineer, direct the Finance Director to issue licenses and hermits through negotiation and without public auction for the temporary occupancy of County-owned lands or interest therein under such conditions which will serve the best interests of the County, subject, however, to such restrictions as m~ from time to time be expressly provided ~ law. Such permit on a month-to-month basis m~ continue for a period not to exceed one (1) year from the date of its issuance; provided, that the Finance Director m~ allow the permit to continue on a month-to-month basis for additional one (1) year periods. "B. The County Council mom, after consulting with the Chief of Police, direct the Chief Engineer to issue licenses and permits through negotiation and without public auction to enter and occu y public highways and other rights-of-way owned, maintained and/or under the jurisdiction of the County, subject, however, to such restrictions, conditions and terms which will best serve the interests of the County and the general public. 8. "SEC. 11. DISPOSITION TO GOVERNMENTS AND GOVERNMENTAL AGENGTES_ "A. Notwithstanding a~ limitations to the contrary, the County Council may, ~ resolution approved b~ a majority of its members, direct the Finance Director to negotiate the disposition of real property b~: "(1) Selling it in fee simple at such price and on such terms and conditions deemed rp oper to governments and governmental agencies authorized to hold lands in fee simple; "(2) Leasing it to overnments and governmental agencies at such rentals and on such terms and conditions as deemed proper; "(3) Exchanging it for public lands owned ~ governments and governmental agencies. "(4) Granting licenses and easements to governments and governmental agencies on such terms and conditions as deemed proper. "B. All disposition of real property to governments and governmental agencies m~ be made without public notice as provided in Sec. 7." SECTION 2. Statutory material to be repealed is bracketed. New material is underscored. When incorporating this ordinance into the Hawaii County Code, the incorporator need not include the brackets, bracketed material or the underscoring. 9. Hilo, Hawaii n..re. Mav 1R 197ft FIRST READING AYES NOES A/E Dahlberg X Domingo X Fujil X Garcia X Kawahara X Lai X Sameshima X Tajiri X Chr. Yamashiro X 9 0 0 May 23, 1978 Publication Dafe: Hilo, Hawaii Date: June 3 , SECOND & FINAL READING AYES NOES A/E Dahlberg X Domingo X Fujil X Garcia X Kawahara X Lai X Sameshima X Tajiri X Chr. Yamashiro X ~ ~ 0 0 Publication Date: JUN 29 1978 We do hereby certify that the foregoing BILL was adopted by the County Council and published as indicated above. N/IG~71~ + Council Chairman ____._ ~ Date.. _.~_ __.._... ~.~ y _ County Clerk 392 Bill No. Reference-_ C-785/F~C-3 ~ M.B. No. -- Ord. No. / f'6t. Approved/Diso'ppT7~ ih~ ~L day of .~ -,.~, 19~ r