HomeMy WebLinkAboutHilo-Bay-Hotel-RFI-No-BDH-1-FY18Department of Land and Natural Resources
Land Division
March 7, 2018
RFI No. BDH-1-FY18
Request for Interest for the
Demolition of Existing Hotel and Construction
Of New Hotel at Banyan Drive, Hilo, Hawaii
SUBMITTALS WILL BE RECEIVED UP TO 4:00 PM (HST) ON
April 30, 2018
AT THE
Department of Land and Natural Resources
Land Division
1151 Punchbowl St., Rm. 220
Honolulu, HI 96813
SUBMITTALS MUST BE DELIVERED BY MAIL, IN PERSON OR VIA EMAIL BY THE
ABOVE DEADLINE. TIMELY RECEIPT OF MAILED AND HAND-DELIVERED
SUBMITTALS SHALL BE EVIDENCED BY THE DATE AND TIME REGISTERED BY
THE LAND DIVISION TIME STAMP CLOCK. TIMELY RECEIPT OF EMAILS SHALL BE
EVIDENCED BY THE DATE AND TIME STAMP OF THE EMAIL AS RECEIVED BY
LAND DIVISION. PLEASE NOTE POSTAL MAIL DELIVERS TO A MAILROOM, NOT TO
THE ADDRESS ABOVE, WHICH MAY RESULT IN ROUTING DELAYS.
RFI Registration and Inquiries
If you intend to respond to this request for interest, please contact the Land Division at the
address above, or email dlnr.land@hawaii.gov to register your organization otherwise you will
not receive notification of any changes or addendums. Provide a contact name, address, phone
number, and email address.
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Request for Interest
Demolition of Existing Hotel and Construction
of New Hotel at Banyan Drive, Hilo, Hawaii
1. BACKGROUND
At its meeting of June 9, 2017, under agenda Item D-6, the Board of Land and Natural Resources
(BLNR or Board) authorized the Department of Land and Natural Resources (DLNR), Land
Division, to issue a Request for Interest (RFI) relating to the former Uncle Billy’s Hilo Bay
Hotel site, more recently known as the Pagoda Hilo Bay Hotel, located in Hilo, Hawaii, on Tax
Map Keys: (3) 2-1-005: 033, 034, 035 and 045 (Site). The total land area of the Site is
approximately 1.83 acres, more or less. The purpose of the RFI is to gauge whether there is
interest among prospective developers in obtaining a long-term lease of the Site for hotel-resort
purposes that would include an obligation to conduct an environmental assessment (EA) or
environmental impact statement (EIS) for the demolition of the existing structures on the Site
and construction of a new hotel thereon, secure the permitting and approvals needed for the
demolition and new construction, complete the demolition, and construct a new hotel on the Site.
The RFI additionally seeks to estimate the amount of rent credit that would induce a potential
developer to incur all costs associated with the demolition of the existing structures and
construction of a new hotel, including the cost of conducting the EA/EIS. The BLNR directed
Land Division to report back to the Board on the responses to the RFI with an assessment of
whether the DLNR should proceed with a public auction of a long-term lease of the Site to
include a requirement to demolish and rebuild, or whether it would be more appropriate to
pursue a Request for Qualifications or Request for Proposals and directly negotiate a long-term
lease pursuant to Section 171-59, Hawaii Revised Statutes (HRS).
2. CANCELLATION/AMENDMENT
The RFI may be cancelled or amended and any or all submittals rejected in whole or in part,
without liability, when it is determined to be in the best interest of the state. Neither the DLNR
nor any interested party has any obligations under this RFI. The purpose of this RFI is to explore
options available to the BLNR for the potential redevelopment of the Site, and not to approve
any particular proposal or enter into a contract at this time.
3. AVAILABLE STUDIES
DLNR has conducted a number of studies regarding the Site and neighboring areas, including:
• Remaining Useful Life Determination for Uncle Billy’s Hilo Bay Hotel dated June 2014.
• Tourism Market Study dated July 2014 – analyzes tourism industry and determines
market demand for a new hotel in Hilo, Hawaii.
• Banyan Drive Sea Level Rise Assessment Report dated July 2014 – assesses sea level
rise effects on DLNR parcels located at Banyan Drive including the Site.
• Assessment Report prepared by Erskine Architects, Inc. dated June 29, 2016 – assesses
existing conditions of three DLNR properties at Banyan Drive and evaluates potential
buildable envelopes for the properties, including the Site.
• Preliminary Demolition Assessment for the Former Pagoda Hilo Bay Hotel, Country
Club Condominium/Hotel and Reeds Bay Hotel dated February 2018.
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These studies are available on DLNR Land Division’s website at:
http://dlnr.hawaii.gov/ld/hilobayhotel/
4. INSPECTION
The Site will be available for inspection on Wednesday, March 28, 2018 at 9:00 a.m. (HST). All
persons desiring to participate in the Site inspection will be required to present photographic
identification and submit a signed waiver in the form available at the website above prior to
entering the Site. Participants in the inspection must be at least 18 years old to sign the waiver.
No minors may enter the Site.
5. ADDITIONAL INFORMATION
The BLNR issues leases pursuant to Chapter 171, Hawaii Revised Statutes, as amended. The
maximum term of a lease is 65 years. This RFI is intended to gather information and ideas for a
potential future solicitation through either a request for proposals or a sale of lease of the Site by
public auction. The major components of such solicitation or public auction package will include
the demolition permitting and actual demolition of the existing improvements on the Site,
construction of a new hotel, and entry into a long-term ground lease for the Site at fair market
rent.
6. FORMAT AND CONTENT
Please submit a signed submittal in a sealed envelope or via email. Only typed responses to this
RFI will be accepted. Please use page numbering, English only, and provide all financial
information in U.S. dollars. The RFI is open to all interested persons. At a minimum, a response
to the RFI should include:
A. Responder’s contact information:
1. Name
2. Address
3. Telephone number
4. Email address
B. The names and addresses of responder’s Principals (as defined below) if responder is a
business entity such as corporation, partnership or limited liability company (LLC). For
purposes of this RFI, a “Principal” is any shareholder owning 5% or more of the issued
and outstanding stock of a corporation, any corporate director or officer; any general or
limited partner of a partnership; and any manager or member of an LLC owning 5% or
more interest in the LLC.
C. A statement regarding the education and work experience of responder and its Principals.
The statement should include the experience of responder and its Principals in hotel
development and/or redevelopment of properties, including demolition of existing
structures involving hazardous materials abatement.
D. Responder’s proposal for the Site.
E. Responder’s cost and time estimates for conducting an EA/EIS for the demolition of the
existing structures and constructing a new hotel on the Site.
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F. Responder’s cost and time estimates for demolishing the improvements on the Site,
including securing all required permitting approvals.
G. Responder’s cost and time estimates for consolidating and re-subdividing the four parcels
constituting the Site into a single parcel.
H. Responder’s cost and time estimates for constructing a new hotel on the Site. Provide
details on the new construction including: number of buildings, stories, guest rooms,
restaurants, and parking stalls; building height, setbacks, and floor area; and any other
features responder desires to highlight.
I. An explanation of how responder’s proposed development would promote the aesthetics
of the Banyan Drive area of Hilo.
J. The lease duration responder would need to develop its proposal.
K. The amount of rent credit that would induce responder to seek a long-term lease of the
Site to develop its proposal.
L. An explanation of responder’s means of financing for the proposal, including whether the
project would be self-financed or whether a leasehold mortgage would be required.
Any cost and time estimates provided in response to this RFI are acknowledged to be estimates
only, and are not binding on the Responder or the State. Cost estimates are not bids, and do not
create a power of acceptance in the State. The DLNR reserves the right to incorporate in a
solicitation or public auction package, if issued, any recommendations or proposals presented in
the response to this RFI.
7. SUBMISSION
Submittals are due at the address or email below by 4:00 p.m. (HST) on April 30, 2018. All
submittals must be time stamped upon receipt. Any submittal received after the deadline date
will not be considered. Please account for routing delays if submitting by U.S. Postal Service.
All submittals must include the following label on the front of the sealed envelope or subject
heading of the email:
Label: Banyan Drive Hotel Request for Interest
Mailing Address:
DLNR Land Division
Attn: Banyan Drive RFI
1151 Punchbowl Street Room 220
Honolulu, Hawaii 96813
Email Address:
dlnr.land@hawaii.gov