Section 4-153-29 - Re-purchase right, first offer to board; limitation on re-purchase priceAn agricultural park lease or any interest therein, including stock of a corporation holding the lease or an interest in a partnership or association holding the lease, shall not be transferred or assigned unless the lease and improvements, or any interest therein, are first surrendered to the board, as follows:
(1) The board shall have the option to re-purchase the lease for the price paid by the current lessee, including closing costs, or the fair market value, less appreciated value, at the time of re-purchase, as determined in paragraph (3), whichever is the lower but not less than zero. For the purposes of this subsection, "price paid by the current lessee" means the consideration paid for the lease exclusive of improvements and "appreciated value" means the replacement cost for developing the leased premises. If the board does not exercise its option, the provisions of section 4-153-33(a)(6) shall apply.(2) Any improvements affixed to the realty, including trade fixtures and growing crops, shall be re-purchased at their fair market value.(3) At the time of the re-purchase, the fair market value of the lease less appreciated value and the fair market value of any improvements shall be determined by a qualified appraiser whose services shall be contracted for by the department; provided that should the lessee disagree with the values, the lessee may appoint the lessee's own appraiser who together with the department's appraiser shall appoint a third appraiser, and the fair market value shall be determined by arbitration as provided in chapter 658, Hawaii Revised Statutes. In this event, the lessee shall pay for the lessee's own appraiser, the department shall pay for its appraiser, and the cost of the third appraiser shall be borne equally by the lessee and the department.(4) The board may re-purchase the lease and improvements with funds from the agricultural park special fund or may accept a surrender of lease subject to the offer by a qualified applicant to purchase the lease and improvements, including any encumbrances, for not less than the amount to be paid therefor by the board; provided that the purchase by a qualified applicant shall be subject to sections 4-153-19 and 4-153-22.(5) Notwithstanding the conditions herein, the consideration for the applicant's purchase of the lease as provided in paragraph (4) above shall not be less than the total of all encumbrances that have been approved by the State at the time of the re-purchase.(6) This section shall not apply to a holder of record having a security interest upon foreclosure pursuant to section 4-153-35.[Eff 3/6/92; am and comp] (Auth: HRS §§ 166-6, 166-9) (Imp: HRS §§ 166-6, 166-9)