Appraisals
HRS §171-17
in effect171-17. Appraisals
(a) The appraisal of public lands for sale or lease at public auction for the determination of the upset price may be performed by an employee of the board of land and natural resources qualified to appraise lands, or by one but not more than three disinterested appraisers whose services shall be contracted for by the board; provided that the upset price or upset rental shall be determined by disinterested appraisal whenever prudent management so dictates. No such lands 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, the board may establish the upset sale or rental price at less than the appraisal value set by an employee of the board and the land may be sold or leased at that price. The board shall be reimbursed by the purchaser or lessee for the cost of any appraisal required to be made by a disinterested appraiser or appraisers contracted for by the board.
(b) The sale price or lease rental of lands to
be disposed of by drawing or by negotiation shall be no less than the value
determined by:
(1) An employee of the board qualified to appraise
lands; or
(2) A disinterested appraiser or appraisers whose
services shall be contracted for by the board, and the appraisal, and any
further appraisal with the approval of the board, shall be at the cost of the
purchaser;
provided that the sale price or lease rental shall
be determined by disinterested appraisal whenever prudent management so
dictates; provided further that if the purchaser does not agree upon the sale
price or lease rental, the purchaser may appoint an appraiser who shall conduct
an appraisal on behalf of the purchaser. If, after the purchaser's appraisal,
the board and the purchaser do not agree on the sale price or lease rental, the
parties shall make a good faith effort to resolve the dispute through
nonbinding mediation by a single mediator, appointed by mutual agreement of the
parties. The cost of mediation shall be borne equally by the parties. If
mediation does not resolve the dispute, the purchaser's appraiser together with
the board's appraiser shall appoint a third appraiser, and the sale price or
lease rental shall be determined by arbitration as provided for in chapter
658A, which shall be final and binding. The purchaser shall pay for all
appraisal costs, except that the cost of the third appraiser shall be borne
equally by the purchaser and the board.
(c) In the repurchase of any land by the
board, the board shall have the option to repurchase the land for the original
sale price or the fair market value at the time of repurchase, whichever is the
lower. Any improvements affixed to the realty shall be purchased at their fair
market value. At the time of the repurchase, the fair market value of the
land, and the improvements, if any, shall be determined by a qualified
appraiser whose services shall be contracted for by the board; provided that if
the owner does not agree upon the value, the owner may appoint the owner's own
appraiser who shall conduct an appraisal on behalf of the owner. If, after the
owner's appraisal, the board and the owner do not agree on the sale price, the
parties shall make a good faith effort to resolve the dispute through
nonbinding mediation by a single mediator, appointed by mutual agreement of the
parties. The cost of mediation shall be borne equally by the parties. If
mediation does not resolve the dispute, the owner's appraiser together with the
board's appraiser shall appoint a third appraiser, and the value shall be
determined by arbitration as provided in chapter 658A. The owner shall pay for
all appraisal costs, except that the cost of the third appraiser shall be borne
equally by the owner and the board.
(d) If a reopening of the rental to be paid on
a lease occurs, the rental for any ensuing period shall be the fair market
rental at the time of reopening. At least six months prior to the time of
reopening, the fair market rental shall be determined by:
(1) An employee of the department qualified to
appraise lands; or
(2) A disinterested appraiser whose services shall be
contracted for by the board;
and the lessee shall be promptly notified of the
determination and provided with the complete appraisal prepared by the board or
the board's appraiser; provided that if the lessee does not agree upon the fair
market rental, the lessee may appoint the lessee's own appraiser and the lessee
shall provide the board with the complete appraisal prepared by the lessee's
appraiser. Each party shall pay for its own appraiser. If the board's and the
lessee's appraisers do not agree upon the lease rental, the lessee and the
board shall in good faith attempt to resolve the dispute by nonbinding
mediation by a single mediator mutually agreed upon by the parties. If the
dispute is not resolved by the mediation, the fair market rental shall be
determined by arbitration as provided in chapter 658A, which shall be final and
binding. Either the board or the lessee may initiate arbitration by a written
demand to the other party. The arbitration shall be conducted by a single
arbitrator, who shall be an attorney licensed in the State, a person with
experience in contracts and real estate valuation, or another qualified person,
who shall be mutually agreed upon by the parties. If an arbitrator is not
selected within fifteen days of the demand for arbitration, appointment of an
arbitrator may be requested by either party by motion made to the circuit court
in the circuit in which the land is located. The cost of mediation or
arbitration shall be borne equally by the lessee and the board. Any language
in present leases to the contrary notwithstanding, the provisions of this
subsection, when possible and notwithstanding the six-month notice required,
shall apply to leases with original lease rental reopening dates effective
before and after July 1, 1996.
(e) Complete appraisal reports, including all
comparables relied upon in the appraisal reports, shall be available for study
by the public. All complete appraisal reports shall be provided to the
opposing party prior to the commencement of mediation or arbitration, if
applicable, of the valuation dispute.
[L 1962, c 32, pt of §2; am L 1963, c
135, §§1, 2, 3; am L 1965, c 239, §10; Supp, §103A-17; HRS §171-17; am L 1976,
c 147, §1; am L 1985, c 116, §1; gen ch 1985; am L 1986, c 48, §1; am L 1993, c
132, §1; am L 1996, c 233, §1 and c 234, §1; am L 2001, c 265, §4; am L 2014, c
168, §2]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol03_Ch0121-0200D/HRS0171/HRS_0171-0017.htmFetched: 11/10/2026