Pilot program for lease of public school land
HRS §302A-1151.1
in effect302A-1151.1. Pilot program for lease of public school land
(a) There shall be established within the school facilities authority a pilot program for the lease of public school land, including facilities. The school facilities authority, in consultation with any other appropriate agency, shall serve as the facilitator of the pilot program.
(b) Notwithstanding sections 171-13 and 302A-1151,
or any other law to the contrary, the school facilities authority may lease
public school land on terms it deems appropriate, including a leaseback of all
or a portion of the improvements constructed; provided that:
(1) The school facilities authority may identify and
select up to five public school land sites as candidates for participation in
the pilot program; provided that:
(A) During the identification and selection
process, the school facilities authority shall be subject to chapter 92, shall
hold at least one public meeting in each affected community, and shall foster
school and community participation; and
(B) If the site is on land owned by the
county, the school facilities authority shall consult with the county;
(2) The school facilities authority may lease public
school land for no more than three public school land sites identified and
selected by the school facilities authority pursuant to paragraph (1) under
leases for a term of not more than ninety-nine years per lease, to lessees who
shall be required to modify, construct, or utilize facilities to benefit public
educational purposes, in accordance with specific request for proposal or
request for information guidelines;
(3) Each lease shall stipulate that the lessee may
retain any revenue generated from the facilities; provided that:
(A) The lessee shall be obligated to maintain
and operate the facilities to benefit public educational purposes for the
length of the lease;
(B) The lessee shall be obligated to pay to
the county all applicable property tax on the value of any improvements;
(C) A leasehold premium may be charged to the
lessee for the right to use the public school land based on a competitive
process that complies with applicable sections of chapter 103D;
(D) Upon the expiration of the lease, the
facilities shall revert to the school facilities authority; and
(E) All revenues and proceeds derived by the
State under this section shall be deposited in the school facilities subaccount
pursuant to section 302A-1151.2; and
(4) Notwithstanding any law to the contrary, the school
facilities authority may enter into leaseback agreements that allow the school
facilities authority to lease or sublease the property to a third party. The school
facilities authority may lease back the property from the third-party lessee or
sublessee for a contractual period of time, after which the school facilities
authority shall own any improvements.
(c) Any redevelopment involving nonschool
purposes shall:
(1) Comply with county plans, ordinances, and zoning
and development codes; and
(2) Acquire all required government approvals and
permits.
(d) Nothing in this section shall preclude the
school facilities authority from working with and receiving assistance from any
other department or agency in carrying out the purposes of this section.
(e) Any lease entered into by the school
facilities authority pursuant to subsection (b) shall be fully executed no
later than ten years from July 1, 2013.
(f) For purposes of this section, public
educational purposes shall include but are not limited to:
(1) A new revenue source from the redevelopment of
one or more underutilized school facilities authority facilities;
(2) New construction of school facilities authority
facilities or renovation of existing, underutilized school facilities authority
facilities into a twenty-first century school; or
(3) A combination of paragraphs (1) and (2).
[L 2013,
c 155, pt of §2; am L 2015, c 115, §1; am L 2017, c 206, §4; am L 2019, c 272,
§2; am L 2021, c 217, §13; am L 2023, c 165, §2]
Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol05_Ch0261-0319/HRS0302A/HRS_0302A-1151_0001.htmFetched: 11/10/2026