Notice of Public Auction – Pier 7, Honolulu Harbor, 65-Year LeasePosted on May 6, 2023 in Main, News
Notice is hereby given that the State of Hawaii, Department of Transportation (STATE), shall conduct a public auction (Public Auction) for lands located at Pier 7, Honolulu Harbor, Island of Oahu, State of Hawaii.
Pursuant to Chapters 171-15 and 171-16, Hawaii Revised Statutes, the STATE, hereby gives notice of a Public Auction for a sixty-five (65)-year lease for Pier 7, Honolulu Harbor.
The Public Auction will be conducted via sealed bids:
1. General Description and Location of the Premises. The Premises is comprised of five (5) easements situated at Pier 7, Honolulu Harbor, Island of Oahu, Tax Map Key Nos. (1) 2-1-001:057 (P) and (1) 2-1-001:058 (P), Governor’s Executive Order No. 3542. The five (5) easements are as follows:
· Parcel IA: 1,290 square feet of nonexclusive use for landscaping by the LESSEE, vehicular access by the United States Coast Guard (USCG) for the maintaining, installing, and servicing of its existing range light and as a turnaround area for emergency and service vehicles.
· Parcel IB: 15,345 square feet of exclusive land used by the LESSEE for the construction of museum building and related facilities including the improvements.
· Parcel IC: 2,000 square feet of exclusive land for use by the LESSEE for landscaping and for the main public entrance to the improvements.
· Parcel ID: 6,500 square feet of nonexclusive land used for a loading area, parking for handicapped visitors of the LESSEE, vehicular access for the USCG for the maintenance of its range light within Parcel IA, emergency vehicle access, pedestrian access, service vehicle access for cruise boats operations conducted from Parcel IE. Parking of vehicles within the parcel other than those aforementioned is prohibited.
· Parcel IF: 2,800 square feet of nonexclusive land for USCG’s vehicles, service vehicles for cruise boats utilizing Parcel IE, access for vehicles of LESSOR required in the maintenance, repair, etc., of Parcel IE. LESSEE has the right to install a maximum of seven (7) structural supports approved by LESSOR along a two (2) foot wide strip. Additionally, the LESSEE shall have the right of the air space fifteen (15) feet above Parcel IF and extending to a maximum height of seventy-two (72) feet for the construction of improvements.
2. Term of Use. The term of the Premises Lease (Lease) shall be for sixty-five (65) years, commencing upon execution of the Lease. The Lease premises shall be used for a museum and related facilities, with a harbor and wharfage operation component, that allows for pier and space availability for harbor and wharfage operations.
3. Upset Rent. The upset annual rent for the first ten years will be fixed at the highest Lease rent offered above THREE HUNDRED THOUSAND AND NO/100 DOLLARS, ($300,000.00) from a pre-qualified bidder. A pre-qualified bidder shall have a verified minimum Altman Z-Score of 3.0 and a financial position to invest a minimum of $15 million.
Annual rents shall be increased by 15% at the start of Year 11 and shall be maintained through the end of Year 15; shall be increased by 15% at the start of Year 16 and shall be maintained though the end of Year 20; and shall be increased by 15% at the start of Year 21 and shall be maintained through the end of Year 25.
Additionally, the minimum investment of $15 million toward improvements of the area and its direct surroundings must be completed within three years and guaranteed by a $15 million performance bond until construction completed.
4. Information relating to this property including the Notice of Public Auction, map, description of parcels, Public Auction Documents, and Bid Intent Package may be viewed and obtained from the State at the links below this notice or by appointment at Department of Transportation, Harbors, located at 79 S. Nimitz Highway, Honolulu, Hawaii, 96813. Please email, [email protected] to request an appointment.
5. Bidding. Each prospective bidder will be required to complete the Bid Intent Package consisting of a Qualification Questionnaire, submission of financial statements, and completion of the minimum qualifications required of applicants listed below. Please return entire package with requested documents by 12:00 p.m. (HST) on Wednesday, June 21, 2023.
Any qualified individual, corporation, limited liability company, partnership, joint venture or other entity may bid at the Public Auction after timely submission of an acceptable Bid Intent Package. Sealed bids are due by 12:00 p.m. (HST) on Tuesday, August 8, 2023. Participants will be notified within 1 week of bid opening.
6. The STATE reserves the right to cancel the Public Auction, or to postpone or continue the same from time-to-time, as it may deem necessary, by publication of notice to that effect or by public announcement at the time scheduled therefore.
Minimum qualifications required of applicants are as follows:
· Individual/Company must be legally registered to conduct business in the State of Hawaii.
· Individual/Company shall have a minimum computed Altman Z-score of 3.0 and the financial position to invest $15 million. The STATE will accept the financial
records of an affiliate individual/company or similar financial records of a recently registered individual/company to conduct business in the State of Hawaii that is supported by the affiliated individual’s guarantee or the affiliated company’s Board Resolution guaranteeing and accepting any and all legal and financial obligations of the bid at auction.
· Applicant will be subject to any Environmental Assessment, Traffic Study, HRS 6E review, etc., requirements for the Applicant’s proposed use and purpose.
· Must be in good standing with Department of Commerce and Consumer Affairs.
· Will be required to obtain current State Tax Clearance Form.
· Will be required to obtain current City and County of Honolulu Tax Clearance Form.
· Has not had during the five (5) years preceding the date of this public auction, a previous sale, lease, license, permit or easement covering public lands canceled for failure to satisfy the terms, conditions and covenants thereof.
Timeline for Public Auction:
- Approval of Public Auction for Pier 7 Premises by the Board of Land and Natural Resources.
- Public Auction Sealed Bid Application Form.
- Bid Intent Package Form
Please submit all Bid Intent Packages to Department of Transportation, Harbors, 79 S. Nimitz Highway, Attn: Property Management (Public Auction), Honolulu, Hawaii 96813 or via email at [email protected] by 12:00 p.m. (HST) on Wednesday, June 21, 2023. Sealed bids are due to the same location or via email above by 12:00 p.m. (HST) on Tuesday, August 8, 2023. All participants will be notified of the result by email and/or mail.