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Re: Land Lease Renegotiation
Good questions. See below for more details.
Pacific Business News' article doesn't address it. The Advertiser merely parroted Iolani School's press release saying "the fee will not be available to current owner-occupants for purchase." And simply leaving it at that.
The Star Bulletin's Leila Fujimori dug a little deeper.
http://www.starbulletin.com/news/200..._new_land.html
Dale (a lessee) said the landowners made offers to sell the fee over the years, but it kept growing higher and higher. The last offer was $17 million and her fee share would have been $80,000, she said.
So an offer has been made in the past. But it's hard to say from that info alone if Sec. 514C-2 has been satisfied. Maybe it has, maybe not.
But in the same article, I noticed that this comment was made.
Real estate broker John Riggins said, "There's no recourse for lessees," after the city repealed the lease-to-fee conversion law for condos, townhouses and co-ops.
Riggins is referring to Chapter 38 of the Revised Ordinances of Honolulu, which provided for leasehold conversion of condos/co-ops on Oahu, until it was repealed by the city council in 2005. However, the repeal of Chap. 38 (a city ordinance) does not invalidate Sec. 514C-2 (a state law).
And here's another realtor's take on the matter.
http://activerain.com/blogsview/1140...kapiolani-area
Obviously, many lessees were hoping to see the fee offered on the units they purchased. It's not clear whether the purchase complies with section 514-C2 of Hawaii State Law.
§514C-2 Right of first refusal. When the leased fee interest in land under a condominium project or cooperative project or any part thereof is to be sold to any party other than the association of owners or the cooperative housing corporation, the seller shall first provide the board of directors of the association of owners or the cooperative housing corporation with written notice delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to any two of the president, vice-president, or managing agent (if any), of its intent to sell that interest, together with a complete and correct copy of the purchaser's written offer, which offer shall contain the full and complete terms thereof. The association of owners or cooperative housing corporation shall have a right of first refusal to purchase that leased fee interest for the same price as is contained in the written purchase offer. [L 1988, c 298, pt of §1; am L 2008, c 28, §33]
There may be hope yet for lessees on Date and Laau Streets. I imagine some of the lessees are going to start making some noise about getting their first right of refusal to buy these properties. This could be in interesting show! It's a prime area for affordable living in town, close to the beaches and Waikiki. In recent years, lease prices of properties in the area have been in the $20,000 - $50,000 range, making them good investments for owner occupants as well as investors.
Originally posted by joshuatree
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Originally posted by joshuatree
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The Star Bulletin's Leila Fujimori dug a little deeper.
http://www.starbulletin.com/news/200..._new_land.html
Dale (a lessee) said the landowners made offers to sell the fee over the years, but it kept growing higher and higher. The last offer was $17 million and her fee share would have been $80,000, she said.
So an offer has been made in the past. But it's hard to say from that info alone if Sec. 514C-2 has been satisfied. Maybe it has, maybe not.
But in the same article, I noticed that this comment was made.
Real estate broker John Riggins said, "There's no recourse for lessees," after the city repealed the lease-to-fee conversion law for condos, townhouses and co-ops.
Riggins is referring to Chapter 38 of the Revised Ordinances of Honolulu, which provided for leasehold conversion of condos/co-ops on Oahu, until it was repealed by the city council in 2005. However, the repeal of Chap. 38 (a city ordinance) does not invalidate Sec. 514C-2 (a state law).
And here's another realtor's take on the matter.
http://activerain.com/blogsview/1140...kapiolani-area
Obviously, many lessees were hoping to see the fee offered on the units they purchased. It's not clear whether the purchase complies with section 514-C2 of Hawaii State Law.
§514C-2 Right of first refusal. When the leased fee interest in land under a condominium project or cooperative project or any part thereof is to be sold to any party other than the association of owners or the cooperative housing corporation, the seller shall first provide the board of directors of the association of owners or the cooperative housing corporation with written notice delivered or mailed by registered or certified mail, return receipt requested, postage prepaid, to any two of the president, vice-president, or managing agent (if any), of its intent to sell that interest, together with a complete and correct copy of the purchaser's written offer, which offer shall contain the full and complete terms thereof. The association of owners or cooperative housing corporation shall have a right of first refusal to purchase that leased fee interest for the same price as is contained in the written purchase offer. [L 1988, c 298, pt of §1; am L 2008, c 28, §33]
There may be hope yet for lessees on Date and Laau Streets. I imagine some of the lessees are going to start making some noise about getting their first right of refusal to buy these properties. This could be in interesting show! It's a prime area for affordable living in town, close to the beaches and Waikiki. In recent years, lease prices of properties in the area have been in the $20,000 - $50,000 range, making them good investments for owner occupants as well as investors.
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