The redevelopment agency shall sell or lease real property acquired by it for a redevelopment project at its fair value for use in accordance with the redevelopment plan notwithstanding the value may be less than the cost of acquiring and preparing the property for redevelopment. The property may be sold or leased to one or more individuals, corporations, or public bodies or to a redevelopment corporation under such limitations, restrictions, requirements, or covenants as will insure its being developed and continued in use in accordance with the redevelopment plan, and in a manner that will best promote the interests and welfare of the urban area in which the project is situated; provided that where a redevelopment corporation is the purchaser or lessee, the contract or conveyance shall include a statement of the tax exemption, if any, which will be allowable under § 53-38, and any other terms necessary to carry into effect the provisions of this part relating to redevelopment corporations; provided further that before making a contract to sell land in a project area planned for single family residential development, the agency shall give published notice of intention so to contract, or to sell the property, and within sixty days after the first publication of the notice, any individual or individuals, who owned land in the project area immediately before acquisition thereof by the agency, shall be entitled to preference in the purchase of one residential homesite therein; and provided further that if the agency decides to lease any of the acquired property, the following requirements and limitations shall apply:

(1) The minimum size of the lots to be leased shall be five thousand square feet.
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Terms Used In Hawaii Revised Statutes 53-12

  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(2) The lease term shall not be more than seventy-five years, and in the case of leases for single or multiple residential sites involving federal financial assistance, for such longer term as may be required.
(3) The lessee shall be given an option to purchase the leased property during the first twenty years of the lease. During the balance of the term of the lease, the lessee shall have the first right of refusal to purchase the leased property, provided that the leased property shall not be sold by the agency to any person or corporation except to the lessee during the first twenty years of the lease. In the event that the lessee shall not exercise the first right of refusal as set forth above, the agency may sell the leased property to any person or corporation at fair value subject to the lease.
(4) The agency shall notify the council of its decision to lease the property. Within thirty days of the notification, the council may disapprove the agency’s decision to lease by an affirmative vote of five of its members.

The agency shall enforce the limitations, restrictions, requirements, and covenants throughout their duration by injunction, or other action at law or in equity, or by any other appropriate means. The limitations, restrictions, requirements, or covenants shall have the effect of covenants running with the land for such period and with such exceptions as may be provided in the deeds or contracts relating to such sale or leasing. In making the sale or lease the agency shall impose and require among other things a reasonable time limit for initiating construction of the redevelopment project.

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