DLNR NEWS RELEASE: Mala Wharf and Boat Ramp tenants required to renegotiate leases

Posted on Jan 27, 2017 in Latest News

Reissuance of RP brings transition in management entity

HONOLULU – The Department of Land and Natural Resources is asking current Mala Wharf tenants to contact its Division of Boating and Ocean Recreation, Property Management Branch so they can receive information about keeping their storage rental agreements in force, following the reissuing of a one-year revocable permit (RP) for that property.  A&K Ventures, LLC will begin management of dry-land boat and trailer storage at Mala Wharf on Maui, on March 1, 2017.

The Mala Wharf and Boat Ramp is located one mile north of Lahaina on the west coast of the island of Maui.  It features two boat ramps, two loading docks, a vessel wash-down, restrooms/shower, and offshore moorings.

The Board of Land and Natural Resources (BLNR) voted on December 9, 2016 to award a revocable permit (RP) to A&K Ventures, LLC. The RP had previously been owned by Mr. Wilson Keahi since 1981.  The major impact for tenants at the Mala facility is for the need to renegotiate their vessel agreement with A&K Ventures, LLC.

The Division of Boating and Ocean Recreation, the owner of the Mala facility, is required to seek the best and highest use for fast lands and submerged lands it controls.  At the direction of the Board of Land and Natural Resources, DOBOR was tasked with preparing its properties for transition from short term revocable permits to long term leases, with the intent to offer those leases for sale at public auction.  During the transition period, DOBOR is required by the BLNR to adjust the rent for current revocable permits according to independently appraised, fair market rates.

DOBOR has been working to address a backlog of permits for properties that need to be reappraised for their current market value.  The reissuance of the RP for Mala is one of the first being performed by DOBOR.  Revenues from such permits help to maintain and improve the infrastructure in State recreational harbors for the enjoyment of boaters and the general public.

“One of the problems we anticipated in re-issuing the revocable permit for Mala is the lack of available information about current vessel owners who occupy boating and trailer storage space on the premises,” said BLNR Chairperson Suzanne Case.  “For that reason we are asking those current tenants to relay vital contact information to DOBOR by e-mail or via the Mala Tenant Registration Page featured on the DOBOR web site.”

“The contact information we collect will greatly improve our outreach to those existing tenants and facilitate the transition so their use of the facility can continue without any interruption,” said Case.

Existing tenants may send the following information via e-mail to dlnr.dobor.pm@hawaii.gov.  On the subject line please type “Mala Tenant.”

Name of vessel owner and names of any partners

Business Name (if any)

HA or Documented Vessel number

Mailing address

Cellular Phone Number

Phone Number

Phone Number

e-mail address

If there is a designated caretaker for a vessel currently on-site at Mala, tenants are asked to also provide:

Caretaker Name

Caretaker mailing address

Caretaker Emergency Cellular Phone Number

Caretaker Emergency Phone Number

Caretaker e-mail address

A Mala tenant’s contact information can also be sent via post to:

Karmen Kanno, Office Assistant III,

DLNR/DOBOR, 4 Sand Island Access Road,

Honolulu, HI 96819

or submitted using DOBOR’s Mala Tenant Registration Page, accessed at:

http://dlnr.hawaii.gov/dobor/mala_tenant/

Contact information provided will be kept secure and confidential and will not be sold to or shared with any other party other than the new RP holder and the future long-term permit holder.

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Media contact:

Deborah Ward

DLNR Communications Specialist

Phone; (808) 587-0320

 

ADDITIONAL INFORMATION

The Revocable Permit Process

The Board of Land and Natural Resources may issue revocable permits to a business entity for the temporary occupancy of state lands on a month-to-month basis by direct negotiation without public auction per HRS 171-55.

Permits are issued and effective on a month-to-month basis and shall automatically terminate one year from the commencement date or unless any or all terms and conditions have not been met per agreement.

Permits can be extended for another year upon approval by the Board at the entity’s request.  The Board may at any time increase or decrease the monthly rental with written notice of at least thirty (30) days prior to the date of change of rent.  To be considered eligible the business entity must comply with the minimum, standard permit conditions set by the Board.

The entity must:

  • procure and maintain, at their own cost and expense, in full force and effect throughout the term of the permit, general liability Insurance with an insurance company authorized to do business in the State of Hawaii in an amount of at least $1,000,000.00 for each occurrence and $2,000,000.00 aggregate and name the State of Hawaii, DLNR as an additional insured;
  • obtain a current and valid certificate of good standing through the Department of Commerce and Consumer Affairs; and
  • have the means to deposit with the Board an amount equal to two (2) times the monthly rental as a security deposit including the first month’s rent (or 10% of gross sales, whichever is greater) payable on or before the first day of the month the permit will be executed.

Interested parties are welcome to conduct their own research and inquire about a parcel of land managed under a revocable permit and, at any time, submit a proposal to the Division of Boating and Ocean Recreation (DOBOR) on condition that they can successfully satisfy all permit conditions.

Permit history

The original revocable permit for the Mala Wharf and Boat Ramp was issued to Mr. Wilson Keahi on September 1, 1981. The facility underwent an independent property appraisal in October 31, 2016 and the value of that appraisal was used to set the annual fee of $43,360 for the new RP.  Keahi, holder of the previous permit for Mala, which has been in force for over 30 years, was offered first right to renew the permit but declined to pay the new annual fee. Currently, Keahi pays a monthly rental fee of $709.54. The new appraised monthly rental fee is $3614.00.

Revocable permits are issued on a month to month term thus allowing another entity to express interest for the premises and, upon board approval, enter into a revocable permit agreement for said premises.  Issuance of revocable permits do not require an auction to be held.  A&K Ventures, LLC. expressed high interest in Mala Wharf, offered to pay the new appraised rental fee, and received approval by the BLNR on December 9, 2016. The permit presently being drafted by the Attorney General’s office, allows A&K Ventures, LLC. to perform landscaping, maintenance, and offer storage of small boats and trailers, and other maritime related activities at Mala Wharf and surrounding areas as of February 1, 2017.