HI HB2021

Allows the board of land and natural resources to extend public land leases for hotel or resort use beyond standard terms upon approval of a development agreement.

Lessee or lessee and developer must submit plans and specifications for substantial improvements to the board for review and approval.

Board must determine that proposed improvements justify the lease extension, establish completion timeline, and set minimum revised annual rent based on fair market value and percentage rent on gross receipts.

Lease extension period cannot exceed 55 years and is contingent on filing a performance bond before construction commences.

"Substantial improvements" defined as renovation, rehabilitation, or construction with costs equal to or exceeding 50 percent of the demised premises' market value, to be completed by the development completion date.