HI HB956

Authorizes the Board of Land and Natural Resources to extend leases on public lands used for hotel or resort purposes when a lease has 10 years or less remaining, upon approval of a development agreement proposing substantial improvements.

Requires lessees and developers to submit detailed plans and specifications for board review before entering into a development agreement, addressing improvement value, completion timelines, and revised rental rates based on fair market value appraisals.

Defines "substantial improvement" as renovations, rehabilitations, or construction with a total cost equal to or exceeding 50 percent of the demised premises' market value, including off-site and on-site improvements.

Lease extensions granted under this section are conditioned upon completion of substantial improvements and cannot exceed 65 years in duration.

Requires lessees or lessee-developer partnerships to file a performance bond with the board before commencing any construction under a development agreement; takes effect July 1, 3000 and repeals December 31, 2015.