S.B. 3058 Summary

• Establishes a 10-year pilot project creating the Hilo Community Economic District to revitalize public lands in East Hawaii through lease extensions and improvements.

• Authorizes the Board of Land and Natural Resources to extend leases by up to 40 years for lessees who commit to substantial improvements (renovation/construction costing at least 30% of existing improvements' market value).

• Allows the board to modify or eliminate lease restrictions and adjust rental periods for lessees affected by state disasters (seismic events, volcanic eruption, hurricane, flood, drought) or government land takings of 10% or more of leased area.

• Establishes a request-for-interest process for hotel, resort, and commercial leases within 10 years of expiration, requiring qualified bidders to deposit 1% of leasehold improvement value.

• Requires the Department of Land and Natural Resources to report annually to the legislature on pilot project results; the act expires June 30, 2028.