HI SB1251

Authorizes the Board of Land and Natural Resources to extend commercial or industrial leases on public lands upon approval of a development agreement to make substantial improvements, with aggregate extensions not exceeding 40 years beyond the original lease term.

Requires lessees to submit plans and specifications for proposed improvements; the Board must determine development value, completion timeline, and minimum revised annual rent based on fair market appraisal.

Defines "substantial improvements" as renovations or construction costing at least 30 percent of the existing improvements' market value, completed by the specified date.

Allows the Board to modify restrictions, extend rental periods, or extend lease terms based on significant economic hardship from state disasters or government takings of 10 percent or more of the leased area.

Takes effect December 31, 2050, and includes a repeal date to be specified; applicants must pay all department costs for processing lease extension requests and development agreements.