HI SB257

Establishes a five-year public lands lease extension pilot project allowing the Board of Land and Natural Resources to extend commercial, industrial, resort, mixed-use, or government use leases upon approval of a development agreement for substantial improvements.

Limits pilot project eligibility to leases not assigned or transferred within ten years prior to application, excluding University of Hawaii leases and specific parcels outside zip code 96720 area.

Requires lessees to submit development plans for board review to determine project value, completion timeline, and minimum revised annual rent based on fair market value appraisal.

Prohibits lease assignments or transfers during the first ten years of the extended term, except for collateral assignments to leasehold mortgagees, internal ownership changes under 50 percent, or succession events; thereafter assignments require board approval.

Lease extensions cannot exceed 40 years and applicants must pay all department costs for processing requests; pilot project authority ends July 1, 2026, though executed extensions continue for their full terms.