§266-54 - Special facility lease. - Hawaii Statutes

     [§266-54]  Special facility lease.  (a)  In addition to the conditions and terms set forth in this part, any special facility lease entered into by the department shall contain provisions obligating the other person to the special facility lease:

     (1)  To pay to the department during the term of the special facility lease, whether the special facility is capable of being used or occupied or is being used or occupied by the other person, a rental or rentals at such time or times and in such amount or amounts as will be sufficient:  to pay the principal and interest on all special facility revenue bonds issued for the special facility, to establish or maintain any reserves for such payments, and to pay all fees and expenses of the trustees, paying agents, transfer agents, and other fiscal agents for the special facility revenue bonds issued for the special facility.

     (2)  To pay to the department a ground rental equal to the fair market rental of the land, if the special facility is situated on land owned by the department.

     (3)  To either operate, maintain, and repair the special facility and pay the costs thereof or to pay to the department all costs of operation, maintenance, and repair of the special facility.

     (b)  Any moneys derived by the department pursuant to subsection (a)(1) shall be deemed revenues of the special facility.  Any moneys received by the department pursuant to subsection (a)(2) and (3) shall be paid into the harbor special fund and shall not be nor be deemed to be revenues of the special facility.

     (c)  The term and all renewals and extensions of the term of any special facility lease (including any amendments or supplements thereto) shall not extend beyond the reasonable life of the special facility which is the subject of such special facility lease, as estimated by the department at the time of the entering into thereof, or thirty-five years, whichever is less.

     (d)  Any special facility lease entered into by the department shall be subject to chapter 171 and shall contain such other terms and conditions as the department deems advisable to effectuate the purposes of this part. [L 1980, c 126, pt of §2]