§171-88 Option to purchase. Any owner in fee simple of private land in a disaster area who leases or who presently has a lease of public land under this part shall be entitled to an option to purchase in fee simple the public land so leased if the owner's private land was or is condemned or purchased for a public purpose by a governmental agency at any time between the date of the natural disaster and the date of expiration of the first two years of the term of the lease to the person.

If private land in a disaster area owned at the time of the natural disaster by a lessee under this part is not condemned or purchased for a public purpose by a governmental agency at the expiration of the first two years of the term of the lease of the lessee, the person shall be entitled to an option to purchase in fee simple the public land leased under this part, provided that the lessee first offers the board of land and natural resources a period of six months in which to exercise an option to purchase in fee simple the lessee's private land in the disaster area which the lessee held at the time of the natural disaster. The offer shall be made to the board by the lessee within thirty calendar days next following the first two years of the term of the lease of the lessee. The lessee shall then have a period of six months next following the board's rejection or exercise of its option in which to reject or exercise the lessee's option to purchase the public lands. The acquisition or purchase of the private lands in a disaster area by the board under this part is declared to be for a public purpose.

During the period that the board and the lessee are considering their respective options to purchase, the board shall waive the lease rental of the lessee.

Public land under lease shall be sold and private land of the lessee shall be purchased at fair market value as determined by appraisal as set forth in section 171-17. The fair market value shall not include the value of improvements erected by the lessee and shall be determined as if the premises were not subject to the lease or to any mortgage made by the lessee. [L 1962, c 32, pt of §2; Supp, §103A-83; am L 1966, c 27, §2; HRS §171-88; gen ch 1985]