SB 2692: BLNR; DLNR; Public Land; Grand Naniloa Golf Course; Banyan Drive; Acquisition of Leasehold; Eminent Domain; Appropriation

A BILL FOR AN ACT

RELATING TO PUBLIC LAND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the 62.576‑acre parcel identified as tax map key:  (3) 2-1-001:012 is currently the site of the Grand Naniloa Golf Course.  The legislature further finds that the redevelopment of this parcel to more beneficial uses is in the public interest.  The parcel is an important component of the Banyan Drive resort area, and its current use as a golf course does not fulfill the land's potential to benefit the surrounding area and broader community.

     The State, through the department of land and natural resources, owns the land on which this parcel is located.  The department of land and natural resources desires to redevelop the area based on the needs and desires of the community.

     This parcel is currently leased to a private entity as part of the Grand Naniloa Hotel, pursuant to General Lease No. S‑5844.  To redevelop this area, the privately held leasehold interest in the golf course must be acquired by agreement, withdrawal from the lease, or eminent domain, which would require the payment of fair or just compensation to the lessee.

     The legislature supports the acquisition of the leasehold interest in the parcel currently used as the Grand Naniloa Golf Course, whether by agreement, withdrawal, or eminent domain.

     Accordingly, the purpose of this Act is to:

     (1)  Authorize the department of land and natural resources to acquire, through eminent domain or otherwise, the leasehold interest in the parcel identified as tax map key:  (3) 2‑1‑001:012 and currently used as the Grand Naniloa Golf Course;

     (2)  Authorize the board of land and natural resources to approve a new use for the parcel after providing the public an opportunity to provide testimony; and

     (3)  Appropriate moneys to the department of land and natural resources.

     SECTION 2.  (a)  The department of land and natural resources may acquire the leasehold interest in the parcel identified as tax map key:  (3) 2‑1‑001:012 and currently used as the Grand Naniloa Golf Course, whether by agreement, withdrawal, or eminent domain pursuant to chapter 101, Hawaii Revised Statutes.

     (b)  After acquiring the leasehold interest pursuant to subsection (a), the board of land and natural resources may approve a new use for the parcel in an open meeting that complies with part I of chapter 92, Hawaii Revised Statutes; provided that the board first provides the public the opportunity to provide testimony on any proposed new uses of the parcel.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the department of land and natural resources to acquire the leasehold interest in the parcel of state-owned land identified in section 2 of this Act.

     The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2050.

Report Title:

BLNR; DLNR; Public Land; Grand Naniloa Golf Course; Banyan Drive; Acquisition of Leasehold; Eminent Domain; Appropriation

Description:

Authorizes the Department of Land and Natural Resources to acquire, through eminent domain or otherwise, the leasehold interest in the parcel identified as tax map key:  (3) 2-1-001:012 and currently used as the Grand Naniloa Golf Course.  Authorizes the Board of Land and Natural Resources to approve a new use for the parcel after providing an opportunity for public testimony.  Appropriates funds.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO public LAND.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the 62.576‑acre parcel identified as tax map key:  (3) 2-1-001:012 is currently the site of the Grand Naniloa Golf Course.  The legislature further finds that the redevelopment of this parcel to more beneficial uses is in the public interest.  The parcel is an important component of the Banyan Drive resort area, and its current use as a golf course does not fulfill the land's potential to benefit the surrounding area and broader community.

     The State, through the department of land and natural resources, owns the land on which this parcel is located.  The department of land and natural resources desires to redevelop the area based on the needs and desires of the community.

     This parcel is currently leased to a private entity as part of the Grand Naniloa Hotel, pursuant to General Lease No. S‑5844.  To redevelop this area, the privately held leasehold interest in the golf course must be acquired by agreement, withdrawal from the lease, or eminent domain, which would require the payment of fair or just compensation to the lessee.

     The legislature hereby supports the acquisition of the leasehold interest in the parcel currently used as the Grand Naniloa Golf Course, whether by agreement, withdrawal, or eminent domain.

     Accordingly, the purpose of this Act is to:

     (1)  Authorize the department of land and natural resources to acquire, through eminent domain or otherwise, the leasehold interest in the parcel identified as tax map key:  (3) 2‑1‑001:012 and currently used as the Grand Naniloa Golf Course;

     (2)  Authorize the board of land and natural resources to approve a new use for the parcel after providing the public an opportunity to provide testimony; and

     (3)  Appropriate moneys to the department of land and natural resources.

     SECTION 2.  (a)  The department of land and natural resources may acquire the leasehold interest in the parcel identified as tax map key:  (3) 2‑1‑001:012 and currently used as the Grand Naniloa Golf Course, whether by agreement, withdrawal, or eminent domain pursuant to chapter 101, Hawaii Revised Statutes.

     (b)  After acquiring the leasehold interest pursuant to subsection (a), the board of land and natural resources may approve a new use for the parcel in an open meeting that complies with part I of chapter 92, Hawaii Revised Statutes; provided that the board first provides the public the opportunity to provide testimony on any proposed new uses of the parcel.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $270,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the department of land and natural resources to acquire the leasehold interest in the parcel of state-owned land identified in section 2 of this Act.

     The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

BLNR; DLNR; Public Land; Grand Naniloa Golf Course; Banyan Drive; Acquisition of Leasehold; Eminent Domain; Appropriation

Description:

Authorizes the Department of Land and Natural Resources to acquire, through eminent domain or otherwise, the leasehold interest in the parcel identified as tax map key: (3) 2-1-001:012 and currently used as the Grand Naniloa Golf Course.  Authorizes the Board of Land and Natural Resources to approve a new use for the parcel after providing an opportunity for public testimony.  Appropriates moneys.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 2603

Honolulu, Hawaii

RE:     S.B. No. 2692

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Water, Land, Culture and the Arts, to which was referred S.B. No. 2692 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LAND,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Authorize the Department of Land and Natural Resources to acquire, through eminent domain or otherwise, the leasehold interest in the parcel identified as tax map key:  (3) 2-1-001:012 and currently used as the Grand Naniloa Golf Course;

     (2)  Authorize the Board of Land and Natural Resources to approve a new use for the parcel after providing an opportunity for public testimony; and

     (3)  Appropriate funds to the Department for the acquisition of the parcel of state-owned land currently used as the Grand Naniloa Golf Course.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Hawaii Community Development Authority, and one individual.

     Your Committee finds that a parcel of state-owned land is currently the site of the Grand Naniloa Golf Course and leased to a private entity as part of the Grand Naniloa Hotel, but that the use of the parcel as the golf course does not fulfill the land's potential to benefit the surrounding area and broader community.  This measure will allow for the redevelopment of the parcel based on the needs and desires of the community to provide benefits to local residents and the broader region.

     Your Committee has amended this measure by:

     (1)  Changing the appropriation amount from $270,000 to an unspecified amount to encourage further discussion on this measure;

     (2)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (3)  Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Water, Land, Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2692, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2692, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water, Land, Culture and the Arts,