Waimea Canyon and Kōke’e State Parks Cabin Lot Auction

Photo Credit: Tim DelaVega

**IMPORTANT PARK NOTICES**

Monitor local surf and weather reports prior to your park visit.

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[OʻAHU] UPDATED 11/4/24 – Kaʻena Point State Park, Mokuleʻia Section: The 2024 Kaʻena Point permit and decal is being extended through 2025. You do not need to apply for a new permit now, you will be notified when applications open next year. Take good care of your decal, we cannot replace decals. Please remember to take rubbish bags home, do not leave it a the trash bins.

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[KAUAʻI] UPDATED 11/4/24 – Waimea Canyon State Park/Kōkeʻe State Park: Paving will take place on Waimea Canyon Road leading into Puʻu Hinahina Lookout on Wednesday, November 6 limiting vehicle access into and out of the lookout parking lot from 11:30 am to 1:00 pm. Pedestrian access will remain open, and vehicles can access the lookout before and after the closure.

Waimea Canyon and Kōke’e State Parks Cabin Lot Auction

NOTICE OF SALE:

PUBLIC AUCTION FAQs [UPDATED 4/11/2024]

Auction date: Thursday, April 18, 2024

If I want to bid on more than one cabin that have different upset prices, what amount should my cashierʻs check be for? NOTE: We have amended procedures to not accept cash deposits.	If you intend to bid on more than one cabin, you should arrive at the auction with a cashierʻs check in the amount of the HIGHEST upset price for a cabin you intend to bid on. For example, if you intend to bid on two lots with upset prices of $4500 and $6800, you should bring a check for $6800. If you are the successful bidder for the $4500 cabin, your follow-up balance due will be adjusted downward as appropriate. If you intend to bid on ALL cabins, you should bring a cashierʻs check for $9500 – the highest upset price.
May we form a hui onsite the day of the auction to better our chances?	At present, only vetted and prequalified applicants may bid at auction. If 2 or more PREQUALIFIED bidders want to join together, they should do so BEFORE the auction, indicating so in writing, and upon sign in, the newly formed group will be given ONE bid paddle number, relinquishing their rights to bid individually. Should they be the winning bidder, they will be co-lessees on the subsequent lease.
Can you tell me the order in which the cabins will be auctioned?	The order of the lot selection will begin with the lowest lot number 12 to the highest lot number 91.
I am the winning bidder – What does the “Initial Deposit” include?	The “Initial Deposit” includes the difference between the minimum upset rent and the annual rent bid. Please submit the initial deposit in a certified or cashier’s check separately from the additional fees (see below).
Are there any “Additional fees”?	A separate certified or cashierʻs check for the additional fees, will include the following non-refundable items: Cost of the appraisal and descriptions (varies from lot nos. $595.46-$916.23), b. Documents ($30.00), c. Public notice ($314.28), d. Recording fees, conveyance taxes, if any. The additional fees are due within one (1) working day from the date of the auction.
Will I be required to provide a security deposit? and how much is the security deposit?	The Lessee shall within 15 days from the effective date of this lease, procure and deposit with the Lessor and thereafter keep in full force and effect during the term of this lease a good and sufficient surety bond in an amount equal to the annual rental. Lessee may place with Lessor cash or equivalent in this amount.
This process is very new to me, can I bring my secretary with me to the public auction?	Room is limited to one qualified bidder per application. Preference will be given to eligible bidders* first, then to other members of the public wishing to attend.*
Who will be able to attend the auction?	Preference will be given to eligible bidders.
I’m curious how many qualified applicants there were?	128 eligible applicants.
Will there be pictures and lot descriptions at the public auction to get one last look?	We will have a projector and screen for showing of the cabins during the auction.

THREE-TIERED PUBLIC AUCTION SALE OF SEVEN (7) STATE OF HAWAI’I RECREATION-RESIDENCE LEASES ON THE ISLAND OF KAUA’I

The Department of Land and Natural Resources (“DLNR”), Division of State Parks, Property Management, will be conducting a public auction sale of seven (7) recreation-residence leases for State lands.

AUCTION INFORMATION:

Public Auction Bid Packet for Kokee & Waimea Canyon Cabins 2024 (PDF. 17 MB)

Tier 1 Auction	Thursday, April 18, 2024, at 1:00 PM HST
Tier 2 Auction	Friday, May 24, 2024, at 10:00 AM HST
Tier 3 Auction	Friday, May 24, 2024, at 10:00 AM HST
PLACE:	Hanapēpē Neighborhood Center, 4451 Puolo Road, Hanapēpē, HI 96716. The above dates, time and/or place of auction are subject to change by DLNR.
LOCATION:	Seven (7) recreation-residence lots situated within the Pu’u Ka Pele and Kōke’e Camp Sites neighborhoods at the Waimea Canyon and Kōke’e State Parks, Waimea, Kaua’i, shown and described on Government Survey Map H.S.S. Plats 3095, 3096; Sheet 1 and Sheet 2.
TAX MAP KEY PLAT Nos.:	(4)1-4-02, (4)1-4-03 and (4)1-4-04. For specific information concerning the lots to be leased, lot sizes, individual tax map key references and upset rentals see Lot Information table below.
LAND AREA:	An approximate total of 5.72 acres., more or less for all seven (7) lots.
PERMITTED USES:	Solely for the purpose of a recreation-residence as defined in the lease.
SURETY BOND:	An amount equal to the annual lease rent.
LEASE TERM:	Approximately eight (8) years
MINIMUM UPSET ANNUAL RENT BID:	As determined by appraisal, see attached table below.
ANNUAL LEASE RENT:	Lease rent is paid annually in advance.

LOT INFORMATION:

Lot ID	Lot	Plat (Camp Lots)	TMK	Land Area (sq.ft.)	Minimum Upset Bid (Annual Rent)	Dwelling Area (sq.ft.)	Dwelling Assessed as Contributing Historic Property
K71	71	Kōke’e	1-4-04-62	23,087	$4,500.00	623	Yes
K81	81	Kōke’e	1-4-04-60	23,958	$5,500.00	416	Yes
K91	91	Kōke’e	1-4-04-48	25,265	$6,800.00	868	No
P12	12	Pu’u ka Pele	1-4-02-47	41,382	$4,500.00	908	Yes
P83	83	Pu’u ka Pele	1-4-02-81	43,560	$6,800.00	1,033	No
P29	29	Pu’u ka Pele	1-4-02-10	43,560	$5,500.00	1,092	Yes
P82	82	Pu’u ka Pele	1-4-02-79	48,351	$9,500.00	1,760	No

APPLICATION AND BIDDING INFORMATION:

ELIGIBILITY

Any person wishing to bid and purchase a lease for the item described above must first qualify to bid under the general qualifying criteria and the pre-qualifying criteria as described in the Public Auction Bid Packet (“Bid Packet”). Eligibility to bid shall be determined by the information supplied by prospective bidders in the Application and Qualification Questionnaire provided as Appendix A of the Bid Packet.

APPLICATION

Applications by prospective bidders for the above listed items must be received by DLNR no later than Monday, March 18, 2024, 4:00 PM HST at any of the District Offices listed below. Applicants shall submit one (1) original and five (5) copies of the Application (including copies of all required attachments). Any person who has failed to submit the completed Application and all required attachments (and required copies) by this date and time will not be allowed to bid. Each Applicant shall be informed in writing in advance of the auction date as to the Applicant’s eligibility to bid at the public auction. See Bid Packet for further instructions.

BID PACKET

The Bid Packet describes the auction sale procedures, bidder qualification requirements and other requirements, and contains the application form and other relevant information and a draft of the lease document which contains a survey map and descriptions of the subject properties, ad may be examined at https://dlnr.hawaii.gov/dsp/announcements/. Any person requiring special accommodation or information in an alternate format is asked to contact Ms. Keiki, E. Kipapa at (808) 587-0505 or via email [email protected] or Alan Carpenter at (808) 587-0286 by February 21, 2024.

STATE PARKS DISTRICT OFFICES:

District Office	Address	Telephone
O’ahu District Office	1151 Punchbowl St, Rm 310, Honolulu, Hawaii 96813	(808) 587-0300
Hawai’i District Office	75 Aipunui St, Rm 204, Hilo, Hawaii 96720	(808) 974-6200
Maui District Land Office	54 S High St, Rm 101, Wailuku, Maui 96793	(808) 984-8109
Kaua’i District Land Office	3060 Eiwa St, Rm 306, Līhu’e, Kauai 96766	(808) 274-3444

Prospective bidders are responsible to throughly read and understand the covenants, terms, and reservations and conditions contained in the Bid Packet and draft lease document. The property is to be leased in an “as is” condition, and prospective bidders are responsible to inspect the property and complete their due diligence prior to bidding.

All bidders or authorized representatives must be present and in person at the auction. DLNR reserves the right to cancel the public auction, remove any lots from the auction, to postpone or change the date of the public auction or any other deadlines, to reject any and all applications or request the submittal of additional information, and to waive any defects when, in the opinion of the Chairperson of the Board of Land and Natural Resources, such action will be in the best interest of the State.

FAQS – UPDATED 3/4/2024
Community Questions	Responses
Who is eligible to bid on a cabin?	The recreation-residence lots are being auctioned via a three-tier process, with qualified Tier 1 applicants going first (on April 18, 2024). Tier one applicants must be full-time residents of a Hawai’I county of less than 100,000 population. This rules out residents of Honolulu, Maui and Hawai’i Counties. Corporations are not eligible to bid, only individuals. There may be more than one lessee per lot, but each lessee would have to qualify under the Tier they intend to bid with (for example, a Kaua’i resident bidding in Tier 1 would not be allowed to have a co-lessee who is a non-resident). Those planning to bid as a hui must list all members (or representative members of each family) on ONE application – and would also need to submit Tier 1 qualifying info for ALL listed applicants. If one applicant did not meet the residency qualifications, the hui would not qualify to bid. Should there be any remaining cabins after the Tier 1 auction, a Tier 2 auction, to be held at a later date, would expand eligibility to all residents of Hawai’i. A subsequent Tier 3 auction, open to all qualified applicants regardless of residency, would be held for any remaining cabin lots following Tier 2. It is not expected that any cabins will be available after the Tier 1 auction on April 18, due to pent-up demand and the low number of available cabins.
What is the timeline for the cabin auction?	February 16: Bid/Application packets available. Online (free) or pick up in Parks District Offices ($30 fee – check or cash – please bring exact change). February 25-26: Exterior site inspections. Staff and volunteers will be onsite to direct visitors to the available lots. PLEASE DO NOT ATTEMPT TO VISIT OUTSIDE OF THESE DATES, AS THESE ARE REMOTE LOCATIONS WITH DIFFICULT ACCESS AND YOU ARE LIKELY TO END UP ON THE WRONG PROPERTY AND DISTURB CURRENT LESSEES. March 18, 4:00 PM HST: Applications due (all tiers). No late applications will be accepted. Applications received after the deadline will be ineligible for auction. March 28: Notice of Qualification/Disqualification April 14-15: Interior inspections (qualified Tier 1 applicants only) April 18, 1:00 PM HST: Public Auction (Tier 1), Hanapepe Neighborhood Center
Can I live in a cabin?	No. These cabins are for occasional/part-time recreational use, and full-time residence is strictly prohibited. They may be used for up to 180 days/year max. Proof of principal residence in another location is a requirement of the lease.
Can I rent out my cabin if I don’t exceed the 180-day limit?	No. Short-term rental or subleasing of the premises is not allowed. In fact, no commercial use of the property of any kind is allowable, only recreational.
How much work do the cabins need?	The precise amount of deferred maintenance and degree of deterioration varies across the seven available cabins. Some of them have been vacant for nearly a decade, while others have been given up fairly recently. Among the most common issues are roof deterioration/damage, and termite damage. All will require some significant improvements to bring them up to a quality, habitable standard, and there may be hidden damage not readily apparent in a cursory inspection. Potential bidders should possess the means and/or the expertise to appropriately repair these unique and historic buildings in compliance with the design standards: https://dlnr.hawaii.gov/dsp/files/2022/09/Kokee-Design-Guidelines_June-2012.pdf Approvals will be required by DLNR, and in some cases, SHPD in compliance with Chapter 6E, Hawaiʻiʻs historic preservation statute. Efforts will be made to fast-track approvals so that there are not long delays before improvements may begin.
Do I/we have to spend money on repairs?	Lease conditions require tenants to keep the improvements in good repair, and acknowledging that these are in substandard condition to begin with, it is expected that repairs will be necessary not only to comply with the lease, but to upgrade them to the degree necessary to allow for your full enjoyment of the property.
Will I/we have to upgrade the cesspool(s) on property?	Cesspools for single residences are grandfathered in, and not subject to mandatory replacement until 2050 under current law. Proposed changes to statutes may require conversion sooner, but we are confident there will be no compulsory upgrade required prior to the end of the lease period.
Why is the lease period only 7 ½ years?	The existing cabins under 20-year leases have expiration dates as late as December 31, 2031. The current available cabins will be synched with that date so that a comprehensive policy can be applied to all leases beginning in 2032. Among other things, the next lease period beginning in 2032 will require conversion of all cesspools to septic systems, therefore incentives to that requirement are being considered to apply across the board.
Will I/we own the cabin at the end of the lease?	No. As public trust resources, ownership of all improvements is retained by the State. There is no guarantee of lease extension or a new lease.
What happens at the end of the lease period?	When the current leases expire, tenants are expected to vacate the premises. However, the recreation-residence program is expected to continue in perpetuity, and what the next lease provisions will be should be established in advance of 2032. Options may include, but not be limited to: a new auction; a lottery; or direct negotiation with existing tenants who have maintained and improved their property in good faith and are in full compliance with all lease conditions.
Can I/we tear down a cabin and build a new one?	Because these are part of an historic district, and many are historic structures themselves, they should be preserved rather than replaced. As noted, this may take significant effort. However, the approvals and permits to demolish and replace would likely take far more time and money than simply rehabilitating and preserving them in their original form and character.
Can I/we sell the lease?	While lease transfers are allowed under certain conditions and with approval of the Board of Land and Natural Resources, these lots are not considered real property and lessees do not own the improvements. Their value is recreational, and while they have been reassigned in the past – typically to other family members – the BLNR has the discretion to deny a lease reassignment if it appears someone is attempting to profit from public trust resources.
Community Questions UPDATED 3/4/24
Do all of the applicants need to submit a tax clearance?	Yes, a tax clearance is required by all applicants.
Can I apply and submit my application now before the exterior site inspections (Sun., 2/25 or Mon., 2/26)?	We would like all applicants to take advantage of Sun. 2/25 and/or Mon. 2/26 for the exterior site inspections. But you are welcome to submit your bid packet application during business hours at any one of our District locations listed in the bid packet.
Will it be ok to submit one (1) item, for verification, demonstrating that I am a full-time resident?	To avoid disqualification, you should submit as much information as possible to assure the review committee of your residency status. Copy of income tax return is preferred, and more documents will provide more assurance to the committee and avoid requests for additional proof.
On the tenancy part, would we select the “joint tenants” option?	This will be up to the applicants how they choose to hold the title.
Do we need to submit an original green certified stamp for the tax clearances?	No. The tax clearances have since been updated and offices no longer issue an original green stamp. The stamp has been replaced with a scannable QR code that will be validated by Division of State Parks, Committee. State Parks will accept the scannable QR code tax clearance submitted with your application
Community Questions UPDATED 2/19/24
What documents do we need to submit with the Application on March 18, 2024 (deadline)?	1. Application with the notarized certification 2. Appendix B – Affidavit and Non-Arrears 3. Provide documentations for all applicants that they are a bona fide full-time resident. Samples are provided in the bid packet, page 6 4. Attach State of Hawaii and County tax clearances for all applicants
In the bid packet, a lease is provided. Do we sign and notarize the lease and submit this with the Application?	No. The lease provided in the bid packet is a generic copy. The bidder must understand the lease terms and conditions before bidding. State Parks will provide an original lease for each winning bidder for the specific cabin.