Board of Agriculture approves two Hamakua subleases and assignment of Waimanalo lease

The State of Hawaii Board of Agriculture on March — approved three land-lease actions that staff said will allow two local growers to expand operations at Hamakua Agricultural Park and transfer a Waimanalo lease to a newly formed farm company.

Brandy Ayole, property manager with the Agricultural Resource Management Division, told the board the first request was for Marites Lebed to sublease Lot 1 under General Lease 07-2013 at Hamakua Agricultural Park. Staff said the lot is about 10 acres, currently vacant and overgrown, and that Lebed already subleases Lot 28 under a different general lease and grows a variety of vegetables. Staff recommended approval through the lease expiration date of June 29, 2033. Member Diane moved the motion; there were no objections and the board approved the sublease by voice vote.

The board also approved a request by Jiangyu Wang to sublease Lot 3, approximately 9.73 acres, under General Lease 07-2013. Ayole said Wang currently subleases multiple lots elsewhere and intends to use Lot 3 to expand production, including planting a banana variety described in the staff report as Brazilian apple bananas. Member Jimmy moved the motion; Member Diane seconded it. The board approved the sublease by voice vote.

In the third approved action, staff asked the board to consent to the assignment of General Lease 5707 (Waimanalo Agricultural Subdivision, Lot 15) from Alltree Services Inc. to Mulca Rain Farm LLC. Ayole said Alltree had used the property to cultivate kiawe and other trees but could no longer operate the farm because of physical disability and limited resources. Staff said Mulca Rain Farm LLC is newly formed and owned equally by Steven Nims, Olive Vanzlo, Ilana Nims and David Golden; the assignee plans to grow landscaping and edible plants and produce compost and biochar. The assignment, Ayole told the board, includes farm structures, shipping containers and some plant inventory.

Staff reported financial details in the assignment request: Alltree Services Inc. has an outstanding balance of annual lease rents of $28,264.88. A preliminary title search disclosed liens for unpaid federal and state taxes “upwards of $209,000,” and the consideration to be paid by Mulca Rain Farm LLC is $400,000, which staff said will be handled through escrow; staff estimated the net to the lessor under the lease——provisions would be about $140,000. Member Jimmy moved the motion to approve the assignment; Member Wendy seconded it. The board approved the assignment by voice vote.

Board members asked a few clarifying questions before votes. Member Diane asked how overgrown Lot 1 was; Ayole said the lot had tall grass and brush but not many trees. Member Daniel Oswald asked about the tax lien on the Waimanalo property; Ayole said the title search did not specify the tax types and that the outstanding amounts would be cleared through escrow as part of the assignment.

All three staff recommendations cited compliance with applicable administrative rules and lease provisions. The board took no further action and moved on to a nonaction agenda item on invasive species updates.

Votes at a glance

- Sublease: Hamakua Agricultural Park, Lot 1 (General Lease 07-2013) — Applicant: Marites Lebed. Motion moved by Member Diane; approved by voice vote; expiration date listed as 06/29/2033. (Details: lot ~10 acres; currently vacant/overgrown.)

- Sublease: Hamakua Agricultural Park, Lot 3 (General Lease 07-2013) — Applicant: Jiangyu Wang. Motion moved by Member Jimmy; seconded by Member Diane; approved by voice vote; expiration date listed as 06/29/2033. (Details: lot ~9.73 acres; intended cultivation includes banana variety.)

- Assignment: General Lease 5707 (Waimanalo Agricultural Subdivision, Lot 15) — From: Alltree Services Inc.; To: Mulca Rain Farm LLC. Motion moved by Member Jimmy; seconded by Member Wendy; approved by voice vote. Staff reported outstanding annual lease rents of $28,264.88 and title-search liens of about $209,000; consideration: $400,000 to be paid through escrow; staff estimated net proceeds to the lessor at approximately $140,000 under lease paragraph 13.

Context and next steps

Staff said the Hamakua subleases respond to growers who are already farming in the region and seek additional acreage to meet market demand. The assignment in Waimanalo will proceed through escrow and closing; staff said escrow will address outstanding lease rents and any federal or state tax liens before transfer. No board members requested follow-up reports; staff offered to provide additional documentation (corrected dates for a lease history item) after the meeting.