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Board of Agriculture accepts appraisals, approves conversion and 65-year lease for Freitas Ranch and backs transfer of four DLNR leases
Summary
The State of Hawaii Board of Agriculture on a unanimous vote accepted independent appraisals setting new annual rents for several agricultural leases, approved converting a month‑to‑month revocable permit for GNC Freitas Ranch into a long‑term lease amended at the meeting to a 65‑year term, and approved the transfer of four DLNR encumbrances to the Department of Agriculture under Act 90.
The State of Hawaii Board of Agriculture on a unanimous voice vote accepted independent appraisals that set new annual lease rents for a number of AgPark and non‑AgPark parcels and approved two separate land actions affecting working farms and ranches.
Board staff presented appraisal reports prepared by ACM Consultants recommending fair‑market annual rentals for several Agricultural Park and non‑AgPark leases. Staff recommended the board “accept the fair market rentals” as listed in the submittal. The board approved the recommendation with no objections.
The board then took up a request from GNC Freitas Ranch, Inc., to convert revocable permit S‑7732 (pasture use) into a new long‑term non‑AgPark lease. Staff told the board an appraisal set the initial annual base rent at $1,240 and that, consistent with administrative rules, the lessee would pay a premium equal to 25% of the annual base rent for each year of prior occupancy not to exceed seven years. The department recommended approval of conversion and mutual cancellation of the existing revocable permit upon execution of the new lease.
During board discussion the permittee, Georgette Freitas of GNC Freitas Ranch, said the family would “appreciate” a 65‑year lease and described multigenerational occupation and planned improvements including cross‑fencing, clearing invasive trees and possible irrigation. Board members debated whether to approve a 35‑year or 65‑year term at the meeting. After discussion the board withdrew the earlier motion and approved a new motion on the floor to grant a 65‑year lease term; the chair announced the motion carried with no objections.
Separately, the board approved the department’s request to accept four encumbrances for transfer from DLNR to the Department of Agriculture under Act 90 (SLH 2003), which creates a Non‑AgPark Lands Program and allows the transfer of some DLNR agricultural lands to HDOA for leasing and management. Public testimony included ranchers and industry representatives urging approval so the lands remain in agricultural production. The board voted to approve the transfers unanimously; staff said they would notify DLNR of the board’s action.
Why this matters: The actions finalize appraisal‑based rents and convert short‑term permits to long‑term leases intended to provide stability for agricultural producers. The Act 90 transfers move selected DLNR agricultural parcels to HDOA management, which supporters said will better preserve agricultural use and stewardship.
Board direction and follow up: Staff agreed to provide lease start/term dates and appraisal breakdowns to board members on request and to notify DLNR of the approved transfers. The Freitas lessee said she and family members would provide further detail on planned improvements if the board asked.
Speakers at the meeting included Board Chair Sharon Hurd; HDOA staff Brandy (property manager, Agricultural Resource Management Division); Georgette Freitas (GNC Freitas Ranch, permittee); and board members James “Jimmy” Gomes, Diane Lee, Randy Cabral and others. Public commenters in favor of transfers included Nicole Galassi of the Hawaii Cattlemen’s Council and rancher Steven David Luz.
