Board approves assignment of state lease S‑4760 to Kaz's Nursery and amends permitted crop use

The Board of Agriculture and Biosecurity approved the consent to assign General Lease S‑4760 from Mountain Meadows, Inc. to Kaz's Nursery LLC and approved an amendment to paragraph 12 to change the lease's character of use from 'macadamia orchard' to 'diversified agriculture.' Staff said the assignment consideration is $1,000,000 and that the current lease language does not include a participation clause permitting the department to share in assignment proceeds.

Staff background: ARM property manager Brandy Aayo summarized the lease history: originally executed in 1982 to Donald and Helen Shintu, transferred to the Department of Agriculture (then by executive order) and later assigned to Mountain Meadows, Inc. Staff said Raymond Tanoi developed a substantial nursery operation but has had health issues; Mountain Meadows seeks to assign the lease to Kaz's Nursery LLC (owners Reed Kishinami and Maximus Yara/Yara‑may in transcript), who staff said have significant agricultural experience. Kaz’s plan of utilization would continue the existing nursery and landscaping operations and expand allowed crops under the amended character of use.

Board discussion and conditions: Board members asked whether changing the character of use affected the rent basis (staff said it should not) and whether invasive‑species controls could be added as a lease condition (staff said invasive‑species language could be incorporated at extension or by amendment). Members requested an itemized summary of the plant inventory and asset condition that drove the $1,000,000 valuation and asked staff to follow up on invasive‑species language options.

Vote and outcome: The chair called for the vote and announced the motion was approved without objection. The board therefore consented to the assignment and approved the character‑of‑use amendment as recommended by staff.