Request for Quote Fair Market Rent Appraisal.pdf

JOSH GREEN, M.D.

Governor

SYLVIA LUKE

Lt. Governor

WENDY L. GADY

Executive Director

JOSH GREEN, M.D.

Governor

SYLVIA LUKE

Lt. Governor

STATE OF HAWAI'I

AGRIBUSINESS DEVELOPMENT CORPORATION

Hui Ho`oulu Aina Mahiai

235 S. Beretania Street, Suite 205 Honolulu, HI 96813

Phone: (808) 586-0186 Fax: (808) 586-0189

April 2, 2024

Request For Quote

RFQ 24-200-050

Fair Market Rent Appraisal

Background:

The Agribusiness Development Corporation (“ADC”) is a state agency administratively attached to the Hawaii Department of Business, Economic Development, and Tourism whose mission is to facilitate and coordinate the development and expansion of Hawaii's agricultural industry and increase Hawaii’s local food production. The ADC is seeking to lease/license vacant parcels on the islands of Oahu and Kauai for various agricultural uses, which include diversified agriculture production, value-added and processing, and pastoral.

Scope of Work:

ADC requests a quote to prepare appraisal reports for the purpose of determining the fair market rental value for agriculture use, and common area maintenance rate or water delivery charges for each of the areas listed as follows:

Galbraith Ag Lands, Oahu – 970 acres TMKs (1) 6-5-002-010, (1) 7-1-001-003, (1) 7-1-012-001, (1)7-1-012-016 (Exhibit “A”)

• Diversified agriculture land rental rate per acre

• Common area maintenance (CAM) assessments

• Access to water infrastructure distribution rate (Irrigation Water Delivery)

Whitmore Village, Oahu – 24 acres TMK (1)7-1-002-009 (Exhibit “B”)

• Light industrial ground lease rental rate per square foot

• Common area maintenance (CAM) assessments

Kekaha, Kauai – 12,860.642 acres TMK (4)1-2-002-001 (Exhibit “C”)

• Diversified agriculture land rental rate per acre

• Pastoral land rental rate per acre

• Common Area Maintenance (CAM) assessments

• Access to water infrastructure distribution rate (Irrigation Water Delivery)

Request for Quote - Fair Market Rent Appraisal

Kalepa, Kauai – 5,936 acres TMK (4)3-9-002-001 (Exhibit “D”)

• Diversified agriculture land rental rate per acre

• Pastoral land rental rate per acre

• Common area maintenance (CAM) assessments

• Access to water infrastructure distribution rate (Irrigation Water Delivery)

The appraisal report will be used as a guide to determine the fair market rental value on which the ADC will base its rental rates for diversified agriculture, pastoral, and commercial use.

The appraisal report shall be prepared in conformity with, and shall be subject to, the requirements of the Code of Professional Ethics and Standards of Professional Practice of the Appraisal Institute and the Uniform Standards of Professional Appraisal Practice.

A map of the locations is attached (see “Exhibit A - D below”).

I. Approach:

The consultant shall provide a discussion and analysis of the various methodologies used to determine the estimated fair market rental value of the parcels.

This will provide ADC with a basis to charge its tenant(s) for the various uses of the parcel(s) listed above.

II. Inspection:

The consultant shall perform a physical inspection of the subject properties and comparable properties. Photographs of the subject and comparable properties shall be included in the report. The inspection of the properties shall be conducted with a representative from the ADC, as much as possible. Any relevant documents or property information pertaining to the parcels will be provided by ADC.

III. Report Preparation:

The consultant shall recommend one of the methodologies as the preferred method for establishing a fair market value for each parcel. Supporting documentation and rationale to support the determination shall be included in the report.

The consultant shall prepare a report for each of the parcels with the findings and analysis, which shall include a range of market rental values of comparable properties in a matrix format.

Report:

Submit one report, which shall include the estimated fair market rental value for each area as described in the Scope of Work, and collectively, to the ADC, one (1) original, and one (1) electronic copy on compact disk.

Time of Performance:

45 days from Notice to Proceed.

Pre-Bid Site Visit:

Pre-bid site visits will be held on Kauai and Oahu on the following days:

Tuesday, April 9, 2024, at 9:30 a.m. on Kauai. Interested Offerors shall meet at 9555 Kaumualii Highway, Waimea, Kauai, Hawaii 96796. The site visit on Kauai will include the Kekaha and Kalepa agricultural lands.

Wednesday, April 10, 2024, at 9:30 a.m. on Oahu. Interested Offerors shall meet at 1116 Whitmore Ave., Wahiawa, Hawaii 96786. Enter gate at the intersection of Whitmore Ave. and Ihi Ihi Ave. The site visit on Oahu will include the Whitmore light industrial area and the Galbraith agricultural lands.

Attendance at the pre-bid conference by interested offerors is recommended. Submission of a bid shall be evidence that the Offeror understands the scope of the project and shall comply with specifications as written.

Submission of Bid:

Bids shall be submitted electronically via HIePRO before 2:00 p.m., Friday. April 19, 2024. No bids will be accepted by regular mail, facsimile, or email.

Submission of Questions:

Interested Offerors shall submit their questions on HIePRO before 2:00 p.m., Friday, April 12, 2024. Answers will be posted by HIePRO at 4:00 p.m., Tuesday, April 16, 2024.

Selection and Award of Purchase Order:

Pursuant to 103D-304, HRS and 103D-305, HRS, award will be given to the lowest qualified lump sum quote.

For any questions regarding the RFQ, please contact Ken Nakamoto at 808-586-0087 or email at ken.t.nakamoto@hawaii.gov.

mailto:ken.t.nakamoto@hawaii.gov

Exhibit “A” TMKs (1) 6-5-002-010, (1)7-1-001-003, (1)7-1-012-001, and

(1)7-1-012-016 shaded RED

TMK (1)6-5-2-10

TMK (1)7-1-1-3

TMK (1)7-1-12-1

TMK (1)7-1-12-16

Exhibit “B” TMK (1)7-1-002-009 shaded RED

TMK (1)7-1-2-9

Exhibit “C” TMK (4)1-2-002-001 outlined in Yellow

TMK (1)7-1-2-9

Exhibit “D” TMK (4)3-9-002-001 outlined in Yellow