Mapunapuna landowner sues over new lease-rent law

Hawaii’s largest owner of industrial land on Aug. 14 said it filed a federal lawsuit challenging a new state law that aims to limit rent increases on its Honolulu tenants, which include the nonprofit Olelo Community Media. Massachusetts-based HRPT Properties Trust filed the suit in U.S. District Court in Honolulu, claiming the law, which the Legislature passed during this year’s session, violates the U.S. Constitution.

“HRPT intends to make no further public statements about this litigation at this time,” the company said.

The new law requires renegotiated rent on property owned by the real estate investment trust in Mapunapuna, mauka of the Honolulu International Airport to be “fair and reasonable.” The Mapunapuna tenants, who have long-term leases on the industrial properties, appealed to lawmakers, objecting to the way the publicly-traded real estate investment trust company had renegotiated rents. Gov. Linda Lingle allowed the bill to become law without her signature.

HRPT purchased 220 acres in Mapunapuna, Sand Island and Kalihi from the Estate of Samuel Mills Damon for $480 million in December 2003, and became the largest owner of industrial land in the Islands in 2005 when it also purchased about 200 acres in Campbell Industrial Park for $115 million from the former Estate of James Campbell.