Strapped for cash like so many other government, private and nonprofit agencies, the Department of Land and Natural Resources is raising funds by offering vacant land for lease.

Revenues from the land leases will be earmarked for repairs, maintenance and operations at deteriorating state parks, small-boat harbors, trails and forest lands under DLNR's Recreational Renaissance Plan B.

Plan A — using bonds to borrow $240 million for an ambitious capital improvement program — was shot down by budget-conscious lawmakers during the 2009 legislative session.

Denied taxpayer dollars, DLNR officials downsized their improvement plan and set a more modest goal of raising $12 million annually from the land leases. The agency also is proposing fee increases for parking, camping, boating and other activities to raise even more money.

"DLNR is moving forward to solicit and issue long-term leases on vacant or soon-to-become vacant state lands as a fundamental part of our Recreational Renaissance plan to care for our public outdoor recreational facilities," said chairwoman Laura H. Thielen. "We identified vacant lands that are in areas with infrastructure to support development, such as Campbell Industrial Park, or in areas where people and counties have planned for development, such as the Mana industrial area near Hilo airport."

DLNR's Land Division identified 14 properties with the most promise for generating revenues , most with infrastructure improvements and commercial, business or industrial zoning in place to expedite development.

Long-term leases on the properties will be offered through public auction, requests for proposals or other processes.

The list includes two adjoining parcels totaling 105 acres in East Kapolei that are within the city's proposed rail transit district and adjacent to the proposed University of Hawai'i-West O'ahu transit station.

Money collected from the leases will be used solely for the purpose of funding Plan B projects, Thielen said.

'BE INNOVATIVE'

State Sen. Clayton Hee, D-23rd (Käne'ohe, Kahuku), was among the lawmakers who were skeptical that DLNR would be able to cover the debt service on its original Recreational Renaissance financing plan. He supports efforts by DLNR and other state agencies to develop steady revenue streams to offset budget cuts and increasing costs.

"The government has to redefine itself in light of the economy. Relying on the Legislature to appropriate monies that they may have received in the past is probably not a good idea going forward," Hee said. "All departments will have to be innovative and find ways to raise capital."

The senator said he also would like to see DLNR and other departments re-examine the lease terms on their properties to adopt a system that relies more on higher base rents rather than a percentage of gross, and to move toward market pricing.

During recent discussions by the Board of Land and Natural Resources on the proposal to lease lands for Recreational Renaissance Plan B, Thielen acknowledged concerns that if the department shows it can raise money to support its operations, lawmakers may decide to slash funding even further.

But she pointed out that state spending on parks and recreational facilities already has been steadily declining to the point where some parks would have to be closed without additional support.

"We sincerely hope the Legislature supports taking care of the health and safety of people at state parks, trails and harbors and does not see this as a means to decimate our budgets further," she told The Advertiser.

Hee said those feared budget cuts are a possibility, but it shouldn't keep DLNR or any other state agency from looking for ways to raise cash.

"Why would they continue to receive more taxpayer money if they can do it themselves?" he said.

In fact, Thielen told the board at its Aug. 14 meeting, if DLNR demonstrates it can generate substantial revenues from land lease rents and other means, the agency may have better luck obtaining the legislation needed to implement the original Recreational Renaissance plan.

The board authorized the sale of land leases for the benefit of the Renaissance Plan B at that meeting, and the department this month announced the first six sites to be offered.

SITES UP FOR LEASE

In addition to the land in East Kapolei, the properties are:

• A 110-acre parcel in the Campbell Industrial Park.

• Six Mill Town Business Park lots zoned for limited industrial use.

• A 3-acre lot at the corner of Komohana Street and 'Äina'ola Drive in Hilo zoned for neighborhood commercial use.

• A 13,700-square-foot lot in Kekaha Town on Kaua'i zoned for neighborhood commercial use.

• A 25.4-acre industrial/commercial mixed-use property near the Hilo airport that is shared with the Department of Hawaiian Home Lands.