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HOUSE OF REPRESENTATIVES             H.R. NO.              
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  RESOLUTION

REQUESTING THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND
   TOURISM TO PREPARE A PLAN FOR THE RELOCATION OF THE FOREIGN-
   TRADE ZONE AT PIER 2, HONOLULU HARBOR.



 1       WHEREAS, the recently completed Statewide Cruise Facilities
 2   Study that was prepared by Leo Daly indicate that the cruise
 3   industry spent approximately $179,000,000 in 1998 and is
 4   expected to grow to $675,000,000 in 2004; and
 5   
 6       WHEREAS, in 1998, the Hawaii cruise market received over
 7   100,000 passengers, and this number is expected to triple by
 8   2003; and
 9   
10       WHEREAS, cruise industry representatives have indicated
11   that additional and better passenger terminal facilities are
12   required to support the new ships and growing cruise market in
13   the State; and
14   
15       WHEREAS, the State is planning to use about $30,000,000
16   from the Harbor Special Fund and revenue bonds for improvements
17   to Honolulu Harbor for cruise ships, excursion vessels,
18   commercial fishing boats, and possibly an inter-island ferry
19   service; and
20   
21       WHEREAS, these details are described in an environmental
22   impact statement that was prepared by Wil-Chee Planning Inc.;
23   and
24   
25       WHEREAS, the planned projects are part of the State
26   Commercial Harbors 2020 Master Plan and include construction of
27   a cruise ship terminal in two buildings at Pier 2, which would
28   require relocating the Foreign-Trade Zone; and
29   
30       WHEREAS, construction of the cruise ship terminal at Pier 2
31   and the excursion vessel at Pier 24-29 are scheduled to start
32   in the year 2000 and be completed in 2001; and
33   
34       WHEREAS, the parent company of American Hawaii Cruises
35   recently signed a contract with Ingalls Shipbuilding to
36   construct two, 1,900-passenger cruise ships for service in the
37   State at a cost of $880,000,000; and

 
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 1       WHEREAS, the ships are scheduled to arrive in Hawaii in
 2   2003 and 2004; and
 3   
 4       WHEREAS, in mid-2000, American Hawaii Cruises is planning
 5   to lease and reflag a foreign cruise ship for Hawaii service;
 6   and
 7   
 8       WHEREAS, however, the current facilities at Pier 2 will not
 9   be able to accomodate the anticipated expanded passenger cruise
10   ship service; and
11   
12       WHEREAS, furthermore, the planned passenger terminal at
13   Pier 2, Honolulu Harbor, cannot be engineered until relocation
14   of the Foreign-Trade Zone is confirmed; now, therefore,
15   
16       BE IT RESOLVED by the House of Representatives of the
17   Twentieth Legislature of the State of Hawaii, Regular Session
18   of 1999, that the Department of Business, Economic Development,
19   and Tourism is requested to prepare a plan for the relocation
20   of the Foreign-Trade Zone at Pier 2, Honolulu Harbor; and
21   
22       BE IT FURTHER RESOLVED that the Department of Business,
23   Economic Development, and Tourism submit a report of the plans
24   and actions taken pursuant to this request to the Legislature
25   no later than twenty days prior to the convening of the Regular
26   Session of 2000; and
27   
28       BE IT FURTHER RESOLVED that certified copies of this
29   Resolution be transmitted to the Director of Business, Economic
30   Development, and Tourism.
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34                         OFFERED BY:  ____________________________