Report Title:
Sale of public lands; North Kona
Description:
Authorizes the State, after fulfilling certain conditions, to sell public lands in North Kona for the development of the Kona Entertainment Center; places net proceeds from the sale into the newly created University of Hawaii West Hawaii campus special fund to be used to fund costs related to the development of the West Hawaii campus. (HB2091 HD1)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2091 |
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TWENTY-FIRST LEGISLATURE, 2002 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO LAND USE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The recent terrorist attacks on September 11, 2001, have exacerbated the economic slowdown that was already occurring in the United States at the time. Sectors such as airline, travel and recreation, and retail have been especially hard hit. Hawaii has borne the brunt of much of this economic damage with its dependence on tourism, discretionary consumer spending, and air travel. The negative effects of the economic slowdown have manifested themselves with increased unemployment in the tourist and retail industries, high vacancy rates for hotels, and decreased visitor arrivals at the airports.
The legislature recognizes the severity of the economic crisis. A Third Special Session of 2001 was convened in October 2001, to address some of the major economic issues raised following the terrorist attacks. Legislation was enacted to spur economic growth, including tax benefits for reconstruction or renovation of residential and hotel facilities, and increased funding to market Hawaii as a safe and desirable tourist destination.
The legislature finds that further measures need to be taken to revitalize Hawaii's economy.
The legislature recognizes that jobs and education/training represent two of the most critical components of our economy. A sustained economic recovery is heavily dependent on substantive job creation as well as education and training programs to improve the skills of Hawaii's workforce. It is in the public interest for the legislature to foster and promote programs and initiatives designed to spur employment and educational opportunities for the people of Hawaii.
One such initiative involves the development of the Kona Entertainment Center situated in North Kona, Hawaii. There is a parcel of land near the Kona Airport that is currently unused.
The land is approximately 2,185 acres in size and is identified as Tax Map Key (TMK) No. 7-2-05:08. The Kamalani Development Corporation has expressed interest in purchasing this public property to develop and construct the Kona Entertainment Center. Proposed components of the Kona Entertainment Center include a world-class auto speedway, a cultural park, a national Korean war museum, a convention center, and a hospitality training facility.
The legislature finds that it is in the public interest for the State to conduct a sale, in fee simple, of the property in question. The public benefits of the sale to the people of Hawaii are substantial and include the following:
(1) An estimated 1,500 permanent jobs and up to 12,500 seasonal jobs;
(2) Annual salaries of approximately $48,000,000;
(3) Improvements totaling over $338,000,000;
(4) Training and educational opportunities relating to the various components of the Kona Entertainment Center including a hospitality training facility;
(5) Increased visibility and promotional opportunities for Hawaii due to the world-class speedway being proposed as the centerpiece of the Kona Entertainment Center;
(6) Promotion of various local cultures through the development of a cultural park; and
(7) Campgrounds and parks for recreational purposes.
The University of Hawaii also benefits greatly from the sale of the property in question. Net proceeds from the sale will be used to finance the development of the West Hawaii campus of the University of Hawaii. In addition, under a private/public partnership, students will have access to many of the employment and educational opportunities afforded by the Kona Entertainment Center.
The purpose of this Act is to authorize the State to conduct a sale, in fee simple, of the property identified as TMK No. 7-2-05:08 to the Kamalani Development Corporation to allow for the development of the Kona Entertainment Center. The Act provides for the deposit of net proceeds from the sale to the University of Hawaii West Hawaii campus special fund, which will finance the development of the West Hawaii campus.
SECTION 2. Chapter 304, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§304- University of Hawaii West Hawaii campus special fund. (a) There is established in the state treasury the University of Hawaii West Hawaii campus special fund, into which shall be deposited:
(1) All net revenues from the sale of state property situated in Kona, Hawaii, more particularly identified as TMK No. 7-2-05:08; and
(2) All appropriations made by the legislature to the fund.
All interest earned or accrued on moneys deposited in the fund shall become a part of the fund.
(b) Moneys in the University of Hawaii West Hawaii campus special fund shall be used for plans, land acquisition, design, construction, and equipment for the development of the University of Hawaii West Hawaii campus."
SECTION 3. Notwithstanding the provisions of section 171-14, Hawaii Revised Statutes, the legislature approves the sale, in fee simple, of the property situated in Kona, Hawaii, more particularly identified as TMK No. 7-2-05:08.
No sale shall take place unless:
(1) The State agrees to the terms of a memorandum of agreement that specifies the land use approvals, infrastructure improvements, and archaeological and environmental studies that shall be completed prior to the sale of the property;
(2) The State agrees to the terms of a memorandum of agreement that specifies the rights and privileges of students, faculty, and other personnel of the University of Hawaii to access facilities, services, and programs established on the property; provided that rights and privileges may include but are not limited to employment opportunities, educational opportunities, and reduced fares; and
(3) The chairperson of the board of land and natural resources determines that the State will receive a minimum of $____ from the sale of the property after fulfilling the requirements in paragraph (1) and section 10-13.5, Hawaii Revised Statutes.
SECTION 4. Notwithstanding any law to the contrary, the chairperson of the board of land and natural resources, after fulfilling the requirements in section 3(1) and section 10-13.5, Hawaii Revised Statutes, shall deposit the proceeds from the sale of the property identified as TMK No. 7-2-05:08 into the University of Hawaii West Hawaii campus special fund pursuant to section 304- , Hawaii Revised Statutes.
SECTION 5. The department of land and natural resources shall submit a status report detailing the progress made in meeting the provisions of this Act to the legislature no later than twenty days prior to the beginning of the regular sessions of 2003, 2004, and 2005.
SECTION 6. New statutory material is underscored.
SECTION 7. This Act shall take effect upon its approval.