Report Title:
Sale of public lands; North Kona
Description:
Authorizes the State to sell public lands in North Kona, Hawaii at public auction; places 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 HD2)
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2091 |
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TWENTY-FIRST LEGISLATURE, 2002 |
H.D. 2 |
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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. The 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 additional measures need to be taken to revitalize Hawaii's economy. One strategy is to sell selected public lands that may be attractive to developers and that may provide a significant return to the State. Revenues from the sale of public lands could be used for deserving public projects such as the expansion of the University of Hawaii campuses.
One such parcel is unused land located in North Kona, Hawaii. The parcel is approximately two thousand one hundred eighty-five acres in size and is identified as Tax Map Key (TMK) No. 7-2-05:08. This property is ideally situated near the Kona Airport, Queen Kaahumanu highway, and Kailua town.
Inquiries have already been made on this parcel. For example, the Kamalani Development Corporation has expressed interest in developing a Kona Entertainment Center complex, which would include a world-class auto speedway, a cultural park, a national Korean war museum, a convention center, and a hospitality training facility.
The public benefits that would be derived from the sale of this parcel to the Kamalani Development Corporation would be substantial and include the following:
(1) An estimated one thousand five hundred permanent jobs and up to twelve thousand five hundred 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 from 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.
In addition to the Kamalani Development Corporation, other parties may also be interested in this parcel.
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 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 at public auction. This Act provides for the deposit of 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. The department of land and natural resources is authorized to sell, in fee simple, at public auction, the property situated in Kona, Hawaii, more particularly identified as TMK No. 7-2-05:08.
SECTION 4. Notwithstanding any law to the contrary, the chairperson of the board of land and natural resources, after fulfilling the requirements in 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 report on the details of the sale of this property to the legislature no later than twenty days prior to the beginning of the regular session of 2003.
SECTION 6. New statutory material is underscored.
SECTION 7. This Act shall take effect on July 1, 2012.