HB2254

Report Title:

Waikiki Authority

Description:

Establishes the Waikiki Authority for the redevelopment of Waikiki. Appropriates funds.

HOUSE OF REPRESENTATIVES	H.B. NO.	2254
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

A BILL FOR AN ACT

relating to the waikiki authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Waikiki has long been perceived as the "gateway of the Pacific." For years the tropical image of Waikiki has lured millions of visitors to this State, making it one of the most enduring visitor attractions in the world. However, Waikiki has experienced haphazard growth, a deteriorating infrastructure, and unforeseen commercialization to the point where it no longer represents a Hawaiian sense of place.

The legislature believes that the time has come to refocus our thinking and revitalize our tourism-based economy to attract the modern sojourner with today's conveniences. Through public and private cooperation, Waikiki can be restored to its original grandeur. Waikiki can be preserved as a tropical paradise that both our tourists and local community can experience and appreciate.

The purpose of this Act is to establish the Waikiki authority to adopt and implement a master plan to oversee the redevelopment of Waikiki. The Waikiki authority will combine participation from landowners, hotels, the city & county of Honolulu, state government, and tourism experts to resolve issues relating to redevelopment of Waikiki.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

"CHAPTER

WAIKIKI AUTHORITY

§ -1 Definitions. As used in this chapter:

"Authority" means the Waikiki authority established by this chapter.

"Board" means the board of directors of the Waikiki authority.

"Commercial project" means an undertaking involving commercial or light industrial development, which includes a mixed use development where commercial or light industrial facilities may be built into, adjacent to, under or above residential units.

"Project" means a specific work or improvement, including real and personal properties, or any interest therein, acquired, owned, constructed, reconstructed, rehabilitated, or improved by the authority, including a residential project, a redevelopment project, or a commercial project.

"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.

"Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, rehabilitation, or a combination of these and other methods, of an area for a residential project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this chapter.

"Residential project" means a project or that portion of a multipurpose project, including residential dwelling units, designed and intended for the purpose of providing housing and such facilities as may be incidental or appurtenant thereto.

§ -2 Waikiki authority; establishment. (a) There is established the Waikiki authority, which shall be a body corporate and a public instrumentality of the State, to adopt and implement a master plan to oversee the redevelopment of Waikiki. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes only.

§ -3 Waikiki authority board of directors. (a) The authority shall be governed by a board of directors having seven voting members. The director of business, economic development, and tourism, the director of transportation, the chairperson of the board of land and natural resources, and the mayor of the city and county of Honolulu, or their respective designated representatives, shall serve as ex officio voting members.

Three members from the public at large shall be appointed by the governor for staggered terms pursuant to section 26-34 and shall also serve as voting members; provided that no public member shall be an officer or employee of the State or its political subdivisions. All members shall continue in office until their respective successors have been appointed. The board, by a majority vote, shall elect a chairperson from within its membership.

(b) The members of the board appointed under this section shall serve without compensation, but each member shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.

(c) The board shall appoint a chief executive officer. The board shall set the salary of the executive officer, who shall serve at the pleasure of the board and shall be exempt from chapter 76.

§ -4 Powers. Except as otherwise limited by this chapter, the board may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter; provided that the authority may enter into contracts and agreements for a period of up to five years;

(4) Make and alter bylaws for its organization and internal management;

(5) Prepare and implement the Waikiki redevelopment master plan to be updated every three years;

(6) Acquire, reacquire, or contract to acquire or reacquire by grant, or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

(7) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other improvements;

(8) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith and repurchase or otherwise acquire any project that the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

(9) Arrange or contract for:

(A) The planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places,

(B) The furnishing of facilities,

(D) The furnishing of properties or services in connection with a project;

(10) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on such terms and conditions as it deems advisable;

(11) Prepare or cause to be prepared, plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify such plans, specifications, designs, or estimates;

(12) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation either public or private, to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(13) Through its executive director, appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapters 76 and 78;

(14) Through its executive director, purchase supplies, equipment, or furniture;

(15) Through its executive director, allocate the space or spaces which are to be occupied by the authority and appropriate staff;

(16) Engage the services of qualified persons to implement the master plan for the redevelopment of Waikiki as determined by the board;

(17) Engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(18) Procure insurance against any loss in connection with its property and other assets and operations in such amounts from such insurers as it deems desirable;

(19) Contract for, and accept gifts or grants in any form from any public agency or any other source;

(20) Develop, coordinate, and implement state policies and directions relating to Waikiki, taking into account the economic, social, and physical impacts of tourism in Waikiki;

(21) Conduct market development-related research as necessary;

(22) Coordinate all public agencies and advise the private sector in the development of tourism-related activities and resources in Waikiki;

(23) Adopt rules in accordance with chapter 91 with respect to its projects, operations, properties, and facilities;

(24) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter.

§ -5 Meetings of the board. (a) The meetings of the board shall be open to the public as provided in section 92-3, except that when it is necessary for the board to receive information that is proprietary to a particular enterprise or the disclosure of which might be harmful to the business interests of the enterprise, the board may enter into an executive meeting that is closed to the public.

(b) The board shall be subject to the procedural requirements of section 92-4, and this authorization shall be in addition to the exceptions listed in section 92-5, to enable the authority board to respect the proprietary requirements of enterprises with which it has business dealings.

§ -6 Exemption of Waikiki authority from administrative supervision of boards and commissions. Notwithstanding any law to the contrary, the authority shall be exempt from section 26-35 with the exception of section 26-35(2), (3), (7) and (8).

§ -7 Waikiki redevelopment master plan; measures of effectiveness. (a) The authority shall be responsible for developing the Waikiki redevelopment master plan that shall be updated every three years and include the following:

(1) Identification and evaluation of current and future needs of Waikiki;

(2) Goals and objectives in accordance with identified needs;

(3) Statewide promotional efforts and programs in Waikiki;

(4) Measures of effectiveness for the authority's promotional programs for Waikiki; and

(5) Coordination of the Waikiki redevelopment master plan.

The authority shall also develop and include in its Waikiki redevelopment master plan, goals and objectives for marketing Waikiki, as well as for integrating marketing objectives with existing and potential state telecommunications and information resources in the public and private sectors.

(b) In accordance with subsection (a), the authority shall be responsible for developing measures of effectiveness to assess the overall benefits and effectiveness of the Waikiki redevelopment master plan and include documentation of the directly attributable benefits of the plan to the following:

(1) Hawaii's tourism industry;

(2) Employment in Hawaii; and

(3) State taxes.

§ -8 Tourism-related activities. (a) The authority may enter into contracts and agreements that include the following:

(1) Promotion, marketing, and development of Waikiki;

(2) Market development-related research;

(3) Promotion, development, and coordination of sports-related activities and events in Waikiki;

(4) Promotion of Waikiki through a coordinated statewide effort; and

(5) Any and all other activities necessary to carry out the intent of this chapter.

(b) The authority staff shall be responsible for monitoring and facilitating any and all functions developed in accordance with subsection (a).

§ -9 Waikiki authority special fund. (a) There is established in the state treasury the Waikiki authority special fund, into which shall be deposited any gifts, grants, funds, or appropriations received by the authority. Moneys in the Waikiki authority special fund may be placed in interest-bearing accounts or otherwise invested by the authority until such time as the moneys may be needed. All interest accruing from the investment of these moneys shall be credited to the Waikiki authority special fund.

(b) All moneys in the Waikiki authority special fund shall be used by the authority for the purposes of this chapter.

§ -10 Use of public lands; acquisition of state lands. (a) Any provision of chapter 171 to the contrary notwithstanding, the governor may set aside public lands located within community development districts to the authority for its use.

(b) If state lands under the control and management of other public agencies are required by the authority for its purposes, the agency having the control and management of those required lands shall, upon request by the authority and with the approval of the governor, convey or lease such lands to the authority upon such terms and conditions as may be agreed to by the parties.

(c) Notwithstanding the foregoing, no public lands shall be set aside, conveyed, or leased to the authority as above provided if such setting aside, conveyance, or lease would impair any covenant between the State or any county or any department or board thereof and the holders of bonds issued by the State or such county, department, or board.

§ -11 Exemption of authority from taxation and Hawaii public procurement code. (a) All revenues and receipts derived by the authority from any project or a project agreement or other agreement pertaining thereto shall be exempt from all state taxation. Any right, title, and interest of the authority in any project shall also be exempt from all state taxation. Except as otherwise provided by law, the interest of a qualified person or other user of a project or a project agreement or other agreements related to a project shall not be exempt from taxation to a greater extent than it would be if the costs of the project were directly financed by the qualified person or user.

(b) The authority shall not be subject to chapter 103D and any and all other requirements of law for competitive bidding for project agreements, construction contracts, lease and sublease agreements, or other contracts unless a project agreement with respect to a project otherwise shall require. § -12 Assistance by state and county agencies. Any state or county agency may render services upon request of the authority.

§ -13 Declaration of public function, purpose, and necessity. The powers and functions granted to and exercised by the Waikiki authority under this chapter are declared to be public and governmental functions, exercised for a public purpose, and matters of public necessity.

§ -14 Court proceedings; preferences; venue. (a) Any action or proceeding to which the authority, the State, or the county may be a party, in which any question arises as to the validity of this chapter, shall be preferred over all other civil cases, except election cases, in the circuit court of the circuit where the case or controversy arises, and shall be heard and determined in preference to all other civil cases pending therein except election cases, irrespective of position on the calendar.

(b) Upon application of counsel to the authority, the same preference shall be granted in any action or proceeding questioning the validity of this chapter in which the authority may be allowed to intervene.

(c) Any action or proceeding to which the authority, the State, or the county may be party, in which any question arises as to the validity of this chapter or any portion of this chapter, or any action of the authority may be filed in the circuit court of the circuit where the case or controversy arises, which court is hereby vested with original jurisdiction over the action.

(d) Notwithstanding any provision of law to the contrary, declaratory relief from the circuit court may be obtained for any action.

(e) Any party aggrieved by the decision of the circuit court may appeal in accordance with part I of chapter 641 and the appeal shall be given priority.

§ -15 Annual report. The authority shall submit a complete and detailed report of its activities, expenditures, and results to the governor and the legislature at least twenty days prior to the convening of each regular session of the legislature."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as maybe necessary for fiscal year 2002-2003 to be deposited into the Waikiki authority special fund to effectuate the Waikiki authority established by this Act.

The sum appropriated shall be expended by the department of business, economic development, and tourism for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2002.

INTRODUCED BY:	_____________________________