Report Title:
Waikiki Community Development Authority
Description:
Creates the Waikiki community development authority to regulate development of the Waikiki community development district.
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2616 |
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TWENTY-FIRST LEGISLATURE, 2002 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to the waikiki community development authority.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that Waikiki has become a declining urban resort, whose aging infrastructure and physical plant requires thorough renovation if it is to not only remain competitive with other global tourist destinations but to prevent its further decline. Visitors, especially repeat visitors, seek new and interesting reasons to visit, requiring Waikiki to continually reinvent itself. Tourism is an industry in which hotels, restaurants, and other tourism-related businesses must be constantly improving. Hawaii has land-use regulation and development-permission systems that have been described as one of the most sophisticated and plan-oriented in the United States, if not the world. However, they have also earned the dubious distinction of being easily the most complex and time-consuming in the fifty states. These complex, duplicative, and time-consuming regulations, or red tape, hamper the renovation and revitalization of one of the most important areas in the State. As noted in a 1998 report by the legislative reference bureau entitled "Waikiki Developments: Streamlining the Regulatory Process," the city and county of Honolulu's most recent permit register contains a listing of nearly one hundred federal, state, and county permit and other procedural requirements. Although not all of these permits are required for Waikiki developments, they certainly do not help the situation.
Aside from obstructive red tape, another factor that has contributed to the decline of Waikiki is the ineffectiveness of long-term planning in terms of land use and environmental protection for the district. For example, it has been argued that because of the 1977 "visitor unit cap" placed on the total number of rooms allowed in Waikiki by the Honolulu city council, combined with the more recent five-year moratorium on new hotel construction, there has been a twenty-year disincentive for investors to build anew. There have been several renovations due to new tax credits, but only on a few properties. As a result, the hotel stock lost its freshness and Waikiki has gone down-market, with the attendant social problems of street crime, prostitution, litter, and social alienation. Waikiki's hotel room cap, according to some, has discouraged renovation in an industry that requires continual updating to draw back visitors.
In light of the continued failure of the existing multiple land-use, development, and permitting systems to effectively regulate the appropriate development of the Waikiki area, the purpose of this Act is to provide for the development of the Waikiki area by creating the Waikiki community development district, to be coordinated by the Waikiki community development authority.
The legislature finds that the area to be designated the Waikiki community development district is of immense and vital economic importance to the State as a whole, and that its immediate renovation and effective development is crucial to the survival of the entire State. Because of this, the legislature determines that it is necessary to carve out this one special geographic area of the State for designation as the Waikiki community development district, whose renovation and development is to be overseen by a new Waikiki community development authority. Finally, the legislature finds that the enactment of this Act is in the public interest and that its impact is of statewide concern.
SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
WAIKIKI COMMUNITY DEVELOPMENT AUTHORITY
PART I. GENERAL PROVISIONS
§ -1 Findings and purpose. The legislature finds that the area designated as the Waikiki community development district on Oahu is in need of renewal, renovation, and improvement to alleviate such conditions as dilapidation, deterioration, age, and other such factors or conditions which make the area an economic and social liability.
It is further determined that the lack of planning and coordination in this area has given rise to various community development needs and that existing laws and public and private mechanisms have either proven incapable or inadequate to facilitate timely redevelopment and renewal.
The legislature finds that a new authority for community development in the Waikiki area must be created to join the strengths of private enterprise, public development, and regulation into a new form capable of long-range planning and implementation of improved community development. The purpose of this chapter is to establish such a mechanism in the Waikiki community development authority, a public entity which shall determine community development programs and cooperate with private enterprise and the various components of federal, state, and county governments in bringing plans to fruition. For the area designated as the Waikiki community development district, the legislature believes that the planning and implementation program of the Waikiki community development authority will result in a community that serves the highest needs and aspirations of Hawaii's people.
The legislature finds that the creation of the Waikiki community development authority, the establishment of the Waikiki community development district, and the issuance of bonds pursuant to this chapter to finance public facilities, serve the public interest and are matters of statewide concern.
§ -2 Definitions. As used in this chapter, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning or intent:
"Authority" means the Waikiki community development authority established by section -3.
"County" means the city and county of Honolulu.
"Local governing body" means the council of the city and county of Honolulu.
"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, all as defined herein, or any combination thereof, which combination shall hereinafter be called and known as a "multipurpose project".
(1) "Hotel project" means a project or that portion of a multipurpose project, including hotel units, designed and intended for the purpose of providing hotel units and such facilities as may be incidental or appurtenant thereto;
(2) "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;
(3) "Redevelopment project" means an undertaking for the acquisition, clearance, replanning, reconstruction, and rehabilitation or a combination of these and other methods, of an area for a residential or hotel project, for an incidental commercial project, and for other facilities incidental or appurtenant thereto, pursuant to and in accordance with this chapter. The terms "acquisition, clearance, replanning, reconstruction, and rehabilitation" shall include renewal, redevelopment, conservation, restoration, or improvement, or any combination thereof;
(4) "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 cost" means the total of all costs incurred by the authority in carrying out all undertakings which it deems reasonable and necessary for the development of a project including but not limited to: studies; surveys; plans; specifications; architectural, engineering, or any other development related services; acquisition of land and any improvement thereon; site preparation and development; construction; reconstruction; rehabilitation; the necessary expenses in administering the chapter; the cost of financing the project; and relocation costs.
"Public agency" means any office, department, board, commission, bureau, division, public corporation agency, or instrumentality of the federal, state, or county government.
"Public facilities" includes streets, utility and service corridors, and utility lines where applicable, sufficient to adequately service developable improvements in the district, sites for schools, parks, parking garage, sidewalks, pedestrian ways, and other community facilities. "Public facilities" shall also include public highways, as defined by statute, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems.
"Qualified person" includes any individual, partnership, corporation or any public agency, possessing the competence, expertise, experience, and resources, including financial, personnel, and tangible resources, required for the purposes of the project and such other qualifications as may be deemed desirable by the authority in administering the chapter.
"Real property" means lands, structures, and interests in land, including lands under water and riparian rights, space rights, and air rights and any and all other things and rights usually included within the term. Real property also means any and all interests in such property less than full title, such as easements, incorporeal hereditaments and every estate, interest, or right, legal or equitable, including terms for years and liens thereon by way of judgments, mortgages, or otherwise.
§ -3 Waikiki community development authority; established. (a) There is established the Waikiki community development authority, which shall be a body corporate and a public instrumentality of the State, for the purpose of implementing this chapter. The authority shall be placed within the department of business, economic development, and tourism for administrative purposes.
(b) The authority shall consist of eleven voting members. The director of finance; the director of business, economic development, and tourism; the comptroller; and the director of transportation, or their respective designated representatives shall serve as ex officio, voting members. Seven members shall be appointed by the governor for staggered terms pursuant to section 26-34; provided that of the seven members, six members shall be owners of property located within the Waikiki community development district and one member shall be appointed at large. Notwithstanding section 92-15, a majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.
(c) The authority shall appoint the executive director who shall be the chief executive officer. The authority shall set the salary of the executive director, who shall serve at the pleasure of the authority and shall be exempt from chapter 76.
(d) The authority shall annually elect the chairperson and vice chairperson from among its members.
(e) The members of the authority shall serve without compensation, but each shall be reimbursed for expenses, including travel expenses, incurred in the performance of their duties.
§ -4 Powers; generally. Except as otherwise limited by this chapter, the authority 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;
(4) Make and alter bylaws for its organization and internal management;
(5) Adopt rules with respect to its projects, operations, properties, and facilities, which shall be adopted under chapter 91;
(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;
(7) Prepare or cause to be prepared a community development plan for the Waikiki community development district;
(8) 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;
(9) 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 public improvements;
(10) 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 which the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;
(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;
(12) 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;
(13) 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;
(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, in order 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;
(15) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;
(16) Contract for and accept gifts or grants in any form from any public agency or from any other source;
(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter; and
(18) Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction. Such substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site.
§206E-5 Designation of Waikiki community development district; community development plan. (a) The legislature, by statute, shall designate the Waikiki community development district pursuant to part II.
(b) After designation, the authority shall develop the Waikiki community development plan for the Waikiki community development district. The plan shall include community development guidance policies, district-wide improvement program and community development rules.
(c) The authority may enter into cooperative agreements with qualified persons or public agencies, where the powers, services, and capabilities of such persons or agencies are deemed necessary and appropriate for the development of the Waikiki community development plan.
(d) Whenever possible, planning activities of the authority shall be coordinated with federal, state and county plans. Consideration shall be given to state goals and policies, adopted state plan or land use guidance policies, county general plans, development plans, and ordinances.
(e) The authority shall hold a public hearing on the proposed Waikiki community development plan pursuant to chapter 91 and, after consideration of comments received and appropriate revision, shall submit the Waikiki community development plan to the governor for the governor's approval.
After approval, the governor shall submit to the legislature requests for appropriations, authorization to issue bonds, or both, to implement the Waikiki community development plan in an orderly, affordable, and feasible manner. The governor shall submit the requests to the legislature as part of the executive budget or supplemental budget, as appropriate. In addition to the information, data, and materials required under chapter 37, the requests shall be accompanied by:
(1) Plans, maps, narrative descriptions, and other appropriate materials on the:
(A) Locations and design of projects or public facilities proposed to be funded; and
(B) Phase of the Waikiki community development plan proposed to be implemented with the requested funds; and
(2) Other information deemed by the governor of significance to the legislature regarding the projects or public facilities proposed to be funded, including a discussion of the public benefits intended by, and adverse effects which may result from, implementation of the projects or public facilities.
(f) The authority may amend the Waikiki community development plan as may be necessary. Amendments shall be made in accordance with chapter 91.
§ -6 District-wide improvement program. (a) The authority shall develop a district-wide improvement program to identify necessary district-wide public facilities within the Waikiki community development district.
(b) Whenever the authority determines to undertake, or cause to be undertaken, any public facility as part of the district-wide improvement program, the cost of providing the public facilities shall be assessed against the real property in the community development district specially benefiting from such public facilities. The authority shall determine the areas of the Waikiki community development district that will benefit from the public facilities to be undertaken and, if less than the entire Waikiki community development district benefits, the authority may establish assessment areas within the Waikiki community development district. The authority may issue and sell bonds in such amounts as may be authorized by the legislature to provide funds to finance those public facilities. The authority shall fix the assessments against real property specially benefited. All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid and the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien.
(c) Bonds issued to provide funds to finance public facilities shall be secured solely by the real properties benefited or improved, the assessments thereon, or by the revenues derived from the program for which the bonds are issued, including reserve accounts and earnings thereon, insurance proceeds, and other revenues, or any combination thereof. The bonds may be additionally secured by the pledge or assignment of loans and other agreements or any note or other undertaking, obligation, or property held by the authority. Bonds issued pursuant to this section and the income therefrom shall be exempt from all state and county taxation, except transfer and estate taxes. The bonds shall be issued according and subject to the rules adopted pursuant to this section.
(d) Any other law to the contrary notwithstanding, in assessing real property for public facilities, the authority shall assess the real property within an assessment area according to the special benefits conferred upon the real property by the public facilities. These methods may include assessment on a frontage basis or according to the area of real property within an assessment area or any other assessment method which assesses the real property according to the special benefit conferred, or any combination thereof. No such assessment levied against real property specially benefited as provided by this chapter shall constitute a tax on real property within the meanings of any constitutional or statutory provisions.
(e) The authority shall adopt rules pursuant to chapter 91 providing for the method of undertaking and financing public facilities in an assessment area or the entire Waikiki community development district. The rules adopted pursuant to this section shall include the following:
(1) Methods by which the authority shall establish assessment areas;
(2) The method of assessment of real properties specially benefited;
(3) The costs to be borne by the authority and the property owners;
(4) The procedures before the authority relating to the creation of the assessment areas by the owners of real property therein, including provisions for petitions, bids, contracts, bonds, and notices; provisions relating to assessments;
(5) Provisions relating to financing, such as bonds, revolving funds, advances from available funds, special funds for payment of bonds, payment of principal and interest, and sale and use of bonds;
(6) Provisions relating to funds and refunding of outstanding debts; and
(7) Provisions relating to limitations on time to sue, and other related provisions.
(f) Any law to the contrary notwithstanding, the authority, in its discretion, may enter into any agreement with the city and county of Honolulu to implement all or part of the purposes of this section.
(g) All sums collected under this section shall be deposited in the Waikiki community development revolving fund established by section -16; except that notwithstanding section -16, all moneys collected on account of assessments and interest thereon for any specific public facilities financed by the issuance of bonds shall be set apart in a separate special fund and applied solely to the payment of the principal and interest on these bonds, the cost of administering, operating, and maintaining the program, the establishment of reserves, and other purposes as may be authorized in the proceedings providing for the issuance of the bonds. If any surplus remains in any special fund after the payment of the bonds chargeable against such fund, it shall be credited to and become a part of the Waikiki community development revolving fund. Moneys in the Waikiki community development revolving fund may be used to make up any deficiencies in the special fund.
(h) If the public facilities to be financed through bonds issued by the authority may be dedicated to the city and county of Honolulu, the authority shall ensure that the public facilities are designed and constructed to meet the county's requirements.
(i) Notwithstanding any law to the contrary, whenever as part of the district-wide improvement program it becomes necessary to remove, relocate, replace, or reconstruct public utility facilities, the authority shall establish by rule the allocation of cost between the authority, the affected public utilities, and properties that may specially benefit from such improvement, if any. In determining the allocation of cost, the authority shall consider the cost allocation policies for improvement districts established by the city and county of Honolulu in which the removal, relocation, replacement, or reconstruction is to take place.
§ -7 Community development rules. The authority shall establish community development rules under chapter 91 on health, safety, building, planning, zoning, and land use which, upon final adoption of the Waikiki community development plan, shall supersede all other inconsistent ordinances and rules relating to the use, zoning, planning, and development of land and construction thereon. Rules adopted under this section shall follow existing law, rules, and ordinances as closely as is consistent with standards meeting minimum requirements of good design, pleasant amenities, health, safety, and coordinated development. The authority, in the Waikiki community development plan or by a community development rule, may provide that lands within the Waikiki community development district shall not be developed beyond existing uses or that improvements thereon shall not be demolished or substantially reconstructed, or provide other restrictions on the use of the lands.
§ -8 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 the Waikiki community development district 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, upon request by the authority and with the approval of the governor, shall 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 the setting aside, conveyance, or lease would impair any covenant between the State or the city and county of Honolulu, or any department or board thereof, and the holders of bonds issued by the State or the city and county of Honolulu, or any department or board thereof.
§ -8.5 Developments within special management areas and shoreline setback. (a) Notwithstanding chapter 205A, all requests for developments within a special management area and shoreline setback variances for developments on any lands within the Waikiki community development district shall be submitted to and reviewed by the lead agency as defined in chapter 205A.
(b) In the review of such requests, the lead agency shall conform to the following, as deemed appropriate:
(1) Applicable county rules adopted in accordance with section 205A-26 for the review of developments within a special management area, except that paragraph (2)(C) of section 205A-26 shall not apply; and
(2) Part III of chapter 205A and applicable county rules for the review of developments within the shoreline setback.
(c) With the approval of the lead agency, the developments may be allowed without a special management area permit or shoreline setback variance as required by chapter 205A.
§ -9 Acquisition of real property from a county. Notwithstanding the provision of any law or charter, the city and county of Honolulu, by resolution of its local governing body, without public auction, sealed bids, or public notice, may sell, lease for a term not exceeding sixty-five years, grant, or convey to the authority any real property owned by it which the authority certifies to be necessary for its purposes. The sale, lease, grant, or conveyance shall be made with or without consideration and upon such terms and conditions as may be agreed upon by the city and county of Honolulu and the authority. Certification shall be evidenced by a formal request from the authority. Before the sale, lease, grant, or conveyance may be made to the authority, a public hearing shall be held by the local governing body to consider the same. Notice of the hearing shall be published at least ten days before the date set for the hearing in such publication and in such manner as may be designated by such local governing body.
§ -10 Condemnation of real property. The authority, upon making a finding that it is necessary to acquire any real property for its immediate or future use for the purposes of this chapter, may acquire the property by condemnation pursuant to chapter 101, including property already devoted to a public use. The property shall not thereafter be taken for any other public use without the consent of the authority. No award of compensation shall be increased by reason of any increase in the value of real property caused by the designation of the Waikiki community development district or plan adopted pursuant to the designation, or the actual or proposed acquisition, use or disposition of any other real property by the authority.
§ -11 Construction contracts. The authority shall award construction contracts in conformity with the application provisions of chapter 103D.
§ -12 Dedication for public facilities as condition to development. The authority shall establish rules requiring dedication for public facilities of land or facilities, or cash payments in lieu thereof, by developers as a condition of developing real property pursuant to the Waikiki community development plan. Where state and city and county of Honolulu public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail.
§ -13 Public projects. Any project or activity of the city and county of Honolulu or agency of the State in the Waikiki community development district shall be constructed, renovated, or improved in consultation with the authority.
§ -14 Sale or lease of redevelopment projects. (a) The authority, without recourse to public auction, may sell or lease for a term not exceeding sixty-five years, all or any portion of the real or personal property constituting a redevelopment project to any person, upon such terms and conditions as may be approved by the authority, if the authority finds that the sale or lease is in conformity with the Waikiki community development plan.
(b) In the case of residential projects or redevelopment projects, the terms of the sale shall provide for the repurchase of the property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the Waikiki community development plan. The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not limited to interest rates, land values, construction costs, and federal tax laws.
If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section.
§ -15 Residential projects; cooperative agreements. (a) If the authority deems it desirable to develop a residential project, it may enter into an agreement with qualified persons to construct, maintain, operate, or otherwise dispose of the residential project. Sale, lease, or rental of dwelling units in the project shall be as provided by the rules established by the authority. The authority may enter into cooperative agreements with the housing and community development corporation of Hawaii for the financing, development, construction, sale, lease, or rental of dwelling units and projects.
(b) The authority may transfer the housing fees collected from private residential developments for the provision of housing for residents of low- or moderate-income to the housing and community development corporation of Hawaii for the financing, development, construction, sale, lease, or rental of such housing within or without the Waikiki community development district. The fees shall be used only for projects owned by the State or owned or developed by a qualified nonprofit organization. For the purposes of this section, "nonprofit organization" means a corporation, association, or other duly chartered organization registered with the State, which organization has received charitable status under the Internal Revenue Code of 1986, as amended.
§ -16 Waikiki community development revolving fund. There is created the Waikiki community development revolving fund into which all receipts and revenues of the authority shall be deposited. Proceeds from the fund shall be used for the purposes of this chapter.
§ -16.5 Expenditures of revolving funds under the authority exempt from appropriation and allotment. Except as to administrative expenditures, and except as otherwise provided by law, expenditures from any revolving fund administered by the authority may be made by the authority without appropriation or allotment of the legislature; provided that no expenditure shall be made from and no obligation shall be incurred against any revolving fund in excess of the amount standing to the credit of the fund or for any purpose for which the fund may not lawfully be expended. Nothing in sections 37-31 to 37-41 shall require the proceeds of any revolving fund administered by the authority to be reappropriated annually.
§ -17 Exemption from taxation. The authority shall not be required to pay assessments levied by the city and county of Honolulu, nor shall the authority be required to pay state taxes of any kind.
§ -18 Assistance by state and county agencies. Any agency of the State or the city and county of Honolulu may render services upon request of the authority.
§ -19 Annual report. The authority shall submit to the governor and the legislature, at least twenty days prior to the start of any regular session, a complete and detailed report of its activities.
§ -20 Court proceedings; preferences; venue. (a) Any action or proceeding to which the authority, the State, or the city and county of Honolulu may be a party, in which any question arises as to the validity of this chapter, shall be brought in the circuit court of the first circuit, 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 city and county of Honolulu may be a party, in which any question arises as to the validity of this chapter or any portion of this chapter, may be filed in the circuit court of the first circuit, which court is hereby vested with original jurisdiction over the action.
(d) Notwithstanding any provision of law to the contrary, declaratory relief may be obtained for the 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.
§ -21 Issuance of bonds. The director of finance, from time to time, may issue general obligation bonds pursuant to chapter 39 in such amounts as may be authorized by the legislature, for the purposes of this chapter.
§ -22 Violations and penalty. (a) The authority may set, charge, and collect reasonable fines for violation of this chapter or any rule adopted pursuant to chapter 91. Any person violating any provision of this chapter or any rule adopted pursuant to chapter 91, for which violation a penalty is not otherwise provided, shall be fined not more than $500 a day and shall be liable for administrative costs incurred by the authority.
(b) The authority may maintain an action for an injunction to restrain any violation of this chapter and may take any other lawful action to prevent or remedy any violation.
(c) Any person violating any provision of this chapter, upon conviction, shall be punished by a fine not exceeding $1,000 or by imprisonment not exceeding thirty days, or both. The continuance of a violation after conviction shall be deemed a new offense for each day of such continuance.
PART II. WAIKIKI COMMUNITY DEVELOPMENT DISTRICT
§ -31 Waikiki community development district; purposes. The legislature finds that:
(1) The Waikiki area has been the central driving force behind the State's largest and most enduring industry of tourism, but which, over the years, has become a declining urban resort whose aging infrastructure and physical plant requires thorough renovation and redevelopment if it is to prevent further decline and remain competitive with other global tourist destinations;
(2) The collection of complex, duplicative, and time-consuming multiple land-use, and development-permitting systems at the county and state levels has severely hampered the renovation, development, and revitalization of one of the most important areas in the State. The competing aims of land use development and environmental protection have paralyzed attempts to implement effective long-term solutions and have further complicated and highlighted the haphazard growth that has reduced the Waikiki district to an irrational patchwork jungle of over-commercialized development that has become highly resistant to change;
(3) The district, if not redeveloped, renewed, revitalized, and made rational and restored with a Hawaiian sense of place, will inevitably fall further into economic and cultural decline. Due to its immense and vital economic and cultural importance to the State as a whole, there exists an urgent and crucial need to preserve and enhance its value and potential to benefit all the people of the State; and
(4) The existing system of laws and public and private mechanisms has proven continually incapable and inadequate to effectively regulate the necessary renewal, redevelopment, and revitalization of the Waikiki area.
In coordinating community development in the Waikiki community development district, the authority shall plan for a mixed-use district whereby hotel, residential, commercial, and public uses may coexist compatibly within the same area. The authority shall plan for these uses but shall also respect and support the present function of Waikiki as the major tourism center in the State, providing significant employment ,in such areas as hotel, service, and commercial activity.
§ -32 Waikiki community development district; established, boundaries. The Waikiki community development district is established. The district shall include that area of Oahu bounded by the Ala Wai canal, the ocean, and Kapahulu avenue. The district shall also include that parcel of land identified by tax map key , situated .
§ -33 Waikiki community development district; development guidance policies. The following shall be the development guidance policies generally governing the authority's action in the Waikiki community development district:
(1) Development shall result in a community that permits an appropriate land mixture of hotel, residential, commercial, and other uses. In view of the innovative nature of the mixed use approach, urban design policies should be established to provide guidelines for the public and private sectors in the proper development of this district; while the authority's development responsibilities apply only to the area within the district, the authority may engage in any studies or coordinative activities permitted in this chapter which affect areas lying outside the district, where the authority in its discretion decides that those activities are necessary to implement the intent of this chapter. The studies or coordinative activities shall be limited to facility systems, resident relocation, and other activities with the city and county of Honolulu and appropriate state agencies. The authority may engage in construction activities outside of the district; provided that such construction relates to infrastructure development or residential or business relocation activities; provided further, notwithstanding section -7, that such construction shall comply with the general plan, development plan, ordinances, and rules of the city and county of Honolulu;
(2) Existing and future commercial uses shall be permitted and encouraged in appropriate locations within the district. No plan or implementation strategy shall prevent continued activity or redevelopment of commercial uses that meet reasonable performance standards;
(3) Activities shall be located so as to provide primary reliance on public transportation and pedestrian facilities for internal circulation within the district or designated subareas;
(4) Major view planes, view corridors, and other environmental elements such as natural light and prevailing winds, shall be preserved through necessary regulation and design review;
(5) Redevelopment of the district shall be compatible with plans established for the Kakaako community development district, and other areas surrounding the Waikiki community development district;
(6) Historic sites and culturally significant facilities, settings, or locations shall be preserved;
(7) Land use activities within the district, where compatible, to the greatest possible extent shall be mixed horizontally, that is, within blocks or other land areas, and vertically, as integral units of multipurpose structures;
(8) Residential development may require a mixture of densities, building types, and configurations in accordance with appropriate urban design guidelines; integration both vertically and horizontally of residents of varying incomes, ages, and family groups; and an increased supply of housing for residents of low- or moderate-income may be required as a condition of redevelopment in residential use. Residential development shall provide necessary community facilities, such as open space, parks, community meeting places, child care centers, and other services, within and adjacent to residential development; and
(9) Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this chapter and plans and rules adopted pursuant to it.
PART III. REVENUE BONDS FOR PUBLIC FACILITY PROJECTS
§ -41 Findings and declarations. The legislature finds and declares that the health, safety, and general welfare of the people of the State require that every opportunity be taken to assist the redevelopment of the Waikiki community development district; that the redevelopment and revitalization of this district will alleviate community needs for employment, housing, parks, open space, and commercial facilities; that a significant deterrent to redevelopment is the cost of public facilities; that interest rates on moneys necessary to finance such public facilities add significantly to the cost of such facilities and that more favorable interest rates would be available through the issuance of tax-exempt bonds; and that the availability of revenue bonds to finance the cost of public facilities will facilitate redevelopment of the Waikiki community development district.
The legislature further finds that the powers conferred, the issuance of revenue bonds, and the expenditure of public moneys under this part constitute a serving of a valid public purpose, and that this enactment is in the public interest and is so declared as an express legislative determination.
§ -42 Definitions. As used in this part, unless the context clearly indicates otherwise:
"Revenue bonds" means bonds, notes, or other evidence of indebtedness of the authority issued to finance any public facility under this part.
"Trustee" means a national or state bank or trust company within or without the State which enters into a trust indenture.
"Trust indenture" means an agreement by and between the authority and the trustee, which sets forth the duties of the trustee with respect to the revenue bonds, the security thereof, and other provisions as deemed necessary or convenient by the authority to secure the revenue bonds.
§ -43 Revenue bonds; authorization. (a) The authority, with the approval of the governor, may issue from time to time revenue bonds in amounts not exceeding the total amount of bonds authorized to be issued by the legislature for the purpose of constructing, acquiring, remodeling, furnishing, and equipping any public facility, including acquisition of the site thereof.
(b) All revenue bonds shall be issued pursuant to part III of chapter 39, except as provided in this part.
(c) The revenue bonds under this part are declared to be issued for a public purpose and, together with interest thereon, shall be exempt from all state and county taxation except estate and transfer taxes. The legislature consents to federal income taxation of interest on revenue bonds issued under this part, if it is determined by the authority that such issuance is in the best interest of the State.
(d) The revenue bonds shall be issued in the name of the authority and not in the name of the State. The final maturity date of the revenue bonds may be any date not exceeding thirty years from the date of issuance.
§ -44 Revenue bonds; payment and security. (a) The revenue bonds shall be payable from and secured by the revenues derived from the public facility for which the revenue bonds are issued, including revenue derived from insurance proceeds and reserve accounts and earnings thereon.
(b) The authority may pledge revenues derived from the public facility financed from the proceeds of the revenue bonds to the punctual payment of the principal, interest, and redemption premiums, if any, on the revenue bonds.
(c) The revenue bonds may be additionally secured by the pledge or assignment of the loans and other agreements or any note or other undertaking, obligation, or property held by the authority to secure the loans.
(d) Any pledge made by the authority shall create a perfected security interest in the revenues, moneys, or property so pledged and thereafter received by the authority from and after the time that a financing statement with respect to the revenues, moneys, or property so pledged and thereafter received shall be filed with the bureau of conveyances. Upon such filing, the revenues, moneys, or property so pledged thereafter received by the authority shall immediately be subject to the lien of any such pledge without any physical delivery thereof or further act, and the lien of such pledge shall be prior to the lien of all parties having claims of any kind in tort, contract, or otherwise against the authority, irrespective of whether such parties have notice thereof. This section shall apply to any financing statement heretofore or hereafter filed with the bureau of conveyances with respect to any pledge made to secure revenue bonds issued under this part.
§ -45 Revenue bonds; interest rate, price, and sale. (a) The revenue bonds shall bear interest at a rate or rates payable monthly, quarterly, or semi-annually.
(b) The authority shall include the costs of undertaking the public facility for which the revenue bonds are issued in determining the principal amount of revenue bonds to be issued. In determining the cost of undertaking the public facility, the authority may include the cost of constructing, acquiring, remodeling, furnishing, and equipping the public facility, including acquisition of the site thereof; the cost of purchasing or funding loans or other agreements entered into for the public facility; the costs of studies and surveys; insurance premiums; underwriting fees; financial consultant, legal, accounting, and marketing services incurred; reserve account, trustee, custodian, and rating agency fees; and any capitalized interest.
(c) The revenue bonds may be sold at public or private sale, and for a price as may be determined by the authority to be in the best interest of the State.
§ -6 Revenue bonds; investment of proceeds, and redemption. Subject to any agreement with the holders of its revenue bonds, the authority may:
(1) Invest its moneys not required for immediate use, including proceeds from the sale of revenue bonds, in any investment in accordance with procedures prescribed in a trust indenture; and
(2) Purchase its revenue bonds out of any fund or money of the authority available therefor, and hold, cancel, or resell the revenue bonds.
§ -47 Revenue bonds; special funds. (a) A separate special fund shall be established for each public facility financed from the proceeds of the revenue bonds secured under the same trust indenture. Each fund shall be designated "public facility revenue bond special fund" and shall bear additional designation as the authority deems appropriate to properly identify the fund.
(b) Notwithstanding any other law to the contrary, including particularly section -16, all revenues, income, and receipts derived from the public facility for which the revenue bonds are issued shall be paid into the public facility revenue bond fund established for that public facility and applied as provided in the proceedings authorizing the issuance of the revenue bonds.
§ -48 Trustee; designation, duties. (a) The authority shall designate a trustee for each issue of revenue bonds secured under the same trust indenture; provided that the trustee shall be approved by the director of finance.
(b) The trustee shall be authorized by the authority to receive and receipt for, hold, and administer the proceeds of the revenue bonds, and to apply the proceeds to the purposes for which the bonds are issued.
(c) The trustee shall also be authorized by the authority to hold and administer the public facility revenue bond special fund established pursuant to section -47, and to receive and receipt for, hold, and administer the revenues derived by the authority from the public facility for which the revenue bonds are issued and to apply these revenues to the payment of the cost:
(1) Of undertaking the public facility;
(2) Of administering and operating the proceedings providing for the issuance of the revenue bonds;
(3) To pay the principal or interest on these bonds;
(4) To the establishment of reserves; and
(5) To other purposes as may be authorized in the proceedings providing for the issuance of the revenue bonds.
(d) Notwithstanding section 39-68, the director of finance may appoint the trustee to serve as fiscal agent for:
(1) The payment of the principal of and interest on the revenue bonds; and
(2) The purchase, registration, transfer, exchange, and redemption of the bonds.
(e) The trustee shall perform additional functions with respect to the payment, purchase, registration, transfer, exchange, and redemption, as the director of finance may deem necessary, advisable, or expeditious, including the holding of the revenue bonds and coupons which have been paid and the supervision of the destruction thereof in accordance with law.
(f) Nothing in this part shall limit or be construed to limit the powers granted to the director of finance in sections 36-3 and 39-13, and the third sentence of section 39-68, to appoint the trustee or others as fiscal agents, paying agents, and registrars for the revenue bonds or to authorize and empower those fiscal agents, paying agents, and registrars to perform the functions referred to in those sections.
§ -49 Trust indenture. (a) A trust indenture may contain covenants and provisions authorized by part III of chapter 39, and as deemed necessary or convenient by the authority for the purposes of this part.
(b) A trust indenture may allow the authority to pledge and assign to the trustee loans and other agreements related to the public facility, and the rights of the authority thereunder, including the right to receive revenues thereunder and to enforce the provision thereof.
(c) Where a trust indenture provides that any revenue bond issued under that trust indenture is not valid or obligatory for any purpose unless certified or authenticated by the trustee, all signatures of the officers of the State upon the revenue bonds required by section 39-56 may be facsimiles of their signatures.
(d) A trust indenture shall also contain provisions as to:
(1) The investment of the proceeds of the revenue bonds, the investment of any reserve for the bonds, the investment of the revenues of the public facility, and the use and application of the earnings from investments; and
(2) The terms and conditions upon which the holders of the revenue bonds or any portion of them or any trustee thereof may institute proceedings for the foreclosure of any loan or other agreement or any note or other undertaking, obligation, or property securing the payment of the bonds and the use and application of the moneys derived from the foreclosure.
(e) A trust indenture may also contain provisions deemed necessary or desirable by the authority to obtain or permit, by grant, interest subsidy, or otherwise, the participation of the federal government in the financing of the costs of undertaking the public facility."
SECTION 3. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act, which can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.
SECTION 4. This Act shall take effect upon its approval.
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