HCR43

HOUSE OF REPRESENTATIVES	H.C.R. NO.	43
TWENTY-FIRST LEGISLATURE, 2002
STATE OF HAWAII

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HOUSE CONCURRENT

RESOLUTION

 

requesting the department of budget and finance to enter into a financing agreement for a new elementary school in kahului, Maui.

 

 

WHEREAS, central Maui is one of the fastest growing areas in the State with many large residential projects such as Maui Lani being completed, and families with school-age children purchasing homes in the area; and

WHEREAS, the current elementary school facilities in central Maui are already overcrowded and inadequate to serve the existing student population, and the number of students in the area is increasing rapidly; and

WHEREAS, the increasing student population has created an urgent need to develop an easily accessible neighborhood elementary school as soon as possible; and

WHEREAS, the Department of Education (DOE) has identified the construction of Maui Lani Elementary School as one of its top priorities and has identified a particular site for the school's construction; and

WHEREAS, to address the community's urgent need for the school, the site's landowner, Maui Lani Partners, is willing to donate the land for the school and enter into a financing agreement under chapter 37D, Hawaii Revised Statutes (HRS), for the design and construction of the school in accordance with DOE standards; and

WHEREAS, DOE intends to submit a request to the Department of Budget and Finance (B&F) pursuant to section 37D-2, HRS, to enter into a financing agreement with Maui Lani Partners which includes:

(1) The issuance of tax-exempt certificates of participation to raise the funds for the design, construction, and financing of the school;

(2) Design and construction of the school by Maui Lani Partners in accordance with DOE standards within one year and nine months from the date of funding;

(3) A twenty-to thirty-year lease for the school with DOE, with rents sufficient to pay for the costs of design, development, construction, and financing of the facilities;

(4) Deferral of all rents during construction and for a period of up to one year after occupancy;

(5) An option to purchase the school at the end of the term of the lease for one dollar or another nominal consideration; and

(6) An option to buy out the lease prior to the expiration of the term upon such terms as may be negotiated with the underwriter;

and

WHEREAS, financing the design, construction, and acquisition of the school through a joint effort with the private sector will facilitate the construction of the school on an expedited basis and achieve cost savings and greater efficiency; and

WHEREAS, this type of financing agreement has been used successfully by the State for prior projects as an alternative mechanism through which much-needed public facilities may be constructed in a cost-effective and efficient manner; and

WHEREAS, during years when the State must exercise extreme economic prudence, such public-private ventures should be encouraged, especially where those efforts will directly benefit education, provide an economic stimulus to the local economy, and enable expedited construction; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Regular Session of 2002, the Senate concurring, that B&F is requested to enter into a financing agreement with Maui Lani Partners on behalf of DOE for the design, construction, financing, lease, and land acquisition for Maui Lani Elementary School, and issue tax-exempt certificates of participation to provide the necessary funds for the projects; and

BE IT FURTHER RESOLVED that DOE is requested to proceed in a joint effort with Maui Lani Partners to complete the design and construction of the school as quickly as possible before 2004; and

BE IT FURTHER RESOLVED that the Legislature supports the construction of the school and is willing to make the necessary appropriations for DOE to meet its obligations under the financing agreement; and

BE IT FURTHER RESOLVED that B&F is requested to submit a copy of the financing agreement with Maui Lani Partners to the Legislature no later than 20 days before the convening of the Regular Session of 2003; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to Director of Finance, Superintendent of Education, and Chairperson of the Board of Education.

 

	OFFERED BY:	_____________________________

Report Title:

Central Maui; Elementary School Financing