HB250 SD2

SECTION 1. In order for the harbors division of the department of transportation to meet the economic needs of this State, suitable harbor facilities must be provided to assure the efficient and timely delivery of goods imported into the State by shipping. Hawaii's aging commercial harbor system has not kept pace with our growing economy, and it is now critical to upgrade existing port facilities and develop harbor improvements in an expedited manner. Under its statutory mandate, the department of transportation's harbors division is focused on essential daily management and operations of the commercial harbor system rather than development of new expansion opportunities. In order to achieve the development of critically needed harbor infrastructure improvements in an expedited manner, the department of transportation's harbors division desires to partner with Aloha Tower Development Corporation, an entity with a development oriented mission, statutory powers, and expertise in the development of state-owned properties, to prioritize development of harbor infrastructure in order to curtail statewide economic hardships that will occur if the harbors reach maximum cargo handling capacity by the year 2011 as currently projected.

The department of transportation's harbors division is additionally stymied by the lack of funding necessary to develop costly wharfs and cargo handling terminals and the ability to consider development oriented financing options such as public or private partnerships under its traditional structure, but the Aloha Tower Development Corporation is empowered to do such things. Similarly, the department of transportation's harbors division is currently managing the Kewalo basin area, which is under control of the Hawaii community development corporation. The legislature believes that the Aloha Tower Development Corporation should also undertake the improvement of Kewalo basin to ensure that the improvements made to Kewalo basin and Honolulu harbor compliment each other. A partnership with the Aloha Tower Development Corporation, which has jurisdiction over a portion of Honolulu harbor, can also assist the department of transportation's harbors division by providing financial support from its limited commercial development along the downtown urban waterfront and Kewalo Basin. Revenues generated from commercial development are proposed to be directed towards the funding of commercial harbor system infrastructure improvements.

SECTION 2. Chapter 206J, Hawaii Revised Statutes is amended by adding a new section to be appropriately designated and to read as follows:

"§206J- Partnership with department of transportation for Honolulu harbor. (a) Consistent with its general powers under this chapter, the development corporation may undertake projects for Honolulu harbor and its adjacent lands and Kewalo basin and its adjacent lands, which are under the jurisdiction of the department of transportation or the Hawaii community development authority, as the case may be. Notwithstanding any provision in section 206J-17 to the contrary, payments to the development corporation for its administrative and operational expenses in undertaking such projects shall be made by the department of transportation and deposited into the Aloha Tower fund in a sub-account designated for the particular development project.

(b) Authorization for funding and participation of the development corporation in Honolulu harbor and Kewalo basin projects under this section, and additional position authorizations within the development corporation therefor, shall be subject to legislative approval on a project-by-project basis. The approval may set forth the terms, conditions, and any other limitations on the participation of the development corporation that the legislature may enact.

(c) If the legislature approves a Honolulu harbor or Kewalo basin project to be developed by the development corporation, all appropriations for the project shall be received and administered by the department of transportation. The department of transportation shall retain fiscal management and oversight of all project cost expenditures, budget, and contract approvals.

(d) Subject to existing contractual and statutory commitments to the department of transportation for any losses in revenue under this chapter, the development corporation may apply any revenues derived from commercial development projects in the Aloha Tower project area to defray the cost of the harbor infrastructure improvements incurred within the State."

SECTION 3. Section 206E-33, Hawaii Revised Statutes, is amended to read as follows:

"§206E-33 Kakaako community development district; development guidance policies. The following shall be the development guidance policies generally governing the authority's action in the Kakaako community development district:

(1) Development shall result in a community which permits an appropriate land mixture of residential, commercial, industrial, 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 and industrial relocation, and other activities with the counties 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 206E-7, that such construction shall comply with the general plan, development plan, ordinances, and rules of the county in which the district is located;

(2) Existing and future industrial uses shall be permitted and encouraged in appropriate locations within the district. No plan or implementation strategy shall prevent continued activity or redevelopment of industrial and commercial uses which 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 and special districts established for the Hawaii Capital District, and other areas surrounding the Kakaako district;

(6) Plans for the development or redevelopment, including harbor infrastructure development and improvement plans, of Kewalo basin and its adjacent lands shall be made in collaboration and partnership with the Aloha Tower Development Corporation and the department of transportation and subject to legislative approval pursuant to section 206J- ; provided that all plans or projects for Kewalo basin and its adjacent lands subject to this paragraph shall be approved by the Aloha Tower Development Corporation prior to submission to the legislature for its approval;

[~~(6)~~] (7) Historic sites and culturally significant facilities, settings, or locations shall be preserved;

[~~(7)~~] (8) Land use activities within the district, where compatible, shall to the greatest possible extent be mixed horizontally, that is, within blocks or other land areas, and vertically, as integral units of multi- purpose structures;

[~~(8)~~] (9) 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;

[~~(9)~~] (10) 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."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

HOUSE OF REPRESENTATIVES	H.B. NO.	250
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 2
STATE OF HAWAII		S.D. 2