STAND. COM. REP. NO. 35

Honolulu, Hawaii

, 2021

RE: H.B. No. 467

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Water & Land, to which was referred H.B. No. 467 entitled:

"A BILL FOR AN ACT RELATING TO PUBLIC LANDS,"

begs leave to report as follows:

The purpose of this measure is to redevelop certain areas or regions of public lands by:

(1) Establishing a framework to identify and redevelop areas of public lands that are classified as commercial, industrial, resort, and hotel parcels in need of revitalization;

(2) Creating a nine-member planning committee for each redevelopment district to provide policy direction and prepare a redevelopment plan;

(3) Authorizing a local redevelopment agency to contract with a developer for construction of non-residential projects within a redevelopment area;

(4) Establishing a revolving fund for each redevelopment district that would generate revenues through fifty percent of the income, revenues, and receipts from the public lands in the redevelopment district, legislative appropriations, grants, gifts, and other funds; and

(5) Creating the Waiakea Peninsula Redevelopment District on the island of Hawaii, Waiakea Peninsula Redevelopment District Planning Committee, and Waiakea Peninsula Redevelopment District Revolving Fund.

Your Committee received testimony in support of this measure from Kohala Coast Resort Association; Hawaii Island Economic Development Board; Hawaii Association of REALTORS; Kanoelehua Industrial Area Association; Takamine Construction, Inc.; David S. De Luz, Sr. Enterprises, Inc.; and four individuals. Your Committee received testimony in opposition to this measure from Ka Lahui Hawaii Komike Kalaiaina. Your Committee received comments on this measure from the Department of Land and Natural Resources and Department of Budget and Finance.

Your Committee finds that because of the policies guiding the management of public lands with commercial, industrial, resort, and hotel uses, there has been little incentive for lessees to make major improvements to their infrastructure, resulting in the deterioration of infrastructure and facilities. The lack of improvements in many of these areas has resulted in dilapidation, deterioration, or obsolescence of buildings and structures. Your Committee recognizes the concerns raised by the Department of Land and Natural Resources and notes that the Department has made significant progress administratively in the planning, disposition, and redevelopment of certain areas or regions of public lands; however, your Committee believes this measure will help rejuvenate public lands over time and warrants further consideration.

Your Committee has amended this measure by:

(1) Removing the seed money appropriations into and out of the Waiakea Peninsula Redevelopment District Revolving Fund;

(2) Changing the effective date to January 1, 2050, to encourage further discussion; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Water & Land that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 467, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 467, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Water & Land,

____________________________

DAVID A. TARNAS, Chair