HB1788 SD1

SECTION 1. The legislature finds that the State has a fiduciary duty to manage state lands in the best interests of the public by enhancing state revenues and promoting the social, environmental, and economic well-being of Hawaii's people. East Hawaii county, including the notable Banyan drive area, remains the center of tourism for Hawaii island, and many improvements to infrastructure and key resources are needed to revitalize the region as an economic hub. While the Banyan drive area includes several hotels, condominiums, restaurants, and retail buildings that comprise the economic district, several closures have led to a decline in the economic activities and opportunities in the area.

The legislature also finds that the deterioration and decline of key areas for economic growth and tourism impacts the economic, social, and community opportunities for the entire State. The rejuvenation of public lands located on the Waiakea peninsula on the island of Hawaii is in the best interest of the general public and constitutes a valid public purpose.

The legislature further finds that the board of land and natural resources should have the authority to withdraw dormant or underutilized public land under existing leases for other higher priority state needs or purposes.

Therefore, the purpose of this Act is to establish the Waiakea peninsula on the island of Hawaii as a redevelopment district and to establish:

(1) Policies for the management of lands in the redevelopment district;

(2) A plan for the district, including district-wide improvements, to be coordinated with state and county land use and planning policies;

(3) Asset and property management concepts to optimize income from the properties that are adaptable in response to changing principles of property administration; and

(4) A working group to assess the challenges to, and desired outcomes for, redevelopment and to submit a report of its findings and recommendations to the board of land and natural resources.

SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . waiakea peninsula public lands redevelopment

§171-A Definitions. As used in this part, unless the context requires otherwise:

"Premises" means the property that is being leased or rented in the Waiakea peninsula redevelopment district.

"Public facilities" includes streets and highways, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems.

"Waiakea peninsula redevelopment district" means the area of public lands designated for redevelopment pursuant to section 171-B.

"Working group" means the Waiakea peninsula redevelopment district working group established pursuant to section 171-C.

§171-B Waiakea peninsula redevelopment district; boundaries. (a) The legislature designates the public lands on the Waiakea peninsula on the island of Hawaii classified as commercial and industrial; hotel, apartment, and motel; or resort use pursuant to section 171-10 as the Waiakea peninsula redevelopment district.

(b) The Waiakea peninsula redevelopment district shall include the area bounded by the shoreline from the intersection of Lihiwai street and Kamehameha avenue; Kamehameha avenue to its intersection with Kalanianaole avenue; Kalanianaole avenue to its intersection with Banyan way; Banyan way from its intersection with Kalanianaole avenue to its intersection with Banyan drive; from the intersection of Banyan way and Banyan drive to the shoreline; the shoreline around the Waiakea peninsula, including Mokuola island, to the intersection of Lihiwai street and Kamehameha avenue.

(c) All rules, policies, procedures, guidelines, leases, contracts, loans, agreements, permits, and other materials and documents adopted or developed by the department to implement applicable state laws shall remain in full force and effect until amended or repealed by the committee.

§171-C Waiakea peninsula redevelopment district working group; members; repeal. (a) There is established a Waiakea peninsula redevelopment district working group to:

(1) Assess the challenges to and desired outcomes for redevelopment; and

(2) Make findings and recommendations for proposed redevelopment to the board for consideration in an opening meeting in accordance with chapter 92.

(b) The working group shall be an advisory body to the board and shall consist of the following members:

(1) The chairperson of the board, or the chairperson's designee;

(2) The administrator of the department's land division, or the administrator's designee;

(3) The director of the office of planning and sustainability, or the director's designee;

(4) The chairperson of the senate committee on water and land, or the chairperson's designee;

(5) The chairperson of the house of representatives committee on water and land, or the chairperson's designee; and

(6) The director of planning of the county of Hawaii, or the director's designee.

(c) The working group shall conduct its work through meetings, informational briefings, and consultation with the department's lessees, interested community members and organizations, and persons who have expressed an interest in undertaking development projects in the Waiakea peninsula redevelopment district.

(d) The department shall provide any necessary administrative support to the working group.

(e) The working group shall be dissolved upon the completion of the redevelopment project.

§171-D District redevelopment plan. (a) The working group shall prepare, or cause to be prepared through one or more planning departments or consultants procured through the department, a redevelopment plan for the Waiakea peninsula redevelopment district, including district development policies, the district improvement program, necessary public facilities, and the development guidelines and rules for the Waiakea peninsula redevelopment district. In carrying out its planning activities, the working group and the department's consultants shall comply with chapter 205A and applicable county building and zoning ordinances.

(b) In preparing a redevelopment plan for the Waiakea peninsula redevelopment district, the following guidelines shall govern the working group's actions:

(1) Development of a community according to design policies that promote the appropriate mixture of uses that respond to the social, economic, and physical needs of the residents of the county of Hawaii and the district's businesses; and

(2) Recognition of the visitor industry as the primary commercial use of the district and promotion of development and design concepts that preserve environmental elements such as view planes; enhance historical and cultural assets; and are sensitive to the impact on adjacent residential, commercial, industrial, and other uses.

(c) The working group, with the assistance of one or more planning or other consultants procured through the department, shall prepare a redevelopment plan for the Waiakea peninsula redevelopment district that may include:

(1) Areas principally for:

(A) Commercial activities;

(B) Resort and hotel activities, including uses that provide facilities and services for visitors; and

(C) Public facilities and recreational facilities, with detailed standards for height, bulk, size, and location of buildings;

(2) A district-wide improvement program for necessary district-wide public facilities within the Waiakea peninsula redevelopment district;

(3) Plans, specifications, and estimates of the costs for the development, construction, deconstruction, reconstruction, or improvement of any project in the Waiakea peninsula redevelopment district, and from time to time, the modification of plans, specifications, or estimates;

(4) Determination of the lease rental that should be established for the specific uses and the terms and conditions of the leases;

(5) Establishes interim development controls to be implemented during the transition to the execution of the provisions of the redevelopment plan, such as recommending the holdover of a lessee pursuant to section 171-40 or issuance of permits pursuant to section 171-55 to existing lessees upon the expiration of their lease terms; and

(6) Allowing the use of land or any building existing on the date the redevelopment plan is adopted to continue as a nonconforming use; provided that the nonconforming building shall not be replaced, expanded, or changed to another nonconforming use.

(d) Notwithstanding any law or court decision to the contrary, upon a finding that it is in the public interest to do so, the board may withdraw dormant or underutilized public land under existing public auction or directly negotiated leases for other priority needs or purposes. This authority to withdraw shall apply retroactively to all existing leases.

(e) The working group shall submit the redevelopment plan to the board for approval. The board shall review the redevelopment plan to approve, disapprove, or modify the plan as necessary. Upon approval by the board, the board shall act to implement the redevelopment plan in a timely manner.

(f) Prior to submission of the board for adoption, the working group shall hold a public hearing on a proposed redevelopment plan for the Waiakea peninsula redevelopment district and shall consider comments received and incorporate any revisions to the plan as may be necessary.

(g) The board shall submit a preliminary report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2024."

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2022-2023 for the establishment and operations of the Waiakea peninsula redevelopment district working group established pursuant to section 2 of this Act, including the procurement of planning and consultant services.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

SECTION 4. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 6. 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 that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 7. This Act shall take effect on July 1, 2050.

HOUSE OF REPRESENTATIVES	H.B. NO.	1788
THIRTY-FIRST LEGISLATURE, 2022		H.D. 2
STATE OF HAWAII		S.D. 1