STAND. COM. REP. NO. 1565

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1028
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Economic Development and Ways and Means,
to which was referred H.B. No. 1028, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO ALOHA TOWER DEVELOPMENT
     CORPORATION,"

beg leave to report as follows:

     The purposes of this measure, as received, are to remove the
restriction placed on the Aloha Tower Development Corporation's
(ATDC) ability to develop Irwin Park, to authorize the ATDC to
hire exempt employees, officers, and agents, and to appropriate
funds to acquire the reversionary interest contained in the deed
of Helene Irwin Fagan.

     Your Committees also heard discussion on a proposal to
authorize the Aloha Tower Development Corporation to negotiate an
agreement with the Aloha Tower Marketplace lessee to develop a
public parking facility at piers 10 and 11.

     Your Committees received testimony in strong support of
additional parking for the Aloha Tower Marketplace, with
testifiers differing on the location of such parking.  The
Maritime Committee of the Chamber of Commerce of Hawaii presented
testimony in support of the development of Irwin Memorial Park.
Opposition to the Irwin Park proposal was received from Na Leo
Pohai, the Public Policy Affiliate of the Outdoor Circle, Life of
the Land, Hawaii's Thousand Friends, and four individuals.
Twelve individuals who operate businesses in Aloha Tower

 
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Marketplace testified on the immediate need for additional
parking close to the Marketplace.  The Aloha Tower Development
Corporation and the Department of Transportation (DOT) presented
comments.  Trinity Investment Trust, L.L.C., presented
information and site renderings on the proposed parking plans for
both Irwin Memorial Park and piers 10 and 11.

     Your Committees find that currently there are 365 parking
stalls available on "boat days" and 585 available on regular
days, for 170,000 square feet of retail space.  Using the
standard determination for parking for a shopping center, the
Marketplace should have 850 stalls available.  Your Committees
have heard that the Marketplace runs a trolley service between
Waikiki and the Marketplace to encourage tourists to visit the
area, but that residents must compete for limited parking when
they want to patronize the Marketplace's shops and restaurants.
As a result, many local residents stay away from the Marketplace
because parking is often nonexistent.

     Your Committees are very supportive of the Aloha Tower
Marketplace and the many small business owners who have
persevered in the face of difficult economic conditions.  Your
Committees have heard that under the present management,
occupancy of the Marketplace is up from seventy-two percent to
eighty-five percent, and the shop owners are optimistic about the
future of the Marketplace.  Given the strong commitment of these
small business people, and their vital contributions to our
economy, your Committees believe the State, through the ATDC and
the DOT, must take immediate, proactive steps to resolve the
long-standing parking shortage at the Marketplace.

     In developing solutions, however, the ATDC and the DOT are
advised that the Senate is adamantly opposed to any further
development of Irwin Memorial Park.  There appears to be adequate
space at piers 10 and 11, and there may be additional options in
the nearby vicinity, for a public parking facility sufficient to
meet the needs of the Aloha Tower Marketplace.

     Your Committees have amended this measure to:

     (1)  Delete all references to Helene Irwin Fagan and
          redevelopment of Irwin Memorial Park from the purpose
          section;

     (2)  Change the purposes to:

          (A)  Preserve Irwin Memorial Park in the future;


 
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          (B)  Direct the ATDC and the Department of
               Transportation to resolve immediately the parking
               shortage for the Aloha Tower Marketplace, with a
               report to the 2000 legislature on the status of
               parking for the Marketplace; and

          (C)  Authorize the ATDC to appoint officers, employees,
               and agents without regard to chapters 76 and 77,
               Hawaii Revised Statutes; and

     (3)  Delete section 2, amending section 206J-6, Hawaii
          Revised Statutes, relating to the powers of the ATDC;

     (4)  Delete section 3, which appropriates funds for
          acquisition of the reversionary interest described in
          the deed of Helene Irwin Fagan;

     (5)  Require the ATDC and the DOT to work together to
          resolve immediately the parking shortage for the Aloha
          Tower Marketplace and to develop plans to expedite the
          construction of additional parking;

     (6)  Require the ATDC and the DOT to report to the 2000
          Legislature on the status of resolving the shortage of
          parking, including a plan of action and a timeframe for
          implementation of its recommendations;

     (7)  Change the effective date to July 1, 1999; and

     (8)  Make technical amendments.

     As affirmed by the records of votes of the members of your
Committees on Economic Development and Ways and Means that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 1028, H.D. 1, as amended herein,
and recommend that it pass Second Reading in the form attached
hereto as H.B. No. 1028, H.D. 1, S.D. 1, and be placed on the
calendar for Third Reading.


 
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Economic
                                   Development and Ways and
                                   Means,



____________________________       ______________________________
CAROL FUKUNAGA, Co-Chair           LORRAINE R. INOUYE, Chair



___________________________
ANDREW LEVIN, Co-Chair

 
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