STAND. COM. REP. NO. 1171-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.C.R. No. 192
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Water and Land Use, to which was referred
H.C.R. No. 192 entitled: 

     "HOUSE CONCURRENT RESOLUTION REQUESTING AN INVESTIGATION
     INTO THE ACQUISITION OF NO. 1 CAPITOL DISTRICT BY THE
     STATE,"

begs leave to report as follows:

     The purpose of this resolution is to request the Department
of Accounting and General Services (DAGS) to investigate the
feasibility of acquiring the No. 1 Capitol District by the State.

     DAGS testified in support of the intent of the resolution.

     Your Committee finds that due to recent negotiations between
the State and the owner of No. 1 Capitol District, a price of $22
million has been agreed upon, subject to legislative approval and
funding.  This price falls within the State's appraisal range.
In comparing the cost to continue leasing, as opposed to the
purchase cost utilizing a 20-year general obligation bond, the
savings is estimated to be $14,376,844 (or $718,842 per year), if
the State purchased the property.  If the property were sold to
another buyer and the State is required to vacate, it would cost
the State approximately $2 million to $2.2 million in relocation
costs.

   Your Committee further finds that DAGS has already negotiated
a purchase price which is reasonable and feasible to the State.
DAGS is now seeking the necessary funding for the acquisition.

 
 
                                 STAND. COM. REP. NO. 1171-00
                                 Page 2

 

     As affirmed by the record of votes of the members of your
Committee on Water and Land Use that is attached to this report,
your Committee concurs with the intent and purpose of H.C.R. No.
192, and recommends that it be referred to the Committee on
Finance.
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Water and Land
                                   Use,



                                   ______________________________
                                   ROMY M. CACHOLA, Chair