Authorizes $142,000,000 in SPRB for the Kahala Senior Living Community.

A BILL FOR AN ACT

SECTION 1. The legislature finds that Episcopal Homes of Hawaii, Inc., has worked diligently over the years to develop a continuing care retirement community on the underutilized grounds of the Star of the Sea School's property in Kahala, Oahu. Act 303, Session Laws of Hawaii 1991, authorized the issuance of $135,000,000 in special purpose revenue bonds to assist Episcopal Homes of Hawaii in the planning, design, and construction of a continuing care retirement community. As a result of delays, Act 127, Session Laws of Hawaii 1995, amended the sunset provision to June 30, 2000, and Act 220, Session Laws of Hawaii 1998, again amended the sunset provision to June 30, 2003.

The legislature further finds that in June 1998, Episcopal Homes of Hawaii filed in the United States Bankruptcy Court a voluntary petition to restructure its finances under Chapter 11, resulting in the continuing care retirement community project being revised. To clearly distinguish between the original project and the new project, Episcopal Homes of Hawaii changed its name to the Kahala Senior Living Community, Inc. The project scope was reduced from three hundred twenty independent living units to two hundred fifty independent living units, which includes sixty-two assisted living and memory support suites and sixty nursing beds. Given the increased cost of materials and labor since the original bond authorization, the project cost has risen approximately five per cent, necessitating an additional bond funding authorization of $7,000,000, for a total of $142,000,000.

The purpose of this Act is to authorize $142,000,000 in special purpose revenue bonds to the Kahala Senior Living Community.

SECTION 2. Section 39A-52, Hawaii Revised Statutes, is amended to read as follows:

"§39A-52 Sunset provision. After [June 30, 2003,] June 30, 2005, no new special purpose revenue bonds shall be issued under this part."

SECTION 3. Act 303, Session Laws of Hawaii 1991, is amended by amending section 4 to read as follows:

"SECTION 4. The legislature finds and determines that the activity of Kahala Senior Living Community, Inc., constitutes a health care facility as defined in part II, chapter 39, Hawaii Revised Statutes, relating to the authority to issue special purpose revenue bonds to assist not-for-profit corporations that provide health care facilities to the general public.

The department of budget and finance is authorized to issue special purpose revenue bonds in a total amount not to exceed [$135,000,000,] $142,000,000, in one or more series, for the purpose of assisting the [Episcopal Homes of Hawaii, Inc., a Hawaii nonprofit corporation,] Kahala Senior Living Community, Inc., for the planning, design, and construction of a senior citizens lifecare retirement community."

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.