Provides for the development of a medical school complex in Kakaako.

A BILL FOR AN ACT

SECTION 1. The legislature finds that universities have the potential of stimulating economic growth in new, high-value industries by attracting private companies that feed off the university's research and development activities. Building a medical school complex in Kakaako could lead the state's economy in a new direction. With the medical school as the anchor tenant in the complex, and with sufficient land to expand, the State could attract private research entities, such as international pharmaceutical companies involved in research and development of emerging health technologies.

A medical school and biotechnology research center in Kakaako could bring over a thousand new jobs to the state: roughly half being new positions, including forty new faculty positions. Moreover, the biotechnology research center could generate about $56,000,000 in new research support.

The legislature further finds that the development of a medical school complex in Kakaako constitutes an important public purpose. Not only would the medical school complex provide a first-class learning center for the University of Hawaii school of medicine, but it would also provide research and commercial facilities for developing biotechnology and related high technology industries.

A medical school complex in Kakaako will expand research and development opportunities in the State and serve as a center for higher learning for future generations of health care providers. In addition, a medical school complex would provide a catalyst for further commercial development of other high technology industries in the Kakaako area.

The purpose of this Act is to allow the State and a private party to enter into a private-public partnership to establish a medical school complex in Kakaako.

SECTION 2. Notwithstanding any other law to the contrary, the State may enter into an private-public partnership to develop a medical school complex in Kakaako to house the University of Hawaii school of medicine and commercial facilities for biotechnology and other developing technological industries.

Under the terms of this private-public partnership:

1. The State shall lease the real property to the developer for $1 per year for years and execute other related agreements for the development of the medical school complex, including lease term and rents;
2. The developer shall be responsible for planning, designing, constructing, and operating the medical school complex at no expense to the State; provided that the facilities of the medical school complex meet Hawaii community development authority rules pursuant to section 206E-7, Hawaii Revised Statutes;
3. The University of Hawaii, with the cooperation of the Hawaii community development authority, shall prepare the request for proposal for the medical school complex, specifying the requirements of the State with regard to the medical school facilities;
4. Upon completion of the medical school complex, the University of Hawaii school of medicine shall occupy at an agreed upon lease rent, the portion of the complex that satisfies the requirements of the State with regard to the medical school; and
5. The developer may lease the remainder of the complex facilities to biotechnology industries, developing technological industries, and other related businesses in support thereof.

SECTION 3. The University of Hawaii, with the cooperation of the Hawaii community development authority, shall report to the legislature on the progress of the development of the medical school complex no later than twenty days before the convening of the regular sessions of 2002, 2003, 2004, 2005, and 2006.

SECTION 4. This Act shall take effect upon its approval.