Provides that lessees displaced from property already owned by the State or any county also qualify for a preference granting such lessees the right of first refusal for a lease at an eligible relocation site, and clarifies that the relocation sites must be in an existing or designated industrial park site. Designates a portion of the Kapalama Military Reservation as an industrial park. Terminates existing revocable permits at Kapalama Military Reservation no later than thirty days after the effective date of this bill. Authorizes the department of transportation to waive or reimburse up to three months of the lease rent to lessees at Kapalama Military Reservation who will be displaced by this bill. (HB695 HD1)

A BILL FOR AN ACT

SECTION 1. As part of its efforts to redevelop the Kakaako waterfront area, the Hawaii community development authority has to relocate Produce Center Development, Ltd. ("Produce Center"), which is leasing approximately nine acres of land adjacent to the Kakaako Waterfront Park. Produce Center and its tenants together are a major supplier of fresh produce to a broad range of restaurants, hotels, hospitals, schools, military facilities, supermarkets, and other retail establishments, handling about fifty per cent of the fresh produce imported to Oahu. As further indication that Produce Center and its tenants handle a large volume of fresh produce, the main offices of the plant quarantine branch of the department of agriculture are situated adjacent to the Produce Center site. Between seventy-five and eighty per cent of the fresh produce handled by Produce Center comes by maritime freight, about six per cent arrives by air freight, and the remainder is trucked in from various locations on Oahu. The legislature recognizes the importance of maintaining a ready and abundant supply of fresh produce to Hawaii and ensuring that Produce Center, and other similar fresh produce importers and distributors, be able to continue their operations from an area in close proximity to the maritime waterfront.

The State, through the board of land and natural resources, is planning to establish an industrial park within a portion of the area currently known as the Kapalama Military Reservation near Honolulu Harbor on Oahu to accommodate fresh produce importers and distributors such as Produce Center, together with the plant quarantine branch. Designating a portion of the Kapalama Military Reservation as an eligible relocation site under section 171-142, Hawaii Revised Statutes (HRS), and as an industrial park under section 171-132, HRS, and recognizing Produce Center and other similarly situated lessees as qualified displaced lessees, would enable the State to directly negotiate leases with such displaced lessees for a portion of the Kapalama Military Reservation. The legislature desires to permit the State to directly negotiate leases with such displaced lessees.

SECTION 2. Section 171-142, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) For purposes of this section:

SECTION 3. The legislature hereby designates the following described area as an eligible relocation site under section 171-142, HRS, which will enable those qualifying as displaced lessees under section 171-142, HRS, to receive the benefits available thereunder: the area is approximately 12.6 acres, consisting of the areas described as tax map key nos. 1-2-25:46, 54, 56, 57, and 58 and the surrounding yard areas and is bounded:

(1) On the mauka side by Auiki Street;

(4) On the diamond head side by the Pier 41 access road.

SECTION 4. The legislature finds that the following described portion of the area known as the Kapalama Military Reservation, situated near Honolulu Harbor on Oahu, consisting of approximately 12.6 acres and suitably and economically feasible for industrial use, is hereby designated as an industrial park under section 171-132, HRS: The portion of the Kapalama Military Reservation described as tax map key nos. 1-2-25:46, 54, 56, 57, and 58 and their surrounding yard areas and bounded:

(1) On the mauka side by Auiki Street;

(4) On the diamond head side by the Pier 41 access road.

SECTION 5. All existing revocable permits covering any portion of the Kapalama Military Reservation as described in section 4 shall be deemed terminated no later than thirty days after the effective date of this Act. No permittees under such existing revocable permits, due to their occupancy of the above-described portion of the Kapalama Military Reservation, shall be eligible for the preference granted to displaced lessees under section 171-142, HRS.

SECTION 6. (a) Notwithstanding any law to the contrary, the department of transportation may waive or reimburse up to three months of the lease rent owed or paid by lessees who:

(b) The department shall submit a report of its actions to the legislature no later than twenty days prior to the convening of the regular session of 2002.

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2010, except that the effective date for the designation of the described portion of the Kapalama Military Reservation as an industrial park under section 171-132, HRS, in section 4 of this Act shall be sixty days after the effective date of this Act.