Report Title:

State Redevelopment

 

Description:

Consolidates the Aloha Tower Development Corporation and the Barber's Point Naval Air Station Redevelopment Commission into the Hawaii Community Development Authority. (SB1028 HD2)

 

THE SENATE

S.B. NO.

1028

TWENTY-FIRST LEGISLATURE, 2001

S.D. 2

STATE OF HAWAII

H.D. 2


 

A BILL FOR AN ACT

 

relating to community development districts.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Barbers Point Naval Air Station was officially closed on July 1, 1999, and the Navy is in the process of conveying two thousand one hundred fifty acres of this property, which has been named the "Kalaeloa community development district" to various agencies of the State and the city and county of Honolulu. Development of this district is currently being undertaken by the Barber's Point Naval Air Station redevelopment commission. In addition, redevelopment efforts are currently being undertaken on the Honolulu waterfront by the Aloha Tower development corporation.

Both of these areas, the waterfront lands and Barbers Point lands, present unique opportunities for economic development and job creation for the area.

The purpose of this Act is to transfer the responsibility for redeveloping this property from the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation to the Hawaii community development authority to enhance the prospects for success by:

(1) Designating the Hawaii community development authority as the local redevelopment authority for the Barbers Point Naval Air Station surplus lands that are being conveyed to the State and city and county of Honolulu under the base realignment and closure process and for the Aloha Tower complex;

(2) Authorizing and empowering the Hawaii community development authority to redevelop the Barbers Point lands in accordance with the reuse plan for the Barbers Point Naval Air Station approved by the governor; and

(3) Providing economic development incentives to improve the Hawaii community development authority's prospects of attracting private sector investment in the Kalaeloa community development district and Aloha Tower complex.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding two new parts to be appropriately designated and to read as follows:

"PART . KALAELOA COMMUNITY DEVELOPMENT DISTRICT

§206E-A Barbers Point Naval Air Station redevelopment; power to redevelop established. (a) The Hawaii community development authority shall be the designated agency of the State to implement this part.

(b) The authority shall act as the local redevelopment authority to facilitate the redevelopment of Barbers Point Naval Air Station in accordance with the Barbers Point Naval Air Station community reuse plan. In addition to any other duties that the authority may have pursuant to this chapter, the authority's duties shall include but not be limited to:

(1) Coordinating with the Navy and other entities during the conveyance of properties and conduct of remediation activities for the Barbers Point Naval Air Station community reuse plan;

(2) Assisting the landholders designated by the plan in marketing their properties and processing conveyance requests;

(3) Working with the Navy and others to ensure that infrastructure support is provided to the existing developed area, which is referred to as the "downtown area" and other federally retained areas;

(4) Developing the infrastructure necessary to support the implementation of the Barbers Point Naval Air Station community reuse plan; and

(5) Providing, to the extent feasible, maximum opportunity for the reuse of surplus property by private enterprise or state and county government.

(c) Five additional voting members shall be appointed to the authority by the governor to represent the Kalaeloa community development district as follows:

(1) The chairperson of the Hawaiian homes commission;

(2) The director of the city and county of Honolulu department of planning and permitting;

(3) Two members representing the surrounding community for a term pursuant to section 26-34. One member shall be selected from a list of three nominees recommended by the Ewa neighborhood board. The second member shall be selected from a list of three nominees recommended by the Makakilo/Kapolei/Honokai Hale neighborhood board; and

(4) One member who shall be a Hawaiian cultural resource specialist. This member shall be selected from a list of three nominees recommended by the department of Hawaiian home lands after consultation with Hawaiian civic groups.

§206E-B Designation of the Kalaeloa community development district. (a) The federal Department of Defense declared approximately two thousand one hundred fifty acres of land at the Barbers Point Naval Air Station to be surplus to its needs and under a base realignment is conveying these surplus lands to the various end users identified by the community reuse plan. The governor has approved and forwarded to the Navy the community reuse plan for these surplus lands.

(b) The legislature hereby designates these surplus lands as the "Kalaeloa community development district" and the harbor known as Barbers Point harbor as Kalaeloa Barbers Point harbor, in recognition of the traditional Hawaiian name for the area, which means "long point."

§206E-C District established; boundaries. The Kalaeloa community development district is established and shall include all lands within tax map key numbers 9-1-31: 28, 9-1-13: 09, and 9-1-13: 01, excluding those areas to be retained by the federal government.

§206E-D Kalaeloa community development district; development guidance policies. The following shall be the development guidance policies generally governing the authority's actions in the Kalaeloa community development district:

(1) Development shall be in accordance with the community reuse plan;

(2) With the approval of the governor and concurrence of the Navy, the authority, upon the concurrence of a majority of its voting members, may modify and make changes to the reuse plan to respond to changing conditions; provided that prior to amending the reuse plan, the authority shall conduct a public hearing to inform the public of the proposed changes and receive public input;

(3) Development shall seek to promote economic development and employment opportunities by fostering diverse land uses and encouraging private sector investments that use the opportunities presented by the receipt of the district property from the base closure consistent with the needs of the public;

(4) The authority may engage in planning, design, and construction activities inside the district and outside the district; provided that activities outside the district relate to infrastructure development, area-wide drainage improvements, roadways realignments and improvements, business and industrial relocation, and other activities deemed by it necessary to carry out the redevelopment of the district and to implement this chapter. Studies or coordinating activities to be undertaken by the authority may address facility systems, industrial relocation, and other activities in conjunction with the county and appropriate state agencies;

(5) Planning, replanning, rehabilitation, development, redevelopment, naming and renaming, and other preparation for reuse of Barbers Point Naval Air Station under this chapter are public uses and purposes for which public money may be spent and private property acquired;

(6) Hawaiian archaeological, historic, and cultural sites shall be preserved and protected. Endangered species of flora and fauna and significant military facilities shall be preserved to the extent feasible;

(7) Land use and redevelopment activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district; and

(8) Public facilities within the district shall be planned, located, and developed to support the redevelopment policies established by this chapter for the district, the reuse plan approved by the governor, and rules adopted pursuant to this chapter.

§206E-E Kalaeloa community development revolving fund. There is created the Kalaeloa community development revolving fund into which all receipts and revenues of the authority for the Kalaeloa community development district shall be deposited. Proceeds from the fund shall be used for the purposes of this part.

PART . ALOHA TOWER SPECIAL DISTRICT

§206E-F Aloha Tower complex; authority to redevelop established. (a) The Hawaii community development authority shall be the designated agency of the State for the purpose of implementing this part.

(b) A purpose of the authority is to undertake the redevelopment of the Aloha Tower complex to:

(1) Strengthen the international economic base of the community in trade activities;

(2) Enhance the beautification of the waterfront;

(3) Better serve modern maritime uses in conjunction with the department of transportation; and

(4) Provide for public access and use of the waterfront property.

§206E-G Designation of the Aloha Tower complex. The complex shall include the area bounded by Nimitz Highway beginning at its intersection with the Diamond Head boundary of tax map key 2-1-13:7 north along Nimitz Highway to its intersection with the makai boundary of tax map key 1-7-1:6; northeast along River Street to its intersection with King Street; north along King Street to its intersection with Iwilei Road; west along Iwilei Road to its intersection with Nimitz Highway at the Ewa makai corner of tax map key 1-5-08:1; south along Nimitz Highway to its intersection with the boundary between tax map key 1-5-8:1 and tax map key 1-5-8:9; west along a line to the Diamond Head mauka corner of tax map key 1-5-40:4; west along Nimitz Highway to its intersection with the Ewa boundary of tax map key 1-5-38:4; south along the Ewa boundaries of tax map key 1-5-38:4 and 1-5-38:5 to Honolulu Harbor; east along the waterfront boundary of tax map key 1-5-38:5 to Pier 23; south along Pier 23 to the southwest end of Pier 22; continuing along a line in the same direction to its intersection with the Honolulu Harbor Federal Project Line; northeast along the Honolulu Harbor Federal Project Line to a point in Honolulu Harbor four hundred seventy-five feet perpendicular to Pier 11; southwest along a line parallel to Piers 10 and 11 to its intersection with a line extending from the southwest end of Pier 22 to the point of intersection of the Honolulu Harbor Federal Project Line and a line extending along Pier 8 into Honolulu Harbor; southeast along a line to the point of intersection of the Honolulu Federal Project Line and a line extending along Pier 8 into Honolulu Harbor; southeast along the Honolulu Harbor Federal Project Line to its intersection with a line extending along Pier 4 into Honolulu Harbor; east along a line from that intersection and along Pier 4 to its intersection with Nimitz Highway; north along Nimitz Highway to its intersection with Richards Street; southwest along Richards Street to its intersection with Ala Moana Boulevard; northwest along Ala Moana Boulevard to its intersection with the Ewa boundary of tax map key 2-1-14:6; northeast along the Ewa boundary of tax map key 2-1-14:6 to its Ewa mauka corner; and northwest across Bishop Street to the point of beginning at the intersection of the Diamond Head boundary of tax map key 2-1-13:7 and Nimitz Highway. The complex shall also include the area bounded by Iwilei Road beginning with its intersection with Nimitz Highway; west along Iwilei Road to its intersection with Pacific Street; southeast along Pacific Street to its intersection with the Ewa mauka corner of tax map key 1-5-38:4; east along Nimitz Highway to its intersection with the Diamond Head mauka corner of tax map key 1-50-40:4; east along a line to the point of intersection at the boundary between tax map key 1-5-8:1 and tax map key 1-5-8:9; north along Nimitz Highway to the point of beginning at the intersection of Nimitz Highway and Iwilei Road. All fast and submerged lands contained within these areas shall also be included.

§206E-H Aloha Tower special district; limitations. (a) The authority shall not sell any fast or submerged lands of the Aloha Tower complex as established by this chapter.

(b) The authority shall preserve the Aloha Tower as an historical monument and shall not sell, remove, demolish, deface, or alter the structure in any reasonable degree to lessen its historical value to the community. However, and notwithstanding any other law to the contrary, repairs, maintenance, relocation of pier platforms, or any essential reconstruction necessary for the preservation of the Aloha Tower as an historical monument shall be permissible.

(c) Irwin Memorial Park shall be retained as a public park subject to the reservations and conditions set forth in the deed of Helene Irwin Fagan to the Territory of Hawaii.

(d) The authority or its lessees shall not exercise any jurisdiction over the provided replacement facilities located within the Aloha Tower complex required for necessary maritime purposes and activities (hereinafter "maritime facilities"). Jurisdiction over any such replacement facilities shall be in the department of transportation. Facilities functionally related to maritime purposes and the purposes outlined in the development plan for the Aloha Tower complex, such as hotel facilities for maritime passengers and waterfront visitors, concession facilities adjacent to maritime terminal facilities, public parking facilities which are situated on property not currently under the jurisdiction of the department of transportation, and commercial, retail, residential, and office facilities may be under the jurisdiction of the authority or its lessees.

(e) The authority shall annually reimburse to the department of transportation any losses in revenues caused by any action of the authority.

(f) Any projects or activity of any public agency of the state in the Aloha Tower special district shall be constructed, renovated, or improved in consultation with the authority and department of transportation.

§206E-I Aloha Tower fund. There is created the Aloha Tower fund into which all receipts and revenues of the authority for Aloha Tower special district shall be deposited. Proceeds from the fund shall be used for the purposes of this part."

SECTION 3. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall consist of eleven voting members. The director of finance, the director of business, economic development, and tourism, the comptroller, and the director of transportation, or their respective designated representatives shall serve as ex officio, voting members. Seven members shall be appointed by the governor for staggered terms pursuant to section 26-34; provided that four members shall be appointed at large and, initially, three members, hereinafter referred to as county members, shall be selected from a list of ten prospective appointees recommended by the local governing body of the county in which the initial designated district is situated; and provided further that when vacancies occur in any of the three positions for which the members were selected from a list of county recommendations, the governor shall fill such vacancies on the basis of one from a list of four recommendations, two from a list of seven recommendations, or three from a list of ten recommendations. The list of recommendations shall be made by the local governing body of the county. If an additional district is designated by the legislature [in a county other than the county in which the initial designated district is situated], the total membership of the authority shall be increased as prescribed above by the appointment of three additional members[.], except as provided for in section 206E-A. Notwithstanding section 92-15, a majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid; except that, on any matter relating solely to a specific community development district, the [county] members representing districts other than that specific community development district shall not vote, and concurrence shall be required of a majority of that portion of the authority made up of all ex officio voting members, members at large, and county and district members representing the district for which action is being proposed in order for such action to be valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions."

SECTION 4. Section 26-18, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The following are placed in the department of business, economic development, and tourism for administrative purposes as defined by section 26-35: [Aloha Tower development corporation,] Hawaii community development authority, high technology development corporation, land use commission, natural energy laboratory of Hawaii authority, the housing and community development corporation of Hawaii, and any other boards and commissions as shall be provided by law.

The department of business, economic development, and tourism shall be empowered to establish, modify, or abolish statistical boundaries for cities, towns, or villages in the State and shall publish, as expeditiously as possible, an up-to-date list of cities, towns, and villages after changes to statistical boundaries have been made."

SECTION 5. Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

"§36-27 Transfers from special funds for central service expenses. Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

(1) Special summer school and intersession fund under section 302A-1310;

(2) School cafeteria special funds of the department of education;

(3) Special funds of the University of Hawaii;

(4) State educational facilities improvement special fund;

(5) Convention center capital and operations special fund under section 206X-10.5;

(6) Special funds established by section 206E-6;

(7) Housing loan program revenue bond special fund;

(8) Housing project bond special fund;

[(9) Aloha Tower fund created by section 206J-17;

(10)] (9) Domestic violence prevention special fund under section 321-1.3;

[(11)] (10) Spouse and child abuse special account under section 346-7.5;

[(12)] (11) Spouse and child abuse special account under section 601-3.6;

[(13)] (12) Funds of the employees' retirement system created by section 88-109;

[(14)] (13) Unemployment compensation fund established under section 383-121;

[(15)] (14) Hawaii hurricane relief fund established under chapter 431P;

[(16)] (15) Hawaii health systems corporation special funds;

[(17)] (16) Boiler and elevator safety revolving fund established under section 397-5.5;

[(18)] (17) Tourism special fund established under section 201B-11;

[(19)] (18) Department of commerce and consumer affairs' special funds;

[(20)] (19) Compliance resolution fund established under section 26-9;

[(21)] (20) Universal service fund established under chapter 269;

[(22)] (21) Integrated tax information management systems special fund under section 231-3.2;

[(23)] (22) Insurance regulation fund under section 431:2-215;

[(24)] (23) Hawaii tobacco settlement special fund under section 328L-2;

[(25)] (24) Emergency budget and reserve fund under section 328L-3;

[(26)] (25) Probation services special fund under section 706-649; and

[(27)] (26) High technology special fund under section 206M-15.5;

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State. All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers. To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund. No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

SECTION 6. Section 36-30, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

(a) Each special fund, except the:

(1) Transportation use special fund established by section 261D-1;

(2) Special summer school and intersession fund under section 302A-1310;

(3) School cafeteria special funds of the department of education;

(4) Special funds of the University of Hawaii;

(5) State educational facilities improvement special fund;

(6) Special funds established by section 206E-6;

[(7) Aloha Tower fund created by section 206J-17;

(8)] (7) Domestic violence prevention special fund under section 321-1.3;

[(9)] (8) Spouse and child abuse special account under section 346-7.5;

[(10)] (9) Spouse and child abuse special account under section 601-3.6;

[(11)] (10) Funds of the employees' retirement system created by section 88-109;

[(12)] (11) Unemployment compensation fund established under section 383-121;

[(13)] (12) Hawaii hurricane relief fund established under chapter 431P;

[(14)] (13) Convention center capital and operations special fund established under section 206X-10.5;

[(15)] (14) Hawaii health systems corporation special funds;

[(16)] (15) Tourism special fund established under section 201B-11;

[(17)] (16) Compliance resolution fund established under section 26-9;

[(18)] (17) Universal service fund established under chapter 269;

[(19)] (18) Integrated tax information management systems special fund;

[(20)] (19) Insurance regulation fund under section 431:2-215;

[(21)] (20) Hawaii tobacco settlement special fund under section 328L-2;

[(22)] (21) Emergency and budget reserve fund under section 328L-3;

[(23)] (22) Probation services special fund under section 706-649; and

[(24)] (23) High technology special fund under section 206M-15.5;

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned."

SECTION 7. Section 171-2, Hawaii Revised Statutes, is amended to read as follows:

§171-2 Definition of public lands. "Public lands" means all lands or interest therein in the State classed as government or crown lands previous to August 15, 1895, or acquired or reserved by the government upon or subsequent to that date by purchase, exchange, escheat, or the exercise of the right of eminent domain, or in any other manner; including submerged lands, and lands beneath tidal waters which are suitable for reclamation, together with reclaimed lands which have been given the status of public lands under this chapter, except:

(1) Lands designated in section 203 of the Hawaiian Homes Commission Act, 1920, as amended;

(2) Lands set aside pursuant to law for the use of the United States;

(3) Lands being used for roads and streets;

(4) Lands to which the United States relinquished the absolute fee and ownership under section 91 of the Hawaiian Organic Act prior to the admission of Hawaii as a state of the United States unless subsequently placed under the control of the board of land and natural resources and given the status of public lands in accordance with the State Constitution, the Hawaiian Homes Commission Act, 1920, as amended, or other laws;

(5) Lands to which the University of Hawaii holds title;

(6) Lands to which the housing and community development corporation of Hawaii in its corporate capacity holds title;

(7) Lands to which the Hawaii community development authority in its corporate capacity holds title;

(8) Lands to which the department of agriculture holds title by way of foreclosure, voluntary surrender, or otherwise, to recover moneys loaned or to recover debts otherwise owed the department under chapter 167;

[(9) Lands which are set aside by the governor to the Aloha Tower development corporation; lands leased to the Aloha Tower development corporation by any department or agency of the State; or lands to which the Aloha Tower development corporation holds title in its corporate capacity;] and

[(10)](9) Lands to which the agribusiness development corporation in its corporate capacity holds title."

SECTION 8. Chapters 206G and 206J, Hawaii Revised Statutes, are repealed.

SECTION 9. All lands conveyed to the Barbers Point Naval Air Station redevelopment commission by the federal government and all lands and leases to the Aloha Tower development corporation shall be transferred to the Hawaii community development authority upon the approval of this Act.

SECTION 10. As of the close of business on June 30, 2001, the director of finance shall transfer the unexpended balances of the Kalaeloa community development revolving fund and the Aloha Tower fund established pursuant to section 206G-8, and section 206J-17, Hawaii Revised Statutes, to the credit of the Kalaeloa community development revolving fund and the Aloha Tower fund established pursuant to section 2, respectively.

SECTION 11. The powers, functions, and duties of the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation are transferred to the Hawaii community development authority. All references in any contract, or other document entered into by the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation shall apply to the Hawaii community development authority as if the latter were specifically named in the law, contract, or other document in place of the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation. The Hawaii community development authority shall assume the duties and carry out any contracts entered into by the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation prior to the effective date of this Act.

SECTION 12. All rules, policies, procedures, guidelines, and other material adopted or developed by the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation to implement provisions of the Hawaii Revised Statutes which are reenacted or made applicable to the Hawaii community development authority by this Act, shall remain in full force and effect until amended or repealed by the Hawaii community development authority pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii community development authority as appropriate.

SECTION 13. There is appropriated out of the general revenues of the State of Hawaii the sum of $1 or so much thereof as may be necessary for fiscal year 2001-2002 for the purpose of offsetting the costs associated with transferring the oversight responsibilities of the Barbers Point Naval Air Station redevelopment commission and the Aloha Tower development corporation to the Hawaii community development authority.

The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

SECTION 14. In codifying the new parts added to chapter 206E, Hawaii Revised Statutes, by section 2 of this Act and referenced to in section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 15. It is the intent of this Act to not impair holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent, necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modifications with reasons therefore to the legislature at its next session thereafter for review by the legislature.

SECTION 16. If any part of this Act is found to be in conflict with federal requirements that are a prescribed condition for the allocation of federal funds to the State, the conflicting part of this Act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this Act in its application to the agencies concerned. The rules under this Act shall meet federal requirements that are necessary condition to the receipt of federal funds by the State.

SECTION 17. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 18. This Act shall take effect on July 1, 2001; provided that the amendments made to section 36-27, Hawaii Revised Statutes, by this Act shall not be repealed when that section is reenacted on July 31, 2003, pursuant to section 9 of Act 142, Session Laws of Hawaii 1998.