Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Water, Land, Energy and Environment and Economic Development and Technology, to which was referred H.B. No. 554, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to authorize the Hawaii Community Development Authority to issue special facility revenue bonds for eligible projects, including an ocean science center, in the Kakaako community development district.

Testimony in support of this measure was received from the Department of Business, Economic Development, and Tourism, Department of Budget and Finance, Hawaii Community Development Authority, Hawaii Tourism Authority, First Hawaiian Bank, Eye on Makai, and one individual. One individual submitted comments.

Your Committees finds that Kakaako Makai is intended to be a center for cultural, recreational, commercial, educational, and research activities, and for many years, the development of a world-class ocean science center has been viewed as the anchor for these activities. The center will include research facilities incorporating a number of the University of Hawaii's successful ocean research programs, a strong educational component tied to our public and private schools, and be culturally oriented to tell the story of how the ocean is a part of our history and people.

Your Committees further find that the project will require a mix of financing, to include general obligation bonds, private donations, and the use of special facility revenue bonds. Private fundraising efforts have already begun by a nonprofit corporation that will oversee the plans and development of the center and would be responsible for any debt service related to the revenue bonds.

Your Committees find that in addition to the ocean science center, there is interest in development of a multicultural village in Kakaako. Such a facility would stimulate cultural and educational awareness and involvement for Hawaii's citizens, from youth to the elderly, and create a focus for international tourism and international business, as well as provide a center for Hawaii's multiethnic community. Your Committees further find that the Kakaako area would be an appropriate venue for an ocean park, in order to showcase Hawaii's unique marine and ocean resources.

Your Committees have amended this measure to add a multicultural village and an ocean park in the definition of "special facility", to authorize issuance of special facility revenue bonds for the multicultural village, and an appropriation for the design and construction of an ocean park.

As affirmed by the records of votes of the members of your Committees on Water, Land, Energy and Environment and Economic Development and Technology that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 554, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 554, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.