Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Economic Development and Technology and Water, Land, Energy and Environment, to which was referred S.B. No. 1028 entitled:

beg leave to report as follows:

The purpose of this measure is to consolidate the Aloha Tower Development Corporation and the Barber's Point Naval Air Station Redevelopment Commission into the Hawaii Community Development Authority (HCDA).

Your Committees received testimony in support of this measure from the Department of Business, Economic Development, and Tourism, the Hawaii Community Development Authority, Aloha Tower Development Corporation, the Department of Hawaiian Home Lands, Barber's Point Naval Air Station Redevelopment Commission, 'Ahahui Siwila Hawaii O Kapolei, City and County of Honolulu Department of Planning and Permitting, and two individuals.

Your Committees find that the Hawaii Community Development Authority (HCDA) was established to create and implement community development programs by creating special districts that would be redeveloped through the coordination of private enterprise and government. HCDA is empowered to enter into cooperative agreements and improvement district projects to bring systematic and coordinated planning efforts to fruition. The result is a comprehensive approach to redevelopment. HCDA is an appropriate agency to assume the responsibilities of the Barber's Point Naval Air Station Redevelopment Commission to continue redevelopment activities of the Kalaeloa Community Development District.

Your Committees amended this measure by requiring that prior to consolidation of Barber's Point and HCDA, the agencies be solvent and the HCDA submit a financial and managerial audit and a consolidation plan containing a realistic business plan with an implementation timetable to the legislature to provide an accounting of how and where funds are allocated. Also, your Committees amended this measure to provide for a Hawaiian cultural specialist as recommended by 'Ahahui Siwila Hawaii O Kapolei. The Hawaiian cultural specialist will serve to identify and maintain Hawaiian cultural and historical sites throughout the redevelopment process at Kalaeloa.

Your Committees have also amended this measure by making technical, nonsubstantive amendments to this measure for clarity.

As affirmed by the records of votes of the members of your Committees on Economic Development and Technology and Water, Land, Energy and Environment that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1028, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1028, S.D. 1, and be referred to the Committee on Ways and Means.