Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 540, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to establish a tax credit for revitalization of older commercial facilities, including retail, hotel, warehouse, and industrial facilities, provided that either the facility or the commercial district where the facility is located is at least twenty-five years old, and projects over $2,500,000 are required to pay prevailing wages under chapter 104, Hawaii Revised Statutes.

Your Committee finds that one of the abiding effects of Hawaii's recent economic downturn is the deterioration of many of the State's older commercial districts. Providing financial incentives for the redevelopment of established commercial districts would benefit not only the districts themselves but the economy of the State as a whole.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 540, S.D. 1, and recommends that it pass Third Reading.