Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2702, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to consolidate the Barber's Point Naval Air Station Redevelopment Commission into the Hawaii Community Development Authority.

In particular, this measure designates 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 the City and County of Honolulu under the base realignment and closure process.

This measure also authorizes the 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 provides economic development incentives to improve the Authority's prospects of attracting private sector investment in the Kalaeloa Community Development District. This measure also includes a Hawaiian cultural specialist on the panel of members appointed to assist the Authority with this project.

Your Committee finds that Barbers Point Naval Air Station was officially closed on July 1, 1999, and the United States Navy is in the process of conveying 2,150 acres of this property, which has been named the Kalaeloa Community Development District, to various agencies of the State and of the City and County of Honolulu. Development of this district is currently the responsibility of the Barbers Point Naval Air Station redevelopment commission.

Your Committee finds that these lands present unique opportunities for economic development and job creation for the area. Your Committee further finds that transferring the oversight authority from the Commission to the Authority will not only streamline operations, but will also provide an ongoing funding mechanism for the Authority's redevelopment operations at Kalaeloa.

Upon further consideration, your Committee has amended this measure by:

1. Replacing the sums appropriated with blank amounts to facilitate further discussion on the funding necessary to carry out the purposes of this measure;
2. Changing the lapse date for appropriations made for capital improvement projects authorized in this measure from June 30, 2005 to June 30, 2004; and
3. Making technical nonsubstantive changes for the purposes of clarity and consistency.

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. 2702, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2702, S.D. 2.