Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water, Land, Energy and Environment, to which was referred S.B. No. 2803 entitled:

begs leave to report as follows:

The purpose of this measure is to allow for the direct negotiation of leases or master leases on industrial parks developed under a joint venture or development agreement.

Testimony in support of this measure was received from the Department of Land and Natural Resources (DLNR).

Your Committee finds that DLNR is taking a more proactive approach to managing public lands, including planning for their use in a more efficient and productive manner. As part of this planning effort, DLNR has identified several sites with possible development potential as industrial parks.

Your Committee has heard that DLNR will seek to develop industrial parks under a joint venture or development agreement with a private developer or an association comprised of the tenants of the industrial park. The authority to develop industrial parks under a joint venture or development agreement is provided in section 171-135, Hawaii Revised Statutes (HRS), which also gives the Board of Land and Natural Resources exclusive authority to issue leases or master leases within the industrial park under the joint venture or development agreement. The statute, however, is silent with respect to the disposition process for such leases or master leases.

Your Committee supports this additional provision, and has amended this measure at the request of DLNR to require that if an industrial park is developed in partnership with a private party, that the selection of the private party is made in accordance with chapter 103D, HRS.

As affirmed by the record of votes of the members of your Committee on Water, Land, Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2803, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2803, S.D. 1, and be referred to the Committees on Economic Development and Technology and Ways and Means.