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. 2907, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide a tax credit for the private development of attractions and educational facilities at the Ko Olina Resort and Marina on the west coast of Oahu.

Your Committee finds that the Ko Olina Resort and Marina is a master-planned resort community, already approved and zoned for multiple hotels, timeshare, residential, commercial, and other resort development. In addition to a resort development, the Ko Olina Resort and Marina also plans to build "must see" attractions and educational facilities. These facilities would be built at no cost to the State and include a world-class ocean front aquarium, marine science and mammal research facilities, an international sports training complex, a travel industry management intern campus, and other facilities developed in cooperation with the University of Hawaii.

These attractions and educational facilities will benefit the State by regenerating Oahu's tourism industry and by revitalizing our stagnating economy with the creation of thousands of construction and new permanent jobs. To this end, the tax credit provided by this bill will enhance efforts to raise capital to benefit both the State and Ko Olina Resort and Marina.

Your Committee in providing the developers of the Ko Olina Resort and Marina with major economic incentives through this measure recognizes the developers' commitment to community sensitive development of the area and to the Island heritage and educational projects. Additionally, your Committee also acknowledges the developers' continued commitment to using their best efforts to assure public access, ample free parking, and use of the shoreline and lagoons.

Your Committee has amended the bill by:

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. 2907, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2907, S.D. 2.