Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred H.B. No. 1569 entitled:

begs leave to report as follows:

The purpose of this bill is to provide an incentive to encourage and support the development of a motor sports facility and a public safety training and educational facility (Facilities) on parcel 9 in Kalaeloa, formerly a portion of Barbers Point Naval Air Station (Facility), by establishing an investment tax credit for Hawaii taxpayers who invest in the privately developed Facilities.

Hawaii Motorsports Investment, Inc., and a concerned citizen submitted testimony in support of this measure. The Tax Foundation of Hawaii submitted testimony commenting on this bill.

Your Committee finds that for a number of reasons, including an insufficient number of years remaining on the existing lease to amortize major cost improvements, the existing motor sports facility at Campbell Industrial Park should be replaced. Further, the Base-Closure Commission directed that parcel 9 be redeveloped into a motor sports facility. The development of these Facilities will not only provide a training facility for law enforcement personnel and the general public, but also employment opportunities that were eliminated with the closure of Barbers Point Naval Air Station.

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1569 and recommends that it pass Second Reading and be referred to the Committee on Tourism and Culture.