Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred S.B. No. 2645 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Board of Land and Natural Resources (DLNR) to consider certain public lands to be designated and developed as industrial parks and to ensure that lease rents in state industrial parks are reasonable and equitable.

Testimony in opposition to this measure was received from DLNR.

Your Committee finds that the vacancy rate for industrial zoned land, particularly on Oahu, is at an all-time low rate, as low as two per cent. The lack of sufficient and suitable industrial space will negatively affect the State's economy. More industrial space, whether in fee simple or leasehold, must be developed in an expedited manner. However, in the case of leasehold properties measures should be provided to ensure that lessees are not subjected to unreasonably or inequitably high lease rents.

The DLNR's objection is that this measure is unnecessary. However, your Committee is exercising its legislative prerogative to oversee the execution of legislative mandates. Act 361, Session Laws of Hawaii 1988, added a new part to chapter 171, Hawaii Revised Statutes, permitting the development of state industrial parks on public lands, including procedures to expedite the development of the state industrial parks without compliance with county planning, zoning, building, improvement, construction, and subdivision standards.

Your Committee has amended this measure to correct a spelling error.

As affirmed by the record of votes of the members of your Committee on Water, Land, and Agriculture that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2645, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2645, S.D. 1, and be referred to the Committee on Economic Development.