Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Water, Land, and Agriculture, to which was referred H.B. No. 85, H.D. 2, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to exclude Piers 1 and 2 from the Kakaako Community Development District.

The Chamber of Commerce of Hawaii, the Hawaii Boaters Political Action Association, the Hawaii Pilots Association, the Hawaii Ship Agents Association, the Hawaii Stevedores, Inchcape Shipping Services, the International Longshore and Warehouse Union Local 142, Matson Navigation Company, Young Brothers, Ltd., and seven individuals submitted testimony in support of this measure. The Hawaii Community Development Authority (HCDA), the Department of Transportation (DOT), and the Kakaako Improvement Association submitted testimony in opposition to this measure.

Maritime lands, particularly harbors, are a finite resource of the State. Areas such as Piers 1 and 2 located in Honolulu Harbor contain vital and unique maritime cargo facilities that cannot easily be relocated, and projections made by the DOT Harbors Division indicate that foreign cargo capacity will be exhausted within five years at its present rate of growth. Thus, your Committee finds that the DOT Harbors Division is best equipped to manage the two piers. Accordingly, this measure transfers the jurisdiction of Piers 1 and 2 and the contiguous backup fast lands, approximately twenty-nine acres, from the Kakaako Community Development District to the DOT Harbors Division.

Your Committee noted testimony from both HCDA and DOT that a memorandum of agreement between the two agencies was being finalized to address the future need for Piers 1 and 2 to remain in maritime use. However, after visiting Piers 1 and 2 and reviewing a copy of the memorandum of agreement, your Committee finds that the transfer of jurisdiction from HCDA to DOT Harbors Division is necessary.

Your Committee specifically noted that the property being transferred to DOT Harbors Division is bounded to the west by Forrest Avenue and runs from Ala Moana Boulevard to the ocean. Your Committee also noted that HCDA has an existing agreement with the University of Hawaii for lot 5, containing approximately three acres, and has also received inquiries from the Office of Hawaiian Affairs for lot 1, which is east of Forrest Avenue and contains approximately five acres. Thus, your Committee has amended this measure by:

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 H.B. No. 85, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 85, H.D. 2, S.D. 2.