Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Water, Land, & Ocean Resources, to which was referred S.C.R. No. 134, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this concurrent resolution is to facilitate the lease of a new site for Honolulu Marine, Inc. (Honolulu Marine) to conduct its commercial ship repair operations by authorizing the Department of Land and Natural Resources (DLNR) to lease fast and submerged lands at Keehi Small Boat Harbor to Honolulu Marine.

DLNR, Hawaii Community Development Authority (HCDA), Hawaii Boaters Political Action Association, Paradise Cruise, Ltd., Maritime Consultants of the Pacific, Honolulu Marine, Pacific Steel, and four concerned individuals testified in support of this concurrent resolution. Capitol Consultants of Hawaii opposed this measure.

Honolulu Marine presently holds a waterfront-parcel lease from the Harbors Division of the Department of Transportation (DOT) that expires in 2021. The parcel is within the Kakaako business district that HCDA is tasked with redeveloping. HCDA has notified Honolulu Marine that it must vacate its present location as soon as possible.

Honolulu Marine, working with HCDA and DOT, has identified, as suitable for its operations, certain fast and submerged lands adjacent to the Keehi Small Boat Harbor that is under the management of DLNR's Division of Boating and Ocean Recreation.

DLNR is statutorily authorized to lease fast lands. However, section 171-53(c), Hawaii Revised Statutes, requires the prior approval of the Governor and the Legislature though the adoption of a concurrent resolution to lease submerged lands.

Your Committee finds that authorizing DLNR to lease both the fast and submerged lands at Keehi Small Boat Harbor to Honolulu Marine will have multiple incidental benefits to the State, including the generation of revenues and the mitigation of chronic criminal activity in the area.

Finally, as the leasing of these fast and submerged lands proceeds, your Committee encourages DLNR to pay careful attention to protecting existing recreational uses. Your Committee also urges the Board of Land and Natural Resources to perform its fiduciary duty by obtaining a fair market rent for these properties.

After careful consideration, your Committee has amended this concurrent resolution by clarifying that the submerged lands located within tax map key 1-2-25-24 comprise approximately 20,800 square feet.

As affirmed by the record of votes of the members of your Committee on Water, Land, & Ocean Resources that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 134, S.D. 1, as amended herein, and recommends its adoption in the form attached hereto as S.C.R. No. 134, S.D. 1, H.D. 1.