Appropriates funds out of the Hawaii community development revolving fund and authorizes the issuance of revenue bonds to enable the authority to pay Alexander and Baldwin Properties, Incorporated, for reasonable development costs incurred to develop the Kakaako makai development project without a residential component.

A BILL FOR AN ACT

SECTION 1. The legislature finds that the Hawaii community development authority was established in 1976 to address, among other things, the need for suitable affordable housing and sufficient commercial and industrial facilities for rent.

In September 2005, the Hawaii community development authority, the state agency responsible for governing growth in Kakaako, selected Alexander and Baldwin Properties, Incorporated, as the master planner for a prime sixty-two acre tract of waterfront land makai of Ala Moana boulevard only a week after it amended its administrative rules to allow mixed-use development for the area. The authority's administrative rules previously called for commercial development only. While most of Kakaako's waterfront has been reserved for parks and the maritime industry, the Hawaii community development authority approved a redevelopment plan that included residential housing within the Kewalo basin as well as a broad range of commercial uses such as restaurants, markets, and research facilities. Although the legislature supports the development of housing for the current and future residents of the State, the residential unit costs proposed in the Kakaako makai development plans were far from being considered affordable for most citizens.

The legislature further finds that many citizens are concerned over the perceived insensitivity to the needs of the general public exhibited by the authority in its decision-making processes. The timeframe in which the authority's administrative rules were amended and the developer for the Kakaako property was selected provided the general public with very little time to digest the ramifications of the newly amended rules and their impact on the surrounding area. Consequently, many citizens feel as though the project was "fast-tracked" to avoid additional public opposition.

The legislature believes that the Hawaii community development authority should consider other alternatives such as:

At the same time, the legislature also believes that the developer selected by the authority should not suffer economic harm for acting in good faith when competing for the right to develop the Kakaako lands.

The purpose of this Act is to appropriate funds out of the Hawaii community development revolving fund to reimburse Alexander and Baldwin Properties, Incorporated, for reasonable costs incurred prior to September 14, 2005, in developing its proposal for the Kakaako makai development project and authorize the issuance of revenue bonds to contract with Alexander and Baldwin Properties, Inc., to develop the Kakaako makai development project without a residential component situated in the Kakaako makai property.

SECTION 2. There is appropriated out of the Hawaii community development revolving fund established pursuant to section 206E-16, Hawaii Revised Statutes, the sum of $        , or so much thereof as may be necessary for fiscal year 2006-2007, for the purpose of reimbursing the winning developer of the Kakaako makai development project for reasonable costs incurred prior to September 14, 2005.

SECTION 3. The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

SECTION 4. For the purposes of this Act, the legislature finds that the development of the lands makai of Ala Moana boulevard and Nimitz highway that are controlled by the Hawaii community development authority is a public facility project within the meaning of part IV of chapter 206E, Hawaii Revised Statutes.

SECTION 5. Notwithstanding section 206E-11, Hawaii Revised Statutes, and any other law to the contrary, the Hawaii community development authority is authorized to contract with the winning developer of the Kakaako makai development project as selected by the Hawaii community development authority on September 14, 2005, to plan, design, develop, and construct the Kakaako makai development project without a residential component situated in the Kakaako makai property.

SECTION 6. The Hawaii community development authority, pursuant to part IV of chapter 206E, Hawaii Revised Statutes, is authorized to issue revenue bonds in the sum of $          , or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2006-2007 for the purpose of paying for reasonable development costs incurred to contract with the winning developer of the Kakaako makai development project as selected by the Hawaii community development authority on September 14, 2005, to plan, design, develop, and construct the Kakaako makai development project without a residential component situated in the Kakaako makai property.

SECTION 7. The appropriation made for the public facility project authorized in section 6 of this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2008, shall lapse as of that date.

SECTION 8. This Act shall take effect on July 1, 2006.