WHEREAS, the Hawaii Community Development Authority (Authority) was established in 1976 to supplement traditional community renewal methods by promoting and coordinating public and private sector development; and

WHEREAS, upon creating the Authority, the Legislature recognized the need for community renewal in the district of Kakaako, as it was found to be significantly underdeveloped and underutilized; and

WHEREAS, in 1982, after five years of planning, the Authority adopted the Kakaako Community Development District Plan, and later amended the plan to include the Kakaako makai area, including the area known as the Kakaako waterfront, adjacent to Kewalo Basin and Kakaako Waterfront Park and Kakaako Makai Gateway Park; and

WHEREAS, in 2002, in response to the decision to locate the John A. Burns School of Medicine in Kakaako makai, the Authority adopted the Kakaako Waterfront Business Plan, supported by a private consultant study, that recommended that residential units were needed in the area for maximum social and economic value; and

WHEREAS, the Authority's goal in the Kakaako Waterfront Business Plan is to create a "gathering place" to help fulfill Hawaii's needs for public recreation, entertainment, and amenities, and to serve as a centerpiece for dynamic urban redevelopment; and

WHEREAS, in January 2005, the Authority issued a request for proposals for the redevelopment of the Kakaako waterfront, in which the stated project goals included:

WHEREAS, between 1990 and 2005, the Authority's administrative rules allowed only for commercial, maritime industrial development, and public and park use in the Kakaako makai area,

WHEREAS, in 2005, after initiating the effort over two years earlier, the Authority amended its administrative rules to change the one hundred per cent commercial designation to one of mixed uses, including residential use; and

WHEREAS, in September 2005 and only a week after the aforementioned administrative rule amendment, the Authority selected Alexander and Baldwin Properties, LLC, as the master developer for a prime thirty-six acre tract of waterfront land makai of Ala Moana Boulevard and management of twenty-nine acres of submerged lands at Kewalo Basin; and

WHEREAS, the time frame in which the Authority's administrative rules were amended and the developer for the Kakaako waterfront lands 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; and

WHEREAS, both the Authority and the developer have designated that twenty per cent of the units developed shall be sold as "affordable housing", as dictated by administrative rules, and assured that sizable tracts of waterfront land and access to the shoreline would be made more accessible than it currently is; and

WHEREAS, 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 are not considered affordable for most citizens; and

WHEREAS, the issue of public access to government records is drawing increased attention and a recent study done by the University of Florida's College of Journalism and Communication, Citizens Access Project, ranked Hawaii among the bottom ten worst states in the country in open records systems; and

WHEREAS, keeping in mind the need to effectively engage the community to ensure that the community's concerns are received and considered by the Authority, both the Authority and the developer need to reach out to gain community access and input through traditional means, as well as through the use of the internet; and

WHEREAS, consequently, many citizens feel as though the Kakaako makai project was "fast-tracked" to avoid additional public opposition; and

WHEREAS, there is a perceived insensitivity by the Authority to the needs of the general public brought about by the inadequacy of engagement with the community; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the Auditor is requested to conduct a management audit of the current public hearing notice requirements and the decision making practices of the Hawaii Community Development Authority; and

BE IT FURTHER RESOLVED that the Legislature requests that the Auditor's audit include suggested improvements to the Authority's administrative procedures, so that the concerns of the public and the Legislature regarding public access to hearings and decision making matters are fully addressed by the Authority, and that future endeavors to effectively engage the community in sharing its concerns with the Authority are satisfactory to all parties; and

BE IT FURTHER RESOLVED that the Auditor is requested to submit the Auditor's report, including findings and recommendations, to the Legislature not later than twenty days prior to the convening of the 2007 Regular Session; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Auditor and the Chairperson of the Hawaii Community Development Authority.

Report Title:

Auditor; Hawaii Community Development Authority