Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Water, Land, and Agriculture and Transportation and Government Operations, to which was referred H.B. No. 1880, H.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to change the boundaries of the Kakaako Community Development District by deleting the areas comprising of piers 1 and 2 and the contiguous backup fast lands that serve as a foreign cargo container yard and transferring the lands to the Department of Transportation and the foreign trade zone division of Department of Business, Economic Development, and Tourism.

Testimony in support of this measure was submitted by the Department of Business, Economic Development, and Tourism; the Department of Transportation; the Hawaii Community Development Authority; Alexander & Baldwin, Inc.; the Chamber of Commerce of Hawaii; the Hawaii Harbor Users Group; Maritime Consultants of the Pacific; Matson Navigation Company, Inc.; and Young Brothers, Limited.

Your Committees find that the foreign cargo container yard capacity will be exhausted within five years. The area used for foreign cargo containers was already reduced with the development of the passenger cruise ship terminal as part of pier 2. However, it was brought to the attention of your Committees that the area that is being deleted from the Kakaako Community Development District to be transferred to the Department of Transportation also contains the foreign-trade zone under the direction of the Department of Business, Economic Development, and Tourism.

Accordingly, your Committees have amended this measure by:

Your Committees note that regardless of which department or authority has jurisdiction, it is important that the Hawaii Community Development Authority continue providing input into planning and implementing appropriate compatible maritime development in the waterfront area. This input process is essential to the Hawaii Community Development Authority's legislative mandate and is necessary to examine the entire district with a holistic perspective, which includes traffic and infrastructure improvements. These elements are all needed to successfully operate maritime businesses in and around Piers 1 and 2, and it is important for all parties concerned, including the Hawaii Community Development Authority, to continue to focus on long-term solutions both inside and outside of Honolulu Harbor.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1880, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1880, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.