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 Intergovernmental Affairs, to which was referred S.B. No. 2550 entitled:

beg leave to report as follows:

The purpose of this measure is to establish the Kaka'ako Central Small Business District.

Testimony in support of this measure was submitted by the Friends of Kewalo Basin Park Association; Hui o Malama Kaka'ako Paka; U. Okada and Co., Ltd.; Save Our Kaka'ako Coalition; Tropical Lamp and Shade Co.; and seventeen individuals. Testimony in opposition to this measure was submitted by the Hawaii Community Development Authority (HCDA), the University of Hawaii School of Ocean and Earth Science and Technology, and General Growth Properties, Inc. Comments were submitted by the City and County of Honolulu Department of Planning and Permitting.

Your Committees find that the Kaka'ako Community Development District is an area within the City and County of Honolulu that is currently under HCDA's jurisdiction. For approximately thirty years, many businesses in the central core area have voiced their concerns and suggestions to HCDA to no avail. This measure establishes the Kaka'ako Central Small Business District within the Kaka'ako Community Development District, transfers jurisdiction over the Kaka'ako Central Small Business District to the City and County of Honolulu, and places a moratorium on infrastructure and street improvements in the Kaka'ako Central Small Business District until the end of 2006.

Your Committees noted concerns from the City and County of Honolulu regarding the coordination of the jurisdiction transfer and the financial needs of this area, especially in relation to any infrastructure commitments that have already been made. As a result, your Committees have deleted the provision which would transfer the jurisdiction of the Kaka'ako Central Small Business District to the City and County of Honolulu and recommends further discussion on this matter.

Your Committees have further amended this measure by amending the language of this measure to describe boundaries for the new district.

As affirmed by the records of votes of the members of your Committees on Water, Land, and Agriculture and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2550, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2550, S.D. 1, and be referred to the Committee on Ways and Means.