STAND. COM. REP. NO. 1764

Honolulu, Hawaii

RE:    S.C.R. No. 25

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 25, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION AUTHORIZING THE ISSUANCE OF A TERM, NON-EXCLUSIVE SURFACE EASEMENT AT KAHALUU, NORTH KONA, HAWAII,"

begs leave to report as follows:

     The purpose of this measure is to grant the prior authorization by concurrent resolution of the Legislature of a lease to submerged lands beneath the tidal water of the State to KBH, Inc., at Kahaluu, North Kona, Hawaii.

     Your Committee has received comments in support of this measure from the Department of Land and Natural Resources.

     Your Committee finds that KBH, Inc. seeks to enter into a long-term sixty-five-year lease with Kamehameha Schools for the site and existing improvements of the Keauhou Beach Hotel at Kahaluu, North Kona, Hawaii.  However, a portion of the foundation of the hotel improvements was determined by judicial decision to be encroaching upon state submerged lands.  Accordingly, KBH, Inc. is seeking a term, non-exclusive surface easement for sixty-five years to the submerged lands upon which the hotel foundation is encroaching to coincide with the Kamehameha Schools lease.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 25, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair