SB1838 SD2

SECTION 1. The legislature finds that in early 2007, the Hawaii community development authority plans to begin the Queen street widening project referred to as ID-11. Although this project includes features that benefit the community at large, the widening project will have serious impacts for small businesses in the Queen street area between Kamakee street and Ward avenue.

During 2005-2006, state and county elected officials sought to work with the Hawaii community development authority and the county administration in arriving at solutions for two issues of particular concern for small businesses in the area:

(1) Loss of parking immediately adjacent to the businesses; and

(2) The businesses' share of assessments for the road improvements.

Affected small businesses also participated in the Kakaako mauka plan and rules revisions community meetings, which led to proposed 2006 plan revisions that tackle the adjacent parking issues, fee assessments, and related community and business issues on Queen street in a practical manner. In part, the revisions:

(1) Recommend deletion of the Halekauwila-Queen streets couplet (part of the original street-widening rationale);

(2) Propose that all streets have sidewalks and drainage as part of the long-term improvements; and

(3) Propose that no new improvement districts for the central Kakaako area be programmed unless initiated or supported by the small business community and landowners; with fee assessments, parking, and business disruption issues resolved before initiation of an improvement district project.

In addition, a portion of the Queen street widening project between Kamakee street and Cooke street has not been funded by the legislature. Therefore, rather than embarking on half of the Queen street improvements on a piece meal basis, the most cost-effective approach is to modify the Queen street realignment project to conform to recommendations in the Kakaako mauka plan and rules revisions. Further community meetings were held in December 2006, and final public review and adoption of the plan's 2006 revisions will not be completed until mid-2007.

The purpose of this Act is to:

(1) Establish a Kakaako central small business district;

(2) Require the authority to confer and obtain consensus from the real property owners and small businesses within and adjacent to a proposed public facility prior to undertaking any public facility as part of the district-wide improvement program;

(3) Require that the dedication for public school facilities be on a fair-share basis, as determined by the department of education, and agreed upon in writing by the department of education and the developer;

(4) Transfer $ from the Hawaii community development revolving fund to the department of education; and

(5) Require modification of the Queen street realignment project between Kamakee street and Cooke street, in conjunction with recommendations made by the Kakaako mauka plan and rules revisions.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§206E‑ Kakaako central small business district; established. Within the Kakaako community development district, there is established the Kakaako central small business district. The Kakaako central small business district shall include the area bounded by Kapiolani boulevard from its intersection with Cooke street to Drier street; to Waimanu street; Waimanu street from its intersection with Drier street; to Queen street; Queen street from its merge with Waimanu street to Ward avenue; Ward avenue from its intersection with Queen street to Auahi street; Auahi street from its intersection with Kamani street; Kamani street to Pohukaina street; Pohukaina street from its intersection with Cooke street; and Cooke street from its intersection with Pohukaina street to Kapiolani boulevard."

SECTION 3. Section 206E-6, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

"(a) The authority shall develop a district-wide improvement program to identify necessary district-wide public facilities within a community development district[.]; provided that prior to undertaking any public facility as part of the district-wide improvement program pursuant to subsection (b), the authority shall confer and obtain consensus from the real property owners and small businesses within and adjacent to the proposed public facility.

(b) Whenever the authority shall determine to undertake, or cause to be undertaken, any public facility as part of the district-wide improvement program, pursuant to subsection (a), the cost of providing the public facilities [~~shall~~] may be assessed against the real property in the community development district specially benefiting from [~~such~~] the public facilities[.]; pursuant to subsection (a). The authority shall determine the areas of the community development district [~~which~~] that will benefit from the public facilities to be undertaken and, if less than the entire community development district benefits, the authority may establish assessment areas within the community development district[.]; pursuant to subsection (a). The authority may issue and sell bonds in [~~such~~] amounts as may be authorized by the legislature to provide funds to finance [~~such~~] the public facilities. The authority [~~shall~~] may fix the assessments against real property specially benefited[.]; pursuant to subsection (a). All assessments made pursuant to this section shall be a statutory lien against each lot or parcel of land assessed from the date of the notice declaring the assessment until paid and [~~such~~] the lien shall have priority over all other liens except the lien of property taxes. As between liens of assessments, the earlier lien shall be superior to the later lien."

SECTION 4. Section 206E-12, Hawaii Revised Statutes, is amended to read as follows:

"§206E-12 Dedication for public facilities as condition to development. The authority shall establish rules requiring dedication for public facilities of land or facilities, or cash payments in lieu thereof, by developers as a condition of developing real property pursuant to the community development plan[.]; provided that the dedication for public school facilities shall be on a fair-share basis, as determined by the department of education, and terms of the dedication shall be agreed upon in writing by the department of education and the developer prior to the developer obtaining building permits for any aspect of the development. Where state and county public facilities dedication laws, ordinances, or rules differ, the provision for greater dedication shall prevail."

SECTION 5. Section 206E-16, Hawaii Revised Statutes, is amended to read as follows:

"[[]§206E-16[]] Hawaii community development revolving fund. There is created the Hawaii community development revolving fund into which all receipts and revenues of the authority shall be deposited. Proceeds from the fund shall be used for the purposes of this chapter[.]; provided that the authority shall transfer all receipts and revenues from any dedication for public school facilities, made pursuant to section 206E-12, to the department of education."

SECTION 6. There is appropriated out of the Hawaii community development revolving fund the sum of $ , or so much thereof as may be necessary for fiscal year 2007-2008, to be paid to the department of education, and the $ shall be expended by the department of education for capital improvement projects for public schools directly adjoining or serving the Kakaako community development district, with student populations that reflect a disproportionate share of low socioeconomic strata and unmet community needs, and for the future study and design of a new public school facility located in the Kakaako community development district.

SECTION 7. The department of education shall report to the legislature on the expenditure of the $ transferred from the Hawaii community development revolving fund for the public schools serving the Kakaako community development district, no later than twenty days prior to the convening of the regular session of 2008, and annually thereafter until all moneys are expended.

SECTION 8. Notwithstanding any law to the contrary, the Hawaii community development authority shall not plan, engage in, begin, or continue any capital improvement project within the Kakaako central small business district as identified in section 206E- , Hawaii Revised Statutes, that involve any infrastructure construction or street improvements, pending adoption by the authority of the Kakaako mauka plan and rule revisions; provided that this moratorium shall not apply to any emergency capital improvement project that is required to repair any damage to infrastructure or a street caused by a natural disaster or act of god and necessary to safeguard the health and safety of the general public.

SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 10. This Act shall take effect on July 1, 2015.

THE SENATE	S.B. NO.	1838
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 2
STATE OF HAWAII