STAND. COM. REP. NO.  1555-08

Honolulu, Hawaii

                , 2008

RE:   H.R. No. 208

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.R. No. 208 entitled:

"HOUSE RESOLUTION ENCOURAGING THE DEVELOPMENT OF GOOD FAITH VALUATION STANDARDS AND NEGOTIATING PRACTICES FOR LONG-TERM INDUSTRIAL AND COMMERCIAL REAL ESTATE LEASES IN HAWAII,"

begs leave to report as follows:

     The purpose of this resolution is to ensure the availability of long-term industrial and commercial real estate leases at terms allowing a fair return for both the lessee and lessor, by encouraging the development of good faith valuation standards and negotiating practices for these leases.

     Bacon Universal, Servco Pacific Inc., Citizens for Fair Valuation, Grace Pacific Corporation, Plywood Hawaii, Olelo Community Television, and a concerned individual supported this measure.

     Long-term industrial and commercial leases with terms that disadvantage lessees negatively affect our economy by imposing costs on business that are passed on to Hawaii's consumers and workers.  The establishment of standards by which these industrial and commercial properties may be fairly valued, as well as of practices that bring a level playing field to the negotiation process, will allow lessors and lessees to achieve fair and reasonable lease rates and provide an overall benefit to Hawaii.

     Your Committee has amended this measure by specifying that the Department of Business, Economic Development, and Tourism is encouraged to develop the fair-valuation standards.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 208, as amended herein, and recommends its adoption in the form attached hereto as H.R. No. 208, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair