STAND. COM. REP. NO. 2816

Honolulu, Hawaii

RE:    S.B. No. 2294

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2294, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO KAKAAKO,"

begs leave to report as follows:

     The purpose of this measure is to increase the reserved housing requirement for a planned development in the Kakaako community development district.

     More specifically, at least twenty-five per cent of the countable floor area of each planned development with a height of more than forty-five feet or a floor area that equals or exceeds one and one-half times the lot area for the development shall be developed and made available for the reserved housing units.

     Your Committee received testimony in support of this measure from one individual.  Your Committee received testimony in opposition to the measure from the Kamehameha Schools, U. Okada and Co., Interior Showplace, Ltd., General Growth Properties Inc., Tropical Land and Shade Co., Ray's Transmission Service Center, The Converter Factory, and an individual.  The Hawaii Community Development Authority and Marshall Realty, Inc. submitted comments on the measure.

     Your Committee finds that the Kakaako Community Development District was intended as a mixed-use residential and commercial community for Hawaii families to live and work.  The planned community, however, is now dominated by luxury condominium units that are financially out-of-reach for the average family in Hawaii.

     By increasing the reserved housing requirement, this measure will ensure that the intent behind the Kakaako Community Development District is maintained and that future developments in the district will help to provide more affordable housing for Hawaii's residents.

     Your Committee has amended the measure by:

     (1)  Restricting the increased reserved housing requirement to lots of one acre or more; and

     (2)  Making technical amendments that have no substantive effect.

     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 is in accord with the intent and purpose of S.B. No. 2294, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2294, S.D. 2.

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

____________________________

ROSALYN H. BAKER, Chair