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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2482 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
H.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE HAWAII COMMUNITY DEVELOPMENT AUTHORITY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Pursuant to chapter 206E, Hawaii Revised Statutes, the Hawaii community development authority is tasked with the redevelopment responsibilities for legislatively created community development districts. The legislature has designated three community development districts: Kakaako, Kalaeloa, and Heeia.
Currently, section 206E-14, Hawaii Revised Statutes, allows the authority to sell or lease for a term not exceeding sixty-five years, all or any portion of its real or personal property constituting a redevelopment project if the authority finds that the sale or lease is in conformity with the community development plan. As defined in section 206E-2, Hawaii Revised Statutes, a redevelopment project may only be incidental in its commercial nature. The legislature finds that this limitation adversely impacts the authority's ability to attract long-term investors and tenants who seek to develop or redevelop primarily commercial projects within the Kakaako community development district. This conflicts with the authority's commitment to implement longer lasting change in the Kakaako community development district.
In addition, although section 206E-14, Hawaii Revised Statutes, provides that a sale may be made without recourse to public auction, the section is silent as to whether a lease may be made without recourse to public notice for sealed bids.
The purpose of this Act is to provide greater flexibility to the authority in implementing its master plan for the Kakaako community development district by allowing the authority to lease:
(1) For a term not exceeding sixty-five years property constituting a project (as opposed to selling the project, or leasing or selling a redevelopment project); and
(2) A project without recourse to public notice for sealed bids;
in the Kakaako community development district.
The legislature further finds, that safeguards remain in place because all long-term leases require prior approval by the authority at a publicly noticed meeting and after opportunity for public comment.
SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new section to part II to be appropriately designated and to read as follows:
"§206E- Lease of projects. (a) Notwithstanding any law to the contrary, including 206E-14, except as prohibited by section 206E-31.5, the authority may, without recourse to public auction or public notice for sealed bids, lease for a term not exceeding sixty-five years all or any portion of the real or personal property constituting a project to any person, upon such terms and conditions as may be approved by the authority, if the authority finds that the lease is in conformity with the community development plan.
(b) In the case of any sale of the leasehold interest in the project, the terms of the sale shall provide for the repurchase of the leasehold property by the authority at its option, in the event that the purchaser, if other than a state agency, desires to sell the property within ten years; provided that this requirement may be waived by the authority if the authority determines that a waiver will not be contrary to the community development plan. The authority shall establish at the time of original sale a formula setting forth a basis for a repurchase price based on market considerations including but not being limited to interest rates, land values, construction costs, and federal tax laws.
If the purchaser in a residential project is a state agency, the authority may include as a term of the sale a provision for the repurchase of the property in conformance with this section."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
Report Title:
Hawaii Community Development Authority; Projects
Description:
Extends the Hawaii Community Development Authority's authority to lease all or a portion of the real or personal property constituting a project in the Kakaako Community Development District, without public notice for sealed bids. (HB2482 HD1)
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