STAND. COM. REP. NO. 2857

Honolulu, Hawaii

RE:    S.C.R. No. 12

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Water and Land, to which was referred S.C.R. No. 12 entitled:

"SENATE CONCURRENT RESOLUTION AUTHORIZING THE ISSUANCE OF A LEASE AND EASEMENT OF CERTAIN SUBMERGED LANDS AT MANELE BAY, LANA‘I, TO LANA‘I RESORTS, LLC,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of a lease and easement of certain submerged lands at Manele Bay, Lana‘i, To Lana‘i Resorts, LLC.

     Your Committee received testimony in support of this measure from the Department of Land and Natural Resources, Pulama Lana‘i, Manele Harbor Advisor Committee, and Trilogy Excursions.

     Your Committee finds that the Legislature authorized the issuance of a similar lease and easement to Castle & Cooke, Inc., who then renamed the corporation to Lana‘i Resorts, LLC, which was subsequently purchased by Larry Ellison.  The initial lease and easement called for a marina to be built, but after the recent tsunami events it was determined that a marina would not be feasible in this area and a single floating dock would be more appropriate.  In consideration of today's growth with Lana‘i as a destination point, the Division of Boating and Ocean Recreation has determined that a floating loading dock is much needed at the harbor and could be built to withstand another tsunami of moderate impact.  The Department of Land and Natural Resources stated in testimony that it also appreciates Lana‘i Resorts, LLC's, commitment to maintaining the Manele Small Boat Harbor landscaping and ferry passenger waiting areas.

     The Board of Land and Natural Resources voted on November 8, 2013, to authorize the termination of the lease and easements executed with Castle & Cooke Resorts, LLC, and to authorize the issuance of a new fifty-five year lease and easement by way of direct negotiation with Lana‘i Resorts, LLC, of certain submerged lands and fast lands at Manele Small Boat Harbor on the island of Lana‘i identified as tax map key (2) 4-9-17:06.  The new lease will provide for the construction, maintenance, and use of submerged lands for the floating and loading dock and for mooring approved by the Division of Boating and Ocean Recreation.

     As affirmed by the record of votes of the members of your Committee on Water and Land that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 12 and recommends that it be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Water and Land,

____________________________

MALAMA SOLOMON, Chair