STAND. COM. REP. NO. 2403

Honolulu, Hawaii

RE:    S.B. No. 3100

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Public Safety, Intergovernmental, and Military Affairs and Housing, to which was referred S.B. No. 3100 entitled:

"A BILL FOR AN ACT RELATING TO URBAN RENEWAL,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Authorize the Director of Finance to issue general obligation bonds to the counties for infrastructure construction related to urban renewal projects;

     (2)  Allow each county to have more than one local redevelopment agency;

     (3)  Repeal the specific naming requirement for local redevelopment agencies;

     (4)  Require all five members of a local redevelopment agency to reside within the boundaries of an area defined by the appropriate county via resolution; and

     (5)  Clarify that redevelopment projects carried out by local redevelopment agencies are public works.

     Your Committees received testimony in support of this measure from the Chamber of Commerce Hawaii, Building Industry Association Hawaii, and Hawai‘i Construction Alliance.  Your Committees received comments on this measure from the Department of Budget and Finance and Department of Planning and Permitting of the City and County of Honolulu.

     Your Committees find that the rail transit project presents unique opportunities for transit-oriented development, including planning for much-needed affordable and workforce housing.  This measure proposes to grant counties with increased authority and access to bond financing to undertake infrastructure projects for urban renewal and redevelop blighted areas.  Throughout the State, many communities could benefit from urban redevelopment efforts; however, your Committees note that concerns exist that this measure as written will create unnecessary competition between state and county projects for limited resources.  Further discussion and consideration are required to address this concern.

     Your Committees have amended this measure by inserting an effective date of July 1, 2050, to encourage further discussion.

     As affirmed by the records of votes of the members of your Committees on Public Safety, Intergovernmental, and Military Affairs and Housing that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3100, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3100, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Public Safety, Intergovernmental, and Military Affairs and Housing,

________________________________ BREENE HARIMOTO, Chair

________________________________ CLARENCE K. NISHIHARA, Chair