STAND. COM. REP. NO.  1145

Honolulu, Hawaii

                , 2017

RE:   S.B. No. 1292

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Economic Development & Business and Tourism, to which was referred S.B. No. 1292, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE HILO COMMUNITY ECONOMIC DISTRICT,"

beg leave to report as follows:

The purpose of this measure, as received by your Committee, is to establish the Hilo Community Economic District to facilitate efficient and effective improvements, and economic opportunity, in a specified area in Hilo on the Island of Hawaii.

The Mayor of the County of Hawaii, Hawaii Farm Bureau, Hilo Fish Company, Inc., Chika Nakano Repair Shop, Big Island Toyota, Inc./De Luz Chevrolet, Hawaii Construction Alliance, Hawaii Laborers-Employers Cooperation and Education Trust, Hawaii Operating Engineers Industry Stabilization Fund, Hawaii Planing Mill, Ltd. dba HPM Building Supply, Kanoelehua Industrial Area Association, Hawaii Government Employees Association, AFSCME, Local 152, AFL-CIO, and several concerned individuals supported this bill.  The University of Hawaii at Hilo and the University of Hawaii Community College System supported the intent of this measure.  The Department of Land and Natural Resources, Office of Hawaiian Affairs, and Hawaii Community Development Authority submitted comments.

     Upon further consideration, your Committees have amended this measure by deleting its contents and inserting the substantive provisions of H.B. No. 575, H.B. No. 1310, H.D. 1, and H.B. No. 1469, H.D. 1., all of which addressed similar issues and were previously heard in the House earlier this session.  As amended, this measure:

     (1)  Identifies areas of commercial, industrial, resort, and hotel parcels in need of revitalization and establishes guidelines for the redevelopment of those parcels;

     (2)  Establishes the Waiakea Peninsula Redevelopment District until June 30, 2027;

     (3)  Authorizes the Board of Land and Natural Resources to authorize the extension of commercial, hotel, resort, and industrial leases for the lessees' substantial improvement to the leased premises;

     (4)  Appropriates funds for public lands redevelopment and the Waiakea Peninsula Redevelopment District; and

     (5)  Takes effect on July 1, 2117.

     As affirmed by the records of votes of the members of your Committees on Economic Development & Business and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1292, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1292, S.D. 2, H.D. 1, and be referred to your Committee on Water & Land.

Respectfully submitted on behalf of the members of the Committees on Economic Development & Business and Tourism,

____________________________ RICHARD H.K. ONISHI, Chair

____________________________ MARK M. NAKASHIMA, Chair