STAND. COM. REP. NO. 1599

Honolulu, Hawaii

RE: S.C.R. No. 75

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Water and Land, to which was referred S.C.R. No. 75 entitled:

"SENATE CONCURRENT RESOLUTION AUTHORIZING THE AMENDMENT OF A LEASE COVERING A PORTION OF STATE SUBMERGED LANDS AT PIERS 24 TO 26, IDENTIFIED AS "LOT 12", IN HONOLULU HARBOR, OAHU, FOR PACIFIC SHIPYARDS INTERNATIONAL,"

begs leave to report as follows:

The purpose and intent of this measure is to authorize the Department of Transportation, with the prior approval of the Board of Land and Natural Resources, to amend the submerged land lease boundaries and the boundaries of certain state submerged lands, identified as "LOT 12", in Honolulu Harbor, Oahu, to match the dimensions of the new drydock, Ho‘ola I Na Moku, and to not extend beyond the fast land boundaries, nor to exceed the original total area of 91,350 square feet, for Pacific Shipyards International.

Your Committee received testimony in support of this measure from the Department of Transportation's Harbors Division, Pacific Shipyards International, and one individual.

Your Committee finds that, pursuant to section 171-53, Hawaii Revised Statutes, the Board of Land and Natural Resources may lease submerged lands with the prior approval of the Governor and the prior authorization of the Legislature by concurrent resolution. Your Committee further finds that Senate Concurrent Resolution No. 56, S.D. 1, Regular Session of 2014 (S.C.R. 56), authorized the Department of Transportation, with the prior approval of the Board of Land and Natural Resources, to issue a lease for a term coextensive with the term of the ground lease for the fast lands adjacent to Pacific Shipyards International covering a portion of state submerged lands fronting the property bound by Piers 24 to 26, identified as "LOT 12". During the interval between the adoption of S.C.R. 56 and the execution of Pacific Shipyard International's lease, one of the drydocks was replaced by a larger drydock, and the fast land area contemplated for Pacific Shipyards International occupancy was reduced such that the submerged land now extends beyond the fast land boundary. Your Committee finds that the amendment to the lease is necessary to reflect the actual boundaries of the occupancy.

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. 75 and recommends that it be referred to your Committee on Ways and Means.

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

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KAIALI'I KAHELE, Chair