STAND. COM. REP. NO. 1176
Honolulu, Hawaii
RE: H.B. No. 1494
H.D. 3
S.D. 1
Honorable Ronald D. Kouchi
President of the Senate
Thirty-Third State Legislature
Regular Session of 2025
State of Hawaii
Sir:
Your Committees on Economic Development and Tourism and Higher Education, to which was referred H.B. No. 1494, H.D. 3, entitled:
"A BILL FOR AN ACT RELATING TO SPORTS FACILITIES,"
beg leave to report as follows:
The purpose and intent of this measure is to:
(1) Lapse appropriations of general obligation bond funds previously authorized for the planning, design, and construction of a stadium in Halawa by the Stadium Authority;
(2) Transfer certain special fund moneys earmarked for the development of a new stadium in Halawa to the general fund;
(3) Authorize the issuance of general obligation bonds for a new stadium on the University of Hawaii at Manoa campus;
(4) Rename the Stadium Authority as the Halawa Redevelopment Authority and the Stadium Development District as the Halawa Redevelopment District; and
(5) Amends the powers and duties of the Halawa Redevelopment Authority.
Your Committees received testimony in support of this measure from one individual.
Your Committees received testimony in
opposition to this measure from the Department of Accounting and General
Services; Department of Business, Economic Development, and Tourism; Stadium
Authority; Stanford Carr Development; Operative Plasterers' and Cement Masons'
International Association Local 630, AFL-CIO; Hawaii Building &
Construction Trades Council; Hawaii Regional Council of Carpenters; and two
individuals.
Your Committees
received comments on this measure from the
University of Hawaiʻi
System and Department of Planning and Permitting of the City and County of
Honolulu.
Your Committees find that the New Aloha Stadium Entertainment District (NASED) has been in the design and negotiation process since its conception in 2018. Due to this extended process, which has included site selection, design, and negotiations with developers, the University of Hawaii has been left without a permanent stadium. The abrupt closure of the Aloha Stadium and the prolonged process of the NASED project resulted in the University investing millions of dollars into a temporary facility to bridge the gap between the closure of Aloha Stadium and the opening of NASED. This measure will lapse funds previously approved for NASED and instead relocate the project to the University of Hawaii at Manoa campus.
Your Committees acknowledge the concerns raised
in multiple testifiers' testimony that this measure contradicts the
Legislature's prior decision to fund and advance NASED, undermines years of
planning and procurement efforts, and threatens to disrupt the State's ability
to leverage sports facilities for economic development and the growth of its
tourism industry. Accordingly, your
Committees find that even with its
delays, it is in the best
interests of the State to continue with the existing NASED project.
Your Committees note that S.B. No.
1589, S.D. 3, Regular Session of 2025, which was
previously passed by the Senate after careful vetting, also relates to the Stadium
Authority and the NASED project. Your Committees find that the language
of S.B. No. 1589, S.D. 3, is preferable
because it acknowledges that the NASED
project is a critical project for the State and provides oversight and support
to facilitate the timely and effective completion of the project.
Accordingly, your
Committees have amended this measure by deleting its contents and inserting the
contents of S.B. No. 1589, S.D. 3, a measure that:
(1) Provides legislative findings pertaining to the
NASED project;
(2) Amends existing law that governs the Stadium
Development Special Fund by:
(A) Requiring
gifts and grants from private sources to be used only
for stadium infrastructure and stadium development costs;
(B) Requiring any condition imposed by the Legislature on legislative appropriations
to the Stadium Development Special Fund to be met before expenditure of the appropriated funds; and
(C) Requiring any unencumbered and unexpended funds in the
Stadium Development Special Fund to lapse into the general fund if the
NASED project is terminated;
(3) Appropriates
out of the Stadium Development Special Fund $49,500,000 for fiscal
year 2025-2026 and an unspecified amount for fiscal year
2026-2027 for purposes sets forth in the
statute that governs the special fund; provided that:
(A) The development timelines set for the NASED
project by the Stadium Authority have been met;
(B) The sum appropriated and authorized for
expenditure for fiscal year 2026-2027 shall be derived solely from moneys
received by the State as a gift or grant from private sources; and
(C) All moneys remaining in the Stadium Development
Special Fund that are not expended or encumbered shall lapse to the general
fund if the NASED project is terminated before completion; and
(4) Takes effect on July 1, 2050.
Your Committees
note the concerns raised regarding the NASED project's contracting process,
specifically with regards to Crawford Architects and WT Partnership. Your Committees find that the process and expenses
related to the Department of Accounting and General Services' contracting with
consulting firms merit further consideration and respectfully requests that
subsequent Committees to which this measure is referred examine the matter.
As affirmed by the records of votes of the members of your Committees on Economic Development and Tourism and Higher Education that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1494, H.D. 3, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1494, H.D. 3, S.D. 1, and be referred to your Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committees on Economic Development and Tourism and Higher Education,
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________________________________ DONNA MERCADO KIM, Chair |
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________________________________ LYNN DECOITE, Chair |
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