RESOLUTION

WHEREAS, the State's economy has been significantly impacted by the September 11, 2001, terrorist attacks which caused a prolonged airline stoppage and a subsequent downturn in the number of domestic and international visitors arriving in Hawaii; and

WHEREAS, while the national and international effort to root out and destroy terrorist organizations worldwide has gotten underway, the tourism industry has incurred unprecedented numbers of layoffs and is threatened with an uncertain prospect for rapid and sustained recovery; and

WHEREAS, the State government and private industry must work together to design and implement new and creative approaches for addressing the various economic challenges that Hawaii will be required to address as a result of the recent national and international developments; and

WHEREAS, during the 2001 Regular Session, the Legislature passed Senate Bill No. 1096, SD1, HD1, CD1, enacted into law as Act 90, Session Laws of Hawaii (SLH) 2001, authorizing the Governor, mayors, and heads of public jurisdictions to contract services to private entities as appropriate; and

WHEREAS, the Legislature also passed Senate Bill No. 752, SD1, HD1, enacted into law as Act 299, SLH 2001, authorizing the Board of Land and Natural Resources, subject to the approval of the Governor and Legislature, to issue leases for small boat harbors and other boating facility properties for maritime and non-maritime related activities; and

WHEREAS, the State and counties have long used the private sector to provide public services to the people of Hawaii, and have benefited from this outsourcing through increased efficiency and by gaining the use of resources that are owned or have been developed by the private sector; and

WHEREAS, the Auditor, in Report No. 01-09, reported that more than $130 million is needed for repair and maintenance of the various facilities maintained and operated by the Department of Land and Natural Resources, Division of Boating; and

WHEREAS, in numerous reports dating back to 1993, the Auditor has emphasized the need to correct deficiencies in the state boating facilities by correcting operational deficiencies in the state boating facilities program; and

WHEREAS, private companies continue to express interest in managing and redeveloping the marina areas in Hawaii, and are committed to investing more than $100 million in construction projects within the Ala Wai and Honokohau small boat harbors; in the absence of state funds, this may be the only means to effect the needed repairs and development of these valuable state resources; and

WHEREAS, the creation of additional jobs, increased tax revenues, and the value added to existing facilities produced by any private capital investment in these small boat facilities would greatly benefit the State during this time of economic uncertainty; and

WHEREAS, if action is not taken soon, the State may miss the opportunity to avoid or minimize costs by utilizing the private sector's services and expertise to bring small boat facilities up to modern standards; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-first Legislature of the State of Hawaii, Third Special Session of 2001, the Senate concurring, that, pursuant to Chapter 171, Hawaii Revised Statutes, the Board of Land and Natural Resources is authorized to lease submerged and tidal lands of the Ala Wai and Honokohau small boat harbors to private entities as it deems necessary for commercial, recreational, educational, and research purposes as consistent with all applicable state and federal laws; and

BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Governor and Chairperson of the Board of Land and Natural Resources.

Report Title:

Submerged lands lease authorization.