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I~EPOItT OF THE <br /> COMMITTEE ON PLANNING <br /> <br /> DATE: October 2, 2007 IZe: Comm. No. 682/ltesolution No. 345 <br /> <br /> PLACE: Councilroom <br /> Ben Franklin Building <br /> 333 Kilauea Avenue, 2°~ Floor <br /> Hilo, Hawaii <br /> TIME: 2:30 p.m. <br /> Council Chair and Members <br /> Hawaii County Council <br /> Hilo, Hawaii 96720 <br /> Your Committee on Planning, to which was referred Resolution No. 345, reports as follows: <br /> Resolution No. 345, transmitted via Communication No. 682 from Council Member Emily <br /> Naeole, dated August 28, 2007, transmitting a Resolution to amend the zone boundaries of the <br /> Hilo-Puna and North Kohala Enterprise Zones. <br /> At the October 2, 2007 Committee on Planning meeting, Jane Testa, Director, and Jane Horike, <br /> Economic Specialist, Department of Research and Development, presented background <br /> information relating to Enterprise Zones. Ms. Horike outlined benefits of the program and <br /> described some successful program uses coordinated between the State and Counties to <br /> encourage employment and work development. Benefits provided by the state include 100% <br /> exemption from wholesale tax, eighty percent reduction of state income taxes, reduced <br /> unemployment insurance and exemptions from general excise tax for licensed contractors. The <br /> County provides a 3-year exemption benefit of any increase of real property taxes. <br /> Ms. Horike explained that of the maximum six Enterprise Zones, the Resolution proposes <br /> expanding two of the zones. The Kohala expansion was selected because of major <br /> improvements being planned for Kawaihae Harbor and the areas between the Kohala Mountain <br /> Road and Kawaihae Road. This proposed zone expansion is to support future development in <br /> these areas. <br /> Council Member Jacobson's concern was with the Puna proposed expansion. Mr. Jacobson <br /> inquired who requested the expansion and what the benefits and aspects were of having the <br /> expansion area located next to a natural area reserve. Ms. Horike explained the proposed <br /> expansion area is agricultural zoned 20-acre parcels consisting of farmland and was based upon a <br /> request made by Universal Realm, Inc., a technology company that combines technology with <br /> agriculture. She said the company plans to develop farming in the future and that the expansion <br /> area would be kept at 20 acres. <br /> Council Member Ford's concern was that the Puna expansion is being proposed for one person <br /> planning to engage in an agricultural business. Ms. Ford also expressed concern why all farmers <br /> <br />