REP HSEDC 006 08/18/1998 1996-1998

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REPORT OF THE COMMITTEE ON HUMAN SERVICES & ECONOMIC DEVELOPMENT DATE: August 18, 1998 Re: Comm. No. 927/Res. 297-98 PLACE: Councilroom TIME: 1:00 P.M. Chair and Members Hawaii County Council Hilo, Hawaii 96720 Your Committee on Human Services & Economic Development, to which was referred Communication No. 927/Res. 297-98, reports as follows: Resolution No. 297-98, transmitted by Councilmember Dominic Yagong, via Communication No. 927, dated July 22, 1998, directs the County of Hawaii to make an application to the Department of Business, Economic Development and Tourism of the State of Hawaii to expand the present Hamakua Enterprise Zone, which was approved by the State of Hawaii on October 17, 1994, to include the portion of census tracts 219.00 (Honokaa-Kukuihaele) and 221.00 (North Hilo), as described in the proposed new boundazies attached to this resolution as Exhibit "A" and as shown on maps attached to this resolution as Exhibit "B," both exhibits being incorporated into this resolution by reference; and directs the Clerk of the County of Hawaii to 0 transmit certified copies of this resolution to the Mayor of the County of Hawaii, the Director of the Department of Business; Economic Development and Tourism, and to the Governor of Hawaii. Howard Nakamura of the County Research and Development Department provided an overview of the Hawaii Enterprise Zone program, eligibility and hiring requirements for participating businesses, and tax incentive benefits provided by the state and county, respectively. He reported that five enterprise zones have been designated on the Big Island to date, with twenty-two businesses generating employment for 105 employees county-wide. Seven of these businesses with a total of 49 employees aze presently in the Hamakua Enterprise Zone. In reply to a question from Councilmember Curtis Tyler, he noted that enterprise zones may expand or contract. He explained that outreach and marketing of the enterprise zone program is conducted by workshops, issuance of press releases and letters to qualified applicants. Committee Chair John Ray proposed that a community mailing list developed by council staff be shared with the Department of Reseazch and Development to support its marketing initiatives. Councilmember Yagong thanked the Department of Reseazch and Development for its assistance in drafting Resolution 297-98. He noted that current labor force unemployment data and contiguous census tract boundaries appeaz to satisfy the requirements for enterprise zone designation and expansion. He noted that a letter dated August 12, 1)98 from Jill Andrade, Manager, J.J. Andrade Slaughterhouse, Inc. expressed strong support for enterprise zone expansion, and further observed that expanding dairy farming operations by Island Dairy on some 2,000 acres of land in Ookala leased from the State of Hawaii point to a promising future for business development and job creation in the Hamakua district.