2017-03-17 Letter to Karl Rhoades re HB 575 relating to Public Lands

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•'41; 21.,!!.... Wil Okabe Managing Director Harry Kim Mayor • Barbara J.Kossow Deputy Managing Director '• . ''''''''''''''''''' ••. -• Counfv of Paiintil Offire of the Anat. 25 Aupuni Street,Suite 2603 • Hawaii 96720 • (808)961-8211 • Fax(808)961-6553 KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawai`i 96740 (808)323-4444 • Fax(808)323-4440 March 17, 2017 Senator Karl Rhoads Committee on Water and Land Hawaii State Capitol Honolulu, HI 96813 RE: HB 575 Relating to Public Lands Dear Chair Rhoads and Members: On behalf of the Hilo community, I would like to thank the Legislature for its attempts to resolve the dilemma of State leases on commercial properties that are nearing the end of their lease term. This Administration has been supporting the efforts of Big Island legislators to make special provisions for the economic district in Hilo, as in earlier drafts of HB 575, and even more so in SB 1292 and HB 1479. We have wanted to reflect the community wishes, and have been very impressed with the way in which the community has worked together and rallied behind these proposals. HB 575, Proposed SD1, now brings in a new concept. Allowing lessees of certain public lands on Banyan Drive, and in the Kanoelehua Industrial Area, to relinquish their leases during the last ten years of the term of the lease, and then allowing the lessee to bid on the new lease at public auction, has not been considered up to now, as far as I know. But what is clear is that the collaborative efforts of state, county, and community leaders will be put at risk unless there is time to give this new idea a thorough vetting. And time is, of course, in short supply at this stage of the legislative session. HB575 HD1 was an attempt to address two of the issues that have arisen due to the current leasing practices of the State under HRS 171, namely the inability to extend leases beyond 65 years without going to public auction and the dilapidated state of some of the improvements on State-leased lands. HB575 HD1 offered a potential County of Hawai`i is an Equal Opportunity Provider and Employer.