2018-04-02 Letter to Karl Rhoads and Donovan M. Dela Cruz re: HB 2073, HD 1, SD 1 Relating to Banyan and KIA

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April 2, 2018 Page 2 Since the County of Hawaii strongly supports the redevelopment of Banyan Drive and the Kanoelehua Industrial Area, we have supported SB 2972 (RELATING TO LAND DEVELOPMENT) and SB 3058 (RELATING TO UBLIC LANDS) both of which have worked their way to Finance and hopefully will be heard; and HB 2641 which has died. We would also support HB 2073, if for no other reason than to assure that as many issues as possible are on the ta le for discussion in conference. However, our preference would be to have HB 2073, HD 1, SD 1 amended by substituting the language of SB 2972, SD 2. Our greatest need at this point is a funding mechanism for the environmental studies that are required in order to move forward, and SB 2972, SD 2 provides that. It surely would also be beneficial to our private sector partners if the general excise tax exemption from HB 2073 or HB 2073, HD 1 were restored an included. SB 2972, SD 2, provides that no funds shall e made available under this Act unless the county of Hawaii provides matching funds of 250,000 through its county budget for fiscal year 2018-2019." Please know that the Hawail County budget is severely strapped, and 1 have already had to impose increases in our property, fuel, and vehicle weight taxes. Nevertheless, this issue is important enough that, although no matching funds were included in my March preliminary budget, 1 will do my best to provide $250,000 in the final 2018-2019 County budget, in order to provide the matching funds called for. We do believe that it is just and proper to ask the State to share in the EIS expense, given that the redevelopment area consists almost entirely of State land, but we recognize that the County must do its part as well, to the best of our financial ability. Respectfully sub Harry Kim( „ Mayor, County of Hawaii County of 1limali is an [qua! ()pportunity Provider and Employer.