HomeMy WebLinkAboutCOM 0557.001 1998-2000 NV V OF y
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Stephen K. Yamashiro " ~4•~~iV1e°, Diaue S. Quitiquit
Mayor Director
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DEPARTMENT OF RESEARCH AND DEVELOPMENT
25 Aupuni SVee4 Room 219 • Hilo, Hawaii 96720-4252 (tj
HILO: (808) 961-8366 • Fax (BOS) 935-1205 - KONA: (808) 329-5226 • Fax (808) 326-566 CD
E-mail: chresdev~interpac.oet C
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August 27, 1999 ~ ~
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Councilman Curtis Tyler, Chairman = w
Committee on Human Services and Economic Development
Hawaii County Council
Hilo, HI
Dear Chairman Tyler
Attached is a copy of the response we received from the
Department of Business, Economic Development and Tourism
regarding your questions about the enterprise zone program.
Mr. Brandt of DBEDT is the enterprise zone coordinator and is
responsible for administration of the program throughout the
state of Hawaii.
If you have any other questions or concerns regarding the
North Kohala issue, i will try to have them addressed by the
appropriate people. Please call me if there are other
questions you wish to have answered.
Thank you.
Sincerely
Howard Nakamura
Economist
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Comm. No.5~7t'~O/
File No. ~ ES
Ref. To; Presented ~iC,
Ref. Date ~ 1 4 1999
4E F-.,,,~q~ BENJAMIN J. CAVETANO
,~Pi.•q ,o 5s`A9 GOVERNOfl
9J ,,:~~;eb, ?y- SEIJI F NAVA, Ph.D.
1.: ` DIRECTOR
s ~ DEPARTMENT OF BUSINESS, BRADLEO JF.UM pRSMA~N
DAVID W. BLANE
o-e ECONOMIC DEVELOPMENT & TOURISM OIRECTOR OEFIGEOFRLANNING
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No. 1 Capitol District Building, 250 South Hotel Street, 5th Floor, Honolulu, Hawaii 96813 Telephone: (808) 586-2355
Mailing Address: P.O. Box 2359, Honolulu, Hawaii 96804 Fax: (BO8) 586-2377
August 24, 1999
Diane Quitiquit -
Director
Department of Research and Development
County of Hawaii
25 Aupuni Street
Room 219
Hilo, HI 96720-4252
Ms. Quitiquit:
Thank you for your letter of August 17, 1999, regarding the Enterprise Zones (EZ)
Program. I hope the following responses satisfactorily address the concerns of
Councilmember Tyler regarding the designation of an EZ in the North Kohala District.
1. There aze currently 74 businesses enrolled in the EZ program statewide, including 28
on the Big Island.
2. In the yeaz ending 12/15/98 (the most recent annual data available), the 25 Big Island
businesses enrolled at that time reported 38 new jobs.
3. These firms reported an average of $1,468 in state tax relief per job created. This
does not include an estimate for the three-year partial property tax exemption offered
by Hawaii County to participating EZ firms which increase the value of their EZ
property. This would have to be obtained from the Hawaii County Tax Department.
However, I believe few firms have even attempted to qualify for this exemption.
4. 1998 was the first year we had really meaningful data which allowed us to begin to
assess the impact of the EZ program. While the statutory restrictions on business
eligibility will always limit the total number of firms which can participate, the EZ
program appears to be quite cost-effective so far.
While EZ designations are not an economic cure-all, they have had no negative impact.
I ? id.`
Diane Quitiquit
August 24, 1999
Page Two
Please feel free to contact me again if you have further questions.
Sincerely,
Tom Brandt
Coordinator
Enterprise Zones Program