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HomeMy WebLinkAboutCOM 0155.000 1996-1998 HAWAII ISLAND Economic Development Board KtC~I T1me..~y--~'-~Q e y-..--- oare- - - December 12, 1996 c~~,:~ry c~~„di East Hawaii-Hilo 200 Kanoelehua Ave. Suite 103, Box 281 Hilo, HI 96720 The Hon. James Arakaki, Council Chairman Ph (606) 966-5416/17 The Hon. John Ray, Chairman Fax (808) 966-6792 Human Resources & Economic Develo ment Committee west Hawaii • Kona 1~ First Federal Bldg. Hawaii County Council 7s-s737 Kuakini Hwy. #207 25 Aupuni Street Kailua-Kona, Hilo, HI 96720 Ph9(BOB) 329-4713 Re: Economic Development Initiatives Gentlemen: Many thanks to you and your colleagues for your interest in HIEDB's initiatives in development of science and technology, agriculture, and tourism product. For your information, I am enclosing a copy of HIEDB's most recent Annual Report, which describes activities in those areas, as well as an outline of our Program of Work for 1996. We would appreciate an opportunity to address the Council on the important initiatives which you have outlined at the Inaugural Ceremonies, and which generally match our Program of Work. If appropriate to the Committee's schedule, we would be happy to attend the Economic Development Committee meeting on January 7 at 1:30 PNi for this purpose, or any other time you deem convenient. Also, I am taking this opportunity to present an outline of a developing partnership between the Hawaii Island Electronic Village and HIEDB. This is a perfect opportunity to advance that important initiative, and we would appreciate the benefit of your review, as discussed with Councilmember Leithead-Todd. We thank you in advance for your consideration, and look forward to working with you in advancing economic development initiatives. Yours sin/q~cerel~y, Richard Henderson President ~Oi°1°~ ~0.-_.~r. F11e No. 8 V awe. 20~ gat, FEB 1 21997 PROPOSAL -HAWAII ISLAND ELECTRONIC VILLAGE 1. OVERALL ORGANIZATION The Hawaii Island Economic Development Board (HIEDB) is a registered private non-profit corporation (501(c)(3) whose mission is to support balanced economic development for the Big Island in cooperation with federal, state and county agencies and private-sector resources. It has provided regular services since 1984 through its 56 member volunteer Board of Directors, paid staff and consultants. It is the only all island organization dedicated to economic development initiatives, and handles a full program of work in agriculture, science and technology and tourism product development. Success measurements include successful operation of several federal grant programs such as the Rural Economic Transition Assistance -Hawaii Program ($5 million per year since 1993), the Rural Economic Community Development program ($175,000 - FY95), the Saddle Road Task Force ($65,000 FY94/95) and others. President Richard Henderson (October 31, 1996) Chair, Science & Tech Cte: John Tolmie The Hawaii Island Electronic Village (HIEV) is a community electronic communications base on the Internet (www.tri-hawaii.com/hievlhiev.htm) which was established through several meetings in 1996 with enthusiastic support from technicians, educators and practitioners. It currently operates with all-volunteer support and no administrative element. Information content is broad and requires frequent updating, yet provides an outstanding communications, marketing and information tool. In order to facilitate HIEV's mission, HIEDB has agreed to provide administrative support to training and update requirements. Team Leader: Richie Henderson IL SPECIFIC PROGRAM REQUEST Summary: With the advent of high-capacity telecommunications lines and an increasingly computer literate population, HIEDB initiated a High Tech Website in 1995 (http://www.interpac.net/~hiedb) intended to serve as a clearinghouse and marketing link for the World Wide Web. Components on the website are agriculture, tourism product development, and high technology as the three key economic drivers for the Big Island in creating or expanding business opportunities. The website is currently under construction as it was originally implemented under an agreement with DBEDT which was subsequently not funded. The website represents an important opportunity to integrate planning and administrative support for the Hawaii Island Electronic Village, now located at (http://www.tri-hawaii.com/hiev/hiev.htm) The collective mission will be integrated to educate visitors, residents and technicians on Big Island opportunities, resources and data, and provide an interactive response forum for business enquiries and networking. Proposed Project: Provide website update, monitoring and response services in cooperation with Big Island Electronic Village committee and key economic component organizations (i.e., agriculture, tourism, high-tech), as well as linkages to appropriate information sites such as the University, Hawaii website, High Tech Development site and others. As appropriate, convene the first statewide "virtual" conference on the World Wide Web. Timetable: Both the HIEDB and HIEV websites are currently online in construction mode and can be updated for active use within two weeks Present plans call for inputting of various articles, events, marketing activities, product/service solicitations, the High Tech Strategic Development plan (Dec. 18, 1996), informational articles and some graphics/digital video. The interactive response element can also be activated immediately. The service will extend through the Program year to October 1, 1997, and should be self-sustaining after that time. III PROGRAM INFORMATION •Program importance: The HIEV/HIEDB Website can serve as an important two-way communications channel between entrepreneurs, educators, academics, business and professional organizations, potential business leads, and all parties interested in exploring the Big Island's technological future through the Hawaii Island Electronic Village. It is an ideal useage for the new ISDN high-capacity telecommunications capabilities which are now available, and can support novice techies in acquiring electronic communications skills in a comfortable environment. As an information base, the Website can offer valuable information and referral sources, as well as linkages to other business, educational and professional sites. As a marketing tool, the website can serve as a clearinghouse and personal response site to businesses requiring information on the Big Island's products, services, locations and referrals. It is an ideal tool to assist in new or existing business expansion, competition or diversification, and is key to the emergence of new technological endeavors on the Big Island such as soft-ware engineering, management consulting, computer services and product marketing. • Experience & expertise: HIEDB's Science and Technology Committee has identified literally hundreds of hitherto unknown "virtual" entrepreneurs who engage in off-shore consulting practices through electronic communication. HIEV's membership and leadership has the technical expertise and training capability to maintain an outstanding electronic product. Current GTE Hawaiian Tel statistics show a dramatic increase in electronic useage, which will be augmented by supplemental telecommunications services in remote locations. Identification and support for these "new" businesses (and encouragement for other like-minded entrepreneurs) is a key factor in attracting new high technological businesses. The Science and Technology Committee is presently completing the Big Island's first High Tech Development Strategic Plan, which identifies objectives and strategies for supporting new technological activities, including the HIEDB/HIEV Website and other support services. •Proposal objective: Provide website update, monitoring and response services in cooperation with Hawaii Island Electronic Village committee and key economic component organizations (i.e., agriculture, tourism, high-tech), as well as linkages to appropriate information sites such as the University, Hawaii website, High Tech Development site and others. As appropriate, convene the first statewide "virtual" conference on the World Wide Web. • Implementation logistics: Contract with a professional software engineer to initiate website update and training for staff. Thereafter, update, monitoring and response services would be provided on a monthly fee-for services basis contributed by the private-sector Board. •Economicbenefits: Key communications tool offering informational services for diversified economic options (beyond conventional tourism resources and marketing), especially focusing on entrepreneurial opportunity for the Big Island in agriculture products and commodities, retail and wholesale marketing services, high-technological endeavors. Identification of existing and new "virtual" companies can highlight a new industry which is presently operating in an unsupported business environment. Highlighting technological opportunities has additional economic benefits for adacemics, educators and students, who are learning the computer ropes earlier and can assist the transitional (older) generation in the uses and opportunities of virtual communications and business applications. • Results Assessment: Installation of an access counter provides hard data on the number of enquiries, their source and field of interest, most of which is currently unknown or anecdotal. Identification of "new" virtual companies who do business electronically will stimulate additional leads and encourage overseas interest. Dissemination of appropriate business data, services and products will increase the marketing appeal of Big Island goods and services. Referrals to local business will provide new economic opportunities for Big Island goods and services. This data provides a hard summary of results in order to formulate future action planning. IV PROGRAM BUDGET •Program Detail -budgeted revenue/expenses Federal funding sources $2,500 Existing website base $5,000 Proposed country grant $10,000 HIEDB admin (private dues $2,500 TOTAL REVENUES $20,000 Expenses: Consulting fee for initial update - 21 hours x $200 $4,200 Training for staff and interested parties 8 hours x $100 x 6 persons $4,800 Modem time and monitoring $1,000 Update/response activities $2,500 "Virtual conference" $5,000 Administrative expenses $2,500 TOTAL EXPENSES $20,000 •Consequences of County non-participation: HIEDB had initiated administration of this program through a joint partnership with the state DBEDT. No application has been made to the state for this program due to failure of DBEDT to fund a legislatively approved program in FY95/6. Although federal and private resources have been allocated to 50% of program costs, there are no other economic development sources of funding for this program. Without County participation, the program would probably be cancelled. •County's additional role: Referral and information on programs of interest to the county and Big Island residents, including the County Data Book, additional publicity on ongoing county projects such as the Foreign Trade Zone or Enterprise Zones. Response resource for substantive enquiries and follow-up action planning. •Program Managers/Activity: Paula Z. Helfrich, Executive Director, Hawaii Island Economic Development Board since 1991. Has owned and operated a business consulting firm since 1985 with demonstrated expertise in issues and grants management and non- profit corporation administration and fundraising. Increased HIEDB's project and administrative capital from $160,000 to FY96 projection of $539,000 and oversight of approximately $5 million in federal funds. Prior business experience - 20 years operations/administration with Pan American World Airways. Richie Henderson, Tr. (Team Leader, Hawaii Island Electronic Village). Corporate executive and community leader, established first proactive computer and electronic data exchange operations in the County. Participated in founding initiatives of Hawaii Island Electronic Village, and presently coordinating efforts to ensure continuity for the program. Tohn Bush, software engineer -Advanced Management Systems Inc. Technical Advisor to HIEDB's Science and Technology Committee and originator of HIEDB website at http://www.interpac.net/--hiedb. AMS has provided computer support services since 1980 to a wide range of national and Hawau-based clientele, and is currently assisting county initiatives relating to establishment of the "Electronic Village" concept. CERTIFICATION I, the undersigned, hereby certify that the information contained in this Proposal Form is correct to the best of my knowle~. Name ~ Signature ~y,~ ~ Date: Y ~ ~ ~ ~j Title HAWAII ISLAND Economic Development Board East Hawaii -Hilo 200 Kanoelehua Ave. Suite 103, Box 281 Hilo, HI 96720 ANNUAL REPORT Ph (808) 966-5416/17 Fax (808) 966-6792 West Hawaii • Kona 19 9 5 First Federal Bldg. 75-5737 Kuakini Hwy. k207 Kailua-Kona, HI 96740 BOARD OF DIRECTORS Ph: (BOB) 329-4713 HAWAII ISLAND ECONOMIC DEVELOPMENT BOARD TABLE OF CONTENTS I. EXECUTIVE SUMMARY II. PROJECT REVIEW a. Agriculture b. Science ds Technology c. Tourism Product Development d. Regulatory/Infrastructure e. Administration III. ADDENDUM a. Financial Report - 1995 b. Draft Budget FY 1996 d. Draft Program of Work - 1996 PROGRAM REVIEW Executive Summary: Project elements of the Hawaii Island Economic Development Board transitioned from regional programs to building on targeted economic development projects. Priorities are focused on agriculture, science and technology, tourism product development and infrastructure development. 1. AGRICULTURE AND EXPORT PROMOTION Agriculture Committee Chair: Tony Hanley BETA-H Program Chair: Herbert M. Richards Agricultural Redevelopment priorities and resources: The Agriculture Committee restructured its meeting schedule and activities to meet new challenges, focusing on the Hamakua Coast and Ka'u District. Membership stands at over 150 associations, co-ops, & individuals who are actively invited to participate in various all-island networking events. Committee members take a leadership role in restructuring agriculture after sugar, and are regularly called on to provide public comment in various business forums. Primary funding for activities is through the Rural Economic Transition Assistance Project (RETA-H), but partnerships have been struck with USDA's Rural Economic Community Development Program, the College of Tropical Agriculture and Human Resources, the State Department of Agriculture, the County of Hawaii, and the state's Agribusiness Development Corporation. USDA Support: RURAL ECONOMIC TRANSITION ASSISTANCE •The Oversight Committee, organized in 1993, presently oversees 29 projects on three islands (Hawaii, Oahu, Kauai) funded through a collaborative agreement between the US Department of Defense and the US Department of Agriculture. Funding is anticipated to continue through FY97; approved at $4.7 million for FY96. A total of 6 projects were funded in FY93 and 22 projects funded/approved in FY94/FY95; projected total grant expenditures of $5,760,543 for projects valued at approximately $12 million at this time. Approximately 300 entrepreneurs or direct jobs have been created, with additional expansion planned as projects mature. •The Oversight Committee's reorganization in 1995 expanded to include representatives from Oahu and Kauai as plantation closures impacted those islands, as well as resource representatives from the private sector. •A statewide outreach effort netted hundreds of new entrepreneurial plans, demonstrating the resurgence of diversified agricultural initiatives. Media interest has spurred additional recognition for the leadership provided by Big Island farmers, ranchers and agribusiness in general. •Publicity -historical viewpoint of awidely-viewed video produced by the program entitled "Harvest of Hope". USDA has cited increasing interest in this model economic development project from its national network. USDA Support: RURAL ECONOMIC COMMUNITY DEVELOPMENT •The Agriculture Committee worked closely with the RECD (formerly Farmers Home Administration) approved in September 1995, for a universal food processing center which opened at the former Robert's Bakery in Hilo in December, 1995. The program has provided resources for several dozen entrepreneurs and resulted in creation of several new products now in commercial distribution. •Ag Committee members also initiated an Animal Waste Management study in Ka'u, employing 8 new entrepreneurs in integrated piggery/compost/truck crop production; similar facilities are in planning around the state. •RECD resources have been significant in developing water delivery and access systems in Hamakua; there have been management problems with implementation of the Hilo/Hamakua Community Development Corporation which should be alleviated with support from the Rural Community Assistance Corporation (RCAC) and an EDA grant. CTAHR Support: •Ag Committee Chair moderated several CTAHR-initiated forums aimed at combining resources for a Rural Agricultural Development Center. Status report pending. •Participated in CTAHR's island-state/nation forum (August, 1996) in Kona - participants from Pacific and Caribbean nations on common ag initiatives. •Worked with CTAHR marketing resources to develop a consensus for a Guam/Saipan marketing initiative. DOA/COUNTY/HVB Support: •Revision and publication of a Hawaii Island Agriculture brochure, containing updated information on commodity and product statistics and a listing of resources. The brochure is disseminated through visitor industry and ag export mazketing circles. •HIEDB participated in the Exotic Pest & Insect Control (EPIC) Committee which is the lead on ARS reform and implementation of irradiation. •Ag Committee members met several times with DOA Chair James Nakatani and Dr. Lyle Wong to assist in initiating several tropical fruit and vegetable shipments to an irradiation facility and marketing center in Chicago, Illinois with significant product success. The challenge is production flow. •Ag Committee members also assisted DOA's efforts to implement a new protocol for tropical foliage shipments to Japan and the US Mainland which have been deemed successful; again, production flow will be a major key. Publicity on agricultural initiatives: •"FOCUS ON AGRICULTURE", a weekly informational column in both island newspapers, continued to provide an ever-expanding information network and resource for economists' Big Island updates, focusing on diversified ag. After ten years of publication, DBEDT support was withdrawn without notice, requiring private and public monies to be redirected towards maintaining the column. At year's end, a Board decision was made to broaden the column, which is well-received and well-written, to "FOCUS ON THE ECONOMY" to include agriculture, science/technology, tourism product development and regulatory issues. Funding will be spread over several resources. •The University of Hawaii at Hilo -Agricultural Extension Service, has just commenced its sixth highly successful class program year on Hawaii Interactive Television System, also called FOCUS ON AGRICULTURE. In addition to the University credits earned, the forum has been a popular "VIEWPOINT" forum, particularly on controversial issues such as pest-controls and federal regulatory blocks for Hawaii produce. Initial public viewing of "HARVEST OF HOPE" in May, 1995. •Farm Bureau and Industry Associations Support: Committee members have made agriculture a household word by strong support of "buy local" programs such as KTA's Mountain Apple, editorial and hard-news stories and white papers on agricultural initiatives. The Census Bureau has just announced a 10% increase in value-added food product export from Hawaii, mostly from the Big Island, with a net value of $1.2 billion. It is too early to quantify present and future potential, but it is not unreasonable to estimate a gross revenue of over $2 billion within the next 10 years as lands and resources transition from sugar to diversified ag in a global market context. In summary, partnerships have been developed to implement substantial programs recognizing agribusiness expansion, which will have positive benefits for state and county economic development endeavors. Simply stated, Hawaii's traditional economic "stool" has been tourism, defense, and agriculture. Tourism & defense are presently beset with externalaties which the state cannot control; however, agriculture has and deserves significantly more local focus, which the state and private-sector can support for tremendous economic benefit through import substitution, export marketing, and producer incentives. (Ed. note: An annual report on the Rural Economic Transition Assistance - Hawaii Program is available through HIEDB which provides significant programmatic detail. 2. SCIENCE AND TECHNOLOGY Committee Chair: Richard Henderson The committee produced a successful conference in Nov., 1995 entitled "STARS, SCIENCE, SOCIETY", which brought business, scientific and academic leaders together to discuss opportunities and constraints for technological endeavors. The conference identified three key areas -infrastructure (telecommunications, consistent energy, road access and business services), relocation services (public education, housing, spousal employment) and higher education/vocational training to access technical jobs. Subcommittees were formed to implement action items as follows: •Relocation packages were developed containing up-to-date information on housing, public schools, East Hawaii recreational resources, etc. These have been made available to newly arriving Gemini, HVO and Subaru scientists and families, as well as (coincidentally) for C. Brewer & Co. senior staff. •Infrastructure concerns have been allayed by the September announcement of GTE-Hawaiian Tel's pending completion of the fibreoptic circuit linking Mauna Kea Summit with the Kawaihae terminal to University Park. Other linkages are planned in 1997. •The University of Hawaii Research & Technology Park is well underway; in spite of federal funding cuts, some 12 major tenants are anticipated with the Institute for Astronomy complex completed in June, 1996. •The High Technology Development Corporation initiated a request for strategic development plan, funded ($30,000) by the legislature and released from DBEDT in June, 1996. •Consultant team of Brian Nishimura, Greg Mooers, Ron Terry and Cliff Kapono was contracted for industry analysis and strategies which is the final draft stage. The draft will be presented at a Nov. 15 repeat of "STARS, SCIENCE, SOCIETY", which will include presentations from the business, scientific, cultural and academic sectors of the community. The event includes invitations to all statewide science & technical organizations to commence an open forum of discussion and planning, partially sponsored by GTE-Hawaiian Tel. •The Committee has started a web page which will be integrated with a planned "Electronic Village" site currently under discussion. •An Aviation Training Center is still a major committee priority, with asmall- scale private operation underway in Hilo and Kona which has enrolled approximately 35 students from South Asia. While government funding is unlikely for the foreseable future, and state support presently is focused on a Barbers Point Naval Air Station site, all efforts are being made to expand the private-sector initiative through support from the University of Hawaii at Hilo. An ATC Task Force was formed and has met regularly to monitor progress on this issue as well as ensure startup on Hawaii Island. •A national "REGIONS OF CHOICE" marketing program sponsored by GTE- Hawaiian Tel is developing avideo/brochure collateral package on science and technological opportunities in Hawaii, to be introduced Jan. 21, 1997 at PTC. •Committee members maintained participation in several key forums, among them the Pacific Telecommunications Conference (PTC -Jan, 1996) which is now forming an alliance with Asian and European telecom interests, as well as the Asia-Pacific Defense Environmental Security Conference, which is a recent DOD/allied nations initiative based on decision engineering and defense technology transfer. These knowledge-based industries provide excellent opportunity for development of environmental clean-up and maintenance through biotechnology, alternative energy and desalinization, waste resource management through ag-based composting and sludge treatment, etc. Other Business Attraction Initiatives: •HIEDB provided strong support to start up of the Foreign Trade Zone and its first client, NIEC which is scheduled for startup in early 1997. •The committee (and its predecessor East Hawaii Committee) spearheaded successful attraction of Kaiser Permanente together with other community advocacy groups; their facility opened in December, 1995 and provides approximately 35 new medical/technical jobs in the area. It should be noted that the Kaumana/ Wainuenue "Medical Row" provides an enormous boost to attraction of health industry initiatives. Additional health and wellness opportunities have become evident with the opening of the Five Mountain Medical Center at the North Hawaii Community Hospital in Waimea, which links visitor industry and health opportunities. •A long-term goal to attract significant corporate headquarters relocation was realized with the August 14 announcement of C. Brewer's headquarters relocation in mid-1998. Special welcome packages were prepared. •Committee members provided support to Lyman Gardens Retirement Community project in attracting a new retirement industry to East Hawaii; startup scheduled in early 1997. •A Big Island business attraction brochure is in the printing phase, with committee members scheduled to review paste-ups in early November, 1996. Anticipated completion date: Dec. 31, 1996. Summary: The planning phase for science and technological opportunities is almost complete. Initiatives for the coming year will focus on development of a Science Center/Business Incubation Center at UHH Park, establishment of a community-wide forum for discussion and consensus on Mauna Kea Summit, expansion of NELHA opportunities including the West Hawaii Campus, funding support from the High Tech Development Corporation for a website expansion and technological practitioners' survey, as well as a "virtual conference", support for an Aviation Training Center and Irradiation facility. Science & Technology initiatives got off to a flying start based on commitments from the state's DBEDT to fund a range of programs in FY95, which were summarily rejected after the contracting phase 11 months into the program of work. These initiatives have given a solid footing to the initiatives which will be pursued in the next fiscal year with reliable funding sources. 4. REGULATORY/INFRASTRUCTURE INITIATIVES Saddle Road Task Force: Robert E. Bethea West Hawaii Committee: Mike Luce West Hawaii Program completion •Committee members initiated a revision of the 1993 regional data base, expanded to all-island commercial, resort and residential developers. It is scheduled for publication in December, 1996 and will provide hard data for developer contributions as well as an information source for elected officials, government agencies, and interested parties. •The 1995 Richard Smart Big Island Community Achievement Award program was held in November, 1995 to honor five awardees: Dr. Earl Bakken, the Kona Historical Society, Richard Ha and Keaau Banana, Makali'i Voyaging Canoe Society and Suntera Corporation. •The committee also held an Arbor Day ceremony in April 1996 to honor the 1995 Richard Smart Award winners, which received wide media coverage. Saddle Road Task Force •The Saddle Road Task Force, composed of all-island members, reviewed and selected study areas for an Environmental Impact Statement commencing in September, 1994. The Task Force has reconvened on several occasions to monitor progress, and has recommended a final 12 alignments out of the original 138. All technical study areas are proceeding, with almost 95% of the technical consultants of local origin. •The draft Environmental Impact Statement should be completed in April, 1997. Technical areas under review include alignment and design, environmental issues (including endangered plants and species), cultural and Native Hawaiian concerns, socio-economic impacts and others. Technical review is conducted by periodic meeting of the Socio-Economic and Environmental (SEE) Team as well as project management leadership briefings with federal, state and county transportation officials. Hawaii lead consultant is Okahara and Associates. •HIEDB serves as the Task Force secretariat, funded by the and also produces a community communications and publicity plan. The first newsletter is slated for November, 1996 with four more to follow prior to the public hearing process next year. The project, scheduled for groundbreaking in 1998, will have over a $150 million budget. Summary: West Hawaii initiatives have been broadened to the vital linkage between East and West Hawaii through the realignment of Saddle Road, which will provide additional benefits for the visitor industry, scientic community, haulage companies, and intra-island access. 3. TOURISM PRODUCT DEVELOPMENT Committee Chair: Rick West •Members with an interest in tourism have actively supported recent "eco- tourism" activities in the state; with the cooperation of the County and the Hawaii Visitors Bureau, HIEDB co-sponsored and produced two conferences entitled "The Road Less Travelled" on January 11/12, 1996 in Volcano and "The Road Ahead" on June 17/18, 1996 in Honokaa. Purpose was to develop activity listings and resources for HVB's marketing effort, and to educate the Hamakua Coast community and visitor industry resources on the PLANTATION HERITAGE TRAIL. •Committee members provided strong support to county efforts to establish direct mainland and international service with Keahole Airport, completion of immigration/customs facilities and certification as a Port of Entry. Direct TokVO/Kona service commenced by Japan Air Lines in June, 1996 with an additional 6 month extension approved in October, 1996. Additional direct service by United Air Lines to San Francisco and Los Angeles was initiated in June, 1996 and additional interest has been expressed by Korean Air Lines and Canadian charter services. This has led to a dramatic uptick in Big Island tourism figures, which should be evident at year-end HVB reports. •A joint committee has met to complete planning, design and printing for a new Big Island business development brochure scheduled for draft review and completion by December 31, 1996. •In response to the interest generated by the above conferences in ecotourism, HIEDB submitted two matched fund proposals to a state RFP on cultural and heritage tourism in cooperation with community/industry organizations. The proposals are: •PLANTATION HERITAGE TRAIL: To generate a localized signage and interpretive program along the Hamakua Coast starting in Honokaa, as well as develop a larger coastal initiative for the entire Plantation Heritage Corridor. Funding is available through US-DOT Intermodal Surface Transportation Enhancement Act (ISTEA) which provides improvements on scenic byways and railroad easements. The project will provide access and comfort stations along the Hamakua Coast, as well as an interpretive program to attract visitors to the many rehabilitated plantation villages and scenic points. •PANIOLO HERITAGE To generate a brochure on paniolo resources, rodeo and race schedules, equestrian activities and events around the island, including outfitters, working ranches, trail-ride facilities, training & breeding, historical and cultural information, and points of contact for interested residents and visitors. The proposal will also feature matched-fund media and publicity releases for the various activities, in order to attract additional visitor support and attendance. Summary: Tourism Product Development initiatives got off to a flying start based on commitments from the state's DBEDT to fund a range of programs in FY95, which were summarily rejected after the contracting phase 11 months into the program of work. These initiatives have given a solid footing to the initiatives which will be pursued in the next fiscal year, hopefully through more concrete funding sources. 5. ADMINISTRATIVE OVERVIEW: •Board members have participated in a wide range of Speaker's Bureau forums, including the Senior Executives Conference, the Pacific Telecommunications Conference, HSAC meetings and special briefings to the County Council on important economic development issues. • Joint marketing efforts has proceeded on several fronts, which have involved HIEDB's cooperative participation in other business advocacy endeavors led by the Big Island Business Council, the Kona-Kohala/ Hawaii Island Chambers/Japanese Chamber of Commerce & Industry, the Chamber of Commerce of Hawaii, and has also developed very close working relationships with the Hawaii Leeward Planning Conference, the Hawaii Resort Developers Council, the Kohala Coast Resort Association, and the Hawaii Island Geothermal Alliance. A joint conference is planned in April, 1997 with HLPC entitled -HAWAII ISLAND, A VISION FOR THE FUTURE •HIEDB has continued its relationship as ad hoc advisory group to the County Research and Development Department, and is represented at all County Planning and Economic Development meetings, as well as the Hawaii State Association of Counties. This has given substantial presence to HIEDB activities, and has enhanced the individual and collective Board effort. The support and networking values of these cooperative endeavors cannot be overemphasized. Ina "down" fiscal year, Hawaii Island successfully lobbied for major CIP and infrastructure projects at the state legislature, and has been equally successful in maintaining cooperative support at the County Council and Administration levels. HIEDB has worked with DBED's quarterly meetings of all economic development agencies (in spite of extremely strong concerns on DBEDT's inability to manage a cohesive contracting process) in support of targeted industry opportunities. Additionally, all county economic development boards have met regularly in person or via video-teleconferencing sessions to keep up-to-date on various initiatives and the "REGIONS OF CHOICE" program. OTHER: Film Industry: HIEDB maintains support to the County's Film Commission in efforts to attract additional video and film industry support. Most FY95 activity focused on commercials and short features. Sports Promotion: HIEDB is exploring motor-cross/Grand Prix/equestrian events/mountain biking and other high-profile sports besides present golf, tennis and Ironman events. As the designated site of the Hawaii Winter Baseball League, the County has an expanded opportunity to build on major sporting events in its third year. Federal Contracting: HIEDB has worked with the National Contract Management Asscn. to establish federal contracting seminar programs, and encourage Big Island participation. Senator Daniel Inouye's office is reviewing mandatory DoD depot purchase allocations and the affects of NAFTA proposals on local agriculture. As with other ag marketing opportunities, supply must be a consistent issue. Energy and Waste Management: -HIEDB worked closely with other advocacy organizations in maintaining support for early implementation of geothermal since 1993. Substantial opportunities exist in alternative energy development through expansion of geothermal and other alternative energy. HIEDB has worked in strong support of efforts to regularize relationships with compliance authorities such as EPA and the state Department of Health. HIEDB is most interested in pursuing additional support and wide-scale implementation of alternative energy waste management technology currently being studied by PICHTR/HSPA (in spite of funding cuts), as well as parternships with the Maui R&T Park/Maui Economic Development Board super-computer capabilities, especially for laser- simulation training applications, enhanced telecommunications, and digital imaging. Pohakuloa Training Area - HIEDB maintains a formal briefing and liaison program through Dept. of the Army and the Military Affairs Council. Several community briefings and courtesy calls have been arranged between the Commanding General and County agencies. The Board will continue to provide resources to support the Multi- purpose Range Complex, expansion of PTA's mission, and secretariat status to the FHWA on realignment of the Saddle Road. Small Business Development Centers HIEDB has provided active referrals to this important resource, headquartered at UH-Hilo with offices statewide. The organization presently provides growing services to area small business, and headquarters several federal grant programs which will be expanded in coming years. The Board continued an ambitious diversification program begun in 1991, with the following results: Board Presence- East side office continues in the former Puna Sugar Manager's Office in Keaau. Kona office maintained through the Kona-Kohala Chamber. Regular meetings are scheduled on both sides of the island and in Honolulu, and participation encouraged in all-island events. Board participation in island and state forums has increased, as well as formal media notice and referral. Image and collateral materials- Collateral pieces have been replaced, with further materials planned based on budget constraints. The "REGIONS OF CHOICE" program will provide significantly enhanced materials. Financials- An independent accounting agency compiles financial records on a quarterly basis, with monthly updates provided to the Board subject to audit. Tax records and 501(c)(3) qualifications are maintained to current status. As noted in the attached annual financial summary, the organization is operating within budgetary guidelines and passed an FY93 and FY94 audit review with no negative findings. An FY95 audit will be conducted shortly. Board Retention and Development- Executive Board membership was realigned in October'91 and selection criteria reconfirmed. A succession plan was developed and implemented. Board members focus on long-range planning and alternative project funding resources, which were implemented in 1993 and considerably expanded in 1994/95. Member retention has experienced some drop off due to the economic climate; a modified membership attraction program is planned for the next fiscal year to include associate memberships. Staff Development In keeping with its policy to misiimize overhead and react quickly to changes in funding, HIEDB has contracted consultants on a short-term project basis as well as long-term advisors. Permanent staff of 1 Administrative Manager and one clerical staff to cover administrative detail. Membership- Membership dues records are maintained and a comprehensive membership search conducted each year. Due to the overall economic environment, membership has declined by some 15~~, and additional recruiting is planned. Reporting requirements- Agendae, minutes and proceedings are forwarded on a regular monthly basis, as well as informal informational meetings on specific project progress. Propriety information, such as RETA(H) business plans, are protected by USDA confidentiality requirements. Additional private-sector contributions- Volunteer leadership and contributions of time, talent, and travel expenses are the backbone of a non- profit operation. HIEDB members provide vital seed money through their investment in membership dues, which has allowed leverage on almost 100:1 basis to federal dollars. Above all, members' commitment, expertise and dedication to balanced economic development has served a solid purpose in directing awell-planned and executed course for the future. END