HomeMy WebLinkAboutREP PC 049 10/02/2007 2006-2008 I~EPOItT OF THE
COMMITTEE ON PLANNING
DATE: October 2, 2007 IZe: Comm. No. 682/ltesolution No. 345
PLACE: Councilroom
Ben Franklin Building
333 Kilauea Avenue, 2°~ Floor
Hilo, Hawaii
TIME: 2:30 p.m.
Council Chair and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Planning, to which was referred Resolution No. 345, reports as follows:
Resolution No. 345, transmitted via Communication No. 682 from Council Member Emily
Naeole, dated August 28, 2007, transmitting a Resolution to amend the zone boundaries of the
Hilo-Puna and North Kohala Enterprise Zones.
At the October 2, 2007 Committee on Planning meeting, Jane Testa, Director, and Jane Horike,
Economic Specialist, Department of Research and Development, presented background
information relating to Enterprise Zones. Ms. Horike outlined benefits of the program and
described some successful program uses coordinated between the State and Counties to
encourage employment and work development. Benefits provided by the state include 100%
exemption from wholesale tax, eighty percent reduction of state income taxes, reduced
unemployment insurance and exemptions from general excise tax for licensed contractors. The
County provides a 3-year exemption benefit of any increase of real property taxes.
Ms. Horike explained that of the maximum six Enterprise Zones, the Resolution proposes
expanding two of the zones. The Kohala expansion was selected because of major
improvements being planned for Kawaihae Harbor and the areas between the Kohala Mountain
Road and Kawaihae Road. This proposed zone expansion is to support future development in
these areas.
Council Member Jacobson's concern was with the Puna proposed expansion. Mr. Jacobson
inquired who requested the expansion and what the benefits and aspects were of having the
expansion area located next to a natural area reserve. Ms. Horike explained the proposed
expansion area is agricultural zoned 20-acre parcels consisting of farmland and was based upon a
request made by Universal Realm, Inc., a technology company that combines technology with
agriculture. She said the company plans to develop farming in the future and that the expansion
area would be kept at 20 acres.
Council Member Ford's concern was that the Puna expansion is being proposed for one person
planning to engage in an agricultural business. Ms. Ford also expressed concern why all farmers
Communication 682
Resolution 345
Page 2 of 2
in the entire area were not being allowed these benefits. Mr. Horike explained that although a
business is located within an enterprise zone, a company would need to increase employment by
ten percent per year in order to benefit from the program. Ms. Horike stated that often times
especially with agricultural businesses, that condition cannot be met.
Director Testa stated that the Hamakua MacNut Plantation requested expansion of the North
Kohala Enterprise Zone to include them. Ms. Testa explained that the program serves the public
good by encouraging businesses to expand and prosper, assists distressed areas with economic
development and serves six main categories of businesses: manufacturing, wholesaling, wind
energy, informational technology, design and production, and bio technology research. Ms.
Testa also noted that the program excludes retail and service companies from participation.
Your Committee on Planning is in accord with the purpose and intent of Resolution No. 345, and
recommends its adoption.
and
AYES NOES A&E Ex Respectfully submitted,
FORD X
RIGA X COM1vI1TTEE ON P NNING
gi®I~'FIVIANN X
II~DA X
i
JAC®RS®N X -
NAE®LE X K. ANGEL P1LA , CHAIlt
PILAGO X
YAG®NG X PC REPORT NO. 49
YOBFI~I®TO x ADOPTED: NOV Q 7 2007