HomeMy WebLinkAboutREP FC 189 07/02/1986 1984-1988 e.
REPORT OF THE
COMMITTEE ON FINANCE
Date: June 24, 1986
Place: Councilroom
Time: 9:00 a.m.
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance, to which was referred Communication 619,
reports as follows:
Communication 619 is a request by Cyanotech Corporation forCouncil
adoption of a resolution
In the communication, Mr . Arthur Karuna-Karan requests that the
County Council assign $3 million of its available $10.6 million
allocation to the State of Hawaii for 1986 . Cyanotech Corporation is
a biotechnology company involved in the large scale culture of
microalgae. The organization plans to expand the existing operation
at the Natural Energy Laboratory at Keahole Point and construct a new
facility in the Kau district.
Approval for financing through available special purpose revenue
bonds has already been obtained through the Legislature with the
passage of Senate Bill 1855 .
During public testimony, Wendell Kimura spoke in behalf of
Mr . Karuna-Karan, the communication 's author . In his presentation,
he spoke in favor of the communication and clarified that the request
focused on securing the allocation of the special purpose revenue
bonds and was not an appropriation to be made by the County. He
further stated that no liability or indebtedness to the County would
result because of the resolution.
The Council Chairman also elaborated, citing that the State is
currently limited by the Federal Government to a $200 million
allocation for special purpose revenue bonds and of this, 50 percent
must be allocated to the counties . Currently, Hawaii County's share
of allocation amounts to approximately $10 .6 million. The Council
Chairman further reiterated that we may only authorize the State to
utilize our prorated allocation of bonds for their issuance .
FC REPORT NO, 189
ADOPTED : JUL 21986
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III III
FC-189 Page 2 June 24, 1986
In further discussion, the Committee expressed interest in promoting
this form of financing to the business sector to increase their
awareness and encourage development.
Your Committee on Finance concurs with the intent of Cyanotech 's
communication and recommends that a resolution be drafted to allot
$3 million of special purpose revenue bonds to the State for the
Cyanotech projects .
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FRANK DE LUZ III, CHAIRMAN
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TAKASHI DOMINGO, M%MB ' 'U'SELL S. KOKUBUN, MEMBER
ME:li E K. LAI, E `f SPE CER K. SCHUTTE, MEMBER
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