HomeMy WebLinkAbout2017-02-28 Letter to Jill Tokuda re SB 1292 SD1 - Hilo Comunity Economic District!lorry Kim
Mayor
February 28, 2017
County of Paiiiai`'t
Wil Okabe
Managing Director
Barbara J. Kossow
Deputy Managing Director
(offer of file 4:flavor
25 Aupum Street, Suite 2603 • Hilo, Hawai'l 96720 • (808) 961-8211 • Fax (808) 961-6553
KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawai'i 96740
(808) 323-4444 • Fax (808) 323-4440
Senator Jill Tokuda
Ways and Means Committee
Hawai'i State Capitol
Honolulu, HI 96813
Dear Chair Tokuda and Members:
RE: SB 1292, SD1
Relating to the Hilo Community Economic District
Thank you for this opportunity to testify in support of the intent and purpose of SB1292, SD1
The County of Hawaii has been partnering with the community in planning the future of
publically-owned commercial properties in Hilo, through the Banyan Drive Hawaii Redevelopment
Agency (BDHRA). While we appreciated the initiatives put forth in SB1292 and comparable bills, we
had not wanted to abandon our current partners, and therefore had been hoping to get input from
BDHRA before taking a final position on the proposed legislation.
Since an earlier hearing on SB1292, BDHRA has expressed its support for a redevelopment
district, so we, too, are on board.
We wish to offer the following comments for your consideration:
1. Should this bill be enacted into law, the Hilo Community Economic District (HCED) will
be the only redevelopment district outside of the City and County of Honolulu. For this reason,
we ask that consideration be given to providing that the District have a voting majority of
members from the Hilo community. Any cultural specialist, in particular, should definitely be a
cultural practitioner from the Hilo community.
2. Financial support from State general revenues should include opportunities for staffing
and facility support, through reimbursements, as may be provided by the County of Hawaii
and the BDHRA in support of the Banyan Drive redevelopment project.
County of Hawaii is an Equal Opportunity Provider and Employer.
Jill Tokuda
February 28, 2017
Page 2
3. We cannot afford to jeopardize or divert the real property tax revenue that comes from
the affected parcels and currently goes into the County general fund. We estimate that for the
properties in SB 1292, tax revenue exceeds $3M.).
SB 1292, SD1 says that
§206E -D Hilo community economic revolving fund. (a) There is established in the state treasury
the Hilo community economic revolving fund, into which shall be deposited:
(1) Notwithstanding any law to the contrary, including section 206E-16, all revenue, income,
and receipts of the authority for the district;
We do not think that provision is intended to include real property taxes, but ask for language
that makes it crystal clear that real property taxes are not part of "revenues, income, and receipts..."
4. The bill says its purpose is to deal with State-owned land, so perhaps language
should be inserted that says that it applies only to land within the district boundaries that is
State-owned. We have not determined how much non -State owned land might be affected.
We appreciate the attention that the Legislature has placed on the disposition of State lands
within and proximate to the Banyan Drive peninsula and the Kanoelehua Industrial Area, where
opportunities exist to optimize the use of these lands for the benefit of the entire community. Our
ongoing efforts with the BDHRA reflect that such benefits are not simply economic, but social and
cultural as well. It is with this comprehensive approach that we support the intent and purpose of
SB1292, SD1 and other bills introduced during this legislative session that seek to explore
opportunities regarding the use and management of State-owned lands within the core economic
section of Hilo.
Res.ectfully submitted,
/( '
Harry Kim
Mayor
County of Hawai' i is an Equal Opportunity Provider and Employer.