HomeMy WebLinkAbout2017-03-14 Letter to Mark Nakashima & Richard Onishi re SB 1292 SD 2 Relating to the Hilo Community Economic District Jrto
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Managing Director
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Mayor _�_' Barbara J. Kossow
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25 Aupuni Street,Suite 2603 • Hilo,Hawaii 96720 • (808)961-821 I • Fax(808)961-6553
KONA: 74-5044 Ane Keohokalole Hwy.,Bldg.C • Kailua-Kona,Hawaii 96740
(808)323-4444 • Fax(808)323-4440
March 14, 2017
Representative Mark M. Nakashima, Cha9r
Committee on Economic Development
& Business
Hawaii State Capitol
Honolulu, HI 96813
Representative Richard H.K. Onishi, Chair
Committee on Tourism
Hawai'i State Capitol
Honolulu, HI 96813
Dear Chairs Nakashima, Onishi, and members:
RE: SB 1292 SD 2
Relating to the Hilo Community Economic District
Thank you for this opportunity to testify in support of the intent and purpose of
SB1292, SD2.
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 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 Hawai`i is an Equal Opportunity Provider and Employer.
Nakashima/Onishi
March 14, 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, SD2 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;
It also seems, theoretically, that the Authority could issue leases that provide for
the lessee to be exempt from property taxes for the term of the lease. We do not think
that SB 1292, SD2 is intended to affect real property taxes, so ask for language that
makes it crystal clear that real property taxes are not part of"revenues, income, and
receipts...", that leases cannot affect property tax obligations, and that all property taxes
will continue to flow to the County general fund.
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 partner with private sector businesses to
carry out important economic revitalization efforts and 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, SD2 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.
Re • -ctfully submitted,
1
Harry K
Mayor
County of Hawaii is an Equal Opportunity Provider and Employer.