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HomeMy WebLinkAbout2017-03-16 Letter to Glenn Wakai and Karl Rhoads RE HB 1310 HD 1 AND HB 1479 hd 2Harry Kim Mayor Wil Okabe Managing Director Barbara J. Kossow Deputy Managing Director (Offirr off4cAnVor 25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553 KONA: 74-5044 Are Keohokalole Hwy., Bldg. C • Kailua-Kona, Hawaii 96740 (808) 3234444 9 Fax (808) 3234440 March 16, 2017 Senator Glenn Wakai, Chair Committee on Economic Development, Tourism and Technology Hawai'i State Capitol Honolulu, HI 96813 Senator Karl Rhoads, Chair Committee on Water and Land Hawai'i State Capitol Honolulu, HI 96813 Dear Chairs Wakai and Rhoads, and Members: RE: HB 1310, HD 1 and HB 1479, HD 2 Relating to the Waiakea Peninsula Redevelopment District and Relating to the Hilo Community Economic District Thank you for this opportunity to testify in support of the intent and purpose of HB 1310, HD1 and H131479, HD2. 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. Great opportunities exist to partner with private sector businesses to carry out important economic revitalization efforts and optimize the use of these lands for the benefit of the entire community. Our County's ongoing efforts with the Banyan Drive Hawai'i Redevelopment Agency (BDHRA) reflect that such benefits are not simply economic, but social and cultural as well. It is with this comprehensive approach in mind that we support the 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. We especially appreciate the work of Senator Kahele, who authored SB1292 and has worked so hard on this issue. County of Hawaii is an Equal Opportunity Provider and Employer. Wakai/Rhoads March 16, 2017 Page 2 In terms of most of the technical details in these bills, I would appreciate if you would consider the testimony of my Planning Department, which is being submitted separately. But I do want to offer the following comments: 1. The lessees in the Kanoelehua Industrial Area are caught in an economic bind, unable to improve their properties because their leases are close to expiration. We therefore believe that the broader scope of HB 1479 (and S131292) is preferable to the more narrow scope of HB 1310. If one of these bills becomes 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. I think this could be accomplished if the County Planning Director was a voting member, the cultural specialist was a cultural practitioner from the Hilo community, and the Director of Transportation was dropped or made ex officio, non-voting (I don't think transportation will be as significant an issue as it has been on Oahu). The idea of having a local cultural specialist is important, separate and apart from the issue of majority control. Current statutory language provides for just one cultural specialist for all redevelopment districts. We hope you will change that to provide for a separate cultural specialist for the Hilo redevelopment district, even if one specialist for all the Oahu districts has been satisfactory. 4. 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 $3M). There are two concerns here. First, 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; Second, it seems, at least in theory, 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 the Legislature intends to affect real property taxes, so we ask for language that makes it crystal clear that real property taxes are not part of County of Hawaii is an Equal Opportunity Provider and Employer. Wakai/Rhoads March 16, 2017 Page 3 "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. 5. The bills say their purpose is to deal with State-owned land, so perhaps language should be inserted that says that this statute 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. bills. Again, we thank you for these important initiatives, and we strongly support these Resp ctfully submitted, Harry Ki Mayor County of Hawaii is an Equal Opportunity Provider and Employer.