Loading...
HomeMy WebLinkAbout2017-03-20 Letter to Ryan I. Yamane re SB 1292 SD 2 HD 1 relating to the Hilo Community Economic District Wil Okabe Managing Director Harry Kim Mayor Barbara J. Kossow Deputy Managing Director County of Hawai‘i Office of the Mayor 25 Aupuni Street, Suite 2603  Hilo, Hawai‘i 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 March 20, 2017 Rep. Ryan I. Yamane, Chair Committee on Water & Land Hawaii State Capitol Honolulu, HI 96813 Dear Chair Yamane and Members: RE: SB 1292 SD 2 HD 1 Relating to the Hilo Community Economic District On behalf of the Hilo community, I would like to thank the Legislature for its attempts to resolve the dilemma of State leases on commercial properties that are nearing the end of their lease term. My Administration has been supporting the efforts of Big Island legislators to make special provisions for the economic district in Hilo, as in earlier drafts of SB1292 as well as HB 575, HB 1310, and HB 1479. I have wanted to reflect the community wishes, and have been very impressed with the way in which the community has worked together and rallied behind these proposals. I think it is very important that the collaborative efforts of state, county, and community leaders not be put at risk. In order to give DNLR the most tools to make its leases work, maybe a hybrid version of the various bills can be developed, and that is what SB 1292, HD1 is attempting to do. The different concepts are not incompatible, and if such a bill were to continue on to conference, it would give the stakeholder’s time to fully evaluate the options and collaborate on a final approach. Lessees might appreciate having two or three options, or reject one or more out of hand, but the hard work of building consensus would be rewarded rather than lost. Having said that, I must offer a cautionary comment. County of Hawai‘i is an Equal Opportunity Provider and Employer. Ryan Yamane March 20, 2017 Page 2 The series of bills addressing economic development on State lands in Hilo (H.B. No. 575; H.B. No. 1310, H.D. 1; H.B. No. 1469, H.D. 1; and now SB No. 1292, HD1) may all have merit, and therefore we appreciate the decision of the prior committees to keep the various solutions alive for further discussion. However, this issue is so important that we cannot risk losing this bill because of a technicality. We therefore want to point out that the title of SB 1292 is "A BILL FOR AN ACT RELATING TO THE HILO COMMUNITY ECONOMIC DISTRICT," while some of the language of SB1292, HD1 seems to be of statewide impact. If your attorneys do not think the language is too broad for the title, we certainly would defer to them, but we would ask that you take this into account, because we do not want to jeopardize ultimate passage of this bill. With respect to the specific provisions of the bill, I would defer to our community partners, who are directly impacted, to express their preference. But if you decide to restore the language of SB 1292, SD2, I would offer the following comments from my prior testimony on SB1292, SD2, and I am also attaching the testimony of the Hawaii County Planning Department from the earlier hearing on this bill for your consideration. 1. Should this bill (SB1292, SD2) 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 Banyan Drive Hawaii Redevelopment Agency (BDHRA) in support of the Banyan Drive redevelopment project. 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; County of Hawai'i is an Equal Opportunity Provider and Employer. Ryan Yamane March 20, 2017 Page 3 It also seems, theoretically at least, 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 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/, .. . pectfully submitted, r --\ ( /t,--vv-•- Harry Ki Mayor County of 1-lawaii is an Equal Opportunity Provider and Employer. Harry KimMichael Yee Director Mayor Daryn Arai DeputyDirector East Hawai‘i Office West Hawai‘i Office 101 Pauahi Street, Suite 3 74-5044 Ane Keohokalole Hwy Hilo, Hawai‘i 96720 Kailua-Kona,Hawai‘i96740 County of Hawai‘i Phone (808) 961-8288 Phone (808) 323-4770 PLANNING DEPARTMENT Fax (808) 961-8742 Fax (808) 327-3563 Testimony of MICHAEL YEE Planning Director Before the Senate Committee on Economic Development, Tourism and Technology and the Committee on Water and Land Monday, March 20, 2017 2:45PM State Capitol, Conference Room 414 In consideration of HB 1310HD1, RELATING TO THE WAIAKEA PENINSULA REDEVELOPMENT DISTRICT HB 1469 HD1, RELATING TO PUBLIC LANDS HB 1479HD2, RELATING TO THE HILO COMMUNITY ECONMOIC DISTRICT The Planning Department has been involved in the planning phases of proposed redevelopment act unintended consequence of the State’s leasing policies under HRS 171 has been the lack of reinvestment by lessees into the infrastructure of leased properties and the infrastructures’ subsequent decline. Hilo is particularly affected by these leasing policies as there are substantial tracts of State lands in our community. Planning and the BDHRA are supportive of proposed legislation to stimulate reinvestment and economic growth through changes to the State’s leasing policies. Planning and the BDHRA also agree that the properties identified in HB1310 HD1, HB1479 HD2, and SB1292 SD2 could benefit from revisions to leasing policies and from comprehensive planning efforts to identify a successful path forward that supports the lessees and the broader interests and concerns of our community. Planning and the BDHRA are aware that theLegislature must consider the two structurally different approaches these bills are proposing; redevelopment under DLNR direction through under HB1479 HD2 and SB1292 SD2. The strengths and benefits of both entities should be considered as these bills move forward. www.cohplanningdept.com Hawai`i County is an Equal Opportunity Provider and Employer planning@hawaiicounty.gov HB1469 HD1proposes changes to HRS 171, pertaining to management and disposition of public lands. Planning is offering the following specific comments on HB1469 HD1. The purpose of this bill, in part, is to: §171-A(b)(2) “establish a plan for the designated area, including district-wide improvements, that is coordinated with State and county land use and planning policies;”. The director of planning of the county in which the designated district is located is identified as an “ex-officio, voting member of the committee”, which is to contain 9 members. Language should be made clear to identify both the director of planning and the chairperson of the board of land and natural resources as members that count toward a voting quorum of the committee’s membership. Under §171-D(b)(2)(B), we recommend adding a new section: (vii) Land Use Planning or similar field; Under §171-D(b)(2), we recommend adding new section: §171-D(b)(2)(C) One member shall be selected on the basis of their knowledge of history and cultural traditions or practices within the redevelopment area. Under §171-F(e), consider replacing the date 2020 with the Legislative session directly following the two-year anniversary of the formation of the planning committee for the redevelopment district. Concerning Section 171-F(e). Planning questions whether 2-years is long enough to develop a redevelopment plan with needed studies and public input. This section should includea provision for a time extension of not more than 2 additional years in case more time to develop a redevelopment plan is needed. Concerning Section 171- Chapter 53 relating to Urban Renewal Law redevelopment plan developed pursuant to Chapter 171, HRS should work with or incorporate the redevelopment actions or plan developed pursuant to Chapter 53, HRS. Under §171-35(6), include the underscored in the bill’s language: “Where applicable, adequate protection of forests, watershed areas, game management areas, wildlife and public hunting areas, reservation of sanctuaries, important cultural or historical sites, rights-of-way and access to other public lands, public hunting areas, game management areas, or public beaches, and prevention of nuisance and waste; and” --- Planning recognizes that HB1310 HD1is dependent on the proposed structure provided by the passing of HB1469_ HD1 or a version thereof. Specific comments are provided for HB1469_HD1 above. --- HB1479 HD2 Community Development Authority, to prompt needed changes in a number of State-owned BDHRA through use of HRS 53 in order to plan for and redevelop lands along Banyan Drive in Hilo. In review of HRS 206E and HRS 53, it would appear both sets of legislation employ 2 similar powers and duties to the respective authority or agency. If the Legislature considers the adoption of HB1479 HD2 or SB1292 SD2 the County would request that the progress made to date by BDHRA (such as the development of a conceptual master plan) be incorporated into the Hilo Community Economic Development District effort. The County would note that, in comparing HB1479 HD2 with its companion Senate bill, it appears the House bill has included a number of requests made by HDCA that seem necessary in order for that entity to successfully take on the planning and redevelopment of the district. As such, the House version of the bill might be more complete than the Senate version at this time. Planning is offering the following specific comments on HB1479 HD2. Concerning Section206E-3. In the case of the Hilo Community Economic Development District, the cultural specialist identified in subsection (b) should be from the district. This could be done by making the existing position an “at-large” position and including a cultural specialist from the district, or by adding language that identifies that each cultural specialist should be from the individual economic development districts. The Planning Director should be included as an ex-officio votingmember of the authority. Specifically relating to the Hilo Community Economic Development District, Planning makes the following language suggestions identified in subsection (4); deletions struck, additions underlined: (4) For matters affecting the Hilo community economic development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote: (A) The director of finance or the director’s designee; (B) The director of transportation or the director’s designee; (C) Thedirector of planning or the director’s designee; (E)(D)The cultural specialist-at large; (E)The cultural specialist from the district; (D)(F)The three at-large members; and (E)(G)The three representatives of the Hilo community economic development district;. provided that the director of planning and permitting of the relevant county or the director’s designee shall participate in these matters as an ex officio, nonvoting member and shall not be considered in determining quorum and majority. Mahalo foryour consideration of these important initiatives. 3