HomeMy WebLinkAbout2018-02-26 Letter to Sylvia Luke and ty J.K. Cullen re HB 2641, HD 1 Relating to Funding for Kanoelehua Industrial Area and Waiakea Peninsula, HiloHarry Kim
Mayor
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Offirr
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Wil Okabe
Managing Director
Barbara J. Kossow
Deputy hianaging Director
25 Aupuni Street, Suite 2603 • Hilo, Hawaii 96720 • (808) 961-8211 • Fax (808) 961-6553
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February 26, 2018
Representative Sylvia Luke, Chair
Committee on Finance
Hawaii State Capitol, Room 308
Honolulu, HI 96813
Representative Ty J. K. Cullen, Vice -Chair
Committee on Finance
Hawaii State Capitol, Room 308
Honolulu, HI 96813
Dear Chair Luke, Vice -Chair Cullen and Committee Members:
Re: HB 2641, HD 1 Relating to Funding for Kanoelehua Industrial Area
and Waiakea Peninsula, Hilo
Hearing Date: 02/28/18 — 12:00 pm; House Conference Room 308
Thank you for this opportunity to testify in support of HB 2641, HD 1, subject to
proposed amendments.
HB 2641, HD 1 is not our first choice in resolving the issues surrounding the
redevelopment of State land on the Waiakea Peninsula and in the Kanoelehua
industrial Area (KIA), but it certainly would be a step forward. Our preferred bill, SB
2972, SD 1, will be heard in WAM on Wednesday and hopefully will make its way to the
House for your consideration at a later date.
As to the situation on Waiakea peninsula, Banyan Drive is underutilized and in
disrepair. It is the ce ter of tourism in East Hawaii, but it is a jewel that is quite
tarnished at the present time.
Kanoelehua is not underutilized, but it also is failing into disrepair as leases near
their termination, making it difficult for lessees to financially justify any significant
improvements.
Hawaii County has taken first steps toward revitalizing the peninsula. The
administration, Council, community, and Big Island legislators have found common
purpose; the redevelopment area has been defined; the Banyan Drive Hawaii
Redevelopment Agency (BDHRA) is functioning, and a conceptual master plan has
County of Flawai`i is an Equal Opportunity Provider and Einployer.
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been created as a starting point. Now funds are needed to conduct the environmental
impact statements necessary to complete the redevelopment plan and move forward.
The Hawaii County budget is severely strapped, and 1 have already had to
impose increases in our property, fuel, and vehicle weight taxes. Nevertheless, 1 can
commit to you that 1 would include $250,000 in the 2018-2019 County budget, in order
to provide matching funds for an EIS. We believe that it is just and proper to ask the
State to share in the EIS expense, given that the redevelopment area consists almost
entirely of State land, but we recognize that the County must do its pa as well, to the
best of our financial ability.
Although we think that SB 2972 offers the best path forward and builds on work
already done, we do not want to risk having this Legislature take no action at all.
Therefore, we also support measures, such as HB 2641, HD1 that would direct
resources, both statutorily and financially, toward the redevelopment of Banyan Drive
and KIA while providing some local perspective in decision-making.
However, there seems to be an important deficiency in HB 2641, HD 1. The bill
says that "The Kanoelehua Industrial Area and Banyan Drive region shall be
established as a redevelopment district," but as far as I can tell, t ere is no
determination of the boundaries of the district. 1 apologize if 1 am wrong, but if the
County is to give up much of its planning authority over an important geographic area,
we need to know what that area is. Or perhaps the County should be given the
authority to designate the boundaries.
Once that is resolved, we think HB 2641, HD 1 should be improved with the
following amendments:
) Changing the makeup of the committee to include appointees by the Mayor
(perhaps two or more by Mayor; an equal number fewer by Governor);
(2) Providing that cultural/historical expertise be included in the makeup of the
committee;
(3) Providing that the new committee coordinate with BDHRA, which was established
under HRS, Chapter 53. The work of the two organizations should be compatible
and complementary. In fact, it would be best if, like the BDHRA, the committee's
actions were subject to Windward Planning Commission review, and Hawaii County
Council adoption of the redevelop ent plan;
(4) Providing that all eetings of the committee be in Hilo, and open to the public;
(5) Authorizing and requiring that the district or the cornmittee adopt rules; and
(6) Providing that public hearings be held at least annually during the life of the pilot
project.
County of Hawaii is an Equal Opportunity Provider and Employer.
February 26, 2018
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Finally, 1 would like to express my support for statutory reform with respect to
expiring State leases. This is important if we are to create an economic environment
that encourages investment by developers and business owners. It is addressed in Part
Hof this bill, but since this is an issue of statewide significance, 1 defer to you as to
whether the particular approach in Part 11, or some other reform, would be best.
1 hope you will act favorably on an amended version of HB 2641, HD 1.
Resp tfully submitted,
Harry Kim
Mayor, County of Hawaii