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HomeMy WebLinkAboutHB1219_HOUSEOFREPRESENTATIVESTHR11ETHLESLATURE,2019H.B.NO.ABILLFORANACTRELATINGTOPUBLICLANDS.BEITENACTEDBYTHELEGISLATUREOFTHESTATEOFHAWAII:1PARTI2SECTION1.Thelegislaturefindsthatbecauseofthe3policiesguidingthemanagementofpubliclandswithcommercial,4industrial,resort,andhoteluses,therehasbeenlittle5incentiveforthelesseestomakemajorimprovementstotheir6infrastructure,resultinginthedeteriorationofinfrastructure7andfacilities.Thelackofimprovementsinmanyoftheseareas8hasresultedindilapidation,deterioration,orobsolescenceof9thebuildingsandstructures.10Thedepartmentoflandandnaturalresourceshasthe11responsibilityofplanningforthedispositionofcommercial,12industrial,andhotelandresortclassesofpubliclandsto13determinespecificuses,theminimumsizesofparcels,required14buildingconstructionorimprovements,andleasetermsand15requirements.16Thelegislaturefindsthattherejuvenationofareasof17publiclandsthathavebecomedilapidated,obsolete,orhaveRBLRBl9-0843.doc Page2H.B.No.121q1deterioratedovertimeisinthepublicinterestandconstitutes2avalidpublicpurpose.3ThepurposeofthisActistoauthorizethedesignationof4areasorregionsofpubliclandsclassifiedascommercial,5industrial,resortandhotel,andtheestablishmentand6implementationofguidelinesfortheredevelopmentoftheareas7orregionsthatwill:8(1)Modernizethepoliciesforthemanagementofpublic9landsinthedesignatedarea;10(2)Establishaplanforthedesignatedarea,including11district-wideimprovements,thatiscoordinatedwith12stateandcountylanduseandplanningpolicies;and13(3)Implementassetandpropertymanagementconceptsthat14canoptimizeincomefromthepropertiesandevolvein15responsetochangingprinciplesofproperty16administration.17PARTII18SECTION2.Chapter171,HawaiiRevisedStatutes,is19amendedbyaddinganewparttobeappropriatelydesignatedand20toreadasfollows:HBLRBl9-0843.doc2 Page3H.B.NO.I2I91PARTA.PUBLICLANDSREDEVELOPMENT2§171-ADefinitions.Asusedinthispart,unlessthe3contextrequiresotherwise:4“Planningcommittee”or“committee”meansthepolicy-making5committeeestablishedforaredevelopmentdistrictpursuantto6section171-c.7“Premises”meansthepropertythatisbeingleasedor8rentedinadesignateddistrict.9“Publicfacilities”includestreetsandhighways,storm10drainagesystems,watersystems,streetlightingsystems,off11streetparkingfacilities,andsanitaryseweragesystems.12“Redevelopmentdistrict”or“designateddistrict”meansan13areaofpubliclandsdesignatedforredevelopmentpursuantto14section171-B.15§171-BDesignationofredevelopmentdistrict;boundaries.16(a)Thelegislatureshalldesignateredevelopmentdistrictsby17statuteforanyareaofpubliclandsclassifiedascommercial18andindustrial;hotel,apartment,andmotel;orresortuse19pursuanttosection171-10,ifthelegislaturedeterminesthat20thereisaneedforplanning,development,orredevelopmentHBLRB19-0843.doc3 Page4H.B.NOIZI91becausethebuildingsandinfra-structuresintheareaare2dilapidatedorhavedeterioratedduetoageorobsolescence.3(b)Thedesignationshallspecifytheboundariesofthe4redevelopmentdistrict.5§171-CPlanningcommittee;members;district6administrator;repeal.(a)Uponthedesignationofa7redevelopmentdistrictpursuanttosection171-B,aplanning8committeeforthedesignateddistrictshallbeestablished9withinthedepartmentforadministrativepurposes.10(b)Thecommitteeshallbeapolicy-makingcommitteefor11thedesignateddistrictandshallconsistofninevoting12members.Themembersshallconsistof:13(1)Thechairpersonoftheboardoflandandnatural14resourcesandthedirectorofplanningofthecounty15inwhichthedesignateddistrictislocated,ortheir16designatedrepresentatives,whoshallbeex-officio;17and1(2)Sevenmembersofthepublicappointedbythegovernor19pursuanttosection26-34;providedthatofthe20membersappointedpursuanttothisparagraph:FIBLRB19-0843.doc4 H.B.NO.j2i1(A)Twomembersshallbeselectedfromalistof2threenamesforeachnominationsubmittedbythe3presidentofthesenateandtwomembersshallbe4selectedfromalistofthreenamesforeach5,nominationsubmittedbythespeakerofthehouse6ofrepresentativesincollaborationwiththe7legislatorsfromthecountyinwhichthe8designateddistrictislocated;providedthatthe9governorshallselectanameriolater10thandaysafterreceiptofeachlist;11(B)Threemembersappointedbythegovernorpursuant12tosection26-34;providedthat:13(i)Onemembershallrepresentthebusiness14sectorwithinthedesignateddistrict;15(ii)Onemembershallhaveexperienceand16expertiseintheareaofHawaiiancultural17practices;and18(iii)Onemembershallbeamemberofthepublic19andaresidentofthecountyinwhichthe20designateddistrictislocated;RBLRB19-0843.doc5 Page6H.B.NO.i2i1providedthatthegovernorshallappointthese2membersnolaterthandaysafter3designationoftheredevelopmentdistrict;and4(C)Thesevenmembersofthepublicshallhave5expertiseindevelopmentofcommercial,6industrial,resortandhotellandsaswellas7expertiseinatleastoneofthefollowingareas8andshallbeselectedonthebasisoftheir9knowledge,experience,andexpertisein:10(i)Managementofsmallorlargebusinesses;11(ii)Economics,banking,investment,orfinance;12(iii)Realestatedevelopment;13(iv)Realestatemanagement;14(v)Marketing;15(vi)Hawaiianculturalpractices;or16(vii)Hotelandresortmanagement;17providedthatofthesevenmembersofthepublic,18threemembersshallberesidentsofthecountyin19whichthedesignateddistrictislocatedandall20membersshallberesidentsoftheState.HBLRB19-0843.doc6 H.B.NO.izic1Cc)Thecommitteeshallelectitschairpersonfromamong2itsmembersofthepublic.3(d)Themembersofthecommitteeshallservewithout4compensationbutshallbereimbursedforreasonableexpenses,5includingtravelexpenses,incurredintheperformanceoftheir6duties.Thissubsectionshallnotbeconstruedtoprohibitthe7ex-officiomembersofthecommitteefromreceivingtheir8salariesandwagesfortheirworkaspublicofficials.9(e)Thecommitteeshallappointadistrictadministrator,10whoshallbethechiefexecutiveofficerforthedesignated11district.Thedistrictadministratorshallhaveexpertisein12developmentofcommercial,industrial,resort,orhotellandsas13wellasexpertiseinatleastoneofthefollowingareasand14shallbeselectedonthebasisofthepersonsknowledge,15experience,andexpertiseinmanagementofsmallorlarge16businesses;economics,banking,investment,orfinance;real17estatedevelopment;realestatemanagement;law;marketing;or18hotelandresortmanagement.Thecommitteeshallsetthe19districtadministrator’sduties,responsibilities,holidays,20vacations,leaves,hoursofwork,andworkingconditions.The21committeeshallsetthesalaryofthedistrictadministrator,HBLRB19-0843.doc7 H.B.NO.12191whoshallserveatthepleasureofthecommitteeandshallbe2exemptfromchapter76.3(f)ThecommitteeshallbedissolvedonJune30ofthe4tenthyearfollowingtheestablishmentofthecommitteeforthe5designateddistrict.6§171-DPowersandduties;generally;exemptionfrom7administrativesupervisionofboardsandcommissions.(a)The8committeeshallhavethefollowingpowersandduties:9(1)Throughitsdistrictadministrator,appointstaffand10employees,prescribetheirdutiesandqualifications,11andfixtheirsalaries,withoutregardtochapter76;12(2)Throughitsdistrictadministrator:13(A)Allocatespaceorspacesthataretobeoccupied14bythecommitteeandappropriatestaff;and15(3)Purchasenecessarysupplies,equipment,or16furniture;17(3)Prepareadevelopmentplanforthedesignateddistrict18thatwillbesubmittedtotheboardforreviewand19approval;20(4)Notwithstandinganyotherlawtothecontrary,lease21publiclandsinadesignatedredevelopmentdistrictH3LRB19-0843.doc8 H.B.NO2Ij1andreneworrenegotiateanyleaseinconnectionwith2anyprojectcontainedinthedevelopmentplanforthe3designateddistrict,ontermsandconditionspursuant4tosection171-Fandconsistentwiththedevelopment5plan;6(5)Prepareorcausetobepreparedplans,design7criteria,landscaping,andestimatesofcostsforthe8construction,rehabilitation,orrepairofanyproject9containedinthedevelopmentplanforthedesignated10district,andfromtimetotimetomodifytheplans,11orestimates;12(6)Conductstudiesinconjunctionwithcountyandstate13agenciesnecessarytodeterminetheappropriate14activitiesfordevelopmentinthedesignateddistrict;15(7)Reduceorwaivetheleaserentalonanyleaseof16publiclandforanyprojectinthedesignateddistrict17thatrequiressubstantialimprovements;providedthat18thereductionorwaivershallnotexceedoneyear;19(8)Makeandexecuteallcontractsandinstruments20necessaryfortheexerciseofitspowersandfunctions21relatingtothedesignateddistrict,includingtheRBLRB19-0843.doc9 H.B.NO.wici1engagingoftheservicesofconsultantsforrendering2ofprofessionalandtechnicalassistanceandadvice;3(9)Enterintoadevelopmentagreementwithadeveloperor4developersforanyprojectcontainedinthe5developmentplan;providedthatthedevelopment6agreementshallcontain:7(A)Adescriptionofthelocation,area,andsizeof8theparceltobedeveloped;9(3)Theuseorusestowhichtheparcelshallbeput10inconformancewiththedevelopmentplan,and11withapplicablestateandcountylawsand12ordinances;13(C)Theperiodoftimefortheconstructionand14completionofthedevelopment;and15(D)Othertermsandconditionsthatthecommittee16deemsnecessary;17(10)Workcloselyandcommunicatewiththecountyto18coordinatetheexecutionofthedesignateddistricts19planning,incrementalprojects,workschedules,public20works,andbudget;andHBLRB19-0843.doc10 H.B.No.12191(11)Doanyandallthingsnecessarytocarryoutits2purposesandexercisethepowersgivenandgrantedin3thispart.4(b)Notwithstandinganylawtothecontrary,thecommittee5shallbeexemptfromsection26-35(a)(1),(4),(5),and(6).6§171-EDistrictredevelopmentplan.(a)Thecommittee7shallpreparearedevelopmentplanforthedesignateddistrict,8includingdistrictdevelopmentpolicies,thedistrict9improvementprogram,necessarypublicfacilities,andthe10developmentguidelinesandrulesforthedesignateddevelopment11district.Incarryingoutitsplanningactivities,the12committeeshallcomplywithchapter205Aandapplicablecounty13buildingandzoningordinances.14(b)Thecommitteeshallpreparearedevelopmentplanfor15thedesignateddistrictthat:16(1)Establishes,ifapplicable,areasprincipallyfor:17(A)Commercialactivities;18(B)Processing,construction,manufacturing,19transportation,wholesaling,storageandsimilar20industrialactivities;RBLRBl9-0843.doc11 H.B.NO.121q1(C)Resortandhotelactivities,includingusesthat2providefacilitiesandservicesforvisitors;and3(D)Publicfacilitiesandrecreationalfacilities;4withdetailedstandardsforheight,bulk,size,5andlocationofbuildings;6(2)Includesadistrict-wideimprovementprogramfor7necessarydistrict-widepublicfacilitieswithinthe8designateddistrict;9(3)Includesplans,specifications,andestimatesofthe10costsforthedevelopment,construction,11reconstruction,orimprovementofanyprojectinthe12designateddistrict,andfromtimetotimemodifythe13plans,specifications,orestimates;14(4)Ifpossible,identifiesspecificusesforareasinthe15designateddistrictandtherequiredparcelingofland16intominimumsizeareasrelatedtothespecificuses;17(5)Determinestheleaserentalthatshouldbeestablished18forthespecificusesandthetermsandconditionsof19theleases;20(6)Establishesinterimdevelopmentcontrolstobe21implementedduringthetransitiontotheexecutionofHBLRBl9-0843.doc12 H.B.NO.12i91theprovisionsoftheredevelopmentplan,suchas2recommendingtheholdoverofalesseepursuantto3section171-40orissuanceofpermitspursuantto4section171-55toexistinglesseesupontheexpiration5oftheirleaseterms;and6(7)Allowstheuseoflandoranybuildingexistingonthe7datetheredevelopmentplanisadoptedtocontinueas8anonconforminguse;providedthatthenonconforming9buildingshallnotbereplaced,expanded,orchanged10toanothernonconforminguse.11Cc)Thedistrictredevelopmentplanmayprovideforthe12withdrawalortakingforpublicpurposesofpubliclandor13portionofpubliclandunderalease.Therentalshallbe14reducedinproportiontothevalueoftheportionofthe15premisescondemned,andthelesseeshallbeentitledtoreceive16theproportionatevalueofthepermanentimprovementslegally17madetoorconstructeduponthelandbythelesseetakeninthe18proportionthatitbearstotheunexpiredtermofthelease.19Cd)Priortoadoption,thecommitteeshallholdapublic20hearingonaproposedredevelopmentplanforthedesignatedHBLRB19-0843.doc13 H.B.No.L2191districtandshallconsiderthecommentsreceivedand2incorporateanyrevisionstotheplanthatmaybenecessary.3(e)Notlaterthanthreeyearsafterthedateallmembers4areappointed,thecommitteeshallsubmitareporttotheboard5withthedevelopmentplanrecommendedbythecommitteewithits6recommendationsforappropriationsbythelegislatureorthe7authorizationofbondsorboth,toimplementthedevelopment8planinatimelymanner.Theboardshallreviewandapprovethe9recommendeddevelopmentplanandshallsubmitthereporttotheJOgovernorandthelegislaturewitharequestfortherequired11appropriationsandbondauthorization.12§171-FLeases.Allleasesissuedbythecommitteeshall13contain:14(1)Thelessee’sname,telephonenumber,address,and15electronicmailaddress;16(2)Adescriptionofthepremisesbeingleased;17(3)Thespecificuseorusestowhichthepremisesshall18belimited;providedthatnootherusesshallbe19permittedwithoutthepriorwrittenconsentofthe20committee;HBLRBl9-0843.doc14 H.B.NO.I2j11(4)Theexactcommencementandterminationdatesofthe2lease,andthespecifictermandtypeofnotice3requiredtoexerciseanyrenewaloption;4(5)Termsspecifyingwhetherrentshallbepaidmonthly,5quarterly,semiannually,orannually;providedthat6thetermsshallnotauthorizerenttobepaidmore7thanoneyearinadvance;8(6)Ifrentisbasedonapercentageofsales:9(A)Therentshallbeapercentageofthegrosssales10fromthepremises;or11(3)Aminimumorbaserent,plusapercentageof12salesoveranamountestablishedbynegotiation;13(7)Arentadjustmentclausetiedtoaninflation-based14index,suchastheconsumerpriceindex,toallowan15annualrentadjustment,downwardorupward,basedon16theindex;17(8)Termsthatspecifyrepairandmaintenancecostsshall18betheresponsibilityofthelesseeandthesystems19andcomponentscostsshallbetheresponsibilityof20theboard;providedthatallmodificationsandHBLRB19-0843.doc15 H.B.NO.12191improvementsshallbedoneincompliancewith2applicablebuildingcodesandzoningordinances;3(9)Arequirementforthelesseetohaveandmaintaina4policyofinsurancecoveringfire,liability,and5propertydamage;6(10)Aprohibitionontheassignmentorsublettingofthe7leasewithoutthewrittenconsentoftheboard;8(11)Criteriaforlesseedefault,including:9(A)Failuretopayanyinstallmentofrentorother10paymentwithinanagreeduponnumberofdays11aftertheduedate;12(B)Failuretoperformorobserveanycovenant,term,13orconditionunderthelease;14(C)Failuretocontinueabusiness;or15(D)Vacatingorabandoningthepremises;and16(12)Remediesforlesseedefault,including:17(A)Failuretoperformasrequiredbythelease;18(B)Terminationoftheleaseandsuingfordamages;19and20(C)Dispossessingthelesseeandsuingfordamages.HBLRB19-0843.doc16 H.B;NcD.j2jc1§171-GDesignatedredevelopmentdistrictrevolvingfund.2(a)Aseparaterevolvingfundshallbeestablishedforeach3redevelopmentdistrictdesignatedpursuanttosection171-B,4intowhichshallbedeposited:5(1)Fiftypercentoftherevenues,income,andreceipts6ofthedepartmentfromthepubliclandsinthe7designateddistrict,notwithstandingsection171-19;8(2)Moneysappropriatedbythelegislaturetothe9revolvingfund;and10(3)Anygifts,grants,andotherfundsacceptedbythe11committee.12Eachrevolvingfundshallbearthenameusedbythelegislature13indesignatingtheredevelopmentdistrict.14(b)Moneysineachdesignatedredevelopmentdistrict15revolvingfundshallbeusedinthedesignateddistrictforthe16purposesofthispart;providedthatnoexpenditureshallbe17madefromthefundandnoobligationshallbeincurredagainst18thefundinexcessoftheamountstandingtothecreditofthe19fund.20(c)Afterthecommitteeisdissolved,theunencumbered21balanceremaininginthecorrespondingredevelopmentdistrictRBLRB19-0843.doc‘7 I—LB.No.12191revolvingfundshallbetransferredtothespeciallandand2developmentfundestablishedpursuanttosection171-19.3PARTIII4SECTION3.Thelegislaturefindsthat:5(1)ThewaiakeapeninsulaoftheislandofHawaiicontains6approximatelyeighty-fivepercentoftheovernight7visitoraccommodationsineastHawaiicounty;8(2)TheStateownsalargepartoftheWaiakeapeninsula9area;10(3)Therehasbeenlittleincentiveforthelesseesofthe11propertiesintheareatomakemajorinvestmentsin12improvementstotheirinfrastructure,resultinginthe13deteriorationoftheareasinfrastructureand14facilities;and15(4)TheStatehasaresponsibilitytoensurethatthe16Waiakeapeninsulaareadoesnotdeteriorateandhavea17harmfulimpactontheeconomyofthecommunityasa18whole.19Thepubliclandsintheareapresentanopportunityforthe20revitalizationandredevelopmentofadistrictwherehotelandHBLRB19-0843.doc18I[ H.B.NO.12191resort,commercial,andpublicusesmaycoexistcompatibly2withinthesamearea.3SECTION4.Thelegislaturedesignatesthepubliclandson4theWaiakeapeninsulaontheislandofHawaiiastheWaiakea5peninsularedevelopmentdistrict.6SECTION5.TheWaiakeapeninsularedevelopmentdistrict7shallincludetheareaboundedbytheshorelinefromthe8intersectionofLihiwaistreetandKamehamehaavenue;Kamehameha9avenuetoitsintersectionwithKalanianaoleavenue;10KalanianaoleavenuetoitsintersectionwithBanyanway;Banyan11wayfromitsintersectionwithKalanianaoleavenuetoits12intersectionwithBanyandrive;fromtheintersectionofBanyan13wayandBanyandrivetotheshoreline;theshorelinearoundthe14Waiakeapeninsula,includingMokuolaisland,totheintersection15ofLihiwaistreetandKamehamehaavenue.16SECTION6.ThereisestablishedaWaiakeapeninsula17redevelopmentdistrictplanningcommittee.Thecommitteeshall18beappointedasprovidedinsection171-B,HawaiiRevised19Statutes,andshallexercisethepowersanddutiesinthe20designateddistrictasauthorizedbychapter171,partA,Hawaii21RevisedStatutes.HBLRB19-0843.doc19 H.B.Noi2lg1SECTION7.ThereisestablishedtheWaiakeapeninsula2redevelopmentdistrictrevolvingfund,intowhichshallbe3deposited:4(1)Fiftypercentoftherevenues,income,andreceipts5fromthepubliclandsintheWaiakeapeninsula6redevelopmentdistrict;7(2)Moneysappropriatedbythelegislaturetothe8revolvingfund;and9(3)Anygifts,grants,andotherfundsacceptedbythe10Waiakeapeninsularedevelopmentdistrictplanning11committee.12ThemoneysintherevolvingfundshallbeusedintheWaiakea13peninsularedevelopmentdistrictforthepurposesdescribedin14chapter171,partA,HawaiiRevisedStatutes.15SECTION8.Upontherepealofthispart,allleases,16contracts,agreements,permits,orotherdocumentsexecutedor17enteredinto,byoronbehalfoftheWaiakeapeninsula18redevelopmentdistrictplanningcommitteeshallremaininfull19forceandeffectuntiltheyexpirebytheirowntermsandshall20beadministeredbythedepartmentoflandandnaturalresources.HELRBl9-0843.doc20 H.B.No12191SECTION9.Upontherepealofthispart,all2appropriations,records,equipment,machines,files,supplies,3contracts,books,papers,documents,maps,andotherpersonal4propertyheldbytheWaiakeapeninsularedevelopmentdistrict5planningcommitteeshallbetransferredtothedepartmentof6landandnaturalresources,andtheunencumberedbalance7remainingintheWaiakeapeninsularedevelopmentdistrict8revolvingfundshallbetransferredtothespeciallandand9developmentfundestablishedpursuanttosection171-19,Hawaii10RevisedStatutes.11SECTION10.Thereisappropriatedoutofthegeneral12revenuesoftheStateofHawaiithesumof$500,000orsomuch13thereofasmaybenecessaryforfiscalyear2019-2020tobe14depositedintoWaiakeapeninsularedevelopmentdistrict15revolvingfund.16SECTION11.ThereisappropriatedoutoftheWaiakea17peninsularedevelopmentdistrictrevolvingfundthesumof18$300,000orsomuchthereofasmaybenecessaryforfiscalyear192019-2020andthesamesumorsomuchthereofasmaybe20necessaryforfiscalyear2020-2021forthepurposesofthis21part.HBLRBl9-0843.doc21 H.B.NO.12191Thesumsappropriatedshallbeexpendedbythedepartment2oflandandnaturalresourcesforthepurposesofthispart.3PARTIV4SECTION12.Incodifyingthenewpartandsectionsadded5bysection2ofthisAct,therevisorofstatutesshall6substituteappropriatepartandsectionnumbersfortheletters7usedindesignatingthenewsectionsinthisAct.8SECTION13.ThisActdoesnotaffectrightsandduties9thatmatured,penaltiesthatwereincurred,andproceedingsthat10werebegunbeforeitseffectivedate.11SECTION14.ThisActshalltakeeffectonJuly1,2019;12providedthatpartIIIshallberepealedonJune30,2029.13INTRODUCEDBY:___________________________LQQJAN232019HBLRB19-0843.doc22 H.B.NO.1219ReportTitle:PublicLands;Redevelopment;WaiakeaPeninsula;AppropriationDescription:Authorizesthedesignationofareasorregionsofpubliclandsclassifiedascommercial,industrial,resortandhotel,andtheestablishmentandimplementationofguidelinesfortheredevelopmentoftheareasorregionsthatwill:(1)modernizethepoliciesforthemanagementofpubliclandsinthedesignatedarea;(2)establishaplanforthedesignatedarea,includingdistrict-wideimprovements,thatiscoordinatedwithstateandcountylanduseandplanningpolicies;and(3)implementassetandpropertymanagementconceptsthatcanoptimizeincomefromthepropertiesandevolveinresponsetochangingprinciplesofpropertyadministration.DesignatesthepubliclandsontheWaiakeapeninsulaontheislandofHawaiiastheWaiakeaPeninsulaRedevelopmentDistrict.RepealstheWaiakeaPeninsulaRedevelopmentDistricton6/30/2029.Appropriatesfunds.Thesummarydescriptionoflegislationappearingonthispageisforinformationalpurposesonlyandisnotlegislationorevidenceoflegislativeintent.HBLJRBl9-0843.doc