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DAVID Y.IGE SUZANNE D.CASE GOVERNOR OF �•�6 •F..M4 HAHAWAII •, CFLURPERSON BOARD OF LAND AND NATURAL RESOURCES 1959 p•.,•.�•,• COMMISSION ON WATER RESOURCE MANAGEMENT ROBERT IC AL4SUDA FIRST DEPUTY Ot�aDd and K Ndt. NI. ALEO NtANUEL C< d/ t DEPUTY DIRECTOR-WATER ••••• ,`,� .'• AQUATIC RESOURCES �, ,-,---• BOATING AND OCEAN RECREATION N BUREAU OF CONVEYANCES - COMMISSION ON WATER RESOURCE MANAGEMENT CONSERVATION AND COASTAL LANDS ENENFORCEMENTSTATE OF HAWAII CONSERVATION AND RESOURCES ENFORCEMENT AND WILDLIFE PRESERVATION Stare ofV40411 DEPARTMENT OF LAND AND NATURAL RESOURCES RAIIOOLAWHISTORICEISL4NDRESERV ECOM MISSION LAND POST OFFICE BOX 621 STATE PARKS HONOLULU,HAWAII 96809 Testimony of SUZANNE D. CASE Chairperson Before the House Committee on WATER, LAND & HAWAIIAN AFFAIRS Wednesday, February 12, 2020 10:30 AM State Capitol, Conference Room 325 In consideration of HOUSE BILL 2578 RELATING TO PUBLIC LANDS House Bill 2578 proposes to authorize the designation of areas or regions of public lands classified as commercial, industrial, hotel, apartment, motel or resort use and the establishment and implementation of guidelines for the redevelopment of such areas or regions. PART III of the measure proposes to establish Waiakea Peninsula Redevelopment District in Hilo, Hawaii. PART IV proposes to amend Section 171-6, Hawaii Revised Statutes (HRS), to increase the amount of rent credits for leases of public lands that require substantial demolition or infrastructure improvement costs in order to for the lessee to utilize the premises. The Department of Land and Natural Resources (Department) supports PART IV of the measure relating to rent credits to lessees who incur significant demolition or infrastructure costs, but opposes this measure to the extent is seeks to create a planning district and planning committee for the Waiakea Peninsula area of Hilo. Currently, Chapter 171, HRS, limits the amount of rent reduction or waiver that a lessee of public lands can receive for redeveloping or improving public lands to one year's rent for land leased for resort, commercial, industrial or other business use. In many cases, a rent reduction or waiver equal to one year of ground rent would be an insufficient incentive to induce a developer to invest in the demolition Of aged improvements on and redevelopment of public land, or in the provision of basic infrastructure necessary to facilitate the further development of unimproved public land. PART IV of this measure seeks to authorize the Board of Land and Natural Resources (Board) to approve a rent reduction or waiver for up to twenty years not to exceed the amount of the lessee's total expenditures for demolition of improvements or provision of infrastructure. Page 1