Report Title:

Kapalama Military Reservation; Lessees

 

Description:

Provides that lessees displaced from property already owned by the State or any county also qualify for a preference granting such lessees the right of first refusal for a lease at an eligible relocation site, and clarifies that the relocation sites must be in an existing or designated industrial park site. (SD2)

 

THE SENATE

S.B. NO.

1170

TWENTY-FIRST LEGISLATURE, 2001

S.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to displaced lessees.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Businesses will be displaced and relocated as a result of an ongoing and proposed redevelopment project at Kakaako called the University of Hawaii School of Medicine. Other projects proposed by the community in Kakaako include a multicultural village, the state aquarium, an ocean park, and the Bishop Museum's Science and Learning Center. Greater coordination, planning, communication and community involvement is necessary in the relocation process for the success of the projects as well as the well being of potentially displaced businesses. The process shall include the following provisions:

(1) The state administrative liaison between the communities, the department of transportation, department of agriculture, and department of land and natural resources for relocation activities shall be the governor's chief of staff or the executive director of the Hawaii community development authority.

(2) Any plan for relocation of parties in Kakaako and Kapalama must be adopted with the involvement of all parties through public hearings as required by chapter 91, Hawaii Revised Statutes. No eviction shall occur until all of those affected are taken care of to the satisfaction of all parties and the approval of the legislature.

(3) A master plan of the waterfront from Kapalama to Kakaako inclusive shall be created to assist the coordination of various projects and agencies in the area. A relocation plan shall be created to address the coordination of agency efforts as well as the process for notification and relocation of all tenants.

(4) The senate economic development and technology committee shall review all projects and developments in the area.

(5) The use of Kapalama for the proposed Produce Center Development, Ltd. shall be based on whether funds are made available for the development of the University of Hawaii Medical School during the regular session of 2001.

SECTION 2. Designation of a portion of the Kapalama Military Reservation as an eligible relocation site. As part of its efforts to redevelop the Kakaako waterfront area, the Hawaii community development authority must relocate Produce Center Development, Ltd. ("Produce Center"), which is leasing approximately nine acres of land adjacent to the Kakaako Waterfront Park. Produce Center and its tenants together are a major supplier of fresh produce to a broad range of restaurants, hotels, hospitals, schools, military facilities, supermarkets, and other retail establishments, handling about fifty per cent of the fresh produce imported to Oahu. As further indication that Produce Center and its tenants handle a large volume of fresh produce, the main offices of the plant quarantine branch of the state department of agriculture is situated adjacent to the Produce Center site. Between seventy-five to eighty per cent of the fresh produce handled by Produce Center comes by maritime freight, about six per cent arrives by air freight, and the remainder is trucked in from various locations on Oahu. The legislature recognizes the importance of maintaining a ready and abundant supply of fresh produce to Hawaii and that Produce Center, and other similar fresh produce importers and distributors, are able to continue their operations from an area in close proximity to the maritime waterfront. The State, through its board of land and natural resources, is planning to establish an industrial park within a portion of the area presently known as the Kapalama Military Reservation near Honolulu Harbor on the island of Oahu to accommodate fresh produce importers and distributors such as Produce Center, together with the plant quarantine branch of the state department of agriculture. Designating a portion of the Kapalama Military Reservation as an eligible relocation site under section 171-142, Hawaii Revised Statutes, and as an industrial park under section 171-132, Hawaii Revised Statutes, and recognizing Produce Center and other similarly situated lessees as qualified displaced lessees, would enable the State to directly negotiate leases with such displaced lessees for the portion of the Kapalama Military Reservation. The legislature desires to permit the State to directly negotiate leases with such displaced lessees and hereby designates the following described area as an eligible relocation site under section 171-142, Hawaii Revised Statutes, which will enable those qualifying as displaced lessees under section 171-142, Hawaii Revised Statutes, to receive the benefits available thereunder: The area is approximately 12.6 acres, consisting of the areas described as Tax Map Key Nos. 1-2-25:46, 54, 56, 57 and 58 and the surrounding yard areas and is bounded:

(1) On the mauka side by Auiki Street;

(2) On the makai side by the makai boundaries of the yard areas surrounding Tax Map Key Nos. 1-2-25:46, 56, 57 and 58;

(3) On the ewa side by the extension of Mokauea Street; and

(4) On the diamond head side by the Pier 41 access road.

SECTION 3. Designation of a portion of Kapalama Military Reservation as an industrial park. The legislature finds that the following described portion of the area known as the Kapalama Military Reservation, situated near Honolulu Harbor on the island of Oahu, consisting of approximately 12.6 acres and suitably and economically feasible for industrial use, is hereby designated as an industrial park under section 171-132, Hawaii Revised Statutes. The portion of the Kapalama Military Reservation described as Tax Map Key Nos. 1-2-25:46, 54, 56, 57 and 58 and their surrounding yard areas and bounded:

(1) On the mauka side by Auiki Street;

(2) On the makai side by the makai boundaries of the yard areas surrounding Tax Map Key Nos. 1-2-25:46, 56, 57 and 58;

(3) On the ewa side by the extension of Mokauea Street; and

(4) On the diamond head side by the Pier 41 access road.

SECTION 4. All existing revocable permits covering any portion of the above-described portion of the Kapalama Military Reservation shall be deemed terminated no later than thirty days after the effective date of this Act. It is the intent of the legislature that no permittees under such existing revocable permits, due to their occupancy of the above-described portion of the Kapalama Military Reservation, be eligible for the preference granted to displaced lessees under section 171-142, Hawaii Revised Statutes; provided that the department of transportation shall use its best effort to relocate the tenants displaced from Kapalama Military Reservation. The effective date for the designation of the above described portion of the Kapalama Military Reservation as an industrial park under section 171-132, Hawaii Revised Statutes, shall be sixty days after the effective date of this Act.

SECTION 5. Section 171-142, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) For purposes of this section:

(1) "Dislocated lessee" means any lessee engaged in commercial or industrial uses who has been or will be displaced [from private property which is acquired] by the State or any county [for public use] by the power of eminent domain or threat thereof[;] from property which is being acquired or already owned by the State or any county; and

(2) "Eligible relocation site" means a site either (A) in an existing industrial park created under this chapter or (B) on other state land[,] designated as an industrial park under this chapter; and any such site must be designated as an appropriate relocation site for dislocated lessees by law, or by resolution adopted by the board of land and natural resources and approved by the legislature by concurrent resolution."

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2050.