Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1078
                                        S.D. 1

Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Economic Development, to which was
referred S.B. No. 1078 entitled: 


begs leave to report as follows:
     The purpose of this measure is to authorize the Aloha Tower
Development Corporation to acquire the reversionary interest held
by the heirs of Helene Irwin Fagan by way of purchase, negotiated
settlement, or eminent domain for the public purpose of providing
a park, parking facilities, and related traffic improvements.

     Your Committee received testimony in support of this measure
from the Department of Business, Economic Development, and
Tourism, the Aloha Tower Development Corporation, and the
Department of Transportation.  Scenic Hawaii, Inc., Na Leo Pohai
of The Outdoor Circle, and one individual testified in
opposition.  Life of the Land made oral comments.

     Your Committee finds that since the Aloha Tower Marketplace
was completed in 1994, the waterfront area has experienced
tremendous growth.  The marketplace provides a venue for over
eighty retail shops and restaurants, serving close to 2,000,000
patrons a year.  In addition, the expansion of the cruise ship
industry has put a further strain on parking in the surrounding

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     Your Committee is well aware of the problems caused by both
current and anticipated parking shortages, particularly on the
economic well-being of the businesses in the marketplace and
surrounding area.  However, your Committee has also heard the
strong reservations of the Irwin family to conversion of Irwin
Memorial Park to a parking facility.  Your Committee agrees that
the park, with its mature trees, is an attractive green oasis in
downtown Honolulu, and contributes esthetically to the waterfront

     Your Committee, in discussing the merits of the intent of
this measure, is firmly opposed to the ATDC acquiring Irwin
Memorial Park through eminent domain.  Your Committee understands
that negotiations are continuing between the ATDC and the family,
and a meeting is scheduled subsequent to the hearing on this

     Your Committee has amended this measure to delete the
reference to acquisition through eminent domain in the purpose
section of the measure, to make technical amendments to conform
to standard drafting style, and to add missing statutory

     Your Committee believes this measure requires further
substantive discussion, and urges the Committee on Ways and Means
to hold a public hearing on the measure.

     As affirmed by the record of votes of the members of your
Committee on Economic Development that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1078, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1078,
S.D. 1, and be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Economic

                                   LORRAINE R. INOUYE, Chair

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