STAND. COM. REP. NO. 3580

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.C.R. No. 192
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred
H.C.R. No. 192 entitled:

     "HOUSE CONCURRENT RESOLUTION REQUESTING AN INVESTIGATION
     INTO THE ACQUISITION OF NO. 1 CAPITOL DISTRICT BY THE
     STATE,"

begs leave to report as follows:

     The purpose of this concurrent resolution is to request an
investigation into the acquisition of the No. 1 Capitol District
building by the State.

     Your Committee finds that for many decades the building now
known as No. 1 Capitol District housed the Armed Forces YMCA.
Many young persons used this building for meetings, exercise
classes, and even as an inexpensive hotel.  There used to be a
restaurant on the first floor and a swimming pool still exists on
its two-acre site.  Over time, the building housed law offices
and various state offices.  It has a historic past and an
architectural importance quite evident from a glance, sitting
under many stately trees, across from the State Capitol.

     Your Committee also finds that the location of No. 1 Capitol
District makes it advantageous for housing state offices.  These
offices would be located near other government offices in the
civic center, the courts, and other facilities.  Acquisition of

 
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                                   STAND. COM. REP. NO. 3580
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this building for state offices would mean less moneys being
spent on rent, future relocation, or new office construction
costs.  On the other hand, the building is more luxurious than
would be considered appropriate for most government offices, and
the cost per square foot of usable space per employee could be
considered exorbitant in times of fiscal austerity.

     Numerous issues and concerns were raised by your Committee
with respect to the administration's announced intention to
acquire Hemmeter using certificates of participation.  It was
clear from the tenor of the hearing that legislative support is
currently lacking for such a process.  Moreover, if the
administration does not fully address the issues and concerns
that were voiced, it will be most difficult to secure legislative
support in the future.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee concurs with the intent and purpose of H.C.R. No. 192,
and recommends its adoption.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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