Report Title:

Community Development Districts

 

Description:

Consolidates the Barber's Point Naval Air Station Redevelopment Authority. (SD2)

THE SENATE

S.B. NO.

2702

TWENTY-FIRST LEGISLATURE, 2002

S.D. 2

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO THE KALAELOA COMMUNITY DEVELOPMENT DISTRICT.

 

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

SECTION 1. Barbers Point Naval Air Station was officially closed on July 1, 1999, and the Navy is in the process of conveying 2,150 acres of this property, which has been named the "Kalaeloa community development district", to various agencies of the State and of the city and county of Honolulu. Development of this district is currently the responsibility of the Barbers Point Naval Air Station redevelopment commission.

The Barbers Point lands present unique opportunities for economic development and job creation for the area. The purpose of this Act is to transfer the responsibility for redeveloping this property from the Barbers Point Naval Air Station redevelopment commission to the Hawaii community development authority to enhance the prospects for success by:

(1) Designating the Hawaii community development authority as the local redevelopment authority for the Barbers Point Naval Air Station surplus lands that are being conveyed to the State and the city and county of Honolulu under the base realignment and closure process;

(2) Authorizing and empowering the Hawaii community development authority to redevelop the Barbers Point lands in accordance with the reuse plan for the Barbers Point Naval Air Station approved by the governor; and

(3) Providing economic development incentives to improve the Hawaii community development authority's prospects of attracting private sector investment in the Kalaeloa community development district.

SECTION 2. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"PART    . KALAELOA COMMUNITY DEVELOPMENT DISTRICT

206E-A Barbers Point Naval Air Station redevelopment; power to redevelop established. (a) The authority shall be the designated agency of the State to implement this part.

(b) The authority shall act as the local redevelopment authority to facilitate the redevelopment of Barbers Point Naval Air Station in accordance with the Barbers Point Naval Air Station community reuse plan. In addition to any other duties that the authority may have pursuant to this chapter, the authority's duties shall include:

(1) Coordinating with the Navy and other entities during the conveyance of properties and conduct remediation activities for the Barbers Point Naval Air Station community reuse plan;

(2) Assisting the landholders designated by the plan in marketing their properties and the processing of conveyance requests;

(3) Working with the Navy and others to ensure that infrastructure support is provided to the existing developed area, which is referred to as the "downtown area," and other federally retained areas;

(4) Developing the infrastructure necessary to support the implementation of the Barbers Point Naval Air Station community reuse plan; and

(5) Providing, to the extent feasible, maximum opportunity for the reuse of surplus property by private enterprise or state and county government.

(c) Five additional voting members shall be appointed to the authority by the governor to represent the Kalaeloa community development district. These members shall be considered in determining quota and majority only on issues relating to the Kalaeloa community development district, and may vote only on issues relating to the Kalaeloa community development district. These members shall be as follows:

(1) The chairperson of the Hawaiian homes commission;

(2) The director of the city and county of Honolulu department of planning and permitting;

(3) Two members representing the surrounding community for a term pursuant to section 26-34. One community member shall be selected by the governor. The second community member shall be selected by the mayor of the city and county of Honolulu; and

(4) One member who is a Hawaiian cultural specialist.

206E-B Designation of the Kalaeloa community development district. (a) The federal Department of Defense declared approximately two thousand one hundred fifty acres of land at the Barbers Point Naval Air Station to be surplus to its needs and under a base realignment is conveying these surplus lands to the various end users identified by the community reuse plan. The governor has approved and forwarded to the Navy the community reuse plan for these surplus lands.

(b) The legislature hereby designates these surplus lands as the "Kalaeloa community development district" and the harbor known as Barbers Point harbor as Kalaeloa Barbers Point harbor, in recognition of the traditional Hawaiian name for the area, which means "long point."

206E-C District established; boundaries. The Kalaeloa community development district is established and shall include all lands within tax map key numbers 9-1-31:28, 9-1-13:02, 9-1-13:03, 9-1-13:04, 9-1-13:05, 9-1-13:09, and 9-1-13:01.

206E-D Kalaeloa community development district; development guidance policies. The following shall be the development guidance policies generally governing the authority's actions in the Kalaeloa community development district:

(1) Development of land received from the Navy under the Base Realignment and Closure Act shall be in accordance with the community reuse plan;

(2) Except for those lands under the jurisdiction of the Hawaiian homes commission, the authority, with the approval of the governor and concurrence of the Navy, upon the concurrence of a majority of its voting members, may modify and make changes to the reuse plan to respond to changing conditions; provided that prior to amending the reuse plan, the authority shall conduct a public hearing to inform the public of the proposed changes and receive public input;

(3) Development of Hawaiian home lands at Kalaeloa, acquired under the Hawaiian Homes Commission Act of 1920, as amended;

(4) Development shall seek to promote economic development and employment opportunities by fostering diverse land uses and encouraging private sector investments that utilize the opportunities presented by the receipt of property from the base closure consistent with the needs of the public;

(5) The authority may engage in planning, design, and construction activities inside the district and outside the district; provided that activities outside the district relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and other activities deemed by it necessary to carry out the redevelopment of the district and to implement this chapter. Studies or coordinating activities to be undertaken by the authority may address facility systems, industrial relocation, and other activities in conjunction with the county and appropriate state agencies;

(6) Planning, replanning, rehabilitation, development, redevelopment, naming and renaming, and other preparation for reuse of Barbers Point Naval Air Station under this chapter are public uses and purposes for which public money may be spent and private property acquired;

(7) Hawaiian archaeological, historic, and cultural sites shall be preserved and protected. Endangered species of flora and fauna and significant military facilities shall be preserved to the extent feasible;

(8) Land use and redevelopment activities within the district shall be coordinated with and to the extent possible complement existing county and state policies, plans, and programs affecting the district; and

(9) Public facilities within the district shall be planned, located, and developed to support the redevelopment policies established by this chapter for the district, the reuse plan approved by the governor, and rules adopted pursuant to this chapter.

206E-E Kalaeloa community development revolving fund. (a) There is established in the state treasury the Kalaeloa community development revolving fund, into which shall be deposited:

(1) All revenues, income, and receipts of the authority for the Kalaeloa community development district, notwithstanding any other law to the contrary, including particularly section 206E-16;

(2) Moneys directed, allocated, or disbursed to the Kalaeloa community development district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments of land owners for costs to administer and operate Kalaeloa community development district; and

(3) Moneys appropriated to the fund by the legislature.

(b) Moneys in the Kalaeloa community development revolving fund shall be used for the purposes of this part.

(c) Investment earnings credited to the assets of the fund shall become a part of the assets of the fund.

206E-F Assessment for operating costs. (a) The authority may assess all land users, except the federal government which is exempt from assessment by state governments, for their fair share of the costs required to administer and operate the Kalaeloa community development district. Such costs may include costs associated with staffing. Assessments shall be based on each land owner's proportionate share of the total non-federal acreage.

(b) Such assessments shall be set by the authority annually, based upon the operating budget for the district, and adjusted for any actual expenditures made in the prior year in excess of the prior approved budget. Such assessments shall be paid to the authority in semi-annual payments commencing thirty days after the beginning of the fiscal year.

(c) For the purposes of this section, "land user" includes the owner of land; provided that the land owner may assign the responsibility for assessment to the lessee or licensee of such land.

(d) The authority may charge interest or other fees for assessment amounts not paid on a timely basis, and may withhold services or approval of governmental permits for land users delinquent in payments."

SECTION 3. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall consist of eleven voting members. The director of finance, the director of business, economic development, and tourism, the comptroller, and the director of transportation, or their respective designated representatives shall serve as ex officio, voting members. Seven members shall be appointed by the governor for staggered terms pursuant to section 26-34; provided that four members shall be appointed at large and, initially, three members, hereinafter referred to as county members, shall be selected from a list of ten prospective appointees recommended by the local governing body of the county in which the initial designated district is situated; and provided further that when vacancies occur in any of the three positions for which the members were selected from a list of county recommendations, the governor shall fill such vacancies on the basis of one from a list of four recommendations, two from a list of seven recommendations, or three from a list of ten recommendations. The list of recommendations shall be made by the local governing body of the county. If an additional district is designated by the legislature [in a county other than the county in which the initial designated district is situated], the total membership of the authority shall be increased as prescribed above by the appointment of three additional members[.], except as provided for in section 206E-A. Notwithstanding section 92-15, a majority of all members shall constitute a quorum to do business, and the concurrence of a majority of all members shall be necessary to make any action of the authority valid; except that, on any matter relating solely to a specific community development district, the [county] members representing districts other than that specific community development district shall not vote, and concurrence shall be required of a majority of that portion of the authority made up of all ex officio voting members, members at large, and county and district members representing the district for which action is being proposed in order for such action to be valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions."

SECTION 4. Section 206E-4, Hawaii Revised Statutes, is amended to read as follows:

"206E-4 Powers; generally. Except as otherwise limited by this chapter, the authority may:

(1) Sue and be sued;

(2) Have a seal and alter the same at pleasure;

(3) Make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this chapter;

(4) Make and alter bylaws for its organization and internal management;

(5) Make rules with respect to its projects, operations, properties, and facilities, which rules shall be in conformance with chapter 91;

(6) Through its executive director appoint officers, agents, and employees, prescribe their duties and qualifications, and fix their salaries, without regard to [chapters] chapter 76 [and 77];

(7) Prepare or cause to be prepared a community development plan for all designated community development districts;

(8) Acquire, reacquire, or contract to acquire or reacquire by grant or purchase real, personal, or mixed property or any interest therein; to own, hold, clear, improve, and rehabilitate, and to sell, assign, exchange, transfer, convey, lease, or otherwise dispose of or encumber the same;

(9) Acquire or reacquire by condemnation real, personal, or mixed property or any interest therein for public facilities, including but not limited to streets, sidewalks, parks, schools, and other public improvements;

(10) By itself, or in partnership with qualified persons, acquire, reacquire, construct, reconstruct, rehabilitate, improve, alter, or repair or provide for the construction, reconstruction, improvement, alteration, or repair of any project; own, hold, sell, assign, transfer, convey, exchange, lease, or otherwise dispose of or encumber any project, and in the case of the sale of any project, accept a purchase money mortgage in connection therewith; and repurchase or otherwise acquire any project which the authority has theretofore sold or otherwise conveyed, transferred, or disposed of;

(11) Arrange or contract for the planning, replanning, opening, grading, or closing of streets, roads, roadways, alleys, or other places, or for the furnishing of facilities or for the acquisition of property or property rights or for the furnishing of property or services in connection with a project;

(12) Grant options to purchase any project or to renew any lease entered into by it in connection with any of its projects, on such terms and conditions as it deems advisable;

(13) Prepare or cause to be prepared plans, specifications, designs, and estimates of costs for the construction, reconstruction, rehabilitation, improvement, alteration, or repair of any project, and from time to time to modify such plans, specifications, designs, or estimates;

(14) Provide advisory, consultative, training, and educational services, technical assistance, and advice to any person, partnership, or corporation, either public or private, in order to carry out the purposes of this chapter, and engage the services of consultants on a contractual basis for rendering professional and technical assistance and advice;

(15) Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable;

(16) Contract for and accept gifts or grants in any form from any public agency or from any other source;

(17) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this chapter; and

(18) Allow satisfaction of any affordable housing requirements imposed by the authority upon any proposed development project through the construction of reserved housing, as defined in section 206E-101, by a person on land located outside the geographic boundaries of the authority's jurisdiction. Such substituted housing shall be located on the same island as the development project and shall be substantially equal in value to the required reserved housing units that were to be developed on site. The authority shall establish the following priority in the development of reserved housing:

(A) Within the community development district;

(B) Within areas immediately surrounding the community development district;

(C) Areas within the central urban core;

(D) In outlying areas within the same island as the development project.

The Hawaii community development authority shall adopt rules relating to the approval of reserved housing that are developed outside of a community development district. The rules shall include, but are not limited to, the establishment of guidelines to ensure compliance with the above priorities[; and

(19) Render technical and administrative services as necessary to assist the Barbers Point Naval Air Station redevelopment commission as the local redevelopment authority in the development of the Kalaeloa community development district]."

SECTION 5. Chapter 206G, Hawaii Revised Statutes, is repealed.

SECTION 6. All lands conveyed to the Barbers Point Naval Air Station redevelopment commission by the federal government shall be transferred to the Hawaii community development authority upon the approval of this Act.

SECTION 7. As of June 28, 2002, the director of finance shall transfer the unexpended balance of the Kalaeloa community development revolving fund established pursuant to section 206G-8, Hawaii Revised Statutes, to the Kalaeloa community development revolving fund established pursuant to section 2.

SECTION 8. The powers, functions, and duties, of the Barbers Point Naval Air Station redevelopment commission are transferred to the Hawaii community development authority. All references in any contract or other document entered into by the Barbers Point Naval Air Station redevelopment commission shall apply to the Hawaii community development authority as if the latter were specifically named in the law, contract, or other document in place of the Barbers Point Naval Air Station redevelopment commission. The Hawaii community development authority shall assume the duties and carry out any contracts entered into by the Barbers Point Naval Air Station redevelopment commission prior to the effective date of this Act.

SECTION 9. All rules, policies, procedures, guidelines, and other materials adopted by the Barbers Point Naval Air Station redevelopment commission to implement provisions of the Hawaii Revised Statutes which are reenacted or made applicable to the Hawaii community development authority by this Act, shall remain in full force and effect until amended or repealed by the Hawaii community development authority pursuant to chapter 91, Hawaii Revised Statutes. In the interim, every reference to the Barbers Point Naval Air Station redevelopment commission in those rules, policies, procedures, guidelines, and other material is amended to refer to the Hawaii community development authority as appropriate.

SECTION 10. The director of finance is authorized to issue general obligation bonds in the sum of $          , or so much thereof as may be necessary for fiscal year 2002-2003, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2002-2003 for the following projects for the Kalaeloa Community Development District:

$           for geotechnical studies to support adoption of a Special Drainage District for Kalaeloa.

$           for a traffic study to determine the ability of the existing network to accommodate current and projected traffic flow, and to identify any necessary mitigation.

The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

SECTION 11. The appropriations made for capital improvement projects authorized in this Act shall not lapse at the end of the fiscal biennium for which the appropriations are made; provided that all appropriations which are unencumbered as of June 30, 2004, shall lapse as of that date.

SECTION 12. There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2002-2003, to be paid into the Kalaeloa community development revolving fund established pursuant to section 2.

SECTION 13. There is appropriated out of the Kalaeloa community development revolving fund the sum of $          , or so much thereof as may be necessary for fiscal year 2002-2003, to be used to fund operating costs for the Kalaeloa community development district, including costs associated with staffing.

The sum appropriated shall be expended by the Hawaii community development authority for the purposes of this Act.

SECTION 14. It is the intent of this Act to not impair the obligation of the State or any agency thereof to the holders of any bond issued by the State or by any such agency, and to the extent, and only to the extent necessary to effectuate this intent, the governor may modify the strict provisions of this Act, but shall promptly report any such modifications with reasons therefor to the legislature at its next session thereafter for review by the legislature.

SECTION 15. In codifying the new part added to chapter 206E, Hawaii Revised Statutes, by section 2 of this Act and referred to in section 3 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 16. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 17. This Act shall take effect on July 1, 2002; provided that section 206E-E of section 2 and section 7 of this Act shall take effect on June 28, 2002.