Report Title:

SPRB

Description:

Authorizes the issuance of special purpose revenue bonds for the purpose of planning, designing, and constructing a low-rise cooling and parking facility on Block J in downtown Honolulu.

HOUSE OF REPRESENTATIVES

H.B. NO.

1621

TWENTY-SECOND LEGISLATURE, 2003

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO SPECIAL PURPOSE REVENUE BONDS for the development of block j IN DOWNTOWN HONOLULU.

 

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

SECTION 1. The legislature finds that imported oil supplies ninety per cent of Hawaii's energy. No other state is as critically dependent on imported oil. Unlike other states, Hawaii cannot turn to neighboring states to make up for any temporary or permanent energy shortages.

The legislature further finds that the State must look to alternative energy sources to provide for the energy needs of Hawaii's people. Technology now exists, in the form of cooling facilities, to significantly reduce the amount of electricity needed to provide air conditioning in office buildings.

Although Hawaiian Electric Company, Inc., is willing to develop a cooling facility and pipeline distribution system to provide air conditioning for offices in downtown Honolulu, it lacks the space upon which such a facility can be constructed.

The legislature finds that the site commonly known as Block J in downtown Honolulu would be an ideal site for a cooling facility. Block J has been used as a municipal parking lot since 1954. The property is bounded by Pali Highway, Kukui Street, Queen Emma Street, and South Beretania Street.

In 1998, the city and county of Honolulu announced a deal to build two apartment towers on Block J. However, the deal failed after the developer failed to get financing for the project.

Block J serves a public purpose as a single-story municipal parking lot. However, considering that Block J sits on one of the most desirable locations in Honolulu, the property could be generating significantly more revenues if used for some other public purpose.

Block J would be the ideal location for a cooling facility to provide air conditioning for offices in downtown Honolulu at discounted rates. The proposed development would be a low-rise structure that would house the cooling facility on at least two floors. The structure would also provide at least two stories for parking.

The legislature finds and declares that the issuance of special purpose revenue bonds to plan, design, and construct a low-rise cooling and parking facility on Block J as a cooperative partnership among the State, city and county of Honolulu, and Hawaiian Electric Company, Inc., is in the public interest and for the public health, safety, and general welfare.

SECTION 2. Pursuant to part V, chapter 39A, Hawaii Revised Statutes, the department of budget and finance, with the approval of the governor, is authorized to issue special purpose revenue bonds in a total amount not to exceed $25,000,000, in one or more series, for the purpose of assisting Hawaiian Electric Company, Inc., a Hawaii corporation, plan, design, and construct a low-rise cooling and parking facility on Block J in downtown Honolulu. The legislature hereby finds and determines that the cooling and parking facility constitutes a project as defined in part V, chapter 39A, Hawaii Revised Statutes, and the financing thereof constitutes assistance to industrial enterprise.

SECTION 3. The special purpose revenue bonds and the refunding special purpose revenue bonds issued under this Act shall be issued pursuant to part V, chapter 39A, Hawaii Revised Statutes, relating to the power to issue special purpose revenue bonds to assist industrial enterprises.

SECTION 4. The department of budget and finance is authorized, from time to time, including times subsequent to June 30, 2008, to issue special purpose revenue bonds in whatever principal amounts the department shall determine to be necessary to refund the special purpose revenue bonds authorized in section 2 and to refund special purpose revenue bonds authorized in this section, regardless of whether the outstanding special purpose revenue bonds or refunding special purpose revenue bonds have matured or are the subject of redemption or whether the refunding special purpose revenue bonds shall be bonds for the multi-project programs described in section 2. In making this determination, the department shall comply with federal law relating to the exemption from federal income taxation of the interest on bonds of the nature authorized by this section.

SECTION 5. The authorization to issue special purpose revenue bonds under this Act shall lapse on June 30, 2008.

SECTION 6. This Act shall take effect on July 1, 2003.

INTRODUCED BY:

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