Report Title:

Board of Land and Natural Resources; Industrial Parks

Description:

Directs the board of land and natural resources to consider whether various public lands are suitable for development of industrial parks. (SD1)

THE SENATE

S.B. NO.

2645

TWENTY-SECOND LEGISLATURE, 2004

S.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO INDUSTRIAL PARKS.

 

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

SECTION 1. The legislature finds that the vacancy rate for industrial zoned land, particularly on Oahu, is at an all-time low rate, as low as two per cent. The lack of sufficient and suitable industrial space will negatively affect the State's economy. More industrial space, whether in fee simple or leasehold, must be developed in an expedited manner. However, in the case of leasehold properties measures should be provided to ensure that lessees are not subjected to unreasonably or inequitably high lease rents.

The legislature further finds that Act 361, Session Laws of Hawaii 1988, added a new part to chapter 171, Hawaii Revised Statutes, permitting the development of state industrial parks on public lands, including procedures to expedite the development of the state industrial parks without compliance with county planning, zoning, building, improvement, construction, and subdivision standards.

The purpose of this Act is direct the board of land and natural resources to consider certain public lands to be designated and developed as industrial parks and to ensure that lease rents in state industrial parks are reasonable and equitable.

SECTION 2. Section 171-143, Hawaii Revised Statutes, is amended to read as follows:

"[[]§171-143[]] Rate policy. The board may:

(1) Charge fees to eligible lessees of public lands within industrial parks in an amount sufficient to cover the costs of operation, maintenance, and debt service on revenue bonds and reasonable reserves, in compliance with part III of chapter 39; and

(2) Charge eligible lessees as may be necessary to cover capital costs or other costs incurred in connection with the industrial parks[.];

provided that, if a fee or lease rent is determined as a fixed return on the fair market value of the unencumbered land, in no event shall the board provide or otherwise require that any negotiated lease rent cannot be less than the lease rent for the previous period."

SECTION 3. The board of land and natural resources shall review the inventory of public land that may be available, suitable, and economically feasible for designation and development as a state industrial park. The board shall consider, but not limit itself to, the following public lands on Oahu in its review:

(1) The site of the present Oahu community correctional center, in the event the legislature relocates the correctional center;

(2) The pier and support areas of the former army terminal or Kapalama military reservation, generally located at the intersection of Nimitz highway and Waiakamilo road; and

(3) Public lands at Sand Island, Kapolei, and Kalaeloa.

SECTION 4. The board shall submit a report to the legislature twenty days before the convening of the regular session of 2005. The report shall contain, but need not be limited to, the following:

(1) A list of public lands suitable and economically feasible for the development of state industrial parks;

(2) A list of private lands suitable and economically feasible for the development of state industrial parks, including proposals for the acquisition of the private lands by way of land exchange, direct purchase, or eminent domain;

(3) A list of potential federal or county agencies or private parties who may be interested in the joint development of an industrial park;

(4) The estimated costs for the development of any public or private land for an industrial park, including the possible issuance of revenue bonds to cover all or a portion of the development costs; and

(5) A list of the state industrial parks developed to date, including the number of acres, economic units, and lessees in each park.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.