STAND. COM. REP. NO. 1378-04

Honolulu, Hawaii

, 2004

RE: H.R. No. 157

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Water, Land Use, and Hawaiian Affairs, to which was referred H.R. No. 157 entitled:

"HOUSE RESOLUTION REQUESTING A COORDINATED COMPREHENSIVE COASTAL POLICY TO PROTECT HAWAII'S COASTAL RESOURCES,"

begs leave to report as follows:

The purposes of this resolution is to request the Department of Land and Natural Resources (DLNR) to take the lead, and in cooperation with appropriate state agencies and counties, to coordinate a comprehensive coastal policy to protect Hawaii's coastal resources for submission and adoption by the Board of Land and Natural Resources (BLNR).

For purposes of the public hearing and receiving testimony, your Committee circulated and made available for public review a proposed H.D. 1 that deleted the contents of this resolution and inserted the provisions of S.B. No. 9, S.D. 1, with revisions. The purpose of the proposed H.D. 1 is to disapprove, pursuant to section 171-50, Hawaii Revised Statutes (HRS), the following exchange that was approved by the Board of Land and Natural Resources on October 24, 2003:

Maui Land & Pineapple Company, Inc. (ML&P) to convey to the State:

Three vacant lots in the Mill Town Center, an industrial park located in Waikele, Ewa, Oahu, totaling 1.455 acres, and identified by the following Tax Map Keys, area, and value:

TAX MAP KEY NO. AREA APPRAISED VALUE

(1) 9-4-166: 01, 0.573 acre $600,000

(1) 9-4-166: 02 0.378 acre $430,000

(1) 9-4-166: 03 0.504 acre $580,000

TOTAL 1.455 acre *$1,610,000

*Pursuant to an appraisal reports, dated October 31, 2003 and January 19, 2004, by Medusky & Co.

The State to convey to ML&P:

Lands in Lahaina, Maui, totaling 226.545 acres, and identified as Tax Map Keys: (2) 4-3-01: 05, 06, 07, and 08 (Maui Lands) appraised at $1,510,000 by Medusky & Co. pursuant to an appraisal report dated November 14, 2003.

DLNR and ML&P testified in opposition to the proposed H.D. 1. In opposing the proposed H.D. 1, the representatives of DLNR and ML&P represented to your Committee:

(1) The makai parcel (Tax Map Key: (2) 4-3-01: 05) of the Maui Lands is intended for open space, park- and recreational-type uses (Makai Parcel);

(2) ML&P does not intend to construct residential dwellings on the mauka parcels (Tax Map Key: (2) 4-3-01: 06, 07, and 08 (Mauka Parcels);

(3) ML&P and DLNR have agreed that use restrictions to reflect these uses should encumber the Maui Lands; and

(4) If ML&P desires to remove the use restrictions, pursuant to section 171-63, HRS, BLNR may amend or waive the conditions restricting the use of the Maui Lands in a deed or grant only upon the condition that the grantee pay to the State the difference between the fair market value of the land based upon its restricted use and the fair market value with the restrictive condition amended or waived.

After careful consideration, your Committee has accordingly amended this resolution by approving the exchange in reliance upon the representations of DLNR and ML&P and the conditions that will encumber the Maui Lands, and with the intent that the public reap the greatest value for the Maui Lands including the enhanced value that will result from the approval of the land use district boundary amendment petition now pending before the Land Use Commission for the Maui Lands.

Your Committee further amended this bill by:

(1) Amending the title to read: "SUBMITTING TO THE LEGISLATURE OF THE STATE OF HAWAII FOR REVIEW OF ACTION TAKEN BY THE BOARD OF LAND AND NATURAL RESOURCES ON LAND EXCHANGES."; and

(2) Making technical, nonsubstantive amendments for purposes of style, clarity, and consistency.

It is the understanding of your Committee that the present appraised value of the Maui Lands, notwithstanding the use restrictions agreed to by ML&P, is still effective and agreeable to ML&P.

Members of your Committee expressed grave disappointment that the Maui Lands were not exchanged for private lands on Maui. The gain of the State in acquiring private lands on Oahu was at the expense of Maui residents losing unique lands. Members of your Committee expressed reservations regarding DLNR's efforts in searching Maui for suitable private lands, particularly upon learning that ML&P does not presently own the Mill Town Center parcels, but will acquire them for purposes of the exchange transaction.

As affirmed by the record of votes of the members of your Committee on Water, Land Use, and Hawaiian Affairs that is attached to this report, your Committee concurs with the intent and purpose of H.R. No. 157, as amended herein, and recommends its adoption in the form attached hereto as H.R. No. 157, H.D. 1.

 

 

Respectfully submitted on behalf of the members of the Committee on Water, Land Use, and Hawaiian Affairs,

 

____________________________

EZRA R. KANOHO, Chair