STAND. COM. REP. NO. 1057

Honolulu, Hawaii

, 2005

RE: H.B. No. 1556

H.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Water, Land, and Agriculture, to which was referred H.B. No. 1556, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST INDUSTRIAL ENTERPRISES,"

beg leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds for PLK Air Services Group, LLC, to plan, design, construct, and equip a Kona coffee and macadamia nut manufacturing facility and air cargo logistics and fulfillment center at Kona International Airport.

Your Committees received testimony in support of this measure from PLK Air Services Group, LLC. Comments were received from the Department of Budget and Finance.

Your Committees heard testimony that this project is a much needed facility to enable Kona coffee and macadamia nut farmers on the Big Island to get their crops to market on other islands and the mainland. The proposed facility would include a roasting plant and a refrigeration facility. The plan is to purchase coffee and nuts from farmers and process the items for market. For this purpose, the facility would be conveniently located near the airport on state land. PLK Air Services Group, LLC, is currently in lease negotiations with the State for a ten or more year renewable lease. The proposed project could be used to process other crops, and your Committees urge PLK Air Services to do so in the interests of promoting agriculture on the Big Island in exchange for state-assisted financing.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Water, Land, and Agriculture that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1556, H.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Government Operations and Water, Land, and Agriculture,

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RUSSELL S. KOKUBUN, Chair

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LORRAINE R. INOUYE, Chair