HOUSE OF REPRESENTATIVES

H.R. NO.

233

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 
   


HOUSE RESOLUTION

 

REQUESTING THE HAWAII COMMUNITY DEVELOPMENT Authority, IN COLLABORATION WITH THE DEPARTMENT OF LAND AND NATURAL RESOURCES AND THE DEPARTMENT OF BUDGET AND FINANCE, TO DEVELOP A VIABLE FINANCIAL PLAN TO ASSIST HONOLULU MARINE WITH THE CONSTRUCTION OF ITS FACILITIES AT SAND ISLAND.

 

 

WHEREAS, the transformation of Kakaako Makai from its old and unkempt industrial setting to a neat and pleasant mix of shopping, dining, and open space for public recreation required the relocation of countless business operations, including the impending move of Honolulu Marine to Sand Island; and

WHEREAS, many of these businesses, particularly those with several years remaining on their state leases at Kakaako, have been appropriately assisted with relocation and other costs; and

WHEREAS, Honolulu Marine, situated at Kewalo Basin midway between Fisherman's Wharf and John Dominis Restaurant, without a mortgage on its shipyard facilities and fifteen years remaining on its lease is well equipped and set up to conduct ship building and repair operations; and

WHEREAS, the Legislature, by concurrent resolution in 2005, authorized the lease of fast and submerged lands at Sand Island to Honolulu Marine; and

WHEREAS, Honolulu Marine, in preparation for its move to Sand Island, is constructing floating dry docks at the Kewalo facilities, investing well over $1,000,000 in material costs alone; and

WHEREAS, the latest cost estimates for its required facilities at Sand Island have ranged between $4,000,000 to $6,000,000 and will create a severe hardship for Honolulu Marine to effect a timely move; now, therefore,

BE IT RESOLVED by the House of Representatives of the Twenty-third Legislature of the State of Hawaii, Regular Session of 2006, that the Hawaii Community Development Authority, in collaboration with the Department of Land and Natural Resources and the Department of Budget and Finance, is requested to provide assistance to Honolulu Marine in this state-initiated move by helping to determine the most cost-effective financing option for Honolulu Marine, including but not limited to:

(1) Special purpose revenue bonds;

(2) The issuance of reimbursable bonds with debt service paid for by Honolulu Marine through an appropriate lease/fee arrangement; and

(3) Any other financing arrangement; and

BE IT FURTHER RESOLVED that the Hawaii Community Development Authority is further requested to report its findings and recommendations, including any proposed legislation, to the Legislature not later than twenty days prior to the convening of the Regular Session of 2007; and

BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Executive Director and Chairperson of the Hawaii Community Development Authority, the Chairperson of the Board of Land and Natural Resources, and the Director of Finance.

 

 

 

OFFERED BY:

_____________________________

Report Title:

HCDA; Sand Island