Report Title:

Relocation of Honolulu Marine, Inc.; Appropriation

 

Description:

Appropriates funds for the relocation of Honolulu Marine, Inc., dba Kewalo Shipyard.  (SD1)

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1516

TWENTY-FOURTH LEGISLATURE, 2007

H.D. 2

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT


 

 

making an appropriation for improvements at and the relocation of honolulu marine, inc. to keehi small boat harbor.

 

 

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

 


     SECTION 1.  Honolulu Marine, Inc., dba Kewalo Shipyard, currently operates a commercial marine railway/ship repair facility at 123 Ahui street, a 103,597 square-foot waterfront panel on the Ewa boundary of Kewalo basin.  The land under the Honolulu Marine, Inc.'s, shipyard facility is owned by the State of Hawaii and leased to Honolulu Marine, Inc., pursuant to Harbor Lease No. H-86-23.  The term of Honolulu Marine, Inc.'s, lease is for thirty-five years and expires in 2021.  The Honolulu Marine, Inc.'s, lease is managed by the Hawaii community development authority.

     Honolulu Marine, Inc., has been working closely with the Hawaii community development authority and the department of transportation, harbors division in an effort to identify an alternate site for Honolulu Marine, Inc.  They examined multiple properties.  Honolulu Marine, Inc., has identified and inspected a parcel under the management of the department of land and natural resources located adjacent to the Keehi small boat harbor, 24 Sand Island access road (Keehi marine center).  The unimproved dirt lot, which covers 50,400 square-feet, is currently used as a base yard for a nearby construction project pursuant to a month-to-month tenancy.  Although this parcel is only one-third the size of Honolulu Marine, Inc.'s, current facility, if the necessary improvements and submerged lands lease are granted, it is the best option available, given the Hawaii community development authority's need to have Honolulu Marine, Inc., vacate its current facility as soon as possible.

     The governor tasked the Hawaii community development authority with redeveloping the Kakaako business district, which includes the parcel occupied by Honolulu Marine, Inc.  The Hawaii community development authority advised Honolulu Marine, Inc., that it must vacate the premises as soon as possible.  Honolulu Marine, Inc.'s, ability to vacate will have a tremendous financial impact on its daily and overall business operations.  Honolulu Marine, Inc., does not have the financial ability to build another facility.

     Honolulu Marine, Inc., was provided a place at the Keehi small boat harbor under Senate Concurrent Resolution No. 134 and House Concurrent Resolution No. 173 in the 2005 regular session of the Hawaii state legislature.  However, this location has no infrastructure.

     The purpose of this Act is to appropriate funds to assist Honolulu Marine, Inc., dba Kewalo Shipyard, in relocating to Keehi lagoon.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii, the sum of $          , for fiscal year 2007-2008, or so much thereof as may be necessary for the purpose of assisting in the relocation of Honolulu Marine, Inc., dba Kewalo Shipyard, from the waterfront parcel on the Ewa boundary of Kewalo basin to the Keehi port infrastructure; provided that the funding shall be used to:

     (1)  Install port security infrastructure around the entire boundary;

     (2)  Grade and level the property; and

     (3)  Construct:

         (A)  A 135 foot by 25 foot finger pier;

         (B)  Sea retaining walls; and

         (C)  Bulk heads.

     The sum appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2007.