Honolulu, Hawaii



RE:    H.B. No. 2398

       H.D. 2

       S.D. 1




Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii




     Your Committees on Water, Land, and Housing and Ways and Means, to which was referred H.B. No. 2398, H.D. 2, entitled:




beg leave to report as follows:


     The purpose and intent of this measure is to establish the Honokohau Marina Development District on the island of Hawaii under the Hawaii Community Development Authority.


     Your Committees received testimony in opposition from the Department of Land and Natural Resources, Kona Hawaiian Civic Club, Makani Hou O Kaloko-Honokohau, and two individuals.  Your Committees received comments from the Office of the Attorney General.


     Your Committees find that the Public Land Development Corporation was recently created as an agency to develop public lands into suitable recreational and leisure centers for residents and tourists.  Accordingly, certain parcels of land held by other state agencies can benefit from being transferred to and developed by the Public Land Development Corporation.


     Your Committees recognize the Aloha Stadium as a preferred venue for major entertainment and recreational events.  Due to its central location, opportunities exist to strengthen the stadium and its surrounding properties to enable the stadium to become a self-sustaining premier venue.  It is your Committees' intent to create a source of funding to assist the stadium in pursuing these opportunities.


     Therefore, your Committees have amended this measure by deleting its contents and replacing the contents with language that:


     (1)  Transfers density rights of the properties located at tax map keys (3)7-4-08:03, (3)7-4-08:41, and (3)7-4-08:71 to the Public Land Development Corporation (PLDC);


     (2)  Excludes lands set aside by the Governor, leased to the PLDC by any state agency, or to which the PLDC holds title from the definition of public lands under chapter 171, Hawaii Revised Statutes;


     (3)  Requires prior legislative approval for the sale or gift of land set aside by the Governor or to which the PLDC holds title;


     (4)  Creates the stadium facilities special fund into which shall be deposited a portion of the proceeds generated by the PLDC from Aloha Stadium lands and facilities;


     (5)  Amends the definition of development rights under chapter 171C, Hawaii Revised Statutes, to include all rights related to the development of a property;


     (6)  Allows the PLDC to contract with state or county agencies for lease management services of PLDC-controlled land;


     (7)  Excludes funds to be deposited in the stadium facilities special fund from the funds to be credited to the Hawaii public land development revolving fund; and


     (8)  Makes technical, nonsubstantive amendments for the purposes of clarity and consistency.


     As affirmed by the records of votes of the members of your Committees on Water, Land, and Housing and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2398, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2398, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.


Respectfully submitted on behalf of the members of the Committees on Water, Land, and Housing and Ways and Means,