STAND. COM. REP. NO.  1932-18


Honolulu, Hawaii

                , 2018


RE:   S.B. No. 3058

      S.D. 2

      H.D. 2





Honorable Scott K. Saiki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 3058, S.D. 2, H.D. 2, entitled:




begs leave to report as follows:


            The purpose of this measure is to promote the revitalization and redevelopment of certain public lands that have become dilapidated or obsolete or have deteriorated over time.  Specifically, this measure:


     (1)  Establishes a ten-year pilot project for the redevelopment of two distinct and separate areas that include the Kanoelehua Industrial Area and the Banyan Drive region of the Island of Hawaii and establishes and implements guidelines for the redevelopment of the Kanoelehua Industrial Area and Banyan Drive region that will:


          (A)  Define the policies for the management of public lands in the designated area;


          (B)  Establish a plan for the designated area, including district-wide improvements, that is coordinated with state and county land use and planning policies;


          (C)  Implement asset and property management concepts that can optimize income from the properties and evolve in response to changing principles of property administration; and


          (D)  Make optimal use of public lands for the economic, environmental, and social benefit of the people of Hawaii;


     (2)  Appropriates funds for the establishment of the pilot project and associated costs; and


     (3)  Modifies certain public land lease restrictions, terms, and conditions applicable to lessees with limited time remaining on their lease term, including by increasing the period of time during which a lessee may seek renewal of their lease from ten years to twenty years before the end of the term of the original lease.  


     The Japanese Chamber of Commerce and Industry of Hawaii, Hawaii Association of REALTORS, Oahu County Committee on Legislative Priorities of the Democratic Party of Hawaii, HPM Building Supply, Hawaii Leeward Planning Conference, Hawaii Island Economic Development Board, Association of Apartment Owners Country Club Hawaii, and several concerned individuals testified in support of this measure.  The Department of Land and Natural Resources and League of Women Voters of Hawaii testified in opposition to this measure.  The Department of the Attorney General, Office of the Mayor of the County of Hawaii, General Contractors Association of Hawaii, McCully Works, Hawaii Regional Council of Carpenters, Pacific Resource Partnership, and a concerned individual provided comments.


     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3058, S.D. 2, H.D. 2, and recommends that it pass Third Reading.


Respectfully submitted on behalf of the members of the Committee on Finance,