STAND. COM. REP. NO. 1128-18


Honolulu, Hawaii

, 2018


RE: H.B. No. 2641

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 H.B. No. 2641, H.D. 1, entitled:




begs leave to report as follows:


The purpose of this measure is to revitalize the economy on the island of Hawaii, particularly in the Hilo area by:


(1) Establishing a ten-year pilot project for the redevelopment of the Kanoelehua Industrial Area and Banyan Drive region on Hawaii Island;


(2) Establishing a planning committee, as well as the procedures for the planning committee, and requirements for redevelopment plans for the Kanoelehua Industrial Area and Banyan Drive region; and


(3) Modifying public land lease restrictions.


The Hawaii Association of REALTORS, Hawaii Planing Mill, Ltd. dba HPM Building Supply, and two individuals supported this measure. The League of Women Voters of Hawaii opposed this measure. The Department of the Attorney General, Department of Land and Natural Resources, Mayor of the County of Hawaii, and McCully Works offered comments for this measure.


Your Committee has amended this measure by:


(1) Requiring that two of the public members of the planning committee be selected from nominees submitted by the Mayor of Hawaii County and adding knowledge, experience, and expertise in cultural or recreational matters as an available qualification for the public members;


(2) Clarifying that the planning committee shall include negotiations and collaboration with current lessees and existing redevelopment agencies regarding preparation of the redevelopment plan, renewal or renegotiation of leases for projects in the redevelopment plan, and management of studies to determine the appropriate activities for redevelopment in the designated districts;


(3) Requiring annual public hearings on the proposed redevelopment plan;


(4) Limiting the extension by the Board of Land and Natural Resources of the fixed rental period of existing public land leases; and


(5) Making technical, nonsubstantive amendments for the purpose of clarity and consistency.


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 H.B. No. 2641, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2641, H.D. 2.



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