HOUSE OF REPRESENTATIVES
THIRTIETH LEGISLATURE, 2019
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO PUBLIC LANDS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that because of the policies guiding the management of public lands with commercial, industrial, resort, and hotel uses, there has been little incentive for the lessees to make major improvements to their infrastructure, resulting in the deterioration of infrastructure and facilities. The lack of improvements in many of these areas has resulted in dilapidation, deterioration, or obsolescence of the buildings and structures.
The department of land and natural resources has the responsibility of planning for the disposition of commercial, industrial, and hotel and resort classes of public lands to determine specific uses, the minimum sizes of parcels, required building construction or improvements, and lease terms and requirements.
The legislature finds that the rejuvenation of areas of public lands that have become dilapidated, obsolete, or have deteriorated over time is in the public interest and constitutes a valid public purpose.
The purpose of this Act is to authorize the designation of areas or regions of public lands classified as commercial, industrial, resort and hotel, and the establishment and implementation of guidelines for the redevelopment of the areas or regions that will:
(1) Modernize the policies for the management of public lands in the designated area;
(2) Establish a plan for the designated area, including district-wide improvements, that is coordinated with state and county land use and planning policies; and
(3) Implement asset and property management concepts that can optimize income from the properties and evolve in response to changing principles of property administration.
SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"PART A. PUBLIC LANDS REDEVELOPMENT
§171-A Definitions. As used in this part, unless the context requires otherwise:
"Planning committee" or "committee" means the policy-making committee established for a redevelopment district pursuant to section 171-C.
"Premises" means the property that is being leased or rented in a designated district.
"Public facilities" include streets and highways, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems.
"Redevelopment district" or "designated district" means an area of public lands designated for redevelopment pursuant to section 171-B.
§171-B Designation of redevelopment district; boundaries. (a) The legislature may designate redevelopment districts by statute for any area of public lands classified as commercial and industrial; hotel, apartment, and motel; or resort use pursuant to section 171-10, if the legislature determines that there is a need for planning, development, or redevelopment because the buildings and infrastructures in the area are dilapidated or have deteriorated due to age or obsolescence.
(b) The designation shall specify the boundaries of the redevelopment district.
§171-C Planning committee; members; district administrator; repeal. (a) Upon the designation of a redevelopment district pursuant to section 171-B, a planning committee for the designated district shall be established within the department for administrative purposes.
(b) The committee shall be a policy-making committee for the designated district and shall consist of nine voting members.
(c) The committee shall elect its chairperson from among its members of the public.
(d) The members of the committee shall serve without compensation but shall be reimbursed for reasonable expenses, including travel expenses, incurred in the performance of their duties. This subsection shall not be construed to prohibit the ex-officio members of the committee from receiving their salaries and wages for their work as public officials.
(e) The committee shall appoint a district administrator, who shall be the chief executive officer for the designated district. The district administrator shall have expertise in development of commercial, industrial, resort, or hotel lands as well as expertise in at least one of the following areas and shall be selected on the basis of the person's knowledge, experience, and expertise in management of small or large businesses; economics, banking, investment, or finance; real estate development; real estate management; law; marketing; or hotel and resort management. The committee shall set the district administrator's duties, responsibilities, holidays, vacations, leaves, hours of work, and working conditions. The committee shall set the salary of the district administrator, who shall serve at the pleasure of the committee and shall be exempt from chapter 76.
(f) The committee shall be dissolved upon the completion of the redevelopment project.
§171-D Powers and duties; generally; exemption from administrative supervision of boards and commissions. (a) The committee shall have the following powers and duties:
(1) Through its district administrator, appoint staff and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76;
(2) Through its district administrator:
(A) Allocate space or spaces that are to be occupied by the committee and appropriate staff; and
(B) Purchase necessary supplies, equipment, or furniture;
(3) Prepare a development plan for the designated district that will be submitted to the board for review and approval;
(4) Notwithstanding any other law to the contrary, lease public lands in a designated redevelopment district and renew or renegotiate any lease in connection with any project contained in the development plan for the designated district, on terms and conditions pursuant to section 171-F and consistent with the development plan;
(5) Prepare or cause to be prepared plans, design criteria, landscaping, and estimates of costs for the construction, rehabilitation, or repair of any project contained in the development plan for the designated district, and from time to time to modify the plans, or estimates;
(6) Conduct studies in conjunction with county and state agencies necessary to determine the appropriate activities for development in the designated district;
(7) Reduce or waive the lease rental on any lease of public land for any project in the designated district that requires substantial improvements; provided that the reduction or waiver shall not exceed one year;
(8) Make and execute all contracts and instruments necessary for the exercise of its powers and functions relating to the designated district, including the engaging the services of consultants to render professional and technical assistance and advice;
(9) Enter into a development agreement with a developer or developers for any project contained in the development plan; provided that the development agreement shall contain:
(A) A description of the location, area, and size of the parcel to be developed;
(B) The use or uses to which the parcel shall be put in conformance with the development plan, and with applicable state and county laws and ordinances;
(C) The period of time for the construction and completion of the development; and
(D) Other terms and conditions that the committee deems necessary;
(10) Work closely and communicate with the county to coordinate the execution of the designated district's planning, incremental projects, work schedules, public works, and budget; and
(11) Do any and all things necessary to carry out its purposes and exercise the powers given and granted in this part.
(b) Notwithstanding any law to the contrary, the committee shall be exempt from section 26-35(a)(1),(4),(5), and (6).
§171-E District redevelopment plan. (a) The committee shall prepare a redevelopment plan for the designated district, including district development policies, the district improvement program, necessary public facilities, and the development guidelines and rules for the designated development district. In carrying out its planning activities, the committee shall comply with chapter 205A and applicable county building and zoning ordinances.
(b) The committee shall prepare a redevelopment plan for the designated district that:
(1) Establishes, if applicable, areas principally for:
(A) Commercial activities;
(B) Processing, construction, manufacturing, transportation, wholesaling, storage and similar industrial activities;
(C) Resort and hotel activities, including uses that provide facilities and services for visitors; and
(D) Public facilities and recreational facilities; with detailed standards for height, bulk, size, and location of buildings;
(2) Includes a district-wide improvement program for necessary district-wide public facilities within the designated district;
(3) Includes plans, specifications, and estimates of the costs for the development, construction, reconstruction, or improvement of any project in the designated district, and from time to time modify the plans, specifications, or estimates;
(4) If possible, identifies specific uses for areas in the designated district and the required parceling of land into minimum size areas related to the specific uses;
(5) Determines the lease rental that should be established for the specific uses and the terms and conditions of the leases;
(6) Establishes interim development controls to be implemented during the transition to the execution of the redevelopment plan, such as recommending the holdover of a lessee pursuant to section 171-40 or issuance of permits pursuant to section 171-55 to existing lessees upon the expiration of their lease terms; and
(7) Allows the use of land or any building existing on the date the redevelopment plan is adopted to continue as a nonconforming use; provided that no nonconforming building shall be replaced, expanded, or changed to another nonconforming use.
(c) The district redevelopment plan may provide for the withdrawal or taking for public purposes of public land or portion of public land under a lease. The rental shall be reduced in proportion to the value of the portion of the premises condemned, and the lessee shall be entitled to receive the proportionate value of the permanent improvements legally made to or constructed upon the land by the lessee taken in the proportion that it bears to the unexpired term of the lease.
(d) Prior to adoption, the committee shall hold a public hearing on a proposed redevelopment plan for the designated district and shall consider the comments received and incorporate any revisions to the plan that may be necessary.
(e) The committee shall submit an annual report on the progress of the redevelopment project to the board. The report may include the development plan recommended by the committee with its recommendations for appropriations by the legislature or the authorization of bonds or both, to implement the development plan in a timely manner. The board shall review and approve the recommended development plan and shall submit the report to the governor and the legislature with a request for the required appropriations and bond authorization.
§171-F Designated redevelopment district revolving fund. (a) A separate revolving fund shall be established for each redevelopment district designated pursuant to section 171-B, into which shall be deposited:
(1) Fifty per cent of the revenues, income, and receipts of the department from the public lands in the designated district, notwithstanding section 171-19;
(2) Moneys appropriated by the legislature to the revolving fund; and
(3) Any gifts, grants, and other funds accepted by the committee.
Each revolving fund shall bear the name used by the legislature in designating the redevelopment district.
(b) Moneys in each designated redevelopment district revolving fund shall be expended by the department and used in the designated district for the purposes of this part; provided that no expenditure shall be made from the fund and no obligation shall be incurred against the fund in excess of the amount standing to the credit of the fund.
(c) After the committee is dissolved, the unencumbered balance remaining in the corresponding redevelopment district revolving fund shall be transferred to the special land and development fund established pursuant to section 171-19."
SECTION 3. There is established the Waiakea peninsula redevelopment district revolving fund, into which shall be deposited:
(1) Fifty per cent of the revenues, income, and receipts from the public lands in the Waiakea peninsula redevelopment district;
(2) Moneys appropriated by the legislature to the revolving fund; and
(3) Any gifts, grants, and other funds accepted by the Waiakea peninsula redevelopment district planning committee.
The moneys in the revolving fund shall be used in the Waiakea peninsula redevelopment district for the purposes described in chapter 171, part A, Hawaii Revised Statutes.
SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 to be deposited into Waiakea peninsula redevelopment district revolving fund.
SECTION 5. There is appropriated out of the Waiakea peninsula redevelopment district revolving fund the sum of $ or so much thereof as may be necessary for fiscal year 2019-2020 and the same sum or so much thereof as may be necessary for fiscal year 2020-2021 for the purposes of this part.
The sums appropriated shall be expended by the department of land and natural resources for the purposes of this part.
SECTION 6. In codifying the new part and sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate part and section numbers for the letters used in designating the new sections in this Act.
SECTION 7. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 8. This Act shall take effect on July 1, 2050; provided that part III shall be repealed on June 30, 2029.
Public Lands; Redevelopment; Waiakea Peninsula; Appropriation
Allows the designation of areas or regions of public lands according to certain categories. Allows the establishment and implementation of guidelines for the redevelopment of the areas or regions. Establishes and appropriates funds for the Waiakea Peninsula Redevelopment District Revolving Fund. (HB1219 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.