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 . 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; transfer to the committee. (a) The legislature shall designate redevelopment districts by law 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.
(c) The law designating the redevelopment district shall transfer the management of the public lands within the district to the planning committee for the designated district; provided that any lessee or permittee within the designated district shall perform in full compliance with the existing lease or permit.
(d) All rules, policies, procedures, guidelines, leases, contracts, loans, agreements, permits, and other materials and documents adopted or developed by the department of land and natural resources to implement applicable state laws shall remain in full force and effect until amended or repealed by the committee.
§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 an executive committee for the designated district and shall consist of nine voting members. The committee shall consist of:
(1) The chairperson of the board of land and natural resources and the director of planning of the county in which the designated district is located, or their designated representatives, who shall be ex officio, voting members of the committee; and
(2) Seven voting members of the public appointed by the governor pursuant to section 26-34; provided that of the members appointed pursuant to this paragraph:
(A) Three members shall be selected from a list of six names for each nomination submitted by the president of the senate and the speaker of the house of representatives in collaboration with the legislators representing the county in which the designated district is located;
(B) All members shall be selected on the basis of their knowledge, experience, and expertise in:
(i) Management of small or large businesses;
(ii) Economics, banking, investment, or finance;
(iii) Real estate development;
(iv) Real estate management;
(v) Marketing; or
(vi) Hotel and resort management; and
(C) Four members shall be residents of the county in which the designated district is located, and three members shall be residents of the State and reside in a county other than the county in which the designated district is located.
(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 redevelopment 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 district and renew or renegotiate any lease in connection with any project contained in the redevelopment plan for the designated district, on terms and conditions pursuant to section 171-F and consistent with the redevelopment 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 redevelopment 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 redevelopment 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 of the services of consultants for rendering of professional and technical assistance and advice;
(9) Enter into a development agreement with a developer or developers for any project contained in the redevelopment 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 redevelopment plan and with applicable state and county laws and ordinances;
(C) The period of time for the construction and completion of the redevelopment; 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 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 provisions 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 the nonconforming building shall not 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 redevelopment plan recommended by the committee with its recommendations for appropriations by the legislature or the authorization of bonds or both, to implement the redevelopment plan in a timely manner. The board shall review and approve the recommended redevelopment 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 committee 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. The legislature designates the public lands on the Waiakea peninsula on the island of Hawaii as the Waiakea peninsula redevelopment district.
SECTION 4. The Waiakea peninsula redevelopment district shall include the area bounded by the shoreline from the intersection of Lihiwai street and Kamehameha avenue; Kamehameha avenue to its intersection with Kalanianaole avenue; Kalanianaole avenue to its intersection with Banyan way; Banyan way from its intersection with Kalanianaole avenue to its intersection with Banyan drive; from the intersection of Banyan way and Banyan drive to the shoreline; the shoreline around the Waiakea peninsula, including Mokuola island, to the intersection of Lihiwai street and Kamehameha avenue.
SECTION 5. There is established a Waiakea peninsula redevelopment district planning committee. The committee shall be appointed as provided in section 171-C, Hawaii Revised Statutes, and shall exercise the powers and duties in the designated district as authorized by chapter 171, part , Hawaii Revised Statutes. Pursuant to section 171-B(c), Hawaii Revised Statutes, the public lands within the Waiakea peninsula redevelopment district are transferred to the Waiakea peninsula redevelopment district planning committee.
SECTION 6. 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 7. 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 8. 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 9. Chapter 171, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§171- Development of public lands in a redevelopment area. (a) Notwithstanding any provision of law to the contrary, a local redevelopment agency created pursuant to section 53-2, with the prior approval of the council of the applicable county, approval of the governor, and authorization of the legislature by concurrent resolution, may negotiate a development agreement with a developer for commercial, business, or hotel or resort uses on public lands within a redevelopment area according to a redevelopment plan adopted by the local redevelopment agency pursuant to chapter 53.
(b) The development agreement shall provide for the leasehold disposition of the land and shall:
(1) Describe the land subject to the development agreement, including the location, area, and size of the land;
(2) Specify the permitted use or uses for the land;
(3) Require that the permitted use or uses conform with all applicable state and county laws and ordinances;
(4) Include the start and completion dates of construction negotiated with the developer;
(5) Specify the on-site and off-site improvements involved with the development;
(6) Provide the lease commencement and termination dates and rent requirements of the land specified in the development agreement; and
(7) Include any other terms or conditions determined to be necessary by the local redevelopment agency."
SECTION 10. Chapter 237, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§237- Redevelopment project. (a) This chapter shall not apply to amounts received from the construction of work or improvements of a redevelopment project.
(b) For the purposes of this section:
"Construction of work or improvements of a redevelopment project" includes any costs of design, engineering, labor, and materials associated with the demolition and construction of a redevelopment project that is part of the redevelopment plan adopted by a local redevelopment agency pursuant to chapter 53.
"Redevelopment project" shall have the same meaning as defined in section 53-1."
SECTION 11. Section 238-1, Hawaii Revised Statutes, is amended by amending the definition of "use" to read as follows:
""Use" (and any nounal, verbal, adjectival, adverbial, and other equivalent form of the term) herein used interchangeably means any use, whether the use is of such nature as to cause the property, services, or contracting to be appreciably consumed or not, or the keeping of the property or services for such use or for sale, the exercise of any right or power over tangible or intangible personal property incident to the ownership of that property, and shall include control over tangible or intangible property by a seller who is licensed or who should be licensed under chapter 237, who directs the importation of the property into the State for sale and delivery to a purchaser in the State, liability and free on board (FOB) to the contrary notwithstanding, regardless of where title passes, but the term "use" shall not include:
(1) Temporary use of property, not of a perishable or quickly consumable nature, where the property is imported into the State for temporary use (not sale) therein by the person importing the same and is not intended to be, and is not, kept permanently in the State. For example, without limiting the generality of the foregoing language:
(A) In the case of a contractor importing permanent equipment for the performance of a construction contract, with intent to remove, and who does remove, the equipment out of the State upon completing the contract;
(B) In the case of moving picture films imported for use in theaters in the State with intent or under contract to transport the same out of the State after completion of such use; and
(C) In the case of a transient visitor importing an automobile or other belongings into the State to be used by the transient visitor while therein but which are to be used and are removed upon the transient visitor's departure from the State;
(2) Use by the taxpayer of property acquired by the taxpayer solely by way of gift;
(3) Use which is limited to the receipt of articles and the return thereof, to the person from whom acquired, immediately or within a reasonable time either after temporary trial or without trial;
(4) Use of goods imported into the State by the owner of a vessel or vessels engaged in interstate or foreign commerce and held for and used only as ship stores for the vessels;
(5) The use or keeping for use of household goods, personal effects, and private automobiles imported into the State for nonbusiness use by a person who:
(A) Acquired them in another state, territory, district, or country;
(B) At the time of the acquisition was a bona fide resident of another state, territory, district, or country;
(C) Acquired the property for use outside the State; and
(D) Made actual and substantial use thereof outside this State;
provided that as to an article acquired less than three months prior to the time of its importation into the State it shall be presumed, until and unless clearly proved to the contrary, that it was acquired for use in the State and that its use outside the State was not actual and substantial;
(6) The leasing or renting of any aircraft or the keeping of any aircraft solely for leasing or renting to lessees or renters using the aircraft for commercial transportation of passengers and goods or the acquisition or importation of any such aircraft or aircraft engines by any lessee or renter engaged in interstate air transportation. For purposes of this paragraph, "leasing" includes all forms of lease, regardless of whether the lease is an operating lease or financing lease. The definition of "interstate air transportation" is the same as in 49 U.S.C. 40102;
(7) The use of oceangoing vehicles for passenger or passenger and goods transportation from one point to another within the State as a public utility as defined in chapter 269;
(8) The use of material, parts, or tools imported or purchased by a person licensed under chapter 237 which are used for aircraft service and maintenance, or the construction of an aircraft service and maintenance facility as those terms are defined in section 237-24.9;
(9) The use of services or contracting imported for
resale where the contracting or services are for resale, consumption, or use
outside the State pursuant to section 237-29.53(a); [
(10) The use of property, services, or contracting
imported by foreign diplomats and consular officials who are holding cards
issued or authorized by the United States Department of State granting them an
exemption from state taxes[
(11) The use of material, parts, or tools imported or purchased by a person licensed under chapter 237 that are used for the construction of work or improvements of a redevelopment project as defined in section 237‑ .
With regard to purchases made and distributed under the authority of chapter 421, a cooperative association shall be deemed the user thereof."
SECTION 12. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 13. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 14. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 15. This Act shall take effect on July 1, 2019; provided that the county of Hawaii repeals the Banyan Drive Hawaii redevelopment agency.
Public Lands; Redevelopment; Waiakea Peninsula; Appropriation
Authorizes 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. Designates the public lands on the Waiakea peninsula on the island of Hawaii as the Waiakea Peninsula Redevelopment District. Authorizes a local redevelopment agency to contract with a developer for construction of non-residential projects on public land within a redevelopment area. Exempts the costs of construction of work or improvements of a redevelopment project from general excise and use taxes. Takes effect provided that the County of Hawaii repeals the Banyan Drive Hawaii redevelopment agency. Makes an appropriation. (Proposed SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.