| 47 | | - | SECTION 1. The legislature finds that the State has a fiduciary duty to manage state lands in the best interests of the public by enhancing state revenues and promoting the social, environmental, and economic well-being of Hawaii's people. East Hawaii county, including the notable Banyan drive area, remains the center of tourism for Hawaii island, and many improvements to infrastructure and key resources are needed to revitalize the region as an economic hub. While the Banyan drive area includes several hotels, condominiums, restaurants, and retail buildings that comprise the economic district, several closures have led to a decline in the economic activities and opportunities in the area. The legislature also finds that the deterioration and decline of key areas for economic growth and tourism impacts the economic, social, and community opportunities for the entire State. The rejuvenation of public lands located on the Waiakea peninsula on the island of Hawaii is in the best interest of the general public and constitutes a valid public purpose. The legislature further finds that the board of land and natural resources should have the authority to withdraw dormant or underutilized public land under existing leases for other higher priority state needs or purposes. Therefore, the purpose of this Act is to establish the Waiakea peninsula on the island of Hawaii as a redevelopment district and to establish: (1) Policies for the management of lands in the redevelopment district; (2) A plan for the district, including district-wide improvements, to be coordinated with state and county land use and planning policies; (3) Asset and property management concepts to optimize income from the properties that are adaptable in response to changing principles of property administration; and (4) A working group to assess the challenges to, and desired outcomes for, redevelopment and to submit a report of its findings and recommendations to the board of land and natural resources. SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows: "Part . waiakea peninsula public lands redevelopment §171-A Definitions. As used in this part, unless the context requires otherwise: "Premises" means the property that is being leased or rented in the Waiakea peninsula redevelopment district. "Public facilities" includes streets and highways, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems. "Waiakea peninsula redevelopment district" means the area of public lands designated for redevelopment pursuant to section 171-B. "Working group" means the Waiakea peninsula redevelopment district working group established pursuant to section 171-C. §171-B Waiakea peninsula redevelopment district; boundaries. (a) The legislature designates the public lands on the Waiakea peninsula on the island of Hawaii classified as commercial and industrial; hotel, apartment, and motel; or resort use pursuant to section 171-10 as the Waiakea peninsula redevelopment district. (b) 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. (c) All rules, policies, procedures, guidelines, leases, contracts, loans, agreements, permits, and other materials and documents adopted or developed by the department to implement applicable state laws shall remain in full force and effect until amended or repealed by the committee. §171-C Waiakea peninsula redevelopment district working group; members; repeal. (a) There is established a Waiakea peninsula redevelopment district working group to: (1) Assess the challenges to and desired outcomes for redevelopment; and (2) Make findings and recommendations for proposed redevelopment to the board for consideration in an opening meeting in accordance with chapter 92. (b) The working group shall be an advisory body to the board and shall consist of the following members: (1) The chairperson of the board, or the chairperson's designee; (2) The administrator of the department's land division, or the administrator's designee; (3) The director of the office of planning and sustainability, or the director's designee; (4) The chairperson of the senate committee on water and land, or the chairperson's designee; (5) The chairperson of the house of representatives committee on water and land, or the chairperson's designee; and (6) The director of planning of the county of Hawaii, or the director's designee. (c) The working group shall conduct its work through meetings, informational briefings, and consultation with the department's lessees, interested community members and organizations, and persons who have expressed an interest in undertaking development projects in the Waiakea peninsula redevelopment district. (d) The department shall provide any necessary administrative support to the working group. (e) The working group shall be dissolved upon the completion of the redevelopment project. §171-D District redevelopment plan. (a) The working group shall prepare, or cause to be prepared through one or more planning departments or consultants procured through the department, a redevelopment plan for the Waiakea peninsula redevelopment district, including district development policies, the district improvement program, necessary public facilities, and the development guidelines and rules for the Waiakea peninsula redevelopment district. In carrying out its planning activities, the working group and the department's consultants shall comply with chapter 205A and applicable county building and zoning ordinances. (b) In preparing a redevelopment plan for the Waiakea peninsula redevelopment district, the following guidelines shall govern the working group's actions: (1) Development of a community according to design policies that promote the appropriate mixture of uses that respond to the social, economic, and physical needs of the residents of the county of Hawaii and the district's businesses; and (2) Recognition of the visitor industry as the primary commercial use of the district and promotion of development and design concepts that preserve environmental elements such as view planes; enhance historical and cultural assets; and are sensitive to the impact on adjacent residential, commercial, industrial, and other uses. (c) The working group, with the assistance of one or more planning or other consultants procured through the department, shall prepare a redevelopment plan for the Waiakea peninsula redevelopment district that may include: (1) Areas principally for: (A) Commercial activities; (B) Resort and hotel activities, including uses that provide facilities and services for visitors; and (C) Public facilities and recreational facilities, with detailed standards for height, bulk, size, and location of buildings; (2) A district-wide improvement program for necessary district-wide public facilities within the Waiakea peninsula redevelopment district; (3) Plans, specifications, and estimates of the costs for the development, construction, deconstruction, reconstruction, or improvement of any project in the Waiakea peninsula redevelopment district, and from time to time, the modification of plans, specifications, or estimates; (4) Determination of the lease rental that should be established for the specific uses and the terms and conditions of the leases; (5) 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 (6) Allowing 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. (d) Notwithstanding any law or court decision to the contrary, upon a finding that it is in the public interest to do so, the board may withdraw dormant or underutilized public land under existing public auction or directly negotiated leases for other priority needs or purposes. This authority to withdraw shall apply retroactively to all existing leases. (e) The working group shall submit the redevelopment plan to the board for approval. The board shall review the redevelopment plan to approve, disapprove, or modify the plan as necessary. Upon approval by the board, the board shall act to implement the redevelopment plan in a timely manner. (f) Prior to submission of the board for adoption, the working group shall hold a public hearing on a proposed redevelopment plan for the Waiakea peninsula redevelopment district and shall consider comments received and incorporate any revisions to the plan as may be necessary. (g) The board shall submit a preliminary report of its findings and recommendations, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2024." SECTION 3. 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 2022-2023 for the establishment and operations of the Waiakea peninsula redevelopment district working group established pursuant to section 2 of this Act, including the procurement of planning and consultant services. The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act. SECTION 4. 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 5. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 6. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. SECTION 7. This Act shall take effect on July 1, 2050. |
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| 47 | + | SECTION 1. The legislature finds that the infrastructure and facilities on public lands in East Hawaii have been deteriorating for years. To incentivize lessees of public lands to make major investments in infrastructural improvements and ensure the long-term maintenance of facilities on the land, the legislature established the Hilo community economic district under Act 149, Session Laws of Hawaii 2018 (Act 149). Act 149 specifically established a ten-year pilot project to authorize the board of land and natural resources to extend leases of public land in an area designated as the Hilo community economic district to facilitate efficient and effective improvement and economic opportunity in the area for lessees who commit to making substantial improvements to existing improvements or constructing new substantial improvements. Although Act 149 is important tool for incentivizing lessees of public lands to make necessary improvements to infrastructure and facilities, it does not provide for an overarching redevelopment plan for a special and unique area of the Hilo community economic district known as the Waiakea peninsula. The legislature further finds that the Waiakea peninsula serves an important function in supporting the island of Hawaii's tourism industry. Approximately eighty-five per cent of overnight visitor accommodations in east Hawaii county are located in the Waiakea peninsula. Given the competitive tourism market, ensuring that the Waiakea peninsula is well-maintained and appealing for visitors is critical for the tourism industry on the island of Hawaii. Since the State owns a large part of the Waiakea peninsula, it has the primary responsibility to oversee the redevelopment of the area to ensure that it does not deteriorate further and detrimentally impact the economy of the community as a whole. Accordingly, the legislature finds that the rejuvenation of dilapidated, obsolete, and deteriorated public lands located on the Waiakea peninsula on the island of Hawaii is in the best interest of the public and constitutes a valid public purpose. The purpose of this Act is to establish the Waiakea peninsula redevelopment district and redevelopment and planning committee for the redevelopment of public lands on the Waiakea peninsula. SECTION 2. Chapter 171, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows: "Part . waiakea peninsula public lands redevelopment §171-A Definitions. As used in this part, unless the context requires otherwise: "Premises" means the property that is being leased or rented in the Waiakea peninsula redevelopment district. "Public facilities" includes streets and highways, storm drainage systems, water systems, street lighting systems, off-street parking facilities, and sanitary sewerage systems. "Waiakea peninsula redevelopment district" means the area of public lands designated for redevelopment pursuant to section 171-B. "Waiakea redevelopment and planning committee" or "committee" means the redevelopment and planning committee established for the Waiakea peninsula redevelopment district pursuant to section 171-C. §171-B Waiakea peninsula redevelopment district; boundaries. (a) The legislature designates the public lands on the Waiakea peninsula on the island of Hawaii classified as commercial and industrial; hotel, apartment, and motel; or resort use pursuant to section 171-10 as the Waiakea peninsula redevelopment district. (b) 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 street; Kalanianaole street 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. (c) All rules, policies, procedures, guidelines, leases, contracts, loans, agreements, permits, and other materials and documents adopted or developed by the department to implement applicable state laws shall remain in full force and effect until amended or repealed by the committee. §171-C Waiakea redevelopment and planning committee; members; district administrator; repeal. (a) A redevelopment and planning committee for the Waiakea peninsula redevelopment district shall be established within the department for administrative purposes. (b) The committee 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 of Hawaii, or their designated representatives, who shall be ex officio, voting members; and (2) Seven members of the public appointed by the governor pursuant to section 26-34; provided that: (A) Two of the members shall be selected from a list of three names for each nomination submitted by the president of the senate, in collaboration with the senate legislators from the county of Hawaii; and two of the members shall be selected from a list of three names for each nomination submitted by the speaker of the house of representatives, in collaboration with the house legislators from the county of Hawaii; (B) All members shall be residents of the State, and three of the members shall be residents of the county of Hawaii; (C) One of the members shall represent the business sector of the county of Hawaii; (D) One of the members shall have experience and expertise in the area of Hawaiian cultural practices; and (E) All members shall be selected on the basis of their knowledge, experience, and expertise in one of the following areas: (i) Management of small or large businesses; (ii) Economics, banking, investment, or finance; (iii) Real estate development; (iv) Marketing; (v) Regenerative tourism practices; (vi) Hawaiian cultural practices; or (vii) Hotel and resort management; provided further that the governor shall select the members nominated under subparagraph (A) no later than days after receipt of each list and shall appoint all other members no later than days after the effective date of this Act. (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 Waiakea peninsula redevelopment district. The district administrator shall have expertise in engineering, planning, architecture, real estate, or law. 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 Waiakea peninsula redevelopment district; (4) Notwithstanding any other law to the contrary, renew or renegotiate any lease in connection with any project contained in the redevelopment plan for the designated district, on terms and conditions as the committee deems advisable; (5) Prepare or cause to be prepared plans, design criteria, landscaping, and estimates of costs for the construction, rehabilitation, repair, or destruction of any project contained in the redevelopment plan, and from time to time 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 Waiakea peninsula redevelopment district; (7) Reduce or waive the lease rental on any lease of public land for any project in the Waiakea peninsula redevelopment district that requires substantial improvements; provided that the duration of 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 Waiakea peninsula redevelopment district, including engaging 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 Waiakea peninsula redevelopment district's planning, incremental projects, work schedules, public works, and budget; (11) Sue or be sued; (12) Adopt a seal and alter the same at its pleasure; and (13) 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 Waiakea peninsula redevelopment district, including district development policies, the district improvement program, necessary public facilities, and the development guidelines and rules for the Waiakea peninsula redevelopment district. In carrying out its planning activities, the committee shall comply with chapter 205A and applicable county building and zoning ordinances. (b) In preparing a redevelopment plan for the Waiakea peninsula redevelopment district, the following guidelines shall govern the committee's actions: (1) Development of a community according to design policies that promote the appropriate mixture of uses that respond to the social, economic, and physical needs of the residents of the county of Hawaii and the district's businesses; and (2) Recognition of the visitor industry as the primary commercial use of the district and promotion of development and design concepts that preserve environmental elements such as view planes; enhance historical and cultural assets; and are sensitive to the impact on adjacent residential, commercial, industrial, and other uses. (c) The committee shall prepare a redevelopment plan for the Waiakea peninsula redevelopment district that: (1) Establishes, if applicable, areas principally for: (A) Commercial activities; (B) Processing, construction, deconstruction, 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 Waiakea peninsula redevelopment district; (3) Includes plans, specifications, and estimates of the costs for the development, construction, deconstruction, reconstruction, or improvement of any project in the Waiakea peninsula redevelopment district, and from time to time modify the plans, specifications, or estimates; (4) If possible, identifies specific uses for areas in the Waiakea peninsula redevelopment 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. (d) 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. (e) Before adoption, the committee shall hold a public hearing on a proposed redevelopment plan for the Waiakea peninsula redevelopment district and shall consider the comments received and incorporate any revisions to the plan that may be necessary. (f) No later than after the effective date of this Act, the committee shall submit a report to the board of the redevelopment plan adopted 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 the redevelopment plan to approve, disapprove, or modify the plan and provide such recommendation in its report and submit the report to the governor and the legislature with a request for any necessary appropriations or bond authorizations. §171-F Leases. All leases renewed or reissued by the committee may contain: (1) The lessee's name, telephone number, address, and electronic mail address; (2) A description of the premises being leased; (3) The specific use or uses to which the premises shall be limited; provided that no other uses shall be permitted without the prior written consent of the committee; (4) The exact commencement and termination dates of the lease, and the specific term and type of notice required to exercise any renewal option; (5) The rent payable not more than one year in advance or in installments in monthly, quarterly, semiannual, or annual payments; (6) When rent is based on a percentage of sales, the rent shall be a percentage of the gross sales sold from the premises; or a minimum or base rent, plus a percentage of sales over an amount established by negotiation; (7) A rent adjustment clause tied to an inflation-based index, such as the consumer price index, to allow an annual rent adjustment, downward or upward, based on the index; (8) The repairs and maintenance that are the responsibility of the lessee and the systems and components that are the responsibility of the committee; provided that all modifications and improvements shall be done in compliance with applicable building codes and zoning ordinances; (9) Insurance coverage, at a minimum, for fire, liability, and property damage; (10) Prohibition of assignment or subletting of the lease without the written consent of the committee; (11) Criteria for lessee default, including: (A) Failure to pay any installment of rent or other payment within an agreed to number of days after the due date; (B) Failure to perform or observe any covenant, term, or condition under the lease; or (C) Failure to continue a business, or vacating or abandoning the premises; and (12) Remedies for lessee default, including: (A) Failure to perform as required by the lease; (B) Termination of the lease and suing for damages; and (C) Dispossessing the lessee and suing for damages. §171-G Waiakea peninsula redevelopment district revolving fund. (a) There is established the Waiakea peninsula redevelopment district revolving fund into which shall be deposited: (1) The revenues, income, and receipts from the public lands in the Waiakea peninsula redevelopment district that is established by the committee; (2) Moneys appropriated by the legislature to the revolving fund; and (3) Any gifts, grants, and other funds accepted by the committee. (b) Moneys in the revolving fund shall be expended by the committee and used in the Waiakea peninsula redevelopment 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 revolving fund shall be transferred to the special land and development fund established pursuant to section 171-19." SECTION 3. (a) All deeds, leases, contract, loans, agreements, permits, or other documents executed or entered into by or on behalf of the department of land and natural resources, pursuant to the provisions of the Hawaii Revised Statutes that are enacted, transferred, or made applicable to the Waiakea peninsula redevelopment district redevelopment and planning committee by this Act shall remain in full force and effect. (b) Effective July 1, , every reference to the department of land and natural resources or the chairperson of the board of land and natural resources to all deeds, leases, contract, loans, agreements, permits, or other documents enacted, transferred, or made applicable to the Waiakea peninsula redevelopment district redevelopment and planning committee pursuant to subsection (a) shall be construed as a reference to the Waiakea peninsula redevelopment district redevelopment and planning committee or the district administrator, as appropriate. SECTION 4. Upon repeal of this Act, all leases, contract, agreements, permits, or other documents executed or entered into by or on behalf of the Waiakea peninsula redevelopment district redevelopment and planning committee shall remain in full force and effect and shall be administered by the department of land and natural resources. SECTION 5. Upon repeal of this Act, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property held by the Waiakea peninsula redevelopment district redevelopment and planning committee shall be transferred to the department of land and natural resources. SECTION 6. 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 2022-2023 to be deposited into the Waiakea peninsula redevelopment district revolving fund. SECTION 7. 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 2022-2023 for the purposes of this Act. The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act. SECTION 8. The revisor of statutes shall insert the effective date of this Act in the appropriate location in section 2 of this Act. SECTION 9. 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 10. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 11. If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable. SECTION 12. This Act shall take effect on July 1, 2050, and shall be repealed on June 30, 2032. |
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