Bill Text: HI SB3058 | 2018 | Regular Session | Amended
Bill Title: Relating To Public Lands.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Passed) 2018-07-10 - Act 149, on 07/06/2018 (Gov. Msg. No. 1250). [SB3058 Detail]
Download: Hawaii-2018-SB3058-Amended.html
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THE SENATE |
S.B. NO. |
3058 |
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TWENTY-NINTH LEGISLATURE, 2018 |
S.D. 2 |
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STATE OF HAWAII |
H.D. 1 |
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A BILL FOR AN ACT
RELATING TO PUBLIC LANDS.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
PART I
SECTION 1. Findings; purpose. (a) The legislature finds that:
(1) Because of the policies guiding the management of urbanized public lands with commercial, industrial, hotel, and resort uses, there has been little incentive for the lessees of those properties to make major investments in improvements to their infrastructure, resulting in the deterioration of infrastructure and facilities;
(2) The lack of improvement to property in many of these areas has resulted in dilapidation, deterioration, age, or obsolescence of the buildings and structures in those areas; and
(3) The department of land and natural resources has the responsibility of planning for the disposition of commercial, industrial, hotel, and resort classes of public lands to determine:
(A) Specific use or uses;
(B) Minimum size of parcels;
(C) Required building construction or improvements; and
(D) Lease terms and requirements.
(b) The purpose of this Act is to establish a ten-year pilot project for the redevelopment of the Kanoelehua industrial area and Banyan drive region and establish and implement guidelines for the redevelopment of the Kanoelehua industrial area and Banyan drive region that will:
(1) Define 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. Definitions. As used in this Act, unless the context indicates otherwise:
"Department" means the department
of land and natural resources.
"Board" means the board of land
and natural resources.
"Planning committee" or "committee" means the policy-making committee established for the redevelopment 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 the area of public lands designated for redevelopment within the Kanoelehua industrial area and Banyan drive region.
SECTION 3. Redevelopment district pilot project; Kanoelehua industrial area and Banyan drive region; established. The Kanoelehua industrial area and Banyan drive region shall be established as a redevelopment district until June 30, 2028.
SECTION 4. Planning committee; district administrator; repeal. (a) A planning committee for the redevelopment district shall be established and placed in the department for administrative purposes.
(b) The committee shall be a policy-making committee for the designated district and shall consist of nine members. The members 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 public, voting members appointed by the governor pursuant to section 26-34, Hawaii Revised Statutes; provided that of the members appointed pursuant to this paragraph:
(A) Three members shall be selected from a list of six names submitted by the president of the senate and speaker of the house of representatives in collaboration with the legislators from the county in which the designated district is located and two members shall be selected from a list of four names submitted by the mayor of the county in which the designated district is located;
(B) The seven 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 or management;
(iv) Cultural or recreational matters;
(v) Marketing; or
(vi) Hotel and resort management; and
(C) All seven members shall be residents of the county of Hawaii.
(c) The committee shall elect its chairperson from among its public, voting members.
(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.
(e) The committee shall appoint a district administrator, who shall be the chief executive officer for the designated district. The district administrator shall have experience and 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, Hawaii Revised Statutes.
(f) The committee shall be dissolved on June 30, 2028.
SECTION 5. Planning committee; powers and duties;
generally. The committee shall have the
powers and duties related to its functions in the designated district that are
delegated to the committee by the board.
In addition, the committee may:
(1) Through its district administrator, appoint staff and employees, prescribe their duties and qualifications, and fix their salaries, without regard to chapter 76, Hawaii Revised Statutes;
(2) Through its district administrator, allocate space or spaces that are to be occupied by the committee and appropriate staff, and purchase necessary supplies, equipment, or furniture;
(3) Prepare a redevelopment plan for the designated district and consider any plans established by any existing redevelopment agency established under chapter 53, Hawaii Revised Statutes;
(4) Notwithstanding any other law to the contrary, renew or renegotiate with the current lessee of any public land 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, 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, to include third party studies coordinated 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 in duration;
(8) Make and execute all contracts and instruments that are necessary for the exercise of the committee's powers and functions relating to the designated district, including the engaging of the services of consultants for the rendering of professional and technical assistance and advice;
(9) Enter into a redevelopment agreement with a developer or developers for any project contained in the redevelopment plan; provided that the redevelopment agreement shall contain:
(A) The location, area, and size of the parcel to be redeveloped;
(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;
provided that where the contract for a construction project exceeds $200,000, the redevelopment agreement shall require the developer or developers or their contractors or subcontractors to pay craft employees not less than the prevailing wage rates subject to chapter 104, Hawaii Revised Statutes, and this prevailing wage requirement shall be stated in the redevelopment agreement, which shall be filed with the committee; and provided further that the developer or developers shall submit weekly certified payrolls to the committee;
(10) Work closely and communicate with the county government 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 the committee's purposes and exercise the powers established pursuant to this Act.
SECTION 6. 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 applicable state
and county statutes, ordinances, and rules.
The committee shall liaise with any existing redevelopment authority
established by chapter 53, Hawaii Revised Statutes, in preparing and
implementing the plan.
(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; or
(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; provided that the committee may 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; and
(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, Hawaii Revised Statutes, or issuance of permits pursuant to section 171-55, Hawaii Revised Statutes, to existing lessees upon the expiration of their lease terms.
(c) The district redevelopment plan may provide for the withdrawal or taking for public purposes of the public land or portion of the 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) The committee shall hold annual public hearings 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) Two years after the date the committee is established, the committee shall submit a report to the board with the redevelopment plan recommended by the committee along with recommendations for appropriations by the legislature, the authorization of bonds, or both, to implement the redevelopment plan in a timely manner. The board shall submit the report to the governor and the legislature, not later than twenty days prior to the convening of the 2020 regular session, with a request for the required appropriations, bond authorization, or both.
(f) The designated district redevelopment plan shall supersede all other inconsistent ordinances and rules relating to the use, planning, development, and construction on public land in the designated district.
SECTION 7. Transfer of documents and property. (a) Upon the repeal of this Act, all leases, contracts, agreements, permits, or other documents executed or entered into, by or on behalf of the redevelopment district planning committee shall remain in full force and effect and shall be administered by the department of land and natural resources.
(b) Upon the repeal of this Act, all appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property held by the redevelopment district planning committee shall be transferred to the department of land and natural resources.
SECTION 8. There is appropriated out of the special land and development fund the sum of $ or so much thereof as may be necessary for fiscal year 2018-2019 to carry out 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.
PART II
SECTION 9. Section 171-36, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (b) to read:
"(b) The board, from time to time, upon the issuance or during the term of any intensive agricultural, aquaculture, commercial, mariculture, special livestock, pasture, hotel, resort, or industrial lease, may:
(1) Modify or eliminate any of the restrictions specified in subsection (a);
(2) Extend or modify
the fixed rental period or the term of the lease[; provided that the
aggregate of the initial term and any extension granted shall not exceed
sixty-five years;] upon approval by the board of a development agreement
proposed by the lessee to make substantial improvements to the existing
improvements or to construct new improvements; provided that the remaining term
of the lease and the extension granted shall not exceed sixty-five years;
or
(3) Extend the term and modify any provisions of the lease,
to the extent necessary to qualify the lease for
mortgage lending or guaranty purposes with any federal mortgage lending agency[,];
to qualify the lessee for any state or private lending institution loan,
private loan guaranteed by the State, or any loan in which the State and any
private lender participates[,]; or to amortize the cost of
substantial improvements to the demised premises that are paid for by the
lessee without institutional financing[, such]. An extension [being] of the
fixed rental period or term of the lease shall be based on the economic
life of the improvements as determined by the board or an independent
appraiser; provided that the approval of any extension shall be subject to the
following:
(1) The demised premises have been used substantially for the purpose for which they were originally leased;
[(2) The aggregate
of the initial term and any extension granted shall not be for more than
sixty-five years;]
(2) The length of
the extension granted for the lease or the fixed rental period of the lease
shall not extend the fixed rental period of the original lease by more than
thirty-nine years;
(3) [In the event
of] If a reopening[,] occurs, the rental for any
ensuing period shall be the fair market rental as determined under
subsection 171-17(d) at the time of reopening;
(4) Any federal or private lending institution shall be qualified to do business in the State;
(5) Proceeds of any mortgage or loan shall be used solely for the operations or improvements on the demised premises;
(6) Where improvements are financed by the lessee, the lessee shall submit receipts of expenditures within a time period specified by the board, otherwise the lease extension shall be canceled; and
(7) The rules of the board, setting forth any additional terms and conditions, which shall ensure and promote the purposes of the demised lands."
2. By amending subsections (d) and (e) to read:
"(d) The board, from time to time, during the term
of any agriculture, intensive agriculture, aquaculture, commercial,
mariculture, special livestock, pasture, hotel, resort, or industrial
lease, may modify or eliminate any of the [[]restrictions[]]
specified in subsection (a), extend or modify the fixed rental period of the
lease, or extend the term of the lease upon a showing of significant economic
hardship directly caused by:
(1) State disaster, pursuant to chapter 209, including seismic or tidal wave, tsunami, hurricane, volcanic eruption, typhoon, earthquake, flood, or severe drought; or
(2) A taking of a portion of the area of the lease by government action by eminent domain, withdrawal, or conservation easement; provided that the portion taken shall not be less than ten per cent of the entire leased area unless otherwise approved by the board; and provided that the board determines that the lessee will not be adequately compensated pursuant to the lease provisions.
(e) The approval of any extension granted pursuant to subsection (d) shall be subject to the following:
(1) The demised premises has been used substantially for the purposes for which they were originally leased;
[(2) The aggregate
of the initial term and any extension granted shall not be for more than
fifty-five years;
(3)] (2) The
rental shall not be less than the rental for the preceding term;
[(4)] (3) The
rules of the board, setting forth any additional terms and conditions which
shall ensure and promote the purposes of the demised lands; and
[(5)] (4) The
length of the extension shall not exceed a reasonable length of time for the
purpose of providing relief and shall in no case [exceed five years.] extend
the original lease's fixed rental period by more than thirty-nine years."
PART III
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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 12. This Act shall take effect on July 1, 2060; provided that this Act shall be repealed on June 30, 2028, and section 171-36, Hawaii Revised Statutes, shall be reenacted in the form in which it read on June 30, 2060.
Report Title:
Description:
Establishes a ten-year redevelopment district pilot project within the Kanoelehua Industrial Area and Banyan Drive region until 6/30/2028. Modifies public land lease restrictions. Appropriates funds. (SB3058 HD1)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
