STAND. COM. REP. NO. 419

Honolulu, Hawaii

, 2001

RE: S.B. No. 1170

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 1170 entitled:

"A BILL FOR AN ACT RELATING TO DISPLACED LESSEES,"

begs leave to report as follows:

The purpose of this measure is to designate a portion of the Kapalama Military Reservation as an eligible relocation site and as an industrial park, primarily so that the Produce Center can relocate from Kakaako to Kapalama.

Your Committee received testimony in support of this measure from the Department of Transportation, the Board of Land and Natural Resources, the Hawaii Community Development Authority, and the Board of Agriculture. Written testimony in opposition to this measure was received from three businesses currently leasing property at Kapalama Military Reservation. In addition, several other Kapalama tenants testified orally in opposition to this measure.

Your Committee understands that the Produce Center sits on the proposed site for the University of Hawaii Medical School at Kakaako. Your Committee also finds that the Produce Center is the primary supplier of fresh produce in the State, and must be located near a sea port since much of its stock is shipped in refrigerated containers. Your Committee believes that it makes sense to relocate the Produce Center to Kapalama.

At the same time, your Committee is concerned about the businesses currently leasing space at Kapalama Military Reservation under month-to-month leases. These small businesses will have their leases terminated by this measure.

Your Committee therefore amended this measure to insert a provision requiring the Department of Transportation to use its best efforts to assist these displaced tenants with relocation. Your Committee believes that the Department should give the current tenants ample time for the process of relocation, so that it may be accomplished with as little disruption to each business as possible.

In addition, your Committee has received assurances from the Department that it will assist each tenant by explaining the relocation process after the leases have been canceled, and by assisting each tenant in the relocation process itself. Your Committee finds that these measures strike a fair compromise between the needs of the State and the concerns of the tenants at Kapalama. Your Committee also notes that unless this measure passes and is signed into law, the tenants at Kapalama will not actually be displaced at all.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1170, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1170, S.D. 1, and be referred to the Committee on Economic Development and Technology.

Respectfully submitted on behalf of the members of the Committee on Transportation, Military Affairs and Government Operations,

____________________________

CAL KAWAMOTO, Chair