STAND. COM. REP. NO.348-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2545

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Water and Land Use, to which was referred H.B. No. 2545 entitled:

"A BILL FOR AN ACT RELATING TO INDUSTRIAL PARKS ON PUBLIC LANDS,"

begs leave to report as follows:

The purpose of this bill is to enable the Department of Land and Natural Resources (DLNR) to use certain public lands in a more efficient and productive manner.

More specifically, this bill authorizes DLNR to directly negotiate the leases or master leases on industrial parks developed under a partnership or development agreement.

DLNR testified in support of this measure. Hawaii's Thousand Friends opposed this bill.

DLNR has identified several parcels of public land with possible development potential as industrial parks. The development of these sites would proceed under a partnership or development agreement with a private developer, because DLNR lacks the expertise to develop industrial parks. However, it is unclear how the leases or master leases within the industrial parks would be disposed. This bill specifies disposition by direct negotiation instead of public auction, because a private developer will not enter a partnership or development agreement unless there is greater certainty over obtaining the lease. A public auction would be too risky of an option.

Your Committee has amended this bill by:

(1) Requiring that the selection of a private party to participate in any partnership or development agreement shall be in accordance with the Procurement Code; and

(2) Making technical, nonsubstantive amendments for the purpose of clarity.

As affirmed by the record of votes of the members of your Committee on Water and Land Use that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2545, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2545, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Water and Land Use,

 

____________________________

EZRA KANOHO, Chair