STAND. COM. REP. 1672

Honolulu, Hawaii

, 2003

RE: S.C.R. No. 89

S.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Legislative Management, to which was referred S.C.R. No. 89, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING A STUDY ON REAL PROPERTY LEASES,"

begs leave to report as follows:

The purpose of this measure is to request a study by the Legislative Reference Bureau of real property leasehold rents and other major problems facing commercial and other lessees. The measure also requests the Legislative Reference Bureau to submit a report of its findings and recommendations, including proposed legislation, to the Legislature no later that twenty days before the convening of the Regular Session of 2004.

Your Committee finds that during the period from 1985 to 1990, intense Japanese investment in Hawaii real estate sent land values skyrocketing. This appreciation in land values had the direct effect of increasing lease rentals to levels that have imposed hardships on lessees engaged in a wide range of commercial activities.

Your Committee further finds that this burden of high lease rentals has, in some cases, resulted in business failures and is having a major negative impact on the State's economy.

Testimony in support of this concurrent resolution was submitted by the Gretzinger Corporation; Martin & MacArthur; Bacon Universal Co., Inc.; Hawaii Council of Associations of Apartment Owners; Leasehold Co-op Committee of the Hale Coalition; Hawaii Public Interest Advocate; York and Company, Inc., and four individuals. The Hawaii Bankers Association supports the amendments to this concurrent resolution.

The Legislative Reference Bureau took no position on this concurrent resolution, but submitted comments. The Government Liaison Office of the Kamehameha Schools also submitted comments on this concurrent resolution.

As affirmed by the record of votes of the members of your Committee on Legislative Management that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 89, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Legislative Management,

 

____________________________

MICHAEL Y. MAGAOAY, Chair