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Manufacturers and wholesalers from Ala Moana to the airport would be eligible for economic incentives under a resolution expected to be approved by the City Council tomorrow. Urban zone
would offer
business incentivesBy Gordon Y.K. Pang
Star-BulletinBy being designated within the Urban Honolulu Enterprise Zone, those who do manufacturing and wholesaling would be eligible for state income tax credits and general excise tax credits.
From the city, they would able to get real property tax rebates on new construction (for up to two years) and a waiver of all fees for building and grading permits for up to seven years.
The resolution was introduced by Budget Chairwoman Rene Mansho and Council members Romy Cachola (Kalihi-Halawa), Andy Mirikitani (Manoa-McCully-Moana) and Jon Yoshimura (Downtown).
Gov. Ben Cayetano ultimately decides whether to make the designation.
Urban Honolulu would be the fourth enterprise zone set up on Oahu. The others are the North Shore, Waipahu (including Kapolei) and Mililani-Wahiawa. There are 18 total in the state.
Retail, commercial or other service-oriented types of businesses are not eligible for the program.
Tom Smyth, business support administrator for the state Department of Business, Economic Development and Tourism, said at a recent Budget Committee meeting there are about 1,000 manufacturers and wholesalers within the geographic area under consideration. He estimated about 100 of them would sign up for the program in the first year.
Participating businesses must increase their work forces by at least 10 percent in order to continue participating.
In the existing three zones, about 30 companies, representing some 650 employees, participate.
Smyth said the zone sets up a dual purpose: encouraging businesses to enter, or do more in the area, and stimulate job creation.
The proposal has the endorsement of Jan Yokota, executive director of the Hawaii Community Development Corp., which oversees development in the Kakaako waterfront area.
Yokota said the incentives of an enterprise zone encourage high-tech corporations to move into Kakaako.
Economic development officials with both the state and city said they don't expect the program to have major impacts on their government's coffers since the revenues lost from the incentives would otherwise not be available anyway.
City & County of Honolulu
