House panel OKs credit for racetrack
Critics say the state should not fund one specific project
A proposal to provide roughly $50 million in tax credits for the construction of a new motor sports facility in Leeward Oahu is advancing in the state House.
The measure would allow an investor in the new racetrack complex to recoup much of the investment cost, although the total amount claimed would be spread out over several years. It is similar to a bill passed in 2003 that provided tax breaks for the development of an aquarium at Ko Olina.
Critics say the state should not be paying the bill for development of one specific project.
"It is not the government's job to subsidize racetracks," said Rep. Brian Schatz (D, Tantalus-Makiki). "Whatever they spend, they get money back from the government. It just is a waste of money."
Supporters say a new racetrack is needed for reasons of public safety, noting last Saturday's closure of Hawaii Raceway Park.
Rep. Colleen Meyer (R, Laie-Kahaluu) said she supports the idea of a racetrack but had some concern over using taxpayer money for funding.
"I do think a racetrack does have a public interest," Meyer said. "There are many people that enjoy racing and it certainly would be safer on the streets if these people have a place to drive their cars."
Senate Bill 1734, shelved by lawmakers last year, was revived just this week after heavy lobbying from motor sports enthusiasts on all sides of the issue.
It narrowly survived its only committee hearing -- an 11-6 vote by the Finance Committee in which seven of the 11 votes in favor of it were cast "with reservations." It faces one more vote by the full chamber before going back to the Senate.
The issue is likely to go to conference committee, where House and Senate lawmakers work out the final details of all bills.