Time for boldness in Kalaeloa land acquisition
GOVERNOR'S MESSAGE
Gov. Linda Lingle
WE IN government have encouraged Hawaii's citizens and businesses to innovate and think big ideas in an effort to diversify our economy. But it is not enough to encourage those in the private sector to act. We in government must be willing to do the same, to think and act boldly, and create an environment in which innovation and big ideas can flourish.
Members of the Legislature have the opportunity to pass legislation that has the potential to decisively shape the future of Oahu's Leeward Coast, bring positive economic growth to West Oahu and help reposition Hawaii's economy to one based on innovation. Further, this action is consistent with our commitment to West Oahu residents to provide the economic engine and employment opportunities to ensure that they can work and live in their communities without a long daily commute.
Now under consideration in the state Senate is House Bill 1667 HD2. If passed, it would authorize the Hawaii Community Development Authority to issue bonds for the potential purchase of 500 acres of land at Kalaeloa, which is now under congressional mandate to be disposed of by 2008. It also allows proceeds from the bonds to be used for infrastructure.
That said, my administration is working with our congressional delegation to see that the state does not have to pay for the property because each dollar not spent on land is a dollar more that can be invested in infrastructure.
If the state acquires the land -- part of the former Barbers Point Naval Air Station -- it opens the door wide to the possibility to achieve the community-based vision of Kalaeloa as a Wahi Ho'okela (Center of Excellence).
FIRST AMONG these is that planning could begin in earnest on a Kalaeloa improvement district. Such a district would contain features that resemble those of the Kakaako district, which is home to the John A. Burns School of Medicine. Soon, the school will be joined by a proposed Asia-Pacific Research Center, which is planned by Kamehameha Schools in partnership with the state. Kalaeloa can and should be viewed as an opportunity to develop infrastructure that will bring job opportunities and attract innovative new industries, including those dedicated to the research and development of renewable energy resources.
When ownership of the land at Kalaeloa is coupled with the zoning authority of the HCDA -- which has made substantive progress in its administration of Kakaako -- opportunities for workforce-affordable housing, job creation and other government initiatives can be readily pursued. Right now, opportunities such as these simply don't exist in Leeward Oahu.
IF THE state acquires the Kalaeloa land, parcels could be resold, leased or developed in partnership with private investors. Helping to make such a partnership appealing to investors are several projects the state and city are planning in and around Kalaeloa, including Hawaiian Home Lands housing, a new judiciary complex, a University of Hawaii-West Oahu campus and a mass-transit system to link the area with downtown Honolulu. The proximity of Kalaeloa to a university, where workforce training and recruiting can occur, and mass-transit stations are obvious advantages.
State investment should spur growth at Kalaeloa, as it did in Kakaako. The state spent about $153 million on infrastructure in Kakaako over 30 years, which helped attract more than $2 billion in private investment. The early Kakaako improvement districts were funded partially with revenue bonds, but the bulk of funds were general obligation bonds.
BY AUTHORIZING $250 million in general obligation bonds, the state should be able to leverage $3.5 billion in private funds for development of the area. It is estimated that the construction period itself would result in a $6.9 billion infusion into the state's economy, including $2.3 billion in earnings (labor income), $253 million in state taxes and 55,209 job-years of total jobs. The total post-construction impact is projected as $5.7 billion toward the gross state product, $2.1 billion in earnings (labor income), $394 million in state taxes and 222,386 job-years of total jobs during the first 18-year period.
The project is strongly endorsed by Leeward neighborhood boards, largely because they recognize the immediate and long-term advantages that it would bring to the region.
I encourage legislators to support passage of HB 1667 HD2 and, equally important, general obligation bond funds in the state budget. Through these bold actions, the Legislature can set the stage to make Kalaeloa a model community, with clean industries, jobs, housing, recreational opportunities and an enviable quality of life for the people of West Oahu while also bringing tremendous benefits to our Hawaii.