Tax credits for Ko Olina
project gain approval

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By Crystal Kua
ckua@starbulletin.com

Senate and House conferees agreed to grant up to $75 million in tax credits to a private development at Ko Olina Resort in West Oahu.

The measure, which is headed for a vote by both chambers, gives about $7.5 million in tax credits each year for 10 years.

The proposed development includes a $100 million aquarium, a mammal-training center and sports facilities.

The Senate originally proposed granting $100 million in tax credits, while the House version had the tax breaks at $50 million.

The tax break would be taken on construction costs incurred on the project.

The state Department of Business, Economic, Development and Tourism yesterday estimated that over the next decade the project could generate more than 3,000 new jobs with annual incomes totaling $80 million.

The aquarium would also be the stimulus for an additional $615 million in hotel, time-share and commercial construction at Ko Olina, the department said in a letter.

Developer Jeff Stone estimates that the project will generate $60 million in annual tax revenue.

Concerns have been raised about the fairness of the tax credits and whether the development would be a precursor to gambling.

Gov. Cayetano has said the proposal has not been very well thought through, and Tax Director Marie Okamura has opposed the bill.

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