Ko Olina tax credit
gets Lingle’s signature
Gov. Linda Lingle signed into law today a bill giving a $75 million tax credit over 10 years for construction of a "world-class" aquarium as a catalyst for development at the Ko Olina resort in West Oahu.
Lingle was to give welcoming remarks at the Marriott Travel Partners conference this morning at the Ihilani Resort in Ko Olina and used the occasion to sign the bill, said her spokesman, Russell Pang.
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The Ko Olina bill was the subject of a rare public showdown between House and Senate leaders over tax credit measures in the closing days of the 2003 legislative session that ended May 1.
Lingle has indicated she likely will veto another bill, which would extend the hotel construction and renovation tax credits adopted in a special session soon after the Sept. 11, 2001, terrorist attacks.
She objected to the extension bill being expanded to also apply the tax credits to commercial construction in a resort area, saying that would result in an unanticipated drain on already tight tax revenues.
Lingle said the revenue impact of the Ko Olina tax credit was taken into account in her financial plan to balance the state budget.
The hotel tax credit is sought primarily by the hotel chain Outrigger Enterprises for its planned $300 million redevelopment in Waikiki, including a first phase primarily involving commercial construction.
Senate negotiators of the bill accused the House of slipping a provision into the final draft of the bill to give the tax credit to commercial construction and moved to kill the bill, saying it would cost the state too much in tax revenues.
The House retaliated by holding the Ko Olina bill hostage until the Senate let the hotel construction bill go to the floor, where it was approved.
Ko Olina developer Jeff Stone says the aquarium project will stimulate resort development worth $700 million, creating 10,000 construction jobs, 2,000 permanent jobs and $186 million in new tax revenues over 10 years.
The Legislature passed a Ko Olina tax credit bill last year, but it was vetoed by then-Gov. Ben Cayetano, who said it would be a windfall for developers and companies that have already committed to building in the resort area.
Senate Majority Leader Colleen Hanabusa (D, Nanakuli-Makua) has been a strong advocate for the Ko Olina tax credit, saying it will mean jobs for people along the depressed Waianae Coast, which she represents.
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New law consolidates
housing services for needy
The state agency that provides housing for the needy will move to the Department of Human Services under a new state law.
The measure to transfer the Housing and Community Development Corp., Senate Bill 1286, CD1, was among five bills signed by the governor yesterday.
"To us it simply made sense. It was an agency to provide housing for the poor, and it was located in the Department of Economic Development, whose mission is obviously different," Lingle said.
"This allowed HCDCH to be transferred to Human Services so a person who is facing a tough time in life, who needs a variety of services, is able to go to one department and again not be shuffled between departments," she said.
Lingle also signed into law a bill that makes it easier for caregivers, especially grandparents, to enroll a minor in school and to participate in curricular and co-curricular activities. The governor said the bill responds to Hawaii's unique hanai system of caring for family.
"It gives grandparents and others who are raising children better access to educational services for the child. It gives the caregivers more responsibilities and resources for the child," Lingle said of Senate Bill 946, CD1.
Lingle has approved nearly 100 laws since becoming governor nearly six months ago. The other bills signed yesterday are:
>> Senate Bill 1034, CD1. The law ensures long-term use of agricultural lands by allowing certain agricultural lands leased by the Department of Land & Natural Resources to be transferred to the Department of Agriculture.
>> Senate Bill 1258, CD1. This bill makes permanent the current composition of the Agribusiness Development Corp. board.
The agency is charged with coordinating development of Hawaii's agricultural industry to diversified agriculture from a dual-crop industry.
"This is going to set a direction; this is going to instill some confidence; this is going let us redouble our efforts," said farmer Larry Jefts, who serves on the board.
>> Senate Bill 1352, CD1. This law appropriates $65,000 to pay for criminal history checks for operators of community-care foster family homes.
It extends a two-year demonstration project to certify these foster family homes until June 2004.
