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Hannemann delivers
down-to-earth design

THE ISSUE The mayor sketched out somber prospects in his first State of the City address.

MAYOR Hannemann's sobering outline for his first year of running the city wasn't pleasant news for taxpayers, but it is what they needed to hear and, in likelihood, what they wanted to hear.

Other than his hopes for revitalizing downtown Honolulu as a hub for culture and arts, Hannemann pragmatically aimed at the objectives promised during his campaign -- delivering basic services.

As residents have seen road and sewer conditions decline when the previous administration took on impressive projects, they have demanded a change in focus, and the mayor, in his State of the City address yesterday, said he'd give them what they wanted.

This came with a dose of reality -- that years of neglect, imprudent spending and deferred fee increases will require residents to come up with more money to make up lost ground.

Hannemann called for a steep rise in sewer tolls through the next six years, 25 percent in the first and 10 percent compounded in each subsequent year. The increase will likely be the first of other raises as the city hunts for revenue needed for operations and to pay down debt totaling $3 billion.

The mayor's proposal to boost tax breaks for low-income, older homeowners and for small farmers was the sole element of financial relief he offered. Although residents might see tax collections go up because of higher property assessments, he gave notice that they should not expect rates to be cut.

Hannemann was astute to acknowledge politically the role the City Council will play as he seeks approval for his plans. In cataloging road projects, he was careful to identify individual members' districts as benefiting.

The mayor's speech contrasted sharply with his predecessor's high-sounding agenda. Instead, he announced a "war on pot holes," belt-tightening, "modest" public employee pay raises and expanded bulky item pick-ups. But after years of grand, lofty schemes, the city needs to return to earth.

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State should reject
raceway tax breaks

THE ISSUE A bill would allow a racetrack operator to claim up to $50 million in tax credits for a new motor sports facility.

WHEN granting tax credits to private enterprise or industry, the state must balance potential for economic growth with loss of revenue.

The proposal to award up to $50 million in breaks for a new racetrack on Oahu doesn't seem to hold much possibility to draw in new money. Lawmakers should say no to the idea as they have in previous years.

Mike Oakland, the operator of Hawaii Raceway Park, has been trying for years to upgrade the Kalaeloa facility, seeking help from the state through various propositions. However, time and changing circumstances have worked against the racetrack.

Most recent is the sale of Campbell Industrial Park where the track's lease is set to expire next year. A portion of the land identified for a new raceway belongs to the Department of Hawaiian Home Lands, which has not yet decided what it wants to do with it.

The possibility of an aircraft carrier relocating to nearby Pearl Harbor also places limits on the racetrack's future as post-9/11 security considerations will surely weigh heavy. Oakland says he can gather $200 million in investment for a new track, but needs the tax credits as inducement. Still, the possibility of generating increasing revenue is doubtful.

Moreover, if the land's new owners do not renew the lease, the track will have to find another site. There aren't many locations on Oahu that would be suitable for such a facility, especially one where homes or businesses would not be affected.

Oakland argues that without the track, those with the need for speed will take to the streets. "What's going to happen is you're going to have three new racetracks -- they're called H-1, H-2 and H-3," he said. Such warnings belie the responsible driving of most racetrack enthusiasts.