Honolulu City Council Policy Resolutions

(Link to original Word Processing Version)

00-266, CD1


RELATING TO THE DESIGNATION OF AN URBAN HONOLULU ENTERPRISE ZONE FOR THE CITY AND COUNTY OF HONOLULU.

    WHEREAS, Chapter 209E, HRS, authorizes each county, subject to the Governor's approval, to designate up to six enterprise zones within the county's boundaries; and

    WHEREAS, an enterprise zone must be a contiguous area, the population of which complies with a specified low-income criterion or high unemployment criterion; and

    WHEREAS, after county designation and gubernatorial approval of an enterprise zone, a "qualified business" in the zone becomes eligible for a State income tax credit and general excise tax exemption and any local incentive made available by the county; and

    WHEREAS, in general, a "qualified business" is a business entity which:

    (1)    Engages in wholesaling, manufacturing, agricultural processing, ship or aircraft repairing, or certain high technology, medical, or educational services;

    (2)    Generates at least 50 percent of its annual gross receipts from activity within the zone; and

    (3)    Meets specified minimum levels of employment;

and

    WHEREAS, at present, the City and County of Honolulu has three enterprise zones, one each in the North Shore, Mililani/Wahiawa, and Ewa/Central Oahu areas; and

    WHEREAS, the Council finds that another enterprise zone should be established in urban Honolulu from the Airport through the Kalihi, Honolulu Harbor, Kakaako, and Kapiolani areas for the following reasons:


    (1)    State and City zoning for the area generally permits the types of activities which would make a business entity eligible for "qualified business" status;

    (2)    Governmental incentives are necessary to stimulate economic and employment growth in the area;

    (3)    Economic and employment growth in Kakaako is necessary for promotion of the City's policy of mixed use in the area;

    (4)    Promotion of ship repair and other waterfront-related industrial activity near Honolulu Harbor is necessary to maintain the viability of the maritime industry consistent with the Council policy stated in Resolution 00-48, attached as Exhibit A;

    (5)    The Downtown and Kakaako areas have private medical establishments and business education institutions which may become qualified for and take advantage of enterprise zone benefits;

    (6)    An enterprise zone should contribute towards diversifying the urban economy by encouraging business activity of the type which generally is not dependent on visitors; and

    (7)    More economic activity, especially in the Kalihi, Kakaako, and Kapiolani areas, may lead to increased development of underutilized land;

and

    WHEREAS, finally, the Council finds that at least one enterprise zone should be established in urban Honolulu to encourage employment opportunities for urban residents and provide direct and indirect economic benefits for urban businesses; now, therefore,

    BE IT RESOLVED by the Council of the City and County of Honolulu that the urban Honolulu area, displayed in Exhibit B and comprised of 1990 census tracts 37, 39, 40, 41, 42, 51, 52, 53, 54, 56, 57, 58, 59, 60, 61, and 72, be designated as an enterprise zone; and

    BE IT FURTHER RESOLVED that the Council provides the following incentives to qualified businesses in the urban Honolulu enterprise zone:

    (1)    A rebate of real property taxes on all new construction for a period not to exceed two years; and

    (2)    A waiver of all fees for building and grading permits required for new construction for a period of seven years;

and

    BE IT FURTHER RESOLVED that the Council requests the Mayor to concur with the designation and, on behalf of the Council, prepare and submit the necessary application and material to the Governor for approval of the designation; and

    BE IT FINALLY RESOLVED that the Clerk is directed to transmit a certified copy of this Resolution to the Mayor.

                    CO-INTRODUCED BY:

                         Romy Cachola                          Co-Introducer

                         Andy Mirikitani
                          Co-Introducer

                         Rene Mansho                           Co-Introducer

                         Jon Yoshimura
                      Co-Introducer

                        

                        

                        

                        

                        
                                Councilmembers

DATE OF INTRODUCTION:

November 15, 2000
Honolulu, Hawaii

(OCS/112100/ct)

Policy Resolutions