WHEREAS, the enterprise zone program is an economic development tool that can stimulate growth and activity throughout the City and County of Honolulu; and

    WHEREAS, as set forth in HRS Section 209E-1, the goal of the enterprise zone program is to stimulate business and economic growth in areas that need assistance to attract private sector investment; and

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

    WHEREAS, after the county designates and the governor approves 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, one of the enterprise zones in the city is the Urban Honolulu Enterprise Zone Number 4 (“urban Honolulu enterprise zone”), which was proposed by the council by Resolution 00-266, CD1, with the concurrence of the mayor, and was approved by the governor in April 2001; and

WHEREAS, the urban Honolulu enterprise zone covers the airport, Kalihi, Iwilei, downtown and Ala Moana areas; and

    WHEREAS, the council has received a request to expand the urban Honolulu enterprise zone to include census tract 38 in Kakaako, which is shown on the map attached as Exhibit A; and

    WHEREAS, Section 31-1.3, Revised Ordinances of Honolulu 1990, authorizes the council, with the mayor’s concurrence, to propose an amendment of an existing enterprise zone; and

    WHEREAS, Section 15-6-7, Hawaii Administrative Rules, requires the governor to approve of such an amendment; and

    WHEREAS, the council finds that the proposed expansion of the urban Honolulu enterprise zone will serve the public interest by adding opportunities for economic development and employment; now, therefore,
    BE IT RESOLVED by the council of the City and County of Honolulu that the Urban Honolulu Enterprise Zone Number 4, as defined in Resolution 00-266, CD1, be expanded by the addition of census tract 38 shown on the map attached to this resolution as Exhibit A; and

    BE IT FURTHER RESOLVED that the local incentives to be provided to qualified businesses in the expanded area shall be the same as those specified in Resolution 00-266, CD1, namely:

(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 expansion of the urban Honolulu enterprise zone and, on behalf of the council, prepare and submit the necessary application and material to the governor for approval of the expansion; and

    BE IT FINALLY RESOLVED that the clerk is directed to transmit certified copies of this resolution to the mayor.

INTRODUCED BY:

DATE OF INTRODUCTION:

        
Honolulu, Hawaii                     Councilmembers    

(OCS/033004/mg)