Chapter 31
COMMUNITY ECONOMIC DEVELOPMENT
Articles:
1. Enterprise Zone
2. Enterprise Zone--Real Property Tax Rebate
3. Enterprise Zones--Exemptions from Development Requirements
Article 1. Enterprise Zone
Sections:
31-1.1 Definitions.
31-1.2 Designation of enterprise zones.
31-1.3 Amendment or termination of zones.
31-1.4 Provision of city incentives.
31-1.5 Penalties.
Sec. 31-1.1 Definitions.
As used in this chapter:
"City" means the City and County of Honolulu.
"Enterprise zone" means an area within the City and County of Honolulu which
has been declared an enterprise zone in accordance with HRS Section 209E-4(a) and
this chapter.
"Qualified business" means the same as defined under HRS Chapter 209E.
(Added by Ord. 94-38; Am. Ord. 97-65)
Sec. 31-1.2 Designation of enterprise zones.
The mayor, with the concurrence of the council, or the council, with the
concurrence of the mayor, may initiate an application to have an area declared
by the state to be an enterprise zone; provided that such application may
only be submitted to the state upon its approval by the council by
resolution. The resolution shall expressly set forth the area to be included in
the enterprise zone and those incentives which the city proposes to offer in
the enterprise zone as delineated by the city. The application shall comply with
the requirements of Hawaii Administrative Rules, Section 15-6-4. (Added by Ord. 94-38; Am.
Ord. 97-65)
Sec. 31-1.3 Amendment or termination of zones.
(a) The mayor, with the concurrence of the council, or the council, with the
concurrence of the mayor, may
initiate a request to the state to amend an application for an enterprise
zone.
(b) (1) The mayor, with the concurrence of the council, or the council, with the
concurrence of the mayor, may initiate a request to the state to terminate
an enterprise zone when there is evidence of lack of reasonable progress toward
implementation of the zone. Lack of reasonable progress shall be determined by the
council after review of the status report and recommendation submitted in accordance with
subdivision (2).
(2) By June 30 of each year, the director of the department of housing
and community development shall submit to the council a status report on the
designated enterprise zones. For each designated enterprise zone, the status report shall include
the name and type of each business receiving enterprise zone benefits, the name
and type of new businesses attracted to the enterprise zone subsequent to enterprise
zone designation, and the number and type of jobs created in the zone
by each business receiving enterprise zone benefits. The status report shall also assess
the progress made toward implementation of each designated enterprise zone, and shall make
a recommendation regarding continuance or termination of each zone.
(c) A request to amend or terminate an enterprise zone may only be submitted
to the state upon its approval by the council by resolution.
(Added by Ord. 94-38; Am. Ord. 95-63, 97-65)
Sec. 31-1.4 Provision of city incentives.
(a) The city may provide incentives and allow regulatory flexibility as permitted by HRS
Section 209E-12 only in those enterprise zones delineated by the council pursuant to
Section 209E-4(a).
(b) Local incentives may include, but need not be limited to:
(1) Reduction of permit fees;
(2) Reduction of user fees; and
(3) Reduction of real property taxes.
(c) Regulatory flexibility may include, but need not be limited to:
(1) Special zoning districts; plan review use approvals; zoning district variances, conditional use permits
and special use permits;
(2) Permit process reform;
(3) Exemptions from local ordinances; and
(4) Other public incentives.
(d) City incentives for an enterprise zone may apply retroactively provided that the council
authorizes retroactive application of the benefits by resolution.
(e) City incentives proposed in an application to the state for an enterprise zone
may only be provided upon approval of the application by the governor and
provided in accordance with this chapter. Upon approval of a zone and provision
of city incentives, such incentives shall continue in effect for any qualified business,
subsequent city action to amend or terminate that zone notwithstanding.
(Added by Ord. 94-38; Am. Ord. 97-65)
Sec. 31-1.5 Penalties.
Any person who files a fraudulent claim or attests to any false statement
with intent to defraud the city or to evade the payment of taxes
or any part thereof, or who in any manner intentionally deceives or attempts
to deceive the city, shall be fined not more than $2,000.00, imprisoned for
not more than one year, or both. (Added by Ord. 94-38)
Article 2. Enterprise Zone--Real Property Tax Rebate
Sections:
31-2.1 Definitions.
31-2.2 Rebate established.
31-2.3 Administration.
31-2.4 Appeal.
31-2.5 Rules.
Sec. 31-2.1 Definitions.
As used in this article:
"Director" means the director of finance.
"Property owner" means the definition contained in Section 8-6.3, as modified as follows:
(1) "Property owner" includes a lessee holding real property, as defined in Section 8-1.2,
for a stated term of seven years or more, provided the lease:
(A) Has been duly entered into and recorded in the bureau of conveyances or
filed in the office of the assistant registrar of the land court, and
(B) Provides that the lessee shall pay all taxes levied on the property during
the term of the lease.
(2) "Property owner" excludes a lessee under a government lease whose stated term is
less than seven years.
"Tax year" means the definition contained in Section 8-6.2.
(Added by Ord. 94-38)
Sec. 31-2.2 Rebate established.
Where a property tax rebate has been authorized by council resolution pursuant to
Section 31-1.2 or 31-1.3, upon proper application, any owner of a qualified business
located within the enterprise zone delineated in the council resolution who owned the
property utilized by that business on the date of the business's first certification
by the state pursuant to HRS Chapter 209E shall be entitled to a
rebate from the city as set forth in the resolution.
A claim for a real property tax rebate may be filed for excess
taxes paid during a tax year at any time during the succeeding tax
year only, except where the council has approved retroactive application of incentives as
provided for in Section 31-1.4(d). The first claim for a rebate shall be
made during the tax year when the rebate is first available to the
qualified business; the claim for retroactive application of an incentive shall be made
during the first tax year after council authorization of the retroactive application.
The rebate shall apply to real property which is held by the qualified
business within the enterprise zone, as delineated in the council resolution, and which
is utilized for the activities of the qualified business. (Added by Ord. 94-38;
Am. Ord. 97-65)
Sec. 31-2.3 Administration.
(a) The director shall prescribe the appropriate form or forms for rebate claims. For
each tax year in which a claim is filed, the director shall require
proof of the applicant's certification by the department of business and economic development,
that the qualified business is exempt from the payment of the general excise
tax in that tax year, and shall require proof of the applicant's status
as a property owner as of the date of said certification. The director
shall request such proof as the director shall deem necessary to verify the
applicant's qualification for the rebate, including but not limited to proof that the
real property for which the claim for rebate of taxes is made is
used for the activities of the qualified business, and that the applicant paid
the taxes for which the claim for rebate is made.
(b) The applicant may refuse to provide any such proof requested by the director;
provided that the director may deny the claim for rebate upon such refusal.
Notwithstanding any other provision to the contrary, there shall be no appeal from
the director's denial of the claim due to such refusal of the applicant.
(c) Where the applicant is qualified for rebate of only a portion of the
taxes paid for a tax map key parcel, the sum rebated shall be
the lesser of either:
(1) The excess taxes actually paid by the applicant, or
(2) An allocation made by the director of the excess taxes attributable to:
(A) The floor space of a building held and used by the applicant, including
an allocation of the taxes for the land thereunder and the appurtenant premises,
where only a portion of a building is held and used by the
applicant, or
(B) The portion of the land held and used by the applicant, where only
unimproved land is held and used by the applicant, or
(C) The entire structure and the land thereunder that is held and used by
the applicant, where the entire structure is held and used by the applicant
but only a portion of the land is held and used by the
applicant.
(d) Upon review and verification of each claim, the director shall determine eligibility for
rebate within 45 days of the director's receipt of a duly submitted claim.
If an applicant is found ineligible, the director shall notify the applicant and
the council within 45 days after the applicant has been found ineligible by
the director. If an applicant's claim is approved, the rebate shall be made
by warrant in the name of the applicant and shall be issued within
45 days after the applicant has been found eligible by the director. All
warrants issued shall be subject to audit.
(Added by Ord. 94-38)
Sec. 31-2.4 Appeal.
(a) An applicant may appeal the director's denial of a claim to the council.
The appeal shall be filed with the council within 30 days of the
applicant's receipt of the notification of ineligibility from the director. The council shall
establish the procedure for an appeal.
(b) This section shall not be construed as superior to Section 31-2.3(b). A claim
denied under that subsection shall not be appealable under this section.
(Added by Ord. 94-38)
Sec. 31-2.5 Rules.
In accordance with HRS Chapter 91, the director may adopt rules having the
force and effect of law as deemed necessary to accomplish the purposes of
this article. (Added by Ord. 94-38)
Article 3. Enterprise Zones--Exemptions from Development Requirements
Sections:
31-3.1 Definitions.
31-3.2 Exemption established.
31-3.3 Administration.
31-3.4 Appeal.
31-3.5 Rules.
Sec. 31-3.1 Definitions.
As used in this article, "director" means the director of land utilization. (Added
by Ord. 94-38)
Sec. 31-3.2 Exemption established.
Where an exemption has been authorized by council resolution pursuant to Section 31-1.2
or 31-1.3, a qualified business located within the enterprise zone delineated in the
council resolution which is seeking to construct a new facility or to expand,
renovate or re-equip an existing facility in the enterprise zone may apply to
the director for an exemption from city ordinances, resolutions, or rules relating to
planning, zoning, subdivision or construction standards or for one or more approvals under
city ordinances, resolutions or rules relating to planning, zoning, subdivision or construction standards
as authorized in the resolution; notwithstanding the proposed new facility or expansion, renovation
or re-equipment of an existing facility would not comply in all respects with
all of such standards. (Added by Ord. 94-38; Am. Ord. 97-65)
Sec. 31-3.3 Administration.
The director shall review applications for exemption based on the following criteria:
(a) The proposed expansion, renovation or re-equipment or new facility is consistent with the
purpose and intent of the establishment of the enterprise zone to stimulate business
and industrial growth and foster neighborhood revitalization;
(b) The proposed expansion, renovation or re-equipment or new facility is consistent with the
policies and objectives of HRS Chapter 205A and the general plan of the
City and County of Honolulu; and
(c) The proposed exemption for the expansion, renovation or re-equipment or new facility meets
minimum requirements of health and safety, upon consultation by the director with the
appropriate public agencies.
The director may recommend approval of the application only upon finding that all
of the above criteria are met.
If the director recommends approval of the application, the director shall submit the
application together with the director's findings and recommendation within 45 days of the
director's receipt of a duly submitted application to the city council for consideration
of approval by resolution. The exemption shall take effect only if approved by
the council by resolution. (Added by Ord. 94-38)
Sec. 31-3.4 Appeal.
The function performed by the director under this article shall not be considered
action in the administration of the zoning and subdivision ordinances, or rules and
regulations adopted pursuant thereto, for the purposes of Section 6-1516, Revised Charter of
Honolulu 1973. (Added by Ord. 94-38)
Sec. 31-3.5 Rules.
In accordance with HRS Chapter 91, the director may adopt rules, with the
concurrence of the council, having the force and effect of law as deemed
necessary to accomplish the purposes of this article. (Added by Ord. 94-38)
Revised Ordinances