By TOM CALLIS
By TOM CALLIS
Tribune-Herald staff writer
The Kanoelehua Industrial Area Association is not giving up on legislation poised for a veto that would allow businesses to make new, long-term leases with the state if they make a significant investment.
Jim McCully, a KIAA member who was co-chair of its legislative working group during this last session, said members have voiced their concerns to Gov. Neil Abercrombie in person and are going to continue to write letters in support for House Bill 1617, hoping for an 11th-hour change.
The bill would allow the state Board of Land and Natural Resources to grant current lease holders a new 55-year contract if the business agrees to make improvements to their sites that equal 50 percent of its value.
Currently, businesses are limited to 65 years if granted a one-time 10-year extension, McCully said, adding that many businesses in the Hilo industrial area are nearing the end of their leases, which go back as far as 1961.
“We’d love for it to move forward,” he said. “We are going to do what we can.”
Abercrombie, in his notice to veto issued June 25, said he is concerned it would allow lessees to have exclusive control of “public property for up to 120 years.”
“The impact of this needs to be closely examined and weighed against putting the public land out to bid to give others an opportunity to lease the land,” he wrote.
BLNR, which opposed the bill, had raised similar concerns.
The bidding process is open to the most recent lease holder.
Abercrombie has until July 10 to veto the bill.
Additionally, the bill provides additional compensation to ranchers and farmers who lose access to public grazing land placed under a conservation easement.
The veto would apply to the entire bill, though Abercrombie only mentioned the lease extension in his veto message.
Tim Richards, Hawaii Cattlemen’s Association president, couldn’t be immediately reached for comment.
McCully said he doesn’t see the bill as perfect, noting the one-size-fits-all reinvestment requirement.
But he said the businesses need some certainty during tough economic times.
“Our economy can’t afford additional friction,” McCully said. “We have to be as efficient as possible.”
Rep. Jerry Chang, who introduced the bill, said he thinks a veto is unnecessary since the bill would not require the board to make the extensions.
“Every step of the way has to be approved by Land and Natural Resources,” he said.
Chang, whose district includes South Hilo, Waiakea Kai, Kaumana, and Keaukaha, said the stipulation that the businesses reinvest in the property is needed since many of the lease-hold properties have seen better days.
It also shows a commitment on part of the tenant, he said.
“Not many people are willing to do that … unless they have assurances with the lease,” Chang said.
If vetoed, he expects the issue to be taken up by other Big Island representatives.
Chang is not seeking re-election.
Email Tom Callis at tcallis@hawaiitribune-herald.com.