HI HB1566

Authorizes limited issuance of commercial use permits for vessels with assigned moorings in Ala Wai boat harbor (not exceeding 15% of berths) and Keehi boat harbor (not exceeding 35% of berths), with commercial vessels at Ala Wai limited to 65 feet in length and phased in without displacing existing recreational boaters.

Establishes moorage fees by appraisal from state-licensed appraisers using schedule A rates for existing mooring holders and schedule B rates for new applicants, with schedule A rates increasing annually to equal schedule B by July 1, 2014.

Directs Department of Land and Natural Resources to lease fast lands and submerged lands at Ala Wai boat harbor via request for proposals for public-private development with permitted uses including berths, commercial spaces, restaurants, hotels, residential units, and vessel repair facilities.

Allows lease terms up to 65 years with minimum rent based on percentage of gross receipts or fair market value appraisal, includes 3-year development period with reduced rent, and deposits all revenues in the boating special fund for harbor operation and maintenance.

Exempts Ala Wai boat harbor redevelopment from assessment and special improvement district requirements, allows department to collect utility and common-area maintenance fees, and takes effect July 1, 2011.