S.B. 1292 - Hilo Community Economic District

• Establishes a framework for designating and managing public lands redevelopment districts on state-owned commercial, industrial, hotel, and resort properties that have deteriorated due to age or obsolescence.

• Creates the Waiakea Peninsula Redevelopment District on the island of Hawaii, bounded by Lihiwai street, Kamehameha avenue, Kalanianaole avenue, Banyan way/drive, and the shoreline, to revitalize approximately 85% of east Hawaii County's visitor accommodations.

• Establishes a nine-member planning committee for the Waiakea Peninsula district with authority to prepare redevelopment plans, renew/renegotiate leases, reduce or waive lease rentals for projects requiring substantial improvements for up to one year, and manage a revolving fund receiving 50% of district revenues.

• Authorizes the Board of Land and Natural Resources to extend commercial, hotel, resort, and industrial leases for up to 55 years based on approved development agreements for substantial improvements (costing at least 50% of property market value).

• Appropriates funding for fiscal years 2017-2018 and 2018-2019 to implement the redevelopment district program and modifies lease restriction provisions to facilitate district implementation.