HB2578 Summary

• Authorizes legislature to designate redevelopment districts for public lands classified as commercial, industrial, resort, or hotel use that have deteriorated due to age or obsolescence, and establishes a planning committee structure to manage redevelopment with nine members including state/county officials and seven public appointees with relevant expertise.

• Designates the Waiakea Peninsula on Hawaii island as the first redevelopment district, transferring management of public lands within the district to a planning committee and establishing a separate revolving fund receiving 50% of revenues from district lands.

• Allows the Board of Land and Natural Resources to reduce or waive lease rental for up to 20 years if lessees must demolish existing improvements or provide basic infrastructure (drainage, sewer, water, electricity, utilities), provided the waiver does not exceed the lessee's total expenditures.

• Authorizes local redevelopment agencies to negotiate development agreements with developers for commercial, business, hotel, or resort projects on public lands within redevelopment areas, specifying permitted uses, construction timelines, and lease terms.

• Exempts costs of construction, design, engineering, labor, and materials for redevelopment projects from general excise and use taxes, and makes unspecified appropriations to the Waiakea Peninsula Redevelopment District Revolving Fund for fiscal year 2020-2021.