In its current form, S.B. 755, Senate Draft 2, basically states that the private development of harbor facilities on state lands should be encouraged to save taxpayers the burden of funding construction or improvements. The bill proposes an amendment to the Hawaii Revised Statutes stating that the BLNR may enter into a capital advancement contract with a private party for any public improvement or construction of a state small boat harbor, provided the Chairperson finds it to be in the best interest of the state.
Private development is likely to be less costly than any other type of contract.
Private development provides needed public improvements on a significantly more timely basis. Public financing for public improvements is not available on a timely basis. The amendment also provides that the private party may be reimbursed by a legislative appropriation, or by credit from its future rental or tariff payments to the state, provided the contract ensures the state will benefit financially and the public's use of the facility is maintained. At this point, SB 755 has passed through all of its committee hearings in both houses of the legislature, so it would seem to have a good chance of becoming law. First, these capital advancement contracts are for construction projects that must be deeded to the state when completed.