New agency targets public lands to raise revenue

The state is embarking on an effort to develop and generate revenue from public land controlled by the Department of Land and Natural Resources under a new state law.

Homes, hotels, harbor facilities, office buildings and other commercial ventures could be projects pursued in partnership with private developers under the law as envisioned by the Legislature.

A quasi-public agency named the Public Land Development Corp., led mostly by state government officials, is directing the effort.

The agency held its first board meeting Monday.

However, several aspects of how the agency will operate — including the treatment of exemptions to land-use and zoning regulations — still need to be formulated in rules the agency intends to begin drafting shortly.

Senate Bill 1555 proposed creating the agency, and Gov. Neil Abercrombie signed the bill into law in May.

Sen. Donovan Dela Cruz (D, Kaena-Wahiawa-Pupukea) introduced the bill, and has said that development project partnerships will help DLNR in efforts that include improving state parks and small boat harbors.

"The end-game is to get the dilapidated infrastructure and underutilized land generating revenue so that no taxpayer money will be directed to supporting DLNR and the department will no longer need to rely on the general fund," Dela Cruz said in a statement.

Five board directors are guiding the new agency. State Budget Director Kalbert Young was elected chairman at Monday’s meeting.

Other directors are DLNR Deputy Director Guy Kaulukukui; Richard Lim, director of the Department of Business, Economic Development and Tourism; former state Sen. Robert Bunda and Duane Kurisu, a principal with real estate investment firm Kurisu & Fergus and a member of the board of directors at Oahu Publications Inc., owner of the Ho­nolulu Star-Advertiser. Bunda was appointed by House Speaker Calvin Say. Kurisu was appointed by Senate President Shan Tsutsui.

An executive director is being recruited. The state began publicizing the job opening last week, and will accept applications until Sept. 6.

Two other staff positions, an analyst and a planner, are authorized. But the Legislature only appropriated enough money — $135,500 — to hire the executive director, so the agency will seek more money from the Legislature next year to complete the staff.

In the meantime, DLNR Land Division staff are expected to help draft rules for the agency and start work producing a plan that includes an inventory of land with development potential as well as culturally sensitive land more suited for protection.

Young said no potential development projects have been identified yet. However, Alapaki Nahale-a, director of the Department of Hawaiian Home Lands, expressed interest in the possibility of cooperating with the agency in pursuing development of geothermal power on adjacent lands owned by the two agencies.

Mililani Trask, an adviser to development firm Innovations Development Group Inc., told agency directors she envisions the state owning renewable energy systems including those powered by geothermal, waves and ocean thermal energy conversion.

A few people at the meeting raised concerns about the agency’s exemptions from land-use and zoning regulations. The law requires the agency to coordinate development plans with county planning departments, and directors committed to work with county planning officials.

"We’ll have a better idea of how everything will work once the rule-making process … is undertaken and completed," Young said.

Young said the goal is to have a rough draft of rules within three weeks in time for the agency’s next meeting, with a version ready for public review as early as October.

A land plan identifying potential development and protection sites is due before the Legislature convenes early next year.