Gov. Neil Abercrombie said Thursday that he would consider a repeal of the Public Land Development Corp. if the state Legislature is unable to adjust the controversial law to satisfy public objections.
The governor said he believes in the intent behind the PLDC but doubts that the administrative rules process that drew opposition last year can reconcile concerns. He said state lawmakers would have to adjust the law so its "good intention can be implemented."
"Public understanding and support are essential," Abercrombie said in a statement. "If the Legislature cannot achieve this outcome, the possibility of repeal will ensue. I will take that outcome into consideration, but we cannot walk away, should that occur, without a solution that moves us forward."
Abercrombie’s advisers have cautioned privately that the governor’s priorities, such as developing underused public school land to generate money to modernize schools, could be at risk as long as the debate is muddied by the PLDC.
The governor is expected to urge lawmakers to focus on redevelopment opportunities of school properties, sources say. Lawmakers are discussing an education facilities trust that could lease those public lands for commercial development, as well as a pilot project at a few school sites to test the concept.
The PLDC, set up as the development arm of the state Department of Land and Natural Resources, was given broad exemptions from land use, planning and zoning laws as incentives to attract private developers for projects on state land. But the new corporation has not developed a single project — and has yet to adopt administrative rules — after vehement protests from environmental, labor and some Native Hawaiian interests.
Abercrombie defended the PLDC last year after the protests about administrative rules, dismissing some of the more vocal opponents as the "usual suspects" who wanted to be the arbiters of state development. At one point the governor said he would veto a repeal attempt.
But counsel from his advisers and the steady opposition led Abercrombie in late November to urge the PLDC to slow down the rules process. He said the future of the PLDC would be up to the Legislature, which had overwhelmingly supported the law in 2011.
Abercrombie issued his statement Thursday after reviewing the information that had been compiled by the DLNR and the suggested rule and regulation proposals.
The governor had cited the example of potential redevelopment of public school land when asked by reporters Wednesday about his position on the PLDC.
"What I’m impressed by the most is that virtually everybody agrees that we want to make the most productive use of our opportunities with public lands. And the fact that so many people are interested in seeing that gets done is very encouraging to me," he said.
"To take a particular example, how do we use those lands that are devoted to public education in a way that will be productive for education and at the same time perhaps provide a revenue stream that will help support education?"
House and Senate leaders have said they will review legislation this session to either repeal or significantly amend the PLDC.
The first bill introduced in the Senate — Senate Bill 1, sponsored by Sen. Clayton Hee (D, Heeia-Laie-Waialua) — would repeal the law.
"There’s no doubt that the public has reacted negatively to the passage of the PLDC," Hee said. "This has given many legislators, including myself, reason to believe that the bill was overly broad. So rather than tinker with it, I think it’s in everyone’s interest to repeal it outright and start fresh."
Sen. Donovan Dela Cruz (D, Wheeler-Wahiawa-Schofield), a PLDC advocate who has been disappointed by how the law has been implemented, will propose a bill that would substantially amend the law.
The bill would change the name of the PLDC to the Public-Private Partnership Corp. and require that the corporation conduct a pilot project in Wahiawa before developing any other projects.
Restrictions or conditions imposed by state or county agencies that transfer public land for development, such as the DLNR, the Department of Education or the city, would trump any exemptions. The bill, like a strategic plan for the PLDC recommended last year by Dela Cruz and Sen. Malama Solomon (D, Kaupulehu-Waimea-North Hilo), would also make clear that the corporation must comply with state laws regarding environmental review, historic preservation, open meetings, wage rates and ceded lands.
"Legislators who really want to improve Hawaii’s economy and create revenue without raising taxes are already making amendments, and I think that’s the way to go," Dela Cruz said.
Others said it was too soon to tell what direction lawmakers would take on the PLDC this session.
"At this point we’re at the beginning of the legislative session, and one of the things I’ve learned in my short time here is that while four months is a short time, it’s also a long time," said newly elected Sen. Laura Thielen (D, Hawaii Kai-Waimanalo-Kailua), a former DLNR director who favors repeal. "And we’re just going to have to see how this plays out."
