Gov. David Ige plans to veto a bill intended to help businesses extend their leases on state land.
Leases are limited to 65 years but the bill would have allowed holders of commercial and industrial leases to request an extension or a new lease if they have less than 10 years remaining. The state could then negotiate directly with the lease holder for a new agreement if no one else expresses interest following a public notice.
That was intended to help businesses on state land, such as those at the Kanoelehua Industrial Area in Hilo, with planning for the future.
But Ige in a press release said he intended to veto the legislation because it could violate the state Constitution.
“It limits application of the bill to commercial and industrial lands only, without distinguishing these lands from other public lands under lease,” he wrote.
That was disappointing to Bill Walter, president-elect of the Hawaii Island Chamber of Commerce, which backed the bill. But he wasn’t surprised.
“The logic is clear: It’s that from a government standpoint, you pretty much have to handle all situations, if not exactly the same, in a very narrow band of sameness,” he said.
Still, Walter said a solution needs to be found that reduces uncertainty for businesses on state land.
“They are good government managers of government property but that’s not how you manage business property or business interests,” he said.
The bill, introduced by Rep. Mark Nakashima, was one of eight bills introduced this past session aimed at addressing economic revitalization in Hilo. None of the others passed.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
