Senate Standing Committee on Economic Development and Tourism

Aloha. Welcome to the hearing with the Senate Committee on Economic Development and Tourism. Today is Tuesday March 25th, 2025, and this is our 1 pm agenda. We are in Conference Room 229. Hearing is being streamed live on YouTube. In the unlikely event that we must abruptly end this hearing due to technical difficulties. The committee will reconvene on Thursday, March 27, 2025, at 1:01pm in Conference Room 229. The committee has gone through all the testimony so encourage you to stand on your written testimony and if you'd like to add comments you have 1 minute to do so.

This agenda has five resolutions so we will go ahead and start off with SCR 40 / SR 24. First up, DBEDT Director Tokioka with comments. Second up, Jason Chung testifying for testifying for Military Affairs Council, in support. Anybody else wishing to testify on this measure?

Hello Chair, Vice Chair, members of the committee. Wayne Inouye, Hawaii Technology Development Corporation; my apologies for not being able to send in testimonies in time but we would like to - this is the advanced manufacturing. So, you know, again, we just want to make some comments that you know the proposed bill does support and align with our national our federal program which is the Innovate Hawaii program that supports advanced manufacturing, and we are in partnership with the University of Hawaii and DBEDT for cybersecurity.

So, we highly encourage the passage of this bill so that we can do a list a little bit more work into how we can better support our local small and medium sized businesses to get into advanced manufacturing and cybersecurity, as we all know, right.

We need to diversify, and we need to make sure that we provide the programs and the support to support our small businesses. So, thank you again and my apologies for not submitting written testimony but we can get that into.

Thank you, Wayne and great event, on the fourth floor -

Yes, thank you Senator for support.

- and innovation technology.

Thank you

Appreciate you guys being here.

Thank you.

Mahalo. Anybody else wishing to testify? Sure. Please state your name.

Oh, thank you Senator. Chairman Decoite and distinguished members of the senate. Russel Honma with APEC Hawaii; I know this having this high-tech kind of development in Hawaii, it's been going on for 30, 40 years. We're trying to diversify economy.

I remember when Senator Fukunaga was the House of Representatives; she was pushing for the kind tech, Mililani Technology Park, and all those, so we should still utilize the Mililani Technology Park in some of the state-owned enterprise zone. Worse, Milani technology park is a foreign trade zone, so you don't have to pay federal tax if we use the state enterprise zone, you know they have a Levi on the state taxes so gives the benefit for the investors from the high-tech development businesses to come to Hawaii and do business in those kind of facilities.

So, I think we should go back and re-see what locations are ideal for those kind of developments for, given a breakthrough of tax breaks for those high-tech corporations who do business in Hawaii. Thank you.

Thank you. And with that, that was support, right?

Yes, in support.

Anybody else wishing to testify on the measure? Seeing none. Members, any questions? Moving right along. Next up on the agenda: SCR 61/ SR 46, requesting the Department of Business Economic Development Tourism to sponsor a Michelin guide for restaurants across the state.

First up, testifying for HTA, Caroline Anderson, Interim President and CEO.

Chair, Vice Chair, members, on behalf of Caroline; she's still letter HTA board meeting. We stand on our written comments.

Thank you. Next up, Keoni Shizuma in opposition. Anybody else wishing to testify on this measure? Seeing none. Members, any questions? HTA please.

So, this mission...how important is it?

I think the recognition for our local culinary scene can be valuable. I think we've seen a lot of spinoffs that come from and benefits that come from it. I think we need to take a deep look at it depending on the cost.

One of the things that we can't determine at this moment is what Michelin would agree to. We've looked at other states that are in the testimony about what other states have paid to bring a guide to and the judges or inspectors too. But that part we'd need to do some more due diligence.

Yeah, because, according to the testimony, money in some states is $2.7 million, 1.5 million in other. So, I don't know. I mean is that worth the money?

We need to do the due diligence.

Okay, thank you.

Real quick question. So, what does sponsoring on Michelin guide for restaurants entail?

My understanding is it would bring inspectors to Hawaii who would go around the various restaurants and then evaluate them and then assign Michelin stars.

Thank you. Any other questions? Seeing none. Moving on to SCR 90 / 73, requesting the Agribusiness Development Corporation to assume responsibility for the routine maintenance repair of the Kohala Ditch. First up, Wendy Gady, testifying for Agribusiness Development Corporation.

Chair, Vice Chair, Mark Takemoto from ADC. We stand on our testimony, in support.

Thank you. Anybody else wishing to testify on this measure? Seeing none. Members, any questions? Question for ADC. Please, Mark. Based on the Kohala ditch, if you guys were to assume responsibility on the ADC, how long would it take to begin the work?

Well, I was looking up, trying to research as much as is available right now, study wise, and there's not, there's not much. I believe a lot of the, as many of these systems are similar, they cross multiple landowners. I think the major one in this case would be Kamehameha Schools, Bishop Estate.

So, we would want to meet with all the stakeholders, understand what's going on and they determine what path forward it would be to either maintain by, you know, we'd hire staff to do it, or we would work with the current user stakeholders, create an association.

There is one there, but I'm not sure how cohesive or, you know, how effective it is right now. And then there was $10 million appropriated I think last year or the year before prior. I don't believe that work, any of that work had been done, I'm not sure.

So, I'm thinking there would be, you know, our repair and maintenance. So, I think what would happen is the first year we would have to just figure this all out, determine what was needed, what, you know, what kind of repairs could be done quickly and that we had, we have funds available to perform some of that.

And then we would have to come back with some requests for CIP, for whatever engineering and actual repairs. The collapse was in, I think, 2021. So right now, they're, these farmers are either trucking water in or trying to make do with what they can using county water, which we know is very expensive for farming and ranching use.

So, you guys ever had the conversation with the Department of Ag?

I have not personally, no.

Is DOA here? So, if they have not used the $10 million and we were to do a proviso and transfer the 10 million to ADC, would that work to address exactly what you're talking about?

I think that would be a start. You know, it would depend on how much the magnitude of the work. So, if they, if they understand that or if there's, you know, there's a clear, what work is needed to be done, then that makes it a lot easier. Of course, I don't know right now.

Would actually help if they were here to address that, but at least that would be on start, right?

Yeah, sure.

Okay, thank you. Any other questions? Seeing none.

Moving on to SCR 121, requesting Department of Business, Economic Development and Tourism to establish a - to establish a tourism and gaming working group. First up, DBEDT Director Tokioka in support. Next up, Caroline Anderson.

Chair, Vice Chair and members, we stand on our written testimony.

Thank you for your stated comments. Next up, Prosecuting Attorney Steve Alm.

Thank you. Good afternoon, Chair DeCoite, Vice Chair Wakai, members of the committee. I'm Steve Alm. We're in strong opposition to this. Setting this up would just open the door to legalized gambling here in Hawaii. And sports gambling casinos will be big deals.

As Stephen Marche said in the Atlantic, "Before there was Las Vegas, now there's Las Vegas in every phone." And gambling relies on addiction for its business model to function because legalized gambling does increase problem gambling, and a small percentage is going to lose most of the money.

And research shows also that the poorest members of the society are the ones who do it. If you've ever been to a disadvantaged place on the mainland, long line outside 711, people spending $40, $50 like an investment on lottery, not realizing their chances of winning, you're more likely to get hit by lightning.

So, and I don't think a tourist, because gambling's everywhere on the mainland except Utah, they're not going to come here to gamble. So, if they do choose to go to gamble casino, whatever it means they're not going to the Polynesian Culture Center. They're not eating food. Thank you very much.

Thank you. Next up, Stanford Car testifying for Aloha Halawa District Partners.

Good afternoon. Chair DeCoite, Vice Chair, and members of the committee. Stanford Carr, one of the principals with Aloha Halawa District Partners, here to strongly support Senate Concurrent Resolution 121 which establishes a gaming working group within the Department of Business, Economic Development, and Tourism.

This measure seeks to explore comprehensive gaming policy and a framework to drive economic growth, job creation, investment, and tax revenues for the State of Hawaii. Notably, the resolution directs the working group to examine the potential for gaming activities in Aloha Stadium Entertainment District.

Halawa District Partners respectfully request an amendment to SCR 121 to include AHDP as a member of the gaming working group. AHDP was selected through a competitive bid process.

Having a seat at the table will allow us to have the discussions when transforming this transformative project and ensure that, with our public outreach with the community. that their voices are heard and that the goals of this working group are in alignment with our plans for infrastructure and development.

Thank you. Next up, Cody Sula testifying for Ironworker Stabilization Fund.

Hello Chair, Vice Chair, members of the committee. We submitted written testimony and want to stand on that. I'd just like to highlight we do believe that this is a good first step into looking into the gaming industry so that all stakeholders can put in the both the positives and the negatives of gaming industry in Hawaii.

So, encourage you guys to pass this. And we especially like that labor is named in the bill because it's our working people is going to be affected by this. They have a voice for them in there. We do support. Thank you.

Thank you. Next up, Erin Midby testifying for Boyd Gaming on Zoom. Go ahead.

Hey, good afternoon, Chair DeCoite and Chair, Vice Chair, members of the committee. For the record, Erin Midby on behalf of Boyd Gaming Corporation; we appreciate the opportunity to testify in support of SCR 121. We did submit written testimony, and I'll stand primarily on that.

But I just wanted to highlight a couple of key points that we believe this resolution is an appropriate first step for the legislature to take before passing any gaming public policy and believe that this resolution, the way it's set out, convenes a group of diverse and stakeholders who have experience and expertise necessary to provide the data, research and information that will be necessary for you all to make an informed decision and also think that the timeline set forth is sufficient to have those discussions and create those findings and recommendations.

So, appreciate it again and thank you so much.

Thank you. Next up, Brandon Maka'Awa'Awa.

Hello Chair, Vice Chair, members of the committee, my name is Brandon Maka'Awa'Awa and I urge you to reject SCR 121. We believe that gaming industry should not write the rules it seeks to follow. SCR 121 gives gaming operators multiple seats at the table in developing policy meant to regulate them.

Native Hawaiians who will be most impacted are limited to a single vote. This is not a balance or fair process. Too many times industries have profited off of Hawaii without reinvesting in its people or respecting its culture.

Without clear guard rails, gaming will follow the same pattern benefiting outside companies while leaving local communities to deal with the consequences. If a working group moves forward, it must be led by Native Hawaiian voices and government agencies. Industries can contribute information, but it should not help write policy.

Gaming policy must be developed with transparency, strict oversight, and a focus on protecting Hawaii's long-term interests. Nation of Hawaii is ready to participate in these conversations, but only if it is community led and built to benefit Hawaii, not corporations. For these reasons, I respectfully urge Committee to reject SCR 121. Thank you.

Thank you. Next up, Bumpy Kanahele for Nation of Hawaii in opposition.

Hello Chair, Vice Chair, committee members. I just wanted to - the working group does not reflect Hawaii's values. Our state has seen how outside companies come in extract profits and leave our people behind. The government agencies and Native Hawaiians should lead, and the industry should be viewed as a resource, not a decision maker.

Gaming is a serious issue that requires integrity and accountability. The Nation of Hawaii believes in responsible community driven development. But this process does not give us confidence that gaming policy will be shaped with our people in mind. This is not the time for the fox to be guarding the hen house.

This is an opportunity for self-determination for our economic opportunities. For these reasons I respectfully, respectfully urge you to reject SCR 121. Mahalo.

Thank you. Next up, John Kealoha Garcia testifying for Nation of Hawaiian, in opposition. Kehaulani Lum testifying for Hawaiian Civic Club with comments. Claire Tamamoto testifying for Community Association with comments, as well as Dwayne Bautista. Oh, you're here in person as an individual. Aloha.

Good afternoon. Chair, Vice Chair, members of the committee. I strongly support, excuse me, my name is Dwayne Bautista. I strongly support SCR 121 for creating this working task force. By looking at the working group, we have the proper people in place to create and implement these policies and procedures that, in the future, that we're going to hold.

And I feel that having this working group will establish the rules and regulations for the gaming for a positive impact for the people of Hawaii when the time comes, when we get to that point of the gaming side. But other than that, thank you guys for your guy's time and appreciate the ongoing discussion.

And thank you again for having labor as on number seven on the SCR resolution. Aloha and thank you.

Thank you. Anybody else wishing to testify in this matter.

Chair and members; Brennon Morioka on behalf of the Stadium Authority. I apologize if our testimony did not make it in.

But we wanted to provide comments that while we understand this resolution just creates a working group we are, we always, always do encourage the exploration of new revenue or alternative revenue streams that is meant to be reinvested into building a new stadium. So, we, we do support this.

Thank you. Anybody else?

I'm sitting right here so you can't reach me. Good afternoon. Hi. [Foreign Language]. Good afternoon, Chair and members of the committee. My name is Cliff Laboy. I'm with the Ironworkers Union Local 625 Stabilization Fund. I'm also here on behalf of the Hawaii Building Construction and Trade Council.

We just had a meeting this morning to go over this bill. Everybody's exciting that we are putting the committee together to move forward in figuring this, this main thing out. We definitely need it we need new money in the state, but they wanted me to read this list. These are the 17 unions that supporting you.

A total of 35,000 members: the electricians, the elevators, the plasters, installators, bricklayers, plumbers, sheet metals, teamsters, IBEW boilermakers, ironworkers, painters, glazers, floor lasers, drywall tapers, roofers, and operating engineers. We hope that we can get this thing passed and we thank you for your time.

Thank you. Anybody else wishing to testify on this measure, please.

Chair, Vice Chair, committee members, my name is Kevin Lai and I'm speaking today as a resident of Hawaii for 20 years. We are a unique state, and it was mentioned earlier that we are one of a precious few states who do not now have legalized gambling.

I'd like to urge the committee to consider that we maintain that status because part of that is what makes Hawaii unique and a different place to visit for those who do visit.

But more importantly, as was mentioned earlier, some of the downstream negative impacts that gambling can bring to those who may not know what's going on at that time and downstream from that, the consequences, both from family perspectives, from financial perspectives. Because of those reasons, until the time comes when we as a state recognize that we absolutely do need to pursue gambling, let's push that off for as long as possible.

And so therefore I urge the committee to please decline, reject SCR121. Thank you.

Thank you. Anybody else wishing to testify on this measure? Seeing none. All members, any questions? Okay, moving on to SCR 65 / SR 50, urging the stadium authority finalized a contract for the construction of the new Aloha Stadium and to continue its efforts in earnest to create the new Aloha Stadium entertainment district. First up, stadium - testifying for stadium authority.

Chris Sadayasu with comments. Thank you. Next up, Stanford Carr testifying for Aloha Halawa District Partners.

Stanford Carr with Aloha Halawa District Partners, we stand with our written testimony in support.

Thank you. Next up, Elliot Miles as an individual in opposition. Keoni Shizuma, also an individual in opposition. And Janice Turner in opposition as an individual. Anybody else wishing to testify this measure please?

Russell Honma with APEC Hawaii. But today I'm just going to testify being a sports fan, just like in a silent majority of Hawaii who supports, who wants Aloha Stadium. And I coach youth baseball, youth soccer, and I used to be a jock in high school as well. So, I know what the sports fans want.

Using our taxpayer's money and having this kind of privatization kind of project is good, but we should, we should know what's going on with.

We've been deadlocked for all these years waiting. I know there's a two proposal with two RFPs out there with the two proposed developer being Stanford Carr one of them and Kobayashi Group on the other side. So, we want to know what's going on. Let's get the project rolling and award the project.

So, if they got problems with the Department of Finance, ask me; I can tap into some of these investment funds that President Donald Trump and Prime Minister Ishiba Japan said we're going to bring; $1 trillion for infrastructure development projects in the United States as well.

Chairman son of the SoftBank said he's going to invest $500 billion into the US soil for high tech demand. So, let's get some of this money into Hawaii. If these developers can't do it, we'll form our own group and we'll do it among US politicians and groups, and I'll be forming my foundation for that.

Thank you very much. Let's get the ball rolling.

Okay, anybody else wishing to testify this measure? Seeing none. Members, any questions? Senator Wakai.

Mr. Carr. Yeah, the previous speaker mentioned that there's a silent minority who want to see the stadium come about but the actuality is it's a silent majority of people that want to see the stadium built.

Can you tell us about numbers and a poll that you have come across that says that a vast majority of the residents of Hawaii, not just Oahu but of Hawaii, want to see the stadium development go forward?

Sure, Senator Wakai; we hired the Tulchin Research, independent research firm, to conduct a toll a poll of 600 registered Hawaii voters including the neighbor islands: Oahu, Maui, Kauai, and the Big Island. The results were 69% supporting total support for gaming.

It's funny because we've watched gaming over the last 30 years and I think that the time has come, that Hawaii's people want to have gaming for the financial support that it can provide for Kupuna Care, housing -

Let's actually stick with the stadium, not gaming; that's a totally separate issue but what's, what's the value to the public of having a stadium surrounded by mixed use development?

This will be in the billions: multi-billion-dollar project. It's a 25, 30 year build out, which will include not only the stadium but over 4,000 residential housing units, half of which will be affordable households.

2, possibly 3 hotels, to serve the also in collaboration with the Department of Defense and INDOPACOM for conference center hotel; couple 100,000 square feet of supporting office for the business community and then neighborhood commercial services and amenities and retail, including culture: Hawaii Music Hall of Fame, the Hawaii Sports hall of Fame, a venue featuring the Polynesian voyaging society and the renaissance of our culture over the years.

You know, there are two people who submitted testimony in opposition to this resolution, both of which promote the idea of scrapping the stadium and just putting housing all over it.

We all know that housing is a societal need here, but why would that be a bad idea to just plaster that entire 98 acres with tens of thousands of units of housing?

Well, we need a new home if we're going to continue to support the University of Hawaii in Division 1 football. It's been an important part of our university ecology over the last hundred plus years. The community misses it, including the neighbor island communities, the residents. And so, it's going on five years since the stadium has been condemned. We have been pursuing this opportunity endeavor since the first release of the RFQ in 2019. And we continue to be here to work towards making this a realization.

So, the minority of people who are kind of anti-stadium and want to see more housing, they have this anticipation somehow, we're going to have the same a stadium surrounded by a parking lot. But what you're proposing is actually additive to the housing issue.

So, you're actually helping solve the problems that these folks seem to have a problem with, which is a lack of housing. Your additive - you're actually providing a solution to the pain point that Hawaii's currently feeling.

That is correct. A new 21st century urban community where people can live, work, play, learn, and thrive.

Thank you.

Thank you.

Thank you. Any other questions? Seeing none. Brief recess. Thank you all for joining us.

We are going into decision making. First up, SCR 40 / SR 24, requesting Hawaii Technology Development Corporation to increase its focus on advanced manufacturing and cybersecurity to allow local manufacturers to expand production, lower cost, and create new products. We are going to pass this as is any discussion. Seeing none. Vice Chair for the vote. Chair votes aye.

[Roll Call]. Chair your recommendations adopted.

Thank you. Next up, SCR 61 / SR 46, requesting Department of Business, Economic Development and Tourism to sponsor a Michelin guide for restaurants across the state.

We are going to make an amendment to SCR 61 / SR 46; change page 1, line 30, to see a review evaluate the cost and benefit of return of investment on possible sponsorship of a Michelin guide for restaurants across the state. Any discussion Seeing none. Vice Chair for the vote. Chair goes aye.

[Roll Call]. Chair, your recommendation is adopted.

Thank you. Next up, SCR 90 / SR 73, requesting the Agribusiness Development Corporation to assume responsibility for the routine maintenance and repair of the Kohala Ditch. You know, just want to say: last year, the Department of Ag received $10 million by this legislature.

I would have thought that the Department of Ag would have at least been here to address that based on the issues we having on the Big Island with the Kohala Ditch.

As I'm not going to make amendment to it but in the committee report, I'd like it to reflect that the $10 million be transferred over to ADC ASAP so that we can actually address the Kohala Ditch situation up on the Big Island.

With that being said, we're going to move the measure as is and comments addressed in the committee report. With that being said, Vice Chair for the vote Chair votes aye.

[Roll Call]. Chair, your recommendation is adopted.

Thank you. In regard to SCR 121, requesting Department of Business Economic Development Tourism to establish a tourism and gaming working group. You know we constantly struggle with this one in issues pertaining to gaming, gambling.

You know, all this is a working group, and I think, you know there should be discussion. Whether or not this is something that we're going to entertain will be based on the study. And I think this way we'll really flush it out whether or not we see fit.

I do want to acknowledge that in the resume, you know, if you look at the representation on there and also the recommendation that chairs of the Standing Committee of the Senate and House, can also purview form matters of the economic development as well as to serve as cultures of the working group.

Several of those seats are actually Hawaiian, Native Hawaiian representative as well as one individual representing native Hawaiian culture to be invited by the culture persons. I think this will allow us to give us a lot more conversation as well as to have labor on board.

I believe that most of us that have been born and raised in Hawaii has a vested interest to figure out is this something we really want to have. I think the study should flesh a lot of that out.

So, with that being said, I'd also like to add on AHDP as part of the working group and we're going to keep it for conversation as we move along with this result. With that being said, we will pass this with an SD 1 making any necessary technical amendments. Vice Chair for the vote. Chair votes aye.

[Roll Call]. Chair, your recommendation is adopted.

Thank you. Next up, SCR 65 / SR 50, urging the stadium authority to finalize a contract for the construction of the new Aloha Stadium and to continue its efforts in earnest to create the new Aloha Stadium entertainment district. We are going to move this as is any discussion

Just make comment: I thank you for hearing this resolution and we've been at this as a state for 15 years. We dropped $28 million into teeing this thing up and we're at the cusp of us creating a dynamic new community in that Halawa area.

And I know that we're never going to get no issue that we discuss in this building has 100% support. But the poll that came out today that shows that 70% of our constituents are supportive of this really is an indication that the state has to finally execute, stop delaying.

We are notorious in government for taking forever to permit things, regulations spikes timing, something. But this is one of those things that the community desperately needs. And the poll also talked about how the number one issue for people and their pain points in Hawaii are affordable cost of living and affordable housing.

And this particular development gets to both of them. It creates economic vitality in the district that has very little at the moment and, as we heard from Stanford Carr, is going to be additive to the tune of 4,500 homes. So, I'm not too sure why people are still opposed to this idea, this project when, and also there's a lot of public private partnership money in there, right? Just taxpayers are all in this $250 million.

Stanford and his group has to come up with the rest of it to build us a stadium that we can all enjoy as well as give him the opportunity to make the money back on the mixed-use development outside of the stadium. So, this is really an innovative and needed project.

I really appreciate you, Chair DeCoite, for hearing this and hopefully galvanizing the community to finally get behind this and start being crabs and pulling this thing down. We really need to move forward on this.

So just wanted to add, you know, living on Molokai, I'm not going to deal with all this. Like you know, the traffic, you know, our challenges is jobs and I think you know, having to live work playing on district, that is something that I used to love coming to Aloha Stadium to watch football but man, this traffic is horrendous.

Thank you.

I would love to see us to like I said, live, work, and play in an area without having to fight the battle of just trying to get to work or get to pick up your kids. I have no problem paying for the higher price of gas on Molokai, but, man, staying in traffic. Wow.

So, with that, I would love to see us move forward, get this thing built, and make sure that people can do those things just in their daily lives. So, that being said, Vice Chair, we are passing as is. Chair votes aye.

[Roll Call]. Chair, your recommendations adopted.

Thank you. And with that, we are adjourn.