Important Agricultural and Rural Lands The Road Ahead

Important Agricultural and Rural Lands “The Road Ahead” Hawaii Congress of Planning Officials November 3, 2005

Important Agricultural and Rural Lands HB 1640, Act 183 Important Agricultural Lands (IAL) HB 109, Act 205 Rural Lands

Important Agricultural and Rural Lands County Ag Con Urban Rural Total (Acres) (Acres) 128, 839 156, 619 100, 730 386, 188 1, 214, 527 1, 304, 347 53, 722 804 2, 573, 400 Maui 404, 043 261, 833 27, 205 8, 051 701, 132 Kauai 139, 320 196, 769 14, 558 1, 253 351, 930 1, 886, 729 1, 919, 568 196, 245 Oahu Hawaii 10, 108 4, 012, 650

Important Agricultural and Rural Lands Changes in Acres by Year Urban Conservation Agricultural Rural % Change ’ 64 -’ 74 20. 12% 6. 23% -7. 91% 24. 48% Change in Acres 29, 672 123, 829 -155, 673 2, 172 % Change ’ 64 -’ 84 25. 73% 5. 42% -7. 61% 34. 19% Change in Acres 40, 820 106, 751 -150, 164 3, 481 % Change ’ 64 -’ 94 37. 81% 5. 67% -9. 59% 32. 43% Change in Acres 71, 618 111, 949 -185, 895 3, 216 % Change ’ 64 -’ 03 39. 96% 5. 63% -9. 93% 33. 72% Change in Acres 78, 415 111, 036 -192, 859 3, 408

Important Agricultural and Rural Lands Land Classification Acres In Acres Out % from Agriculture n/a -192, 859 n/a 111, 036 n/a 57. 57% URBAN 78, 415 n/a 40. 66% RURAL 3, 408 n/a 1. 77% AGRICULTURE CONSERVATION

Important Agricultural and Rural Lands “Facts are stubborn, but statistics are more pliable. ” Mark Twain

Important Agricultural and Rural Lands The 1978 Constitutional Convention Amended Constitution to Create: “Important Agricultural Lands”

Important Agricultural and Rural Lands Article 11, Hawaii State Constitution AGRICULTURAL LANDS Section 3. The State shall conserve and protect agricultural lands, promote diversified agriculture, increase agricultural self-sufficiency and assure the availability of agriculturally suitable lands. The legislature shall provide standards and criteria to accomplish the foregoing.

Important Agricultural and Rural Lands Article 11, Hawaii State Constitution AGRICULTURAL LANDS Lands identified by the State as “important agricultural lands” needed to fulfill the purposes above shall not be reclassified by the State or rezoned by its political subdivisions without meeting the standards and criteria established by the legislature and approved by a two-thirds vote of the body responsible for the reclassification or rezoning action. [Add Const Con 1978 and election Nov 7, 1978]

Important Agricultural and Rural Lands What has happened since 1978? • • • 26 Years of Failed IAL Legislation Agricultural Industry Evolved Less Mono-culture {single crops} to More Diversified Crops

Important Agricultural and Rural Lands Fast Forward Now to 2005: Agriculture is still Hawaii's thirdlargest industry, after our $10 billion-a-year tourism and the growing military sectors

Important Agricultural and Rural Lands Over the last 20 years: Sugarcane acreage declined 70% Pineapple acreage declined 42% Revenue from diversified agriculture doubled

Important Agricultural and Rural Lands Agriculture in Hawaii: * Produces $4. 3 billion in gross revenue annually; * Represents 18% of gross state product; * Involves more than 4, 600 farms; and * Employs more than 38, 350 people.

Important Agricultural and Rural Lands 2005 Legislative Session House Bill No. 1640 {Act 183} Established a Process for Identifying Important Agricultural Lands

Important Agricultural and Rural Lands Key Elements of the IAL Process: 1. Development and Approval of an Incentive Package by the 2007 Legislature 2. County Mapping of IAL Lands 3. Farmer/Landowner Designation of IAL Based on Incentives

Important Agricultural and Rural Lands County Mapping LUC to Distribute $75, 000 To Counties Oahu Mapping Or Use Bill 74 Maui Mapping Or Use Urban Growth Boundaries Hawaii Mapping Or Use Revised General Plan Kauai Mapping Or Use On-Going General Plan Revisions

Important Agricultural and Rural Lands County Process: Three (3) Years after Incentives Approved, LUC Decides on Petitions from Counties thru a Chapter 91 Proceeding

Important Agricultural and Rural Lands DOA--$75, 000 to Develop Incentives Working Group {Agencies, Farm Bureau, LURF} Legislature Approve Incentives 2006 and 2007 Sessions Farmer/Landowner Petition LUC for IAL Designation

Important Agricultural and Rural Lands Land Use Commission Oversight: * LUC Conducts Periodic Review of IAL Designation * LUC Acts on Farmers and Landowners Petition to Designate or Change IAL Designation

Important Agricultural and Rural Lands Where are we now in the Process?

Important Agricultural and Rural Lands “INCENTIVES”

Important Agricultural and Rural Lands So, we start with the basic premise, that: Government Doesn’t Have Any Money, and…

Important Agricultural and Rural Lands . . . They Are Very Protective of the Money They Do Have!

Important Agricultural and Rural Lands Similar to Affordable Housing, Government Incentives Are Either Based on Entitlements {i. e. Zoning, Density, etc. } Or New Sources of Money

Important Agricultural and Rural Lands Entitlements: Transfer Development Rights (TDR’s)

Important Agricultural and Rural Lands TDR Concept: Allow for the transfer of development rights, value, density, etc. , from IAL lands to lands in the Urban Core (focus on increased Density). Let the private sector pay for these rights.

Important Agricultural and Rural Lands GET Tax (Credit/Exemption) for Agricultural Capital Improvements: 1. Repair/Maintenance of Existing; or 2. Creating New Revenues.

Important Agricultural and Rural Lands Other Incentives For IAL Designation: 1. 2. 3. 4. 5. Availability and Certainty of Water Real Property Tax Relief or Waiver Conservation Easements Entitlements and Land Uses Coordinated Regional Land Use Planning

Important Agricultural and Rural Lands A Case for Rural Land Designation: “Agricultural Subdivisions”

Important Agricultural and Rural Lands The Court’s decision in a recent case was based on an interpretation of “farm dwelling. ” Chapter 205 HRS, defines “farm dwellings” as: “located on and used in connection with a farm, or where agricultural activity provides income to the family. ”

Important Agricultural and Rural Lands Since 1976 all homes in the Agricultural District were to have met the definition of “farm dwellings. ”

Important Agricultural and Rural Lands County Agricultural Lots, Post ’ 76 Assessed Value County of Hawaii 3, 000 ? ? ? County of Maui 1, 463 $788, 122, 700 County of Kauai 631 $1, 052, 073, 700

Important Agricultural and Rural Lands The Court’s ruling creates “uncertainty” for those people who are on Ag Lots created After 1976, and not doing farming or generating farm income {growing green onions for your saimin doesn’t count}

Important Agricultural and Rural Lands IAL and Rural: * Not all AG lands are suitable for Agriculture * Allowing Quasi-Urban Developments on Ag Lands creates more problems

Important Agricultural and Rural Lands IAL and Rural: IAL process will identify lands most suitable for Agriculture The non-IAL Agricultural lands will then be assessed for appropriate uses (Ag, Urban, Conservation, Rural)

Important Agricultural and Rural Lands “The greatest thing in this world is not so much where we are, but in what direction we are moving. ” Oliver Wendell Holmes, Jr.

Important Agricultural and Rural Lands THANK YOU VERY MUCH! Land Use Research Foundation Of Hawaii