Special business zones sought for Waimanalo

By Eloise Aguiar
Advertiser Windward Bureau

WAIMANALO — Two programs that can help businesses in distressed communities are gaining support in this Windward town, but more support from businesses and residents is needed.

Gregory Field, who heads the Waimanalo Community Development Corp., is seeking State Enterprise Zone and Federal Empowerment Zone status for the community. Such designations would provide tax incentives and other benefits to the area's businesses and residents.

With the programs, Field said, businesses in Waimanalo will have a better chance of prospering so people can be employed here.

"I know farmers who farm and go to work someplace else as well," he said, adding that if a farmer could expand his business, he wouldn't have to seek other employment and might even become an employer.

The state program is intended to stimulate such businesses as agriculture, maritime repair and maintenance, telecommunications and other technology design and production services.

The county can have up to six zones. There are five operating on O'ahu, 19 statewide.

Tom Brandt, with the state Department of Business Economic Development and Tourism, said there is no competition to fill the last slot. Brandt, administrator for the enterprise zone program, said Waimanalo is eligible and needs City Council approval.

"Every area that's wanted it so far has gotten it, and it's also possible for existing zones to be expanded," Brandt said.

The incentives include a waiver for all building and grading fees for construction, 100 percent exemption from the general excise tax and the use tax for up to seven years, an income tax credit and a rebate on a portion of the property tax resulting from new construction.

Fields asked the Waimanalo Neighborhood Board to endorse the two programs and asked it to send a letter to the City Council to nominate Waimanalo for the State Enterprise Zone.

In the federal program, Field seeks to qualify Waimanalo as one of seven empowerment zones on O'ahu.

Other communities interested in the program are North Shore, Ko'olauloa, Wai'anae, Waipahu, 'Aiea, Greater East Honolulu and Kalihi-Palama/Chinatown.

The application is due in September and designations will be made by Dec. 31 by the U.S. Housing and Urban Development and U.S. Department of Agriculture.

The incentives include employment credits for hiring people from empowerment zones, more generous limits on facility bonds, and financing of bonds to assist local schools.

The Waimanalo board unanimously supported including Waimanalo in the two programs earlier this month. Board chairman Wilson Ho said the apparent tax benefits and bonds could be helpful for local businesses, especially farmers.

The board has wanted to help create a co-op among farmers and build a place where they could sell their produce, Ho said.

"I thought ... this would help assist these people, so we went for it," he said.

Call Field to get involved at 259-9558.