Lingle plans DBEDT reorganization
By Sean Hao
Advertiser Staff Writer
Gov. Linda Lingle last night outlined major changes she intends to carry out to increase the effectiveness of the state's economic development and to motivate government to make quicker decisions affecting business.
Eugene Tanner • The Honolulu Advertiser
She also confirmed plans by Ritz-Carlton to build a hotel at the Ko Olina Resort.
Gov. Linda Lingle greeted Bradley Mulholland of Alexander & Baldwin last night at a Washington Place event marking the 20th anniversary of Hawaii Business Magazine's list of top Hawai'i business executives. Lingle spoke at the event about the need to refocus the Department of Business, Economic Development and Tourism.
Lingle's remarks came during an event at Washington Place marking the 20th anniversary of Hawaii Business Magazine's Top 250 list, which recognizes the state's top executives.
During the governor's race, Lingle targeted the Department of Business, Economic Development and Tourism as needing a sharper focus on its primary mission of economic development, but until last night, it wasn't entirely clear what she had in mind.
Lingle's plan to revamp DBEDT does not include spinning-off any of the agency's tourism duties as had been sought by the Hawai'i Tourism Authority. However, Lingle said she does plan to move the department's public housing agency to the state Department of Human Services.
"It's a very important function, but it has absolutely no business in a department of business and economic development," Lingle said.
The Housing and Community Development Corp. also will get a new board of directors made up of business leaders, she said. Other changes to DBEDT, which may need some form of legislative support, include eliminating the Office of State Planning once key duties such as coastal zone management are shifted to the Department of Land and Natural Resources. The move is expected to be accomplished without layoffs.
Also moving to Department of Land and Natural Resources is the Land Use Commission, which makes decisions on land zoning. In addition, Lingle said she wants to merge the Aloha Tower Development Corp. and the Hawaii Community Development Authority, which is charged with developing Kaka'ako.
These changes are designed to increase DBEDT's effectiveness, Lingle said.
"Some departments are not properly structured," the governor said. "The one that tops the list of a case lesson showing what not to do ... is DBEDT."
Lingle reiterated her support for a tax credit for the Ko Olina Resort and revealed that Ritz-Carlton had signed a letter of intent to build a hotel there. She referred to Ritz-Carlton during Tuesday's State of the State address, but did not divulge the hotel operator's plans to build a hotel.
The Ko Olina tax break — expected to cost $75 million over 10 years — is needed to stimulate the economy in Leeward O'ahu, Lingle said.
Other efforts Lingle discussed to improve the state's business climate include a legislative effort to reduce frivolous medical malpractice lawsuits and a directive to all department heads to speed up decisions dealing with business by 25 percent.
"They all have a strong understanding of how important it is to expand Hawai'i's economy now," she said. "Not four years from now, but right now."
Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.
