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

Important Agricultural and

Rural Lands“The Road Ahead”

Hawaii Congress of Planning OfficialsNovember 3, 2005

Important Agricultural and Rural Lands

HB 1640, Act 183Important Agricultural

Lands (IAL)

HB 109, Act 205Rural Lands


County

(Acres)

Ag(Acres

)

Con(Acres

)

Urban(Acres

)

Rural(Acres

)

Total(Acres

)

Oahu 128,839 156,619 100,730 386,188

Hawaii

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 10,108 4,012,650


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-’9437.81% 5.67% -9.59% 32.43%

Change in Acres 71,618 111,949 -185,895 3,216% Change

’64-’0339.96% 5.63% -9.93% 33.72%

Change in Acres 78,415 111,036 -192,859 3,408


Land Classificatio

n

Acres In Acres Out % from Agriculture

AGRICULTURE n/a -192,859 n/a

CONSERVATION 111,036 n/a 57.57%

URBAN 78,415 n/a 40.66%

RURAL 3,408 n/a 1.77%


“Facts are stubborn, but statistics are more pliable.”

Mark Twain


The 1978 Constitutional Convention

Amended Constitution to Create:

“Important Agricultural 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.


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]


What has happened since 1978?

• 26 Years of Failed IAL Legislation• Agricultural Industry Evolved• Less Mono-culture {single

crops} to More Diversified Crops


Fast Forward Now to 2005:

Agriculture is still Hawaii's third-largest industry, after

our $10 billion-a-year tourism and the growing military

sectors


Over the last 20 years:

Sugarcane acreage declined 70%

Pineapple acreage declined 42%Revenue from diversified

agriculture doubled


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.


2005 Legislative SessionHouse Bill No. 1640 {Act 183}

Established a Process for Identifying Important Agricultural

Lands


Key Elements of the IAL Process:1. Development and Approval of an

Incentive Package by the 2007 Legislature

2. County Mapping of IAL Lands3. Farmer/Landowner Designation

of IAL Based on Incentives



County Process:

Three (3) Years after Incentives Approved, LUC Decides on

Petitions from Counties thru a Chapter 91 Proceeding



Land Use Commission Oversight:

* LUC Conducts Periodic Review of IAL Designation

* LUC Acts on Farmers and Landowners Petition to Designate or Change IAL Designation


Where are we now in the Process?


“INCENTIVES”


So, we start with the basic premise, that:

Government Doesn’t Have Any Money, and…


. . . They Are Very Protective of the Money

They Do Have!


Similar to Affordable Housing,Government Incentives

Are Either Based onEntitlements {i.e. Zoning,

Density, etc.}Or

New Sources of Money


Entitlements:

Transfer Development Rights (TDR’s)


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.


GET Tax (Credit/Exemption) for Agricultural Capital Improvements:

1. Repair/Maintenance of Existing; or2. Creating New Revenues.


Other Incentives For IAL Designation:

1. Availability and Certainty of Water2. Real Property Tax Relief or Waiver3. Conservation Easements4. Entitlements and Land Uses5. Coordinated Regional Land Use Planning


A Case for Rural Land Designation:

“Agricultural Subdivisions”


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.”


Since 1976 all homes in the Agricultural District were to have

met the definition of “farm dwellings.”


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


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}


IAL and Rural:

* Not all AG lands are suitable for Agriculture

* Allowing Quasi-Urban Developments on Ag Lands

creates more problems


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)


“The greatest thing in this world is not so much where we are, but in what direction we are moving.”

Oliver Wendell Holmes, Jr.


THANK YOU VERY MUCH!

Land Use Research FoundationOf Hawaii

Documents

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