GOVERNOR LINGLE APPROVES ENTERPRISE ZONE DESIGNATION FOR WAIMANALO
For Immediate Release: March 3, 2008
HONOLULU – Governor Linda Lingle has approved the designation of Waimanalo as an Enterprise Zone (EZ) to help stimulate business and economic activity, enhance employment opportunities, as well as preserve agricultural activity in the area. The addition of Waimanalo brings the number of Enterprise Zones statewide to 22 – six each in Honolulu and Hawai‘i counties and five each in Maui and Kaua‘i counties.
The Enterprise Zones partnership is a joint state-county effort intended to stimulate – via tax and other incentives – certain types of business activity, job preservation, and job creation in sectors such as agriculture, manufacturing, high technology, biotechnology, and wholesaling.
Businesses in the Enterprise Zone that meet certain criteria, including hiring requirements, are eligible for state tax benefits including 100 percent exemption from the General Excise Tax on eligible revenues and income tax credits for seven years. In addition, businesses could qualify for county benefits that may include priority permit processing, zoning or building permit waivers or variances, property tax adjustments, and priority consideration for federal job training or community development funds for activities and projects in the Enterprise Zone.
“The new Enterprise Zone will help support Waimanalo small businesses and increase employment opportunities in Waimanalo for area residents,” said Governor Lingle. “The Enterprise Zone will also help perpetuate Waimanalo’s agricultural heritage as well as preserve Windward O‘ahu’s rural lifestyle.”
The designation by the Governor culminates a nearly six-and-a-half year effort to establish Waimanalo as O‘ahu’s sixth Enterprise Zone. The idea was raised in 2001 by the Waimanalo Community Development Corporation and received support from the Waimanalo Neighborhood Board. In October 2007, the Honolulu City Council passed a resolution supporting the designation. This was followed by a January 2008 letter from Honolulu Mayor Mufi Hannemann to Governor Lingle requesting her approval to create the Waimanalo Enterprise Zone.
The Lingle-Aiona Administration has supported past legislation to make it easier for farmers to qualify for Enterprise Zone benefits by increasing sales rather than just employment; and make it easier for all Enterprise Zone-eligible firms to satisfy hiring requirements by allowing them to count leased or contracted employees as part of their workforce.
Each county can select up to six zones for approval by the Governor. Enterprise Zones exist for 20 years each. The zones can also be expanded into adjacent eligible areas at any time for the remainder of the original zone’s 20-year existence.
The number of firms enrolled in the Enterprise Zone Program increased from 170 in 2002 to 210 today. The number of currently enrolled firms by county are: O‘ahu-137; Big Island-56; Kaua‘i-9; and Maui-8.
Hawai‘i Enterprise Zone Locations:
Honolulu City and County (6): North Shore-Ko‘olau Loa, Mililani-Wahiawa, Pearl City-‘Ewa-Central O‘ahu Areas, Urban Honolulu, the Leeward Coast and Waimanalo.
Hawai‘i County (6): Hamakua, Hilo-Puna, North Kona, Ka‘u, South Kona and North Kohala.
Kaua‘i County (5): Līhu‘e and vicinity, North Shore, Kapa‘a and vicinity, South Central Kaua‘i, West Kaua‘i.
Maui County (5): Moloka‘i (entire island), Lana‘i (entire island), East Maui, West Maui, and Greater Maui.
For more information on the Enterprise Zone program, visit the Department of Business, Economic Development and Tourism Web site at: http://hawaii.gov/dbedt/business/programs/ez or call the state EZ coordinator at (808) 586-2593.
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For more information, contact:
Ted Liu
Director, DBEDT
Phone: (808) 586-2355
Lenny Klompus
Senior Advisor – Communications
Phone: (808) 586-7708
Russell Pang
Chief of Media Relations
Phone: (808) 586-0043
