A Bill for an Act

HOUSE OF REPRESENTATIVES TWENTY-EIGHTH LEGISLATURE, 2015 STATE OF HAWAII A BILL FOR AN ACT

RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

1 SECTION 1. The legislature finds that the island of Oahu

2 currently lacks an operating motorsports center. Hawaii Raceway

3 Park opened for operation in Campbell Industrial Park in 1962,

4 but closed in 2006. Kalaeloa Raceway Park opened in 2010, but

5 closed in 2014. The legislature further finds that the

6 development of a planned motorsports center will provide a boost

7 of jobs in planning and construction, and provide permanent jobs.

8 The legislature further finds that a motorsports industry will

9 have a positive annual economic benefit while also resulting in

10 increased tourism and revenue for the State.

11 The purpose of this Act is to require the department of

12 business, economic development, and tourism to study and analyze

13 the feasibility of establishing a motorsports industry and

14 development of a motorsports center in Hawaii.

15 SECTION 2. The department of business, economic

16 development, and tourism shall study and analyze the feasibility

2015-1079 HB SMA.doc Page2 F-LB. NO. iafl

1 of establishing a motorsports industry and developing a

2 motorsports center in Hawaii, including but not limited to,

3 location, costs of land acquisition, costs of construction and

4 development, projected revenues, and means of financing.

5 SECTION 3. The department of business, economic

6 development, and tourism shall report to the legislature no

7 later than twenty days prior to the convening of the regular

8 session of 2016 on findings and recommendations of its study and

9 analysis under section 2 of this Act.

10 SECTION 4. This Act shall take effect upon its approval.

11 INTRODUCED BY: ______

JAN 292015

2015-1079 HE SMA.doc 2 ~ RB. NO. /3fl

Report Title: Department of Business, Economic Development, and Tourism; Motorsports Industry Study

Description: Requires Department of Business, Economic Development, and Tourism to study and analyze the feasibility of establishing a motorsports industry and developing a motorsports center in Hawaii, including but not limited to, location, costs of land acquisition, costs of construction and development, projected revenues, and means of financing. Requires a report to the legislature.

The summa,y description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

2015-1079 HB SMA.doc ’,,,,1,-1/»,_ 1 ' 0 F "-. DAVID Y. IGE /,.§_,...... ,'Z.?. _“ GOVERNOR 4 ny \_Q 33, '-.3, ..‘h LUIS P. SALAVERIA -_\‘ DIRECTOR ~ ‘O \ DEPARTMENT OF BUSINESS, MARY ALICE EVANS = ‘,1. DEPUTY DIRECTOR ..__,.,.. 0,,-' -,.”»”-1/ ECONOMIC DEVELOPMENT & TOURISM ..- '_,,.,. 0:00:00!‘p4 .f@N@,."’ 1gfiflflllI\ 4,? =,..'a.. '3 _\‘ No. 1 Capitol District Building, 250 South Hotel Street, 5th Floor, Honolulu, Hawaii 96813 Telephone: (808) 586-2355 ,1. _ 6% _ fi§,,n Mailing Address: P.O. Box 2359, Honolulu, Hawaii 96804 Fax: (808) 586-2377 -..-,,;,/1‘ Web site: www.hawaii.gov/dbedt

Statement of LUIS P. SALAVERIA Director Department of Business, Economic Development and Tourism before the House Committee on Economic Development & Business Friday, February 6, 2015 9:20 AM State Capitol, Conference Room 312

In consideration of HB1328 RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT, AND TOURISM.

Chair Kawakami, Vice Chair Kong and members of the House Committee on Economic Development & Business.

The Department of Business, Economic Development and Tourism (DBEDT) would like to offer comments on HB1328 that requires DBEDT to study and analyze the feasibility of establishing a motorsports industry and development of a motorsports center in Hawaii.

DBEDT understands that a vibrant motorsports industry could result in positive economic benefits to the State. However, the department does not have the necessary resources to appropriately conduct such a study. If the legislature were to direct the department forward, we would recommend adding $100,000 to conduct the study.

Thank you for the opportunity to offer these comments.

February 4, 2015

Re: HB1328

Aloha all,

My last visit to the capitol as the Secretary for the Oahu Pro Gas Association was for (2011) HCR100 HD2 Encouraging the HCDA and the DLNR to find suitable lands for racing on Oahu. We were pointed in the direction of the DHHL and Parcel 9 as seen in a January 2012 report to the legislature. This report includes a basic proposal by our Association to DHHL that was denied. .

Please support and amend as necessary to pass HB1328.

The information given in the2012 HCR100 HD2 report can help with the HB356 feasibility study as it has drawings and some basic specifications for needs of space and construction. As we move forward in time, it is a “need to know” current effects and costs to our State even though the State of Hawaii and/or City and County may not allow, subsidize, or develop such a project on any of their lands.

The 2012 report also found an economic benefit based on the following of such facilities on the mainland. In the past on Oahu with Hawaii Raceway Park and in the current day as seen with various motor sports on TV such as NASCAR (national), motor sports continues to be a revenue maker drawing thousands of people to a speed friendly, safe, recreational, multi-venue motor sport parks across America and around the world. Youth programs are steadily gaining speed as evidenced locally by the Sports Car Club of America that holds events at the Aloha stadium where our youth can participate in karts.

Sponsorships in this sport are seen from a range of automotive related industries such as General Motors, Ford, Dodge, Summit Racing, Firestone, Goodyear and a range of businesses such as Gatorade, Home Depot and Lowe’s, to name a few.

Mahalo and thank you for your support,

David Bautista, RBS

(Real Estate Broker/Property Manager, Oahu Pro Gas Association member, Sports Car Club of America member) Representative Derek S.K. Kawakami, Chair Representative Sam Satoru Kong, Vice Chair Committee on Economic Development & Business

H.B. 1328 February 6, 2015, Friday, 9:20 a.m. Room 312

Testimony From Paradise Ohana Centers LLC George “Junior” Grace, III., managing member Rodney Y. Sato, managing member

RE: H.B. 1328 Relating To The Department Of Business, Economic Development, And Tourism Testimony In Support

Thank you very much for scheduling this hearing and giving us an opportunity to present testimony.

H.B. 1328 was introduced along with H.B. 1329 to assist in the financing and development of a motor sports industry here in Honlulu, Hawaii.

H.B. 1328 Requires Department of Business, Economic Development, And Tourism to study and analyze the feasibility of establishing a motor sports center in Hawaii, including but not limited to location, cost of land acquisition, costs of construction and development, projected revenues, and means of financing. Requires a report to the legislature.

H.B. 1329 is authorizes the issuance of special purpose revenue bonds for not-for-profit corporations that provide industrial enterprises.

We are very thankful to State Senator Maile Shimabukuro and House Speaker Joseph Souki for introducing these bills in the Senate and the House.

Hawaii needs a motor sports center.

There are many great examples of motor sports centers and motor sports industry in the U.S.A and other parts of the world. Attached is a copy of the items as follows:

1. Summary Of Legislature Bills H.B. 1328 and H.B. 1329 1-page

2. Motorsports Talking Points 2-pages

3. Motorsports Economic Impact 2-pages

We strongly support H.B. 1328.

PARADISE OHANA MOTOR SPORTS CENTERS Hawaii Not For Profit Corporations SUMMARY OF HAWAII STATE LEGISLATURE BILLS as of 02/04/15 8:00 a.m. NO. BILLS AUTHORIZATION AMOUNT

1. HB1328/SB1274 Requires Department of Business, Economic Development, And Tourism to study and analyze the feasibility of establishing a motor sports center in Hawaii, including but not limited to location, cost of land acquisition, costs of construction and development, projected revenues, and means of financing. Requires a report to the legislature. HB 1328 01/29/15 Introduced and Passed First Reading 02/02/15 Referred to EDB, TRN, FIN, referral sheet 6 02/03/15 Bill scheduled to be heard by EDB on Friday, 02-06-15 9:30AM in the House conference room 312.

SB1274 01/29/15 Introduced 01/29/15 Passed First Reading 01/29/15 Referred to EDT, WAM 2. HB 3129/SB1275 Authorizing the issuance of special purpose revenue $100mil. bonds to assist industrial enterprises. Section 12: $30mil. SPRB Paradise Ohana Automotive Discovery Center.

Section 7: $20mil. SPRB Paradise Ohana Automotive Technologies Center.

Section 2: $15mil. SPRB Paradise Ohana Automotive Training & Education Center.

Section 17: $35mil. SPRB Paradise Ohana Motorsports Center.

HB 1329 01/29/15 Introduced and Passed First Reading 02/02/15 Referred to EDB, TRN, FIN, referral sheet 6

SB1275 01/29/15 Introduced 01/29/15 Passed First Reading 01/29/15 Referred to EDT, WAM

lilottsrsporls rising Poiria

I lilotorsporislsanson,gtlsemoot UrIl.lt|'ll:d sports viorlthalrl-e o Global lanlsase both locallv, nationallv, and international,- o Annual phvsisal attendance at U5 events utirnated at 15- mion people o Fastest growing spectator sport in the United States o F1 1-iievvership ratings on par vvith Eilyrnpins and ir 'iI|'orld Cup liili miionj u lilotorsporis is an econonsiolly irqaorlartt statewide cluster o involves iaoth racing and non-racing firrns o includs lirrns that speciaite in engineering, advanced manulacturing, transportation, education and logisties o Large source oi stalenirle employment o Promotes. education and trainiog

- liloiorsporis 'tllll.I-III evlunce rnanf positiveartrIsu'tesol= our state o increase ow national IHI isternationd image resulting is increased touisrn at-d revenue o attract human capital and lorﬂn investment no liive local economic esrparoion o Engender national and international maritet relatisnsiips 'ilsrot.gh positive inportsandeaporis

1 Looal economic impact is ininens-e o Facities can generate massive amounts ol annual itcornes and jolts I Example: Phoenix International iiiacevvav generates approiima|e|1,r 5-H5 rnion annualy and ov-er 5,lIIi johs. I Example: iniiana motdrspons itdustrv ci'ec'il-|- empis-is 13,-Dill! people and generates $3 hion to the state annual»; while provi:li-lg 111,0-III] jobs inrirectl1,r o Strong spenoirg in neerisv locaities for loogi1g,lood, gas, nflcelhneous sq:-pies, tips, air lare,and medicfl enpenss I Example: Sumrrit lriotorsports Faric: - " i-'-ood, moreth.an 56-.1rnIon - " Eirinlts, more than 54.5 rnion - * Gas, more than 5:5-.4 mion - " iificellan-eous sqspies, more than 55.1 milion - " 1'ips, more than 54 mion

I " Dther expenses such as airline, repairs, souvenirs and medical, rnore that $5.4 milion o Promotes eaettisg vvorltlorce mobitation vrltie providing new avenues for job creation such as construction and rieuelopment

flte rnotorsporls i'llllll1'l!l"|' is hilt tech, inrtouathre, and al:trac1s the same o Attracts high tech Iirms, nel-educated vvoriters, and promotes constant innovation o Includes a wide range ol high technology engineeritg and rnanulacturing firms as 'ttn!|| as il.lt|l3s o includu I'rrns that provide materiaet, parts and service Iirns that benefit from financial and technical interauions hlotorsporizs can footer new atrertues of edttca-lion and trirting taltile supporting current ones o Students 'aIlI support E.|t'Bl'.l|'|g educational courses I Exarnples: 3D and contputeraided design, mariteting, aoootnting, logistics, bteti-less management, engineering, programrning, marioeti-lg o |.o-oil comrnunltv coleges Iid utitersiiies con ooootop technology and busit-ess related programs to support the itdustrv ltlotorsports is a coroirtutlty based indtiatql o ilacitg promotes lamiv and oornmtnity concepts o Fosters saletv and education arnongst our vouth o Prov-ids opporttni-1 lcr s-ell‘-irnprovement

MDTD RSPDRTS ECDNDMIE ll"ii'l PACT

Tl1e following is a sample of economic impact studies from yarious industry partners and from racing facilities.

This sumrnary does not reflect the oyetall economic impact of the industry or the industry's significant cont rihutions to local and state income, sales, property and other taxes.

Alobomo Talladega Superspeedway Talladga Superspeedway generates a SID? rnillion economic impact and nearly Bcﬁllllﬂ jobs for the state each year-Source.' l‘-losbing-ton Econorni-1: Group, Iurre EEICIE. i Phoenix lutemational Raceway Phoenix lnte rnational Flaceway generates approximately Sll-T5 million annually and oyer 5,ElEllI| jobs- Source; Arizona Stote Unnrersity Study, November EGGS.

{'t:l.|=Ifimin Auto Club Speedway Auto Club Speedway created 5,l}DlJ jobs in EDD? and the regional economic impact is estimated at S210 million annually. Source: Conventions, Sport: E leisure Report, August Efllfl-E.

Fllonido Daytona International Speedway and Homestead-Miami Speedway The two facilities generate an annual economic impact of oyer 52.1 billion artcl oyer 3S,lJ-CI] permanent jolas in the State of Florida. Source: Washington Economics Group, December EEIUI-".

Eeogio Atlanta Itllotor Speedway Atlanta Motor Speedway contributes S-ll-55 million annually to the Atlanta economy 1.I.rhich is rrtore than the combined total of all other spcirting eye nts in the city. Source: Atfonto Journoi-Constitution, A-llorcb I1, IOU-5. Niiiﬂfi Chicagoland Speedway and Route IE5 Raceway Dyetall economic impact is estimated at S110 million annually and creates nearly 2,EHIlﬂ full-tirne ec|uiyalent jolas- Source." Frost Motorsports, LLE, Februury, EGGS. i lrtt:lianapolis ltllotor Speedway India napolis Motor Speedway proyidee approximately STE? million in annual economic impact for the looal economy. Source; September 2|'Ili'.II study by Dr. Morlt Rosentroub oftndiono iUr1'iyer'sr't].r— Purdue l_I'nr'|rersitj|ro'.t tndionopoiis.

Ki Kansas Speedway Kansas Speedway generates approximately S243 million for the local economy annually and over 5,000 jobs. Source: Washington Economics Group, August ZEUS.

Micitigorr Michigan International Speedway Michigan International Speedway creatu more than Sill] million in economic impact and over 5,000 johs for the State of Michigan. Source: Hillsdoie Policy Group, trot, Moy 2£l'.'lI-". i Las ‘lie-gas Motor Speedway The Speedway generates approximately $200 million in annual economic impact. Source: Scene Doiiy, 1 yco study zoos.

The total economic impact of the motorsports industry to the State of North Carolina is estimated at nearly SE billion ancl generates over 21000 jobs for the local economy- Source: Dr. John Connougbton, Dr. Ronoid A. Mudsen ut UNC Cburiotte, Jonuory 2006.

Pocono Raoevnray Pocono Raceway generates more than $353 million for the State's economy. Source: Pocono Rocewoy and Bucbort Horn, l'nc,r"HASl'_'D Associcrtes, 2006. m Marlinstrille Speedway and Richmond lntiernational Speedway The two facilities generate an annual economic impact of SE3? million and over 10,lI1ll]job-s in the State of lilirginia. Source: Wosnrhgton Economics Group, Morch 2i.'.l'J'S|.

kong2 - Brenden

From: [email protected] Sent: Wednesday, February 04, 2015 10:08 AM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/4/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing mike oakland Individual Support No

Comments: We (Hawaii Motorsports Center) had an economic impact study performed on a full blow multi-use motorsports facility In Kalealoa completed in November of 2003. This study was done by Acquisition Research Corp, headed by Dianne Willoughby. Using DBEDT out/in put models, it showed + 132,700,000.00 in Direct economic impact. We would be willing to assist in moving this bill along with additional information. Mahalo Michael T. Oakland

Please note that testimony submitted less than 24 hours prior to the hearing, improperly identified, or directed to the incorrect office, may not be posted online or distributed to the committee prior to the convening of the public hearing.

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1 kong2 - Brenden

From: [email protected] Sent: Wednesday, February 04, 2015 9:27 PM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/4/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing William Wong Individual Support No

Comments: A real motorsports facility on Oahu is a long overdue project that needs to be studied and supported. From the Mufi Hahnemann's campaign last election it is obvious that there is a majority in favor of building a real motorsports facility for our residents. The usual arguments in favor of a facility still stand - a save venue for motorsports fans to practice their hobbies, and compete in a safe manner. It can be a revenue generating facility as it serves all ages of our population, and spectators as well. It would open up our tourism destination potential to include motorsports from both the continental USA as well as the Pacific Rim. I am strongly requesting this study to be completed in a timely manner.

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1 Aloha. RE: Testimony to support a motorsports facility on Oahu, HI. A motorsport facility/race track is such a significantly important asset for Oahu, not just for racers and race fans, but for every resident of this island. Aside from giving Oahu a place where the huge subculture of racing enthusiasts can go to race safely, a race track will also be beneficial to the entire island, for these reasons: It would provide a venue for legal racing on Oahu making our public roads safer by reducing illegal street racing. A race track would bring jobs and money to the island, as race enthusiasts spend an enormous amount of money on and off the track, building vehicles etc. We would see more people vacationing on Oahu, particularly during winter, where the mainland is mostly too cold to race. This gives Hawaii a unique attraction for winter vacationers.. particularly motorcyclists, bringing more money. But, please consider this, which in my opinion is one of the most important and most overlooked reasons that we must do everything we can to have this facility become a reality. Having a race track is not just for racing. It also plays a vital role in providing a safe place for motorcyclists to practice riding. Oahu is one of the most dangerous states in the US to ride a motorcycle, because there is not a single place anywhere on this island where people can go to learn and practice riding. Not even a small area, there is absolutely nothing here whatsoever. Riding a motorcycle, unlike driving a car, requires a unique skill set that takes a lot of practice not only to learn, but to maintain. Especially during the time a rider is learning, they are extremely vulnerable, and on this island every rider is forced to take their chances on the public roads leading to numerous injuries and fatalities. Instances of rider-error fatalities are much higher in Hawaii because on average, riders here are generally a lot less skilled than riders who live in a place that has practice and racing venues. Even a rider who is experienced should regularly practice advanced safety maneuvers, emergency braking, cornering, to be prepared for when those skills make the difference between life and death. For this reason, I echo the strong belief of numerous other residents of Oahu that not only would this be a great asset to this island, and the state of Hawaii, and a wonderful place for families to get together and enjoy the sport, but it is a vital life saving necessity. In other places such as the mainland, places that may not have a race track nearby, they still have large areas that people can go to practice safely and away from the hazards of public roads. Unfortunately here on Oahu, there is less room and consequently nowhere that is suitable exists. This is resulting in higher numbers of riders using public roads to practice drills and life saving maneuvers, in dangerous environments out of sheer desperation.

I wish to submit this testimony of my strong support for bringing a motorsports complex/race track to Oahu with the utmost of urgency. Warm regards and thanks,

Harry Hansen Composer Blue River Productions LLC Ninjai Gang LLC www.harryhansenmusic.com www.facebook.com/harryhansencomposer To whom it may concern, Feb 5th. 2015

I am writing to indicate my approval of HB 1328. I am an avid racer and proponent of motorsports. Hawaii (and more specifically Oahu) could benefit greatly from a multi‐use motorsports complex and I feel that a study to assess the feasibility would prove me right. Beyond that; legislation to encourage investment and development of a suitable parcel would go a long way to kick starting the process.

Thank you for your time and consideration. Christopher Messer kong2 - Brenden

From: [email protected] Sent: Thursday, February 05, 2015 12:59 PM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/5/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing BJ Individual Support No

Comments: a track on oahu is long over due. How many more people need to die in order for us to realize we need a safe place to practice our hobbies? our local shops will benefit from parts that we can locally buy, people from around the world will come here to race during winter seasons. I only mentioned the last two things because safety does not seem to be a good enough reason for the island of oahu to have a track. If our lives matter at all, please build this track. The military will also have a suitable motorcycle training area instead of an abandoned parkng lot full of gravel. There are so many reasons why this would benefit our state, but money being the root of all evils has been preventing what is needed. Money will always be more important than our lives. Prove me wrong.

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1 kong2 - Brenden

From: [email protected] Sent: Thursday, February 05, 2015 6:56 PM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/5/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing Arnold Individual Support No

Comments: To whom it may concern, In this testimonial, I want to state that building a professional race track is a beneficial idea for the society of Oahu. Not only will it lower traffic accident rates as people have a place to "let themselves go". It's also a place of gathering and hosting national and even international events. Therefore bringing value to Hawaii's overall economy. Sincerely

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1 kong2 - Brenden

From: [email protected] Sent: Friday, February 06, 2015 11:41 AM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/6/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing Joshua Merrill Individual Support No

Comments: It is my hope that they build a motorcycle track, not only for the safety of riders, but also for support of the hobbyists and motorcycle enthusiasts that make up a large portion of the population on island. A track would allow motorists to enjoy their hobby in a safe environment, while keeping pedestrians and other roadside obstacles out of possible danger. I completely support the building of a motorsport track.

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1 kong2 - Brenden

From: [email protected] Sent: Thursday, February 05, 2015 8:28 PM To: edbtestimony Cc: [email protected] Subject: *Submitted testimony for HB1328 on Feb 6, 2015 09:20AM*

HB1328 Submitted on: 2/5/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing Kevin Mulligan Individual Support No

Comments:

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1 kong2 - Brenden

From: [email protected] Sent: Thursday, February 05, 2015 6:44 PM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/5/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing gavin nall Individual Support No

Comments: Building a Motorsports complex on Oahu would be beneficial for many reasons. There is a number of people who participated in Motorsports at the retired Campbell industrial facility who are in need of a new Motorsports complex. It would help to reduce racing on public roadways. It could be used as a training facility for advanced driving and motorcycling courses. If a large enough facility was built it could even attract international Motorsports events, bringing with them much revenue in tourist spending.

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1 kong2 - Brenden

From: [email protected] Sent: Thursday, February 05, 2015 6:44 PM To: edbtestimony Cc: [email protected] Subject: Submitted testimony for HB1328 on Feb 6, 2015 09:20AM

HB1328 Submitted on: 2/5/2015 Testimony for EDB on Feb 6, 2015 09:20AM in Conference Room 312

Submitted By Organization Testifier Position Present at Hearing gavin nall Individual Support No

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1 LATE TO: Committee on Economic Development && BusinessBusiness Representative Derek S.K.SK. Kawakami,Kawalcami, ChairChair Representative SamSam SatoruSatoru Kong,Kong, ViceVice ChairChair

FROM: O'hanaO’hana AndAnd FriendsFriends OfOfWe Westst OahuOahu a Hawaii Not For ProfitProﬁt CorporationCorporation LATE Polly A.K.AK. "Granny"“Granny” Grace,Grace, presidentpresident

BILL:BILL. H.B.H.B. 13281328

DATE: FebruaryFebruary 6,6, 2015,2015, Friday,Friday, 9:209:20 a.m.a.m. RoomRoom 312312

RE: H.B. 13281328 Relating To The Department Of Business, EconomicEconomic Development, And Tourism-Motor SportsSports StudyStudy Testimony In Support

My name is Polly A.K. “Granny”"Granny" Grace. II amam aa residentresident ofof thethe WaianaeWaianae Coast.Coast.

Thank you very much for schedulingscheduling thisthis hearinghearing andand givinggiving usus anan opportunityopportunity toto presentpresent testimony.testimony.

H.B. 1328I328 was introduced alongalong withwith H.B.H.B. 13291329 toto assistassist inin thethe financingﬁnancing andand developmentdevelopment ofof a amotormotor sportssports industry here in Honlulu, Hawaii.

H.B. 1328I328 Requires Department ofof Business,Business, EconomicEconomic Development,Development, AndAnd TourismTourism toto studystudy andand analyzeanalyze thethe feasibility of establishing a motormotor sportssports centercenter inin Hawaii,Hawaii, includingincluding butbut notnot limitedlimited toto location,location, costcost ofof landland acquisition, costs of construction and development, projected revenues, and meansmeans ofof financing.ﬁnancing. RequiresRequires aa reportreport to the legislature.legislature.

H.B. 13291329 is authorizes the issuanceissuance ofof specialspecial purposepurpose revenuerevenue bondsbonds forfor not-for-profitnot-for-proﬁt corporationscorporations thatthat provideprovide industrial enterprises. ThereThere areare fourfour (4)(4) specialspecial purposepurpose revenuerevenue bondsbonds totalingtotaling $200mil.$200mil.

H.B. 13291329 SectionSection 12I2 providesprovides forfor aa $50mil.$50mil. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive DiscoveryDiscovery CenterCenter toto be developed by Paradise OhanaOhana AutomotiveAutomotive DiscoveryDiscovery CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

H.B. 1329I329 SectionSection 77 providesprovides forfor aa $50mil.$50mi1. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive TechnologiesTechnologies CenterCenter toto be developed by Paradise OhanaOhana AutomotiveAutomotive TechnologiesTechnologies CenterCenter Inc.lnc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

H.B. 13291329 Section 22 providesprovides forfor aa $50mil.$50mil. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive TrainingTraining && EducationEducation Center to be developed byby ParadiseParadise OhanaOhana AutomotiveAutomotive TrainingTraining && EducationEducation CenterCenter Inc.Inc. a aHawaiiHawaii notnot forfor profitproﬁt corporation.

H.B. 1329I329 Section 17I7 providesprovides forfor aa $50mil.$50mil. specialspecial purposepurpose revenuerevenue bondbond forfor MotorsportsMotorsports CentersCenters toto bebe developeddeveloped by Paradise Ohana Motorsports CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

Our children and our children'schiIdren’s childrenchildren needneed facilitiesfacilities toto discoverdiscover thethe goodgood thingsthings inin lifelife andand toto bebe motivatedmotivated toto bebe better and to help make a better community. AnAn automotiveautomotive discoverydiscovery centercenter wouldwould openopen upup ourour keiki'skeiki’s eyeseyes andand minds. AA technologiestechnologies centercenter wouldwould showshow themthem thatthat newnew technologiestechnologies areare stillstill beingbeing developed.developed. AA trainingtraining andand leaminglearning center can teach them how they can get involved.involved. AA motorsportsmotorsports centercenter willwill helphelp themthem safely,safely, sanelysanely andand successfully do their motor sportssports atat aa motorsportsmotorsports centercenter ratherrather thanthan inin ourour housinghousing projects,projects, ourour roadsroads andand highways. ThisThis isis somethingsomething forfor everyoneeveryone andand cancan benefitbeneﬁt everyone.everyone.

We are very thankful to StateState SenatorSenator MaileMaile ShimabukuroShimabukuro andand HouseHouse SpeakerSpeaker JosephJoseph SoukiSouki forfor introducingintroducing thesethese bills in the Senate and thethe House.House.

We strongly support H.B. 1328.I328. atel

g TO: Committee on Economic DevelopmentDevelopment && BusinessBusiness Representative Derek S.K. Kawakami, ChairChair -’ Representative Sam Satoru Kong,Kong, ViceVice ChairChair L LAT!''1. FROM: O'hanaO’hana AndAnd FriendsFriends OfOf WestWest OahuOahu a Hawaii Not For ProfitProﬁt Corporation George “Bungi”"Bungi" Grace IV, Director

BILL: H.B.H.B. 13281328

DATE: February 6, 2015, Friday, 9:20 a.m.a.m. RoomRoom 312312

RE: H.B. 1328 - Relating To The DepartmentDepartment OfOf Business,Business, EconomicEconomic Development, And Tourism-Motor SportsSports StudyStudy Testimony In Support

Aloha, my name is George “Brmgi”"Bungi" Grace IV. I Iamam aa residentresident ofof thethe WaianaeWaianae Coast.Coast.

Thank you very much for schedulingscheduling thisthis hearinghearing andand givinggiving usus anan opportunityopportunity toto presentpresent testimony.testimony.

H.B. 1328 was introduced along with H.B.I-LB. 13291329 toto assistassist inin thethe financingﬁnancing andand developmentdevelopment ofof a amotormotor sportssports industry here in Honolulu, Hawaii.Hawaii.

H.B. 1328I328 Requires Department of Business, EconomicEconomic Development,Development, AndAnd TourismTourism toto studystudy andand analyzeanalyze thethe feasibility of establishing a motor sportssports centercenter inin Hawaii,Hawaii, includingincluding butbut notnot limitedlimited toto location,location, costcost ofof landland acquisition, costs of construction and development, projected revenues, and means of financing.ﬁnancing. RequiresRequires aa reportreport to the legislature.

H.B. 1329I329 is authorizes the issuance of specialspecial purposepurpose revenuerevenue bondsbonds forfor not-for-profitnot-for-proﬁt corporationscorporations thatthat provideprovide industrial enterprises. ThereThere areare fourfour (4)(4) specialspecial purposepurpose revenuerevenue bondsbonds totalingtotaling $200mil.$200mil.

H.B. 1329I329 Section 1212 provides forfor aa $50mil.$50rnil. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive DiscoveryDiscovery CenterCenter toto be developed by Paradise Ohana AutomotiveAutomotive DiscoveryDiscovery CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

H.B. 1329 Section 7'7 provides for a $50mil.$50mil. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive TechnologiesTechnologies CenterCenter toto be developed by Paradise Ohana Automotive TechnologiesTechnologies CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

H.B. 13291329 Section 2 provides forfor aa $50mil.$50mil. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive TrainingTraining && EducationEducation Center to be developed by Paradise Ohana AutomotiveAutomotive TrainingTraining && EducationEducation CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.

H.B. 1329l329 Section 1717 provides forfor aa $50mil.$50mil. specialspecial purposepurpose revenuerevenue bondbond forfor MotorsportsMotorsports CentersCenters toto bebe developeddeveloped by Paradise Ohana Motorsports Center Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

Your support is needed in bringing these House Bills intointo fruition. TheThe needneed forfor aa motorsportsmotorsports facilityfacility onon OahuOahu hashas been a great one since the closure of Hawaii Raceway Park and Kalaeloa Raceway Park. AgainAgain wewe areare facedfaced withwith the simple fact that the island that has the greatest population isis facedfaced with thethe samesame dilemmadilemma again.again. WithWith youryour helphelp we can make this happen.

We also ask for your support inin H.B.H.B. 1329,1329, thatthat willwill alsoalso greatgreat benefitsbeneﬁts asas wellwell asas helphelp buildbuild a afuturefuture forfor ourour childrenchildren and their children to come. ItIt isis aa greatgreat needneed thatthat shouldshould notnot bebe ignored.ignored.

We are very thankful to State SenatorSenator MaileMaile ShimabukuroShimabukuro andand HouseHouse SpeakerSpeaker JosephJoseph SoukiSouki forfor introducingintroducing thesethese bills in the Senate and the House.

We strongly support FIB.H.B. 1328.I328. ‘—..__.; A

TO: CommitteeCommittee onon EconomicEconomic DevelopmentDevelopment && BusinessBusiness Representative Derek S.K. Kawasaki, ChairChair Representative Sam Satoru Kong, Vice Chair

FROM: ShawnShawn BautistaBautista 95-213 Waimeli PlacePlace _ Mililani, Hawaii 96789 LATE r

BILL: H.B. 13281328

DATE: FebruaryFebruary 6,6, 20152015 , ,Friday,Friday, 9:20AM9:20AM RoomRoom 312312 '

RE: H.B. 1328 Relating totheto the Department of Business, Economic, Development andand Tourism-Motor Sports study Testimony in support

My name is Shawn Bautista, and residentresident ofof MililaniMililani Town.Town.

Thank you very much for scheduling this hearing and giving us an opportunity to presentpresent testimony. 1

H.B. 1328 was introduced along with H.B. 1329 to assist in the financing and development ofof a motor sports industry here inin Honolulu, Hawaii.Hawaii.

H.B. 1328 Requires Department ofof Business, Economic Development, and Tourism to studystudy l and analyzeanalyze thethe feasibilityfeasibility ofof establishingestablishing aa motormotor sportssports centercenter inin Hawaii,Hawaii, includinginciuding butbut notnot limited to location,location, cost of landland acquisition, costscosts ofof constructionconstruction andand development,development, projectedprojected , revenues, and means of financing.financing. RequiresRequires aa reportreport toto thethe legislature.legislature. l

N.B.H.B. 1329 authorizes the issuance of special purpose revenue bonds for not-for-profit corporations that provide industrial enterprises. There are four (4) special purpose revenuerevenue l bonds totaling $200 million.million.

H.B. 1329 Section 12 provides for a $50 million special purpose revenue bond for anan l Automotive Discovery Center to be developed by ParadiseParadise Ohana Discovery CenterCenter Inc.Inc. aa Hawaii not for profitprofit corporation.corporation.

H.B. 1329 Section 7 provides for a $50$50 millionmillion specialspecial purposepurpose revenuerevenue bondsbonds forfor anan AutomotiveAutomotive Technologies Center to be developed by ParadiseParadise Ohana Automotive Technologies CenterCenter Inc.lnc. a Hawaii not for profitproﬁt corporation.corporation.

H.B. 1329 Section 2 provides forfor a $50 million special purpose revenue bonds forfor anan AutomotiveAutomotive Training & EducationEducation Center to be developed by ParadiseParadise OhanaOhana AutomotiveAutomotive TrainingTraining && Education Center Inc.inc. a HawaiiHawaii notnot forfor profitprofit corporation.corporation. -ii

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H.B. 1329 Section 17 provides for $50 millionmillion specialspecial purposepurpose revenuerevenue bondbond forfor MotorsportsMotorsports Centers to be developed by Paradise Ohana MotorsportsMotorsports CenterCenter Inc.inc. aa HawaiiHawaii notnot forfor profitprofit corporation.

Our children and our children's children needneed facilitiesfacilities toto discoverdiscover thethe goodgood thingsthings inin lifelife andand toto be motivated toto be better and to help make a better community.community. AnAn AutomotiveAutomotive DiscoveryDiscovery Center wouldwould openopen up our keiki's eyes and minds. AA TechnologiesTechnologies CenterCenter wouldwould showshow themthem that new technologiestechnologies thatthat are still being developed. AnAn AutomotiveAutomotive TrainingTraining andand LearningLearning Center can teachteach them how to get involved. AA MotorsportsMotorsports CenterCenter willwill helphelp themthem safely,safely, sanelysanely and successfully do their motor sports atat aa motormotor sportssports centercenter ratherrather inin ourour housinghousing projects,projects, our roads and highways. This isis somethingsomething forfor everyoneeveryone andand cancan benefitbenefit everyone.everyone.

We are very thankful to State Senator MaileMaile ShimabukuroShimabukuro andand HouseHouse SpeakerSpeaker JosephJoseph SoukiSouki forfor introducing thesethese bills in the the SenateSenate andand thethe House.House.

We strongly support H.B. 1328.1328.

TO: Committee on EconomicEconomic DevelopmentDevelopment && BusinessBusiness _ Representative Derek S.K. Kawakami,Kawakami, ChairChair Representative Sam Satoru Kong,Kong, ViceVice ChairChair LLATE FROM: O'hanaO’hana AndAnd FriendsFriends OfOf WestWest O'ahuO’ahu a Hawaii NotNot ForFor ProﬁtProfit CorporationCorporation Jeanette Grace, ViceVice President

BILL: H.B.H.B. 13281328

DATE: February 6, 2015, Friday 9:209:20 a.m.,a.m., RoomRoom 312312

RE: Testimony in SugportSupport of H.B. 1328 --_ RelatingRelating ToTo TheThe DepartmentDepartment OfOf Business,Business, EconomicEconomic Development, and Tourism -- MotorsportsMotorsports IndustryIndustry StudyStudy

Aloha, my namename is Jeanette Grace. II amam aa residentresident && businessbusiness ownerowner inin Kapolei.Kapolei.

Thank you very much for scheduling thisthis hearinghearing andand givinggiving usus anan opportunityopportunity toto presentpresent testimony.testimony.

H.B. 1328I328 waswas introduced alongalong withwith H.B.RR 1329I329 toto assistassist inin thethe financingﬁnancing andand developmentdevelopment ofof aa motorsportsmotorsports industryindustry here in Honolulu, Hawaii.

H.B.I-LB. 1328 RequiresRequires Department of Business, EconomicEconomic DevelopmentDevelopment andand TourismTourism toto studystudy andand analyzeanalyze thethe feasibility of establishing a motor sports center inin Hawaii, includingincluding but not limitedlimited to location,location, costcost ofof landland acquisition, costs ofof constructionconstruction and development, projected revenues, and means of financing.ﬁnancing. RequiresRequires aa reportreport to the legislature.legislature.

H.B. 1329I329 is authorizes the issuance ofof specialspecial purposepurpose revenuerevenue bondsbonds forfor not-for-profitnot-for-proﬁt corporationscorporations thatthat provideprovide industrial enterprises.enterprises. ThereThere areare fourfour (4)(4) specialspecial purposepurpose revenuerevenue bondsbonds totalingtotaling $200mil.$200mi|.

H.B. 1329 Section 1212 provides forfor aa $50m$50mil. il. special purpose revenue bond forfor anan AutomotiveAutomotive DiscoveryDiscovery CenterCenter toto be developed by Paradise Ohana AutomotiveAutomotive DiscoveryDiscovery CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

H.B. 1329I329 Section 7 provides for aa $50mil. specialspecial purposepurpose revenuerevenue bondbond forfor anan AutomotiveAutomotive TechnologiesTechnologies CenterCenter toto be developed by Paradise Ohana Automotive Technologies CenterCenter Inc. a Hawaii notnot forfor profitproﬁt corporation.corporation.

H.B. 1329 Section 2 provides for a $50miI.$50mil. special purpose revenue bond for anan Automotive TrainingTraining &8c Education Center to be developed by Paradise Ohana AutomotiveAutomotive TrainingTraining && EducationEducation CenterCenter Inc.Inc. a aHawaiiHawaii notnot forfor profitproﬁt corporation.

H.B. 1329I329 Section 17 provides for a $50mil.$50miI. specialspecial purposepurpose revenuerevenue bondbond forfor MotorsportsMotorsports CentersCenters toto bebe developeddeveloped by Paradise Ohana Motorsports Center Inc.Inc. aa HawaiiHawaii notnot forfor profitproﬁt corporation.corporation.

All in all, the Island of Oahu, which hashas thethe greatestgreatest population,population, isis againagain atat aa crossroadcrossroad wherewhere wewe areare withoutwithout a asafesafe & secure motorsports facility. OurOur neighborneighbor islands,islands, Kauai,Kauai, MauiMaui && thethe HawaiiHawaii IslandIsland allall havehave motorsportsmotorsports facilities. ToTo havehave oneone herehere onon OahuOahu willwill onlyonly bringbring aa positivepositive outcomeoutcome toto ourour economy.economy.

There are many different aspects to these HouseHouse Bills thatthat cancan helphelp benefitbeneﬁt ourour communities.communities. ToTo buildbuild a afuturefuture forfor our children and future generations, we need to provideprovide thethe toolstools andand knowledge.knowledge. WithWith thethe helphelp ofof ParadiseParadise OhanaOhana Automotive Discovery Center Inc.,lne., Paradise OhanaOhana AutomotiveAutomotive TechnologiesTechnologies CenterCenter Inc.,Inc., ParadiseParadise AutomotiveAutomotive Training & Education Center Inc. and ParadiseParadise OhanaOhana MotorsportsMotorsports CenterCenter Inc.Inc. wewe cancan implementimplement thisthis andand helphelp buildbuild a better tomorrow.

We would like to give State Senator Maile ShimabukuroShimabukuro andand HouseHouse SpeakerSpeaker JosephJoseph SoukiSouki aa bigbig MahaloMahalo forfor introducing these bills inin the SenateSenate andand thethe House.House.

We are in strong support ofofH.B. H.B. 1328.I328. 3 Michael Kitchens 91-1013 KaiheenaluKaiheenaiu Street Ewa Beach, HIHI 9670696706

February 6th, 2015

To: Committee onon EconomicEconomic DevelopmentDevelopment && BusinessBusiness Representative Derek S.K. Kawakami, Chair LATE Representative Sam Satoru Kong, ViceWoe Chair

In Support of HB1328

My name isis Michael J.J. KitchensKitchens andand Il amam writingwriting thisthis letterletter inin fullfull supportsupport ofof HouseHouse BillBill 1328, RELATINGRELATING TOTO THETHE DEPARTMENTDEPARTMENT OF BUSINESS, ECONOMICECONOMlC DEVELOPMENT, AND TOURISMTOURISM forfor aa MotorsportsMotorsports IndustryIndustry Study.Study.

Since the closure of Hawaii RacewayRaceway ParkPark inin April 2006, II havehave beenbeen aa constantconstant advocate for the construction of a motorsportsmotcrspons facility on Oahu. I Ihavehave spentspent thousands of dollarsdoilars of my own moneymoney andand timetime holdingholding annualannual eventsevents promotingpromoting thethe need for a motorsports facility. Inln addition,addition, II havehave workedworked onon severalseveral projectsprojects including thethe now closed Kalaeloa Raceway ParkPark inin an effort toto bring this ideaidea to fruition. Our motorsports community isis inin aa veryvery diredire situation.situation. Currently,Currently, therethere areare nono viableviable attemativesaltematlves for the majoritymajority ofof racingracing activitiesactivities thatthat havehave existedexisted sincesince thethe earlyearly 1960's1960’s when Jimmy PfieugerPﬂeuger ﬁrstfirst opened HRP. This hashas resultedresulted inin several problems for our motorsports community and the supporting companies,companies, andand publicpublic community.

.• Substantial loss of income and jobs for the local economy '

o• Substantial loss of youth development and peer guidance opportunities

.• Substantial loss of family oriented activitiesactivities forfor thethe publicpublic .

.• Substantial loss for driver development throughthrough organizedorganized andand legallegal racingracing

-• Increased chance of riskyrisky activitiesactivities duedue toto thethe lossloss ofof thethe onlyonly legallegal avenueavenue forfor racing

-• Millions of dollars of wasted investmentinvestment inin thethe thousandsthousands ofof race-prepped,race-prepped, vehicles designed specificallyspeciﬁcally forfor racingracing

0• Loss of additional training facilities for City andand StateState organizations,organizations, suchsuch asas the Honolulu PolicePolice Department,Department, and the HonoluluHonolulu SheriffsSheriffs Division.Division. Motorsports is a majormajor world-widewond-wide industryindustry thatthat OahuOahu andand thethe StateState ofof HawaiiHawaii currently lacks any substantial footfoot holdhold in.in. Oahu,Oahu, inin particular,particular, isis devoiddevoid ofof aa motorsports center in its entirety. MultipleMultiple economiceconomic studiesstudies havehave shownshown thatthat aa

Q• PagePage 2 February 6, 2015 motorsports center isis capablecapable ofof generatinggenerating millionsmillions of dollars andand thousands ofof jobs resulting inin enomwousenormous annual economic benefit,benefit, employment, and community-basedcommunity-based support for its hosthost locale. ThereThere is substantial evidence thatthat aa motorsportsmotorsports centercenter creates strongstrong spendingspending inin nearbynearby localitieslocalities forfor lodging,lodging, food, gas,gas, miscellaneous supplies, air fare,fare, and medical expenses. awry \'§l“swri ok /firjobrfadcenterA'Aotrrikricenter wouldwould increaseincrease ourour nationalnational andand internationalinternational imageimage resultingresulting inin increased tourism,tourism, attractattract humanhuman capitalcapital andand foreignforeign investmentinvestment whilewhile drivingdriving locallocal economic expansion.expansion. InIn addition,addition, itit allows the opportunity toto engenderengender nationalnational andand intemational market relationshipsrelationships throughthrough positivepositive importsimports andand exports.exports. The motorsportsmotorsports industryindustry isis high-tech,high-tech, innovative,innovative, andand attractsattracts like-mindedlike-minded businesses. High-techHigh-tech firmsfinns employemploy well-educatedwell-educated workers,WOFKGFS, promotepromote constantconstant innovation throughthrough productproduct developmentdevelopment and production. ItIt includesincludes a widewide rangerange ofof high technology engineering andand manufacturingmanufacturing firmsfimws asas wellwell asas NAICSs.NAiCSs. In addition,addition, thethe motorsportsmotorsports industryindustry cancan fosterfoster newnew avenuesavenues ofof education andand training whilewhilesupporting supportingcurrent currentones. ones StudentsStudents willwill supportsupport existingexisting educationaleducational courses thatthat includeinclude 3D3D and computercomputer aidedaided design,design, marketing,marketing, accounting,accounting, logistics,logistics, business management,management, engineering,engineering, programming,programming, andand marketing.marketing. Inin conjunctionconjunction with thethe motorsports center, locallocal community colleges andand universitiesuniversities cancan developdevelop technology and business relatedrelated programsprograms toto supportsupport thethe existingexisting functionsfunctions andand facilities. Motorsports also promotespromotes familyfamily andand corecore communitycommunity conceptsconcepts whilewhile fosteringfostering safety andand educationeducation forfor ourour youth.youth. AA motorsportsmotorsports centercenter providesprovides opportunityopportunity forfor constant self-improvementself-improvement and peerpeer mentoring.mentoring.

Oahu’sOahu's motorsportsmotorsports community needsneeds a home,home, aa safesafe placeplace toto race,race, andand thethe freedomfreedom to enjoy our automotiveautomotive hobbies.hobbies. PleasePlease helphelp usus toto provideprovide forfor ourour youthyouth andand ourour community, today, and inin the future.future.

I fullyfullysupport support HB1328HB1328 forforthe the beneﬁtbenefit ofof ourour motorsportsmotorsports community. II ask thatthat you support thisthis billbiil as well.well. I havehave attached twotwo documentsdocuments withwith datadata thatthat I Ihavehave compiledcompiled forfor youryour reviewreview conceming thethe benefitsbeneﬁts ofof aa motorsportsmotorsports facilityfacility andand itsits economiceconomic impact.impact. MahaloMahaio for your timetime and consideration.consideration.

Respectfully,

Mich . itchergitcher‘ Mo n usiast

chment: MotorsportsMotorsports EconomicEconomic ImpactImpact Motorsports Talking Points MOTORSPORTS ECONOMICECONOMIC IMPACTIMPACT

The following isis aa samplesample ofof economiceconomic impact studies from variousvarious industryindustry partnerspartners andand fromfrom racingracing facilities.

This summarysummary doesdoes not reflect the overalloverall economiceconomic impactimpact ofof thethe industryindustry oror thethe industry'sindustri/‘s significantsignificant contributions to local and state income,income, sales, property andand otherother taxes.taxes.

Alabama Talladega Superspeedway Talladega SuperspeedwaySuperspeedway generates aa $407$407 millionmillion economiceconomic impactimpact andand nearlynearly 8,0008,000jobs jobs forfor thethe statestate each year. Source: Washington EconomicsEconomics Group,Group, JuneJune 2008.

Arizona Phoenix International RacewayRaceway Phoenix International RacewayRaceway generates approximatelyapproximately $475$475 millionmillion annuallyannually andand overover 5,0005,000 jobs.jobs. Source: ArizonaArizona State University Study, NovemberNovember 2005.2005.

California Auto Club Speedway Auto Club SpeedwaySpeedway createdcreated 5,000 jobs in 2007 andand the regionalregional economic impactimpact isis estimated atat $210$210 million annually. Source: Conventions, Sports & Leisure Report, August 2008.2008.

Florida Daytona International SpeedwaySpeedway and Homestead-Miami SpeedwaySpeedway The two facilities generategenerate anan annualannual economiceconomic impactimpact ofof overover $2.1$2.1 billionbillion andand overover 35,00035,000 permanentpermanent jobs inin the StateState ofof Florida.Florida. Source: Washington EconomicsEconomics Group, December 2007.

Georgia Atlanta Motor SpeedwaySpeedway Atlanta Motor Speedway contributes $4555455 millionmillion annuallyannually to thethe AtlantaAtlanta economyeconomy whichwhich isis moremore thanthan the combinedcombined totaltotal ofof allall otherother sportingsporting eventsevents inin thethe city.city. Source: AtlantaAtlanta Journal-Constitution, March .11,II, 2004.2004.

Illinois Chicagoland SpeedwaySpeedway and Route 66 RacewayRaceway Overall economiceconomic impact is estimated atat $140$140 millionmillion annuallyannually andand createscreates nearlynearly 2,0002,000 full-timefull-time equivalentequivalentjobs. jobs. Source: Frost Motorsports, LLC,LLC, February, 2005.2005.

Indiana Indianapolis Motor SpeedwaySpeedway Indianapolis Motor Speedway providesprovides approximatelyapproximately $727$727 millionmillion inin annual economiceconomic impactimpact forfor thethe local economy. Source: SeptemberSeptember 20002000 study by Dr. Mark RosentraubRosentraub ofof IndianaIndiana University—University — PurduePurdue University at Indianapolis. Kansas Kansas SpeedwaySpeedway Kansas SpeedwaySpeedway generatesgenerates approximatelyapproximately $243$243 millionmillion for thethe locallocal economyeconomy annuallyannually andand overover 5,0005,000 jobs. Source: Washington EconomicsEconomics Group,Group, AugustAugust 2008.2008.

Michigan Michigan internationalInternational SpeedwaySpeedway Michigan InternationalInternational Speedway creates moremore thanthan $400$400 millionmillion inin economiceconomic impactimpact andand overover 6,0006,000 jobs for the StateState ofof Michigan.Michigan. Source: Hillsdale Policy Group, Ltd., MayMay 2007.2007.

Nevada Las VegasVegas MotorMotor SpeedwaySpeedway The Speedway generates approximatelyapproximately $200$200 millionmillion inin annual economiceconomic impact.impact. Source: Scene Daily, LVCA studystudy 2006.

North Carolina The total economic impact of the motorsportsmotorsports industryindustry toto thethe StateState ofof NorthNorth CarolinaCarolina isis estimatedestimated atat nearly $6 billion andand generatesgenerates overover 27,00027,000 jobs forfor thethe locallocal economy.economy. Source: Dr. John Cannaughron,Cannaughton, Dr. Ronald A.A. Madsen at UNCUNC Charlotte, January 2006.

Pennsylvania Pocono RacewayRaceway Pocono Raceway generatesgenerates moremore thanthan $363$363 millionmillion for the State'sState's economy.economy. Source: Pocono Raceway and BuchanBuchort Horn,Horn, Inc/BASCOinc/BASCO Associates,Associates, 2006.2006.

VigqinlaVirginia Martinsville SpeedwaySpeedway and Richmond International Speedway The two facilities generategenerate anan annualannual economiceconomic impactimpact ofof $637$637 millionmillion and overover 10,00010,000 jobsjobs inin the StateState of Virginia. Source: Washington EconomicsEconomics Group, March 2009.2009. Motorsports TalkingTalking Points

0• Motorsports is among thethe most watched sportssports worldwideworldwide - o Global fanbasefanbase both locally,locally, nationally, and internationallyinternationally o Annual physical attendanceattendance atat USUS events estimatedestimated atat 1515 millionmillion peoplepeople o Fastest growing spectatorspectator sport inin the UnitedUnited StatesStates o F1Fl Viewershipviewership ratingsratings onon parpar withwith OlympicsOlympics andand SoccerSoccer WorldWorld CupCup (30(30 million)million)

1• Motorsports is an economically important statewide clustercluster o Involves bothboth racing and non-racingnon-racing firmsfirms o Includes firmsfirms thatthat specialize in engineering, advanced manufacturing,manufacturing, transportation, educationeducation andand logisticslogistics o Large sourcesource ofof statewidestatewide employment o Promotes education andand trainingtraining

0• Motorsports would enhance manymany positive attributesattributes ofof ourour statestate o Increase our national and internationalinternational imageimage resultingresulting inin increasedincreased tourismtourism andand revenue o Attract humanhuman capitalcapital andand foreignforeign investmentinvestment andand drivedrive locallocal economiceconomic expansionexpansion o Engender national and international marketmarket relationshipsrelationships throughthrough positivepositive imports and exports

0• Local economiceconomic impact is immense o Facilities cancan generategenerate massive amounts ofof annualannual incomesincomes andand jobsjobs I• Example: PhoenixPhoenix Internationalinternational RacewayRaceway generates approximatelyapproximately $475$475 million annuallyannually andand over 5,0005,000 jobs. I• Example: IndianaIndiana motorsportsmotorsports industryindustry directlydirectly employsemploys 23,00023,000 peoplepeople andand generates $3$3 billionbillion to thethe statestate annuallyannually whilewhile providingproviding 421,000421,000 jobsjobs indirectly o Strong spending inin nearby localitieslocalities for lodging,lodging, food, gas, miscellaneous supplies,supplies, tips, air fare, andand medicalmedical expensesexpenses I• Example: SummitSummit MotorsportsMotorsports Park:Park: 0• * Food, more than $6.1$6.1 millionmillion 0• * Drinks, moremore thanthan $4.6$4.6 millionmillion 0• * Gas, moremore than $6.4$6.4 millionmillion 0• * Miscellaneous supplies, more thanthan $5.1$5.1 millionmillion 0• * Tips, moremore than $4$4 millionmillion 0| Ir in

0• * Other expenses suchsuch asas airline,airline, repairs,repairs, souvenirssouvenirs andand medical,medical I more than $5.4$5.4 millionmillion o Promotes existingexisting workforce mobilizationmobilization while providingproviding new avenues forfor jobjob creation such as construction and development

v• The motorsports industry is highhigh tech,tech, innovative, and attracts the samesame o Attracts high techtech firms, well-educatedwell-educated workers, and promotes constantconstant innovation o Includes aa widewide range of high technology engineering andand manufacturingmanufacturing firmsfirms asas wellweli asas NAICSsNAlCSs o includesIncludes firmsfirms that provideprovide materials,materials, partsparts andand serviceservice firmsfirms thatthat benefitbenefit fromfrom financial andand technical interactions

0• Motorsports can foster new avenuesavenues ofof educationeducation andand trainingtraining whilewhile supportingsupporting current onesones o Students willwill support existingexisting educational coursescourses I• Examples: 3D3Dand and computercomputer aided design, marketing,marketing, accounting,accounting, logistics,logistics, business management, engineering,engineering, programming,programming, marketingmarketing o Local communitycommunity collegescolleges andand universitiesuniversities cancan develop technology and businessbusiness related programs to support thethe industryindustry i 0• Motorsports is a community basedbased industryindustry o Racing promotespromotes family andand community concepts o Fosters safety and education amongstamongst ourour youthyouth o Provides opportunityopportunity for self-improvement

Committee on Economic Development & BusinessBusiness ‘ Representative Derek S.K. Kawakami, Chair Representative Sam Satoru Kong, Vice Chair LATE H.B.N.B. 1328 February 6, 2015, Friday, 9:209:20 a.m.a.m. RoomRoom 312312

RE: H.B.H.B. 13281328 RelatingRelating ToTo TheThe DepartmentDepartment OfOf Business,Business, EconomicEconomic Development, And Tourism Testimony InIn SupportSupport

My name is Sabrina DeReis. I Iamam aa residentresident ofof thethe WaianaeWaianae Coast.Coast.

Thank you very much for scheduling this hearinghearing andand givinggiving usus anan opportunityopportunity toto present testimony.

H.B. 1328 was introduced along with H.B. 13291329 to assist inin thethe financing andand development of aa motormotor sportssports industryindustry herehere inin Honlulu,Honlulu, Hawaii.Hawaii.

H.B.N.B. 1328 Requires Department of Business, Economic Development,Development, And Tourism to study and analyze thethe feasibilityfeasibility ofof establishingestablishing aa motormotor sportssports centercenter inin Hawaii,Hawaii, including but not limitedlimited toto location,location, costcost ofof landland acquisition,acquisition, costscosts ofof constructionconstruction andand development, projected revenues, and means of financing. RequiresRequires aa reportreport toto thethe legislature.

H.B.N.B. 1329 is authorizes the issuance of special purpose revenue bondsbonds for not-for-profitnot-for-profit corporations that provideprovide industrialindustrial enterprises.enterprises. A $50mil. special purpose revenuerevenue bondbond for anan Automotive DiscoveryDiscovery CenterCenter toto bebe developed by Paradise Ohana Automotive DiscoveryDiscovery CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitprofit corporation. A $50mil. special purposepurpose revenuerevenue bondbond for anan AutomotiveAutomotive TechnologiesTechnologies CenterCenter toto bebe developed by Paradise Ohana Automotive Technologies CenterCenter Inc.lnc. aa HawaiiHawaii notnot forfor profitprofit corporation. A $50mil. special purpose revenuerevenue bondbond for anan AutomotiveAutomotive TrainingTraining && EducationEducation CenterCenter to be developed by Paradise Ohana Automotive TrainingTraining && EducationEducation CenterCenter Inc.Inc. aa Hawaii not for profitprofit corporation.corporation. A $50mil. special purpose revenuerevenue bondbond for MotorsportsMotorsports CentersCenters toto bebe developeddeveloped byby Paradise Ohana MotorsportsMotorsports CenterCenter Inc.Inc. aa HawaiiHawaii notnot forfor profitprofit corporation.corporation.

We are very thankful to StateState Senator MaileMaile ShimabukuroShimabukuro andand HouseHouse SpeakerSpeaker JosephJoseph Souki for introducing thesethese billsbills inin thethe SenateSenate andand thethe House.House.

We strongly support H.B.H.B. 1328.1328. S 71TAJ l

E February 6th, 2015

To: Committee onon EconomicEconomic DevelopmentDevelopment && BusinessBusiness Representative Derek S.K. Kawakami, Chair Representative Sam Satoru Kong, Vice Chair LATEi E In Support of HB1328

My name isis Tom BryantBryant andand II amam writingwriting thisthis letterletter inin fullfull supportsupport ofof HouseHouse BillBill 1328,1328, RELATING TO THE DEPARTMENT OF BUSINESS, ECONOMICECONOMIC DEVELOPMENT, AND TOURISM forfor aa MotorsportsMotorsports IndustryIndustry Study.Study.

Here is a brief history of my 25 yearyear involvementinvolvement withwith racingracing onon Oahu,Oahu, soso thatthat youyou can better understand mymy involvementinvolvement inin thethe racingracing community.community.

I entered into the racing business with thethe SkipSkip BarberBarber RacingRacing SchoolSchool inin 19901990 asas anan instructor trainee.trainee. Skip Barber Racing School at the time was the largestlargest and most successful formula carcar racingracing schoolschooi inin thethe nation.nation. TheyThey hadhad 1717 differentdifferent locationslocations forfor providing racing lessonslessons andand offeredoffered severalseveral competitivecompetitive racingracing series.series. ItIt maymay interestinterest you to know that Govenor Waihehe was oneone ofof ourour regularregular drivers.drivers. AfterAfter SkipSkip BarberBarber closed down I moved to a new racingracing school called HawaiiHawaii InternationalInternational RacingRacing School (B and S Motorsports, Inc.).inc.). The school was startedstarted inin 19921992 byby mymy racerace instructor and mentor, Shige Hirabayashi,Hirabayashi, butbut therethere waswas aa lotlot ofof workwork wewe hadhad toto dodo before we can open to the public.public.

After we were inin full operation II was appointed VP ofof the newnew company.company. InIn 19981998 Shige passed away and a new ownerowner boughtbought thethe company.company. II stillstill remainedremained VP,VP, butbut II was very disappointed in the changes that came aboutabout byby thethe newnew owner.owner. SoSo inin 20002000 I decided to start my own company calledcalled RaceRace EventsEvents Hawaii,Hawaii, LLC.LLC. StillStill holdingholding down mymy VP positionposition atat HIRS,HIRS, I I nownow hadhad thethe flexibilityﬂexibility toto createcreate newnew eventsevents andand racing series and also host businesses and groups to stage their events usingusing the facility at Hawaii Raceway ParkPark where ourour officeofﬁce and businessbusiness werewere located.located. In 2001, my new partner David Shimokawa and I,I, started upup another events company we named DriftDrift Session,Session, LLC.LLC. InIn 2006 just beforebefore thethe closureclosure ofof HRP,HRP, DriftDrift Session evolved into a company that putput on 11 drifting event and competition series once a month and 11 timed competition event called the Super LapLap SeriesSeries onceonce aa month as well. About 2 years before HRPHRP closedclosed II startedstarted mymy ownown racingracing school,school, FormulaFormula Hawaii,Hawaii, LLC. I did this to offer people realreal racingracing lessonlesson thatthat HIRSHlRS waswas nono longerlonger offering.offering. HIRSHRS eventuallyeventually turnedtumed intointo aa companycompany thatthat onlyonly cateredcatered toto tourist,tourist, mainlymainly thethe Japanese. I realized after HRP hadhad closed downdown inin AprilApril ofof 2006,2006, thatthat I Ihadhad allall mymy eggseggs inin oneone basket. Before the closure Il could not fathom the fact that Oahu would notnot havehave aa race track. The land lord at the time, Hawaii Motorsports Center, informedinfom1ed me that we would be out of a race track for about 3~63-6 months.months. A

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I have waited over 9 years nownow forfor anan asphaltasphalt racingracing facility.facility. I support and ask that you alsoalso supportsupport thisthis feasibilityfeasibility studystudy forfor aa motorsportsmotorsports facilityfacility so thatthat wescouldwertould returnretum toto providingproviding eventsevents forfor ourour displaceddisplaced racersracers andand racerace fans.fans. marad< 2a is0"inset? t.S I have attached a worksheet detailing the operations II conducted at the now closedclosed Hawaii Raceway Park. ThisThis maymay helphelp youyou realizerealize howhow muchmuch aa motorsportsmotorsports facilityfacility can provide for itsits locallocal andand internationalinternational patronspatrons fromfrom justjust oneone smallsmall business.business. Imagine what a proper motorsports facility with big business support could provide!provide! MahaloMahaio for your time, considerationconsideration andand help.help. Tom Bryant, Owner Race Events Hawaii, LLC Phone: (808)(808) 306-2761306-2761 Attachment: REHREH ExamplesExamples

Race Events Hawaii,Hawaii, LLCLLC History Historyof ofOperations Operations and ExamplesExamples atat HawaiiHawaii RacewayRaceway ParkPark

Race Events Hawaii, LLC was wasa acompany companyacting, acting, ininpart, part, asas race track managermanager whichwhich solicitedsolicited and rented outout thethe racewayraceway parkpark forfor aa broadbroad rangerange ofof variousvarious activities.activities. PreviousPrevious clienteleclientele atat former HawaiiHawaii RacewayRaceway ParkPark werewere HawaiianHawaiian ElectricElectric Company,Company, 1NJN Auto,Auto, ToyotaToyota HawaiiHawaii (Servco(Servco Pacific},Pacific),Sumitomo Sumitomo Tire,Tire, NissanNissanof ofHawaii, Hawaii,seven sevenother other driftdrift groupsgroups andand mainland and Japanese TV productionproduction companies.

REHalso alsorented rentedtrack tracktime time toto privateprivate racecarracecar owners, racecar rentalsrentals andand offeredoffered performanceperformance driving classes.classes. FurtherFurther clientele were otherother carcar dealerships,dealerships, HonoluluHonolulu PolicePolice Department,Department, StateState of Hawaii Sheriff SheriffDepartment Department andand otherother interested companiescompanies andand groups.groups.

Allgroups groups hadhad unique goals for their eventsevents whichwhich REHREH cateredcatered toto andand providedprovided forfor onon aa individual customizedcustomized basis. The following areare examples of each groupsgroups uniqueunique programs:programs:

Hawaiian Electric Company: Company:Rented Rentedthe the tracktrack forfor theirtheir annual "Electrothon""Electrothon” competitioncompetition forfor High SchoolSchoolstudents students building electric powered vehicles.vehicles.

INJN Auto: Rented the roadroad coursecourse andand classroomclassroom forfor theirtheir fourfour dayday annualannual "Track“Track Days"Days" event.event. The purpose for their eventevent isis toto thankthank theirtheir high-endhigh-end customerscustomers byby providingproviding instruction,instruction, tracktrack time, food and beverages and entertainment forfor exoticexotic automobileautomobile owners/buyers.owners/buyers. ThisThis eventevent was televised every year on our localiocal broadcast newsnews stations.stations.

Toyota Hawaii: RentedRented thethe tracktrack for threethree daysdays at aa time,time, threethree toto fourfour timestimes aa yearyear forfor thethe purpose ofof trainingtraining theirtheir salessales staffstaff andand mechanicsmechanics onon incomingincoming newnew vehicles.vehicles.

Sumitomo Tire Company:Company: CompaniesCompanies likelikethis thisrented rented thethe track for the samesame purposepurpose asas Servco.Servco. They dodo tiretire testtest comparisons with other tiretire brandsbrands forfor theirtheir salessales staffstaff andand managers.managers.

Nissan ofof Hawaii:Hawaii: RentedRented thethe track to debutdebut theirtheir newnew NissanNissan 350Z3502 toto thethe public.public. BasicallyBasically theythey threw anan elaborateelaborate partyparty forfor invitedinvited guestsguests andand thethe generalgeneral public.public.

Seven drift groups:groups. Private partiesparties would rentrent the track to havehave thethe roadroad coursecourse forfor theirtheir exclusive private use.use.

WTV productionproduction companies: MainlyMainly from Japan,Japan, TVTV crews would useuse thethe racingracing schoolschool asas aa backback drop for their production.production. OtherOther crewscrews wouldwould featurefeature thethe racingracing schoolschool asas anan activityactivity toto dodo when visiting Hawaii. Very goodgood exposureexposure for the tracktrack andand usuallyusually no-chargeno-charge forfor thethe TVTV companies.

Formula Hawaii Racing School-School- AnAnautomobile automobile racing school, utilizingutilizing 2 liter classclass formula typetype racecars. Operated MondayMonday throughthrough FridayFriday andand offeredoffered classesclasses forfor locallocal residentsresidents andand visitors.visitors. Formula Hawaii alsoalso rentedrented out the racecarsracecars toto qualifiedqualified driversdrivers forfor racesraces andand practicepractice sessions.sessions. car storage. -

Drift Session,Session, LLC: This Thiscompany companyhosted hostedtwo two differentdifferent type ofof eventsevents atat HRP.HRP. OneOne beingbeing driftingdrifting and the otherother beingbeing timetime trialstrials (gripping)(gripping) utilizingutilizing the roadroad course.course.

Contact:

Tom Bryant . Ph:Phi (808) 306.2751306.2761 email: [email protected]