We in government have encouraged Hawai'i's citizens and businesses to innovate and think big ideas in an effort to diversify our economy. But it is not enough to encourage those in the private sector to act alone in this respect. We in government must be willing to do the same, to think boldly in action and deed and create an environment in which innovation and big ideas can flourish.

Members of the state Legislature will have the opportunity to pass legislation that has the potential to decisively shape the future of O'ahu's Leeward Coast, bring positive economic growth to West O'ahu and work to reposition Hawai'i's economy to one based on innovation. Further, this action is consistent with our commitment to the West O'ahu community to provide them the economic engine and employment opportunities to ensure that they can work and live in their communities without a long daily commute. The state is also bringing critical agencies to West O'ahu, including the Department of Hawaiian Home Lands. This is just another example of our promise to the region.

Now under consideration in the state Senate is House Bill 1667 HD2. If passed into law, it would authorize the Hawai'i Community Development Authority to issue bonds for the potential purchase of 500 acres of land at Kalealoa, which is currently under congressional mandate to be disposed of by Sept-ember 2008. Importantly, it also allows proceeds from the bonds to be used for infrastructure.

That said, my administration is working very hard with our congressional delegation to see that the state does not have to pay for the property because each dollar not spent on land is a dollar more that can be invested in much-needed infrastructure.

If the state acquires the land — part of the former Barbers Point Naval Air Station — it opens the door wide to a host of possibilities toward achievement of the community-based vision of Kalaeloa as a wahi ho'okela (center of excellence).

First among these is that planning could begin in earnest on a Kalaeloa improvement district. Such a district would contain features that resemble those of the Kaka'ako district, which is home to the John A. Burns School of Medicine. Soon, the school will be joined by a proposed Asia-Pacific Research Center, which is planned by Kamehameha Schools in partnership with the state. Kalaeloa can and should be viewed as an opportunity to develop infrastructure that will bring job opportunities to our citizens and attract innovative new industries, including those dedicated to the research and development of renewable energy resources.

When ownership of the land at Kalealoa is coupled with the zoning authority of the Hawai'i Community Development Authority, which has made substantive progress in its administration of Kaka'ako, opportunities for workforce-affordable housing, job creation and other government initiatives can be readily pursued. Right now, opportunities such as these simply don't exist in Leeward O'ahu.

If the state acquires the Kalaeloa land, parcels could be resold, leased or developed in partnership with private investors. Helping to make such a partnership appealing to investors are several major projects the state and city are planning in and around Kalaeloa, including Hawaiian Homelands housing, a new Judiciary complex, a University of Hawai'i-West O'ahu campus and a mass-transit system to link the area with Downtown Honolulu. The close proximity of Kalealoa to a university campus, where workforce training and recruiting can occur, and mass-transit stations are obvious advantages.

State investment should spur growth at Kalaeloa, as it did in Kaka'ako. The state spent approximately $153 million on infrastructure in Kaka'ako over 30 years, which helped attract more than $2 billion in private investment. The early Kaka'ako improvement districts were funded partially with revenue bonds, but the bulk of funds were general obligation bonds.

By authorizing $250 million in general obligation bonds, the state should be able to leverage $3.5 billion in private funds for development of the area. It is estimated that the construction period itself would result in a $6.9 billion infusion into the state's economy, including $2.3 billion in earnings (labor income), $253 million in state taxes, and 55,209 job-years of total jobs. The total post-construction impact is projected as $5.7 billion toward the gross state product, $2.1 billion in earnings (labor income), $394 million in state taxes, and 222,386 job-years of total jobs over the first 18-year period.

The time to act is now. I encourage members of the Legislature to support passage of HB 1667 HD2 and, equally important, general obligation bond funds in the state budget. Through these bold actions, the Legislature can set the stage to make Kalaeloa a model livable community, with clean industries, jobs, housing, recreational opportunities and an enviable quality of life for the people of West O'ahu, while also bringing tremendous benefits to our Hawai'i.

Gov. Linda Lingle wrote this commentary for The Advertiser.