Bill Text: HI HB818 | 2025 | Regular Session | Introduced

Hawaii House Bill 818

Introduced

Bill Title: Relating To The Waiakea Community Development District.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Introduced) 2025-01-27 - Bill scheduled to be heard by WAL on Thursday, 01-30-25 9:00AM in House conference room 411 VIA VIDEOCONFERENCE. [HB818 Detail]

Download: Hawaii-2025-HB818-Introduced.html

HOUSE OF REPRESENTATIVES	H.B. NO.	818
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII

A BILL FOR AN ACT

relating to the waiakea community development district.

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

SECTION 1. Chapter 206E, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Waiakea peninsula community development district

§206E- Waiakea peninsula community development district; findings; purpose. The legislature finds that:

(1) The Waiakea peninsula area in east Hawaii is in need of renewal, renovation, or improvement to enhance the economic, cultural, and social value of the area to the State;

(2) The close proximity of the Waiakea peninsula to the cruise ship terminal and Hilo town makes the area suitable for revitalization activities that foster community, promote cultural activities, and support economic sustainability;

(3) Regaining state control over lands in the district in the near term is essential and necessary in revitalizing the area;

(4) Through the authority, the area can be revitalized in such a way that hotel, commercial, public, and cultural uses can coexist;

(5) Conditions such as lack of a sense of safety and security in the district, the condition of the historic banyan trees, lack of landscaping, poor lighting, and poor pedestrian experience, along with other blight conditions, need to be addressed; and

(6) Facilities that support residents and visitors, including recreational, educational, and entertainment facilities, are needed.

§206E- Definitions. As used in this part:

"District" means the Waiakea peninsula community development district.

"Fund" means the Waiakea peninsula community development district special fund.

§206E- District established; boundaries. The Waiakea peninsula community development district is hereby established. The district shall include all lands makai of the area as follows: the western boundary is the Waialoa river; the southern boundary begins at the Waialoa river and follows kamehameha avenue to its intersection with Kalanianaole street and then follows Kalanianaole street to Banyan way; the eastern boundary is Reeds bay. The district shall also include Moku Ola, also known as Coconut island.

§206E- Development policies and guidelines. The following development guidance policies shall generally govern the authority's actions in the district:

(1) Development shall seek to promote cultural activities, provide community facilities, and foster sustainable economic growth by encouraging diverse land uses and private sector investments;

(2) Hawaiian archaeological, historic, and cultural sites shall be preserved and protected;

(3) Land use and redevelopment activities within the district shall be coordinated with and, to the extent possible, complement existing county and state policies, plans, and programs affecting the district;

(4) Public facilities within the district shall be planned, located, and developed so as to support the redevelopment policies for the district established by this chapter and plans and rules adopted pursuant to this chapter;

(5) Development shall consider the impacts of climate change, sea level rise, inundation risk, and climate‑resilient development in the design and siting of buildings;

(6) Development shall consider the inclusion of mobility solutions; and

(7) The authority may engage in planning, design, and construction activities within and outside the district; provided that activities outside the district relate to infrastructure development, area-wide drainage improvements, roadway realignments and improvements, business and industrial relocation, and any other activities the authority deems necessary to carry out redevelopment of the district and implement this chapter. Studies or coordinating activities may be undertaken by the authority in conjunction with the county and appropriate state agencies and may address, without limitation, facility systems, industrial relocation, and other activities.

§206E- Financial aid from the federal government; contracts with the federal government. (a) The authority may secure financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

(b) In addition, and supplemental to the powers granted to the authority under section 206E-4, the authority may:

(1) Borrow moneys or accept grants from the federal government in aid of or for any development project the authority is authorized to undertake pursuant to this part;

(2) Issue bonds or other evidence of indebtedness and pledge revenues and other assets as security for indebtedness incurred pursuant to this part;

(3) Repay any indebtedness, including any interest incurred thereon by the authority pursuant to this part;

(4) Procure insurance or loan guarantees from the federal government for the payment of any debts or parts thereof secured by mortgages made or held by the authority;

(5) Execute contracts with the federal government in accordance with this part; and

(6) Comply with terms and conditions required by the federal government in any contract or grant for federal assistance.

(c) It is the purpose and intent of this section to authorize the authority to do all things necessary to secure the cooperation of and financial aid from the federal government for any planning, design, development, construction, and maintenance work that the authority is authorized to undertake pursuant to this part.

§206E- Additional powers. In addition and supplemental to the powers granted to the authority by law, the authority may establish a district improvement and maintenance program to establish a mechanism to improve and maintain the district and do all things necessary to effectuate the establishment and operation of the district improvement and maintenance program. The authority may also adopt rules pursuant to chapter 91 to implement the program.

§206E- Waiakea community development district special fund. (a) There is established in the state treasury the Waiakea community development district special fund into which shall be deposited:

(1) All revenues, income, and receipts of the authority for the district, notwithstanding any other law to the contrary, including section 206E-16;

(2) Moneys directed, allocated, or disbursed to the district from government agencies or private individuals or organizations, including grants, gifts, awards, donations, and assessments and fees from the district improvement and maintenance program, for costs to administer and operate the district; and

(3) Moneys appropriated to the fund by the legislature.

(b) Moneys in the fund shall be used only for the purposes of this part.

SECTION 2. Section 206E-3, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) The authority shall consist of the director of finance or the director's designee; the director of transportation or the director's designee; the director of business, economic development, and tourism or the director's designee; the chairperson of the board of land and natural resources; the director of planning or planning and permitting of each county in which a community development district is located or the director's designee; a cultural specialist; an at-large member nominated by the president of the senate; an at-large member nominated by the speaker of the house of representatives; two representatives of the Heeia community development district, comprising one resident of that district or the Koolaupoko district, which consists of sections 1 through 9 of zone 4 of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Heeia community development district or Koolaupoko district; two representatives of the Kalaeloa community development district, comprising one resident of the Ewa zone (zone 9, sections 1 through 2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key division, and one owner of a small business or one officer or director of a nonprofit organization in the Ewa or Waianae zone; two representatives of the Kakaako community development district, comprising one resident of the district and one owner of a small business or one officer or director of a nonprofit organization in the district; [~~and~~] two representatives of the Pulehunui community development district, consisting of one resident of the island of Maui, and one owner of a small business or one officer or director of a nonprofit organization on the island of Maui[.]; and two representatives of the Waiakea peninsula community development district, consisting of one resident of the district or the Waiakea ahupuaʻa (zone 2, sections 1, 2, or 4 of the third tax map key division), and one owner of a small business or one officer or director of a nonprofit organization in the district or the town of Hilo (zone 2, sections 1 through 5 of the third tax map key division).

All members except the director of finance, director of transportation, county directors of planning or planning and permitting, director of business, economic development, and tourism, chairperson of the board of land and natural resources, or their respective designees shall be appointed by the governor pursuant to section 26-34. The two at-large members nominated by the president of the senate and speaker of the house of representatives shall each be invited to serve and appointed by the governor from a list of three nominees submitted for each position by the nominating authority specified in this subsection.

The president of the senate and the speaker of the house of representatives shall each submit a list of six nominees for each district to the governor to fill the two district representative positions for each community development district. For each community development district, the governor shall appoint one member from a list of nominees submitted by the president of the senate and one member from a list of nominees submitted by the speaker of the house of representatives, and of the two appointees, one shall meet the district residency requirement and one shall meet the district small business owner or nonprofit organization officer or director requirement.

The authority shall be organized and shall exercise jurisdiction as follows:

(1) For matters affecting the Heeia community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning and permitting for the county in which the Heeia community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Heeia community development district;

(2) For matters affecting the Kalaeloa community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning and permitting for the county in which the Kalaeloa community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Kalaeloa community development district;

(3) For matters affecting the Kakaako community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning and permitting for the county in which the Kakaako community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Kakaako community development district; [~~and~~]

(4) For matters affecting the Pulehunui community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning for the county in which the Pulehunui community development district is located or the director's designee;

(E) The chairperson of the board of land and natural resources or the chairperson's designee;

(F) The cultural specialist;

(G) The two at-large members; and

(H) The two representatives of the Pulehunui community development district[.]; and

(5) For matters affecting the Waiakea peninsula community development district, the following members shall be considered in determining quorum and majority and shall be eligible to vote:

(A) The director of finance or the director's designee;

(B) The director of transportation or the director's designee;

(D) The director of planning for the county in which the Waiakea peninsula community development district is located or the director's designee;

(E) The cultural specialist;

(F) The two at-large members; and

(G) The two representatives of the Waiakea peninsula community development district.

In the event of a vacancy, a member shall be appointed to fill the vacancy in the same manner as the original appointment within thirty days of the vacancy or within ten days of the senate's rejection of a previous appointment, as applicable.

The terms of the director of finance; director of transportation; county directors of planning and permitting; director of business, economic development, and tourism; and chairperson of the board of land and natural resources; or their respective designees shall run concurrently with each official's term of office. The terms of the appointed voting members shall be for four years, commencing on July 1 and expiring on June 30. The governor shall provide for staggered terms of the initially appointed voting members so that the initial terms of four members selected by lot shall be for two years, the initial terms of four members selected by lot shall be for three years, and the initial terms of the remaining three members shall be for four years.

The governor may remove or suspend for cause any member after due notice and public hearing.

Notwithstanding section 92-15, a majority of all eligible voting members as specified in this subsection shall constitute a quorum to do business, and the concurrence of a majority of all eligible voting members as specified in this subsection shall be necessary to make any action of the authority valid. All members shall continue in office until their respective successors have been appointed and qualified. Except as herein provided, no member appointed under this subsection shall be an officer or employee of the State or its political subdivisions.

For purposes of this section, "small business" means a business that is independently owned and that is not dominant in its field of operation."

SECTION 3. (a) To implement this Act, the department of land and natural resources shall, subject to the terms and conditions to be agreed upon in the memorandum of agreement described in subsection (c), transfer to the Hawaii community development authority title to all lands and existing leases within the Waiakea community development district established pursuant to this Act that are owned by the department of land and natural resources, except lands within the district that have been set aside to the county of Hawaii by the governor pursuant to section 171-11, Hawaii Revised Statutes, at no cost to the Hawaii community development authority, by June 30, 2026. Title to any lands or leases that are not accepted by the Hawaii community development authority pursuant to the memorandum of agreement described in subsection (c) shall remain with the department of land and natural resources.

(b) Pursuant to section 171-2, Hawaii Revised Statutes, the land and leases transferred to the Hawaii community development authority will no longer be classified as public lands. Any proceeds from transferred lands and leases on the Waiakea peninsula, however, shall remain subject to the public trust provisions of section 171-18, Hawaii Revised Statutes.

(c) The Hawaii community development authority and department of land and natural resources shall enter into a memorandum of agreement regarding the transfer of the lands and leases to the authority by December 31, 2025. The memorandum of agreement shall provide the Hawaii community development authority with one hundred twenty calendar days from the effective date of the memorandum of agreement to review and approve all aspects of the lands and leases, which shall be referred to as the due diligence period. Within thirty calendar days from the effective date of the memorandum of agreement, the department of land and natural resources shall make available to the Hawaii community development authority all documented information it possesses or to which it has access relating to the ownership and management of the lands and leases. The Hawaii community development authority shall have discretion to reject all or some of the lands and leases for any reason prior to the expiration of the due diligence period.

SECTION 4. (a) The jurisdiction, powers, functions, and duties of the department of land and natural resources relating to the transferred land and leases in the Waiakea community development district established pursuant to this Act shall be transferred to and conferred upon the Hawaii community development authority and shall be performed and enforced in the same manner as previously authorized, entitled, or obligated for the remainder of the existing lease terms except as otherwise authorized, directed, or instructed by this Act. As to the leases in the Waiakea community development district transferred to the Hawaii community development authority, the authority shall succeed to all of the rights and powers previously exercised and all of the duties and obligations incurred by the department of land and natural resources in the exercise of the jurisdiction, powers, functions, and duties transferred, whether such jurisdiction, powers, functions, and duties are mentioned in or granted by any law, contract, or other document.

(b) All rules, policies, procedures, guidelines, and other material adopted or developed by the department of land and natural resources relating to the existing leases in the Waiakea community development district shall remain in full force and effect until superseded, amended, or repealed, pursuant to chapter 91, Hawaii Revised Statutes, by the Hawaii community development authority except as otherwise authorized, directed, or instructed by this Act. Effective upon the completed transfer of the lands and leases, every reference to the department of land and natural resources or the board of land and natural resources in those rules, policies, procedures, guidelines, and other material shall be construed as a reference to the Hawaii community development authority as applicable.

(c) All appropriations to the department of land and natural resources, records, deeds, leases, contracts, loans, agreements, permits, or other documents heretofore made, used, acquired, held by, executed or entered into by or on behalf of the department of land and natural resources relating to the transferred land or leases in the Waiakea community development district shall remain in full force and effect until amended. Effective upon the completed transfer of the lands and leases, every reference to the department of land and natural resources or the board of land and natural resources in those appropriations, records, deeds, leases, contracts, loans, agreements, permits, or other documents relating to the transferred land or leases in the Waiakea community development district shall be construed as a reference to the Hawaii community development authority as applicable.

SECTION 5. This Act shall be liberally construed in order to accomplish the purposes set forth herein. If any provision of this Act, or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on July 1, 2025.

INTRODUCED BY:	_____________________________

Report Title:

Waiakea Peninsula Community Development District; Establishment; Hawaii Community Development Authority; Department of Land and Natural Resources

Description:

Establishes the Waiakea Peninsula Community Development District. Provides for the transfer of land and leases within the Waiakea Peninsula Community Development District from the Department of Land and Natural Resources to the Hawaii Community Development Authority.

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