HomeMy WebLinkAbout2026 Banyan Drive Bill FINAL 07.28.25
HCDA FINAL.V7
07.28.25
__.B. NO._____
A BILL FOR AN ACT
RELATING TO THE BANYAN DRIVE COMMUNITY DEVELOPMENT DISTRICT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
1 SECTION 1. The purpose of this Act is to establish a
2 community development district in the Waiakea peninsula area in
3 east Hawaii, which includes Banyan Drive, under the jurisdiction
4 of the Hawaii community development authority. The legislature
5 finds that it is necessary to establish a special fund for the
6 maintenance, oversight, regulation, and development of the
7 community development district.
8 The legislature also finds that the special fund satisfies
9 the requirements of Section 37-52.3, Hawaii Revised Statutes.
10 Through the normal course of overseeing the district, the Hawaii
11 community development authority may assess and impose regulatory
12 and service fees upon beneficiaries of the district, including
13 but not limited to permit review fees and other fees necessary
14 to cover the Hawaii community development authority’s costs of
15 maintaining, regulating, and providing services to beneficiaries
16 of and for the district. As the Hawaii community development
17 authority’s responsibilities and obligations for the district
1 would be ongoing, and the costs of maintaining, regulating, and
2 providing services may vary from year to year, the general fund
3 appropriation process may not be sufficient to successfully
4 implement the district.
5 SECTION 2. Chapter 206E, Hawaii Revised Statutes, is
6 amended by adding a new part to be appropriately designated and
7 to read as follows:
8 "Part . BANYAN DRIVE COMMUNITY DEVELOPMENT DISTRICT
9 §206E- Banyan Drive community development district;
10 findings; purpose. The legislature finds that:
11 (1) The Waiakea peninsula area in east Hawaii, which
12 includes Banyan Drive, needs economic development,
13 visitor experience enhancement, renewal, renovation,
14 and improvement to increase the economic, cultural,
15 and social value of the area to the island of Hawaii,
16 and the state;
17 (2) The close proximity of the Waiakea peninsula to the
18 cruise ship terminal, Merrie Monarch Festival sites,
19 and Hilo town makes the area suitable for economic and
20 tourism development and revitalization activities that
21 foster community, promote cultural activities, and
22 support economic sustainability;
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1 (3) Regaining state control over lands in the district in
2 the near term is essential and necessary in
3 revitalizing the area;
4 (4) Through the authority, the area can be revitalized in
5 such a way that hotel, commercial, public, and
6 cultural uses can coexist;
7 (5) Conditions such as lack of a sense of safety and
8 security in the district, the condition of the
9 historic banyan trees, lack of landscaping, poor
10 lighting, and poor pedestrian experience, along with
11 other blight conditions, need to be addressed; and
12 (6) Public facilities that support residents and visitors,
13 including recreational, educational, and entertainment
14 facilities, are needed.
15 §206E- Definitions. As used in this part:
16 "District" means the Banyan Drive community development
17 district.
18 "Fund" means the Banyan Drive community development
19 district special fund.
20 §206E- District established; boundaries. The Banyan
21 drive community development district is hereby established. The
22 district shall include all lands makai of the area as follows:
23 the western boundary is the Wailoa river; the southern boundary
24 begins at the Wailoa river and follows Kamehameha avenue to its
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1 intersection with Kalanianaole street and then follows
2 Kalanianaole street to Banyan way; the eastern boundary is Reeds
3 bay. The district shall also include Moku Ola, also known as
4 Coconut island.
5 §206E- Development guidance policies. (a) The
6 following development guidance policies shall generally govern
7 the authority's actions in the district:
8 (1) Development shall seek to promote cultural activities,
9 provide community facilities, and foster sustainable
10 economic growth by encouraging diverse land uses and
11 private sector investments;
12 (2) Hawaiian archaeological, historic, and cultural sites
13 shall be preserved and protected;
14 (3) Land use and redevelopment activities within the
15 district shall be coordinated with and, to the extent
16 possible, complement existing state and county
17 policies, plans, and programs affecting the district;
18 (4) Public facilities within the district shall be
19 planned, located, and developed so as to support the
20 redevelopment policies for the district established by
21 this chapter and plans and rules adopted pursuant to
22 this chapter;
23 (5) Development shall consider the impacts of climate
24 change, sea level rise, inundation risk, and
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1 climate-resilient development in the design and siting
2 of buildings; and
3 (6) Development shall consider the inclusion of mobility
4 solutions.
5 (b) As a development guidance policy for the district, the
6 authority may engage in planning, design, and construction
7 activities within and outside the district; provided that
8 activities outside the district relate to infrastructure
9 development, area-wide drainage improvements, roadway
10 realignments and improvements, business and industrial
11 relocation, and any other activities the authority deems
12 necessary to carry out redevelopment of the district and
13 implement this chapter. Studies or coordinating activities may
14 be undertaken by the authority in conjunction with the county
15 and appropriate state agencies and may address, without
16 limitation, facility systems, industrial relocation, and other
17 activities.
18 §206E- Financial aid from the federal government;
19 contracts with the federal government. (a) The authority may
20 secure financial aid from the federal government for any
21 planning, design, development, construction, and maintenance
22 work that the authority is authorized to undertake pursuant to
23 this part.
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1 (b) In addition, and supplemental to the powers granted to
2 the authority under section 206E-4, the authority may:
3 (1) Borrow moneys or accept grants from the federal
4 government in aid of or for any development project
5 the authority is authorized to undertake pursuant to
6 this part;
7 (2) Issue bonds or other evidence of indebtedness and
8 pledge revenues and other assets as security for
9 indebtedness incurred pursuant to this part;
10 (3) Repay any indebtedness, including any interest
11 incurred thereon by the authority pursuant to this
12 part;
13 (4) Procure insurance or loan guarantees from the federal
14 government for the payment of any debts or parts
15 thereof secured by mortgages made or held by the
16 authority;
17 (5) Execute contracts with the federal government in
18 accordance with this part; and
19 (6) Comply with terms and conditions required by the
20 federal government in any contract or grant for
21 federal assistance.
22 (c) It is the purpose and intent of this section to
23 authorize the authority to do all things necessary to secure the
24 cooperation of and financial aid from the federal government for
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1 any planning, design, development, construction, and maintenance
2 work that the authority is authorized to undertake pursuant to
3 this part.
4 §206E- Additional powers. In addition, and
5 supplemental to the powers granted to the authority by law, the
6 authority may establish a district improvement and maintenance
7 program to establish a mechanism to improve and maintain the
8 district and do all things necessary to effectuate the
9 establishment and operation of the district improvement and
10 maintenance program, including but not limited to determining
11 and assessing a service or regulatory fee in accordance with
12 applicable law. The authority may also adopt rules pursuant to
13 chapter 91 to implement the program.
14 §206E- Banyan drive community development district
15 special fund. (a) There is established in the state treasury
16 the Banyan drive community development district special fund
17 into which shall be deposited:
18 (1) All revenues, income, and receipts of the authority
19 for the district, notwithstanding any other law to the
20 contrary, including section 206E-16; provided that
21 revenues, income, and receipts derived from leases are
22 paid to the agency that owns or manages the property;
23 (2) Moneys directed, allocated, or disbursed to the
24 district from government agencies or private
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1 individuals or organizations, including grants, gifts,
2 awards, donations, and moneys collected from the
3 district improvement and maintenance program, for
4 costs to administer and operate the district; and
5 (3) Moneys appropriated to the fund by the legislature.
6 (b) Moneys in the fund shall be used only for the purposes
7 of this part.
8 (c) Investment earnings credited to the assets of the fund
9 shall become assets of the fund."
10 SECTION 3. Section 206E-3, Hawaii Revised Statutes, is
11 amended by amending subsection (b) to read as follows:
12 "(b) The authority shall consist of the director of
13 finance or the director's designee; the director of
14 transportation or the director's designee; the director
15 of business, economic development, and tourism or the director's
16 designee; the chairperson of the board of land and natural
17 resources; the director of planning or planning and permitting
18 of each county in which a community development district is
19 located or the director's designee; the chairperson of the
20 Banyan Drive Hawaii Redevelopment Authority; a cultural
21 specialist; an at-large member nominated by the president of the
22 senate; an at-large member nominated by the speaker of the house
23 of representatives; two representatives of the Heeia community
24 development district, comprising one resident of that district
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1 or the Koolaupoko district, which consists of sections 1 through
2 9 of zone 4 of the first tax map key division, and one owner of
3 a small business or one officer or director of a nonprofit
4 organization in the Heeia community development district or
5 Koolaupoko district; two representatives of the Kalaeloa
6 community development district, comprising one resident of the
7 Ewa zone (zone 9, sections 1 through 2) or the Waianae zone
8 (zone 8, sections 1 through 9) of the first tax map key
9 division, and one owner of a small business or one officer or
10 director of a nonprofit organization in the Ewa or Waianae zone;
11 two representatives of the Kakaako community development
12 district, comprising one resident of the district and one owner
13 of a small business or one officer or director of a nonprofit
14 organization in the district; \[and\] two representatives of the
15 Pulehunui community development district, consisting of one
16 resident of the island of Maui, and one owner of a small
17 business or one officer or director of a nonprofit organization
18 on the island of Maui; \[and,\] two representatives of the Banyan
19 Drive community development district, consisting of one resident
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21 4 of the third tax map key division, and one owner of a small
22 business or an officer or director of a nonprofit organization
23 located in the town of Hilo, as defined by zone 2, sections 1
24 through 5 of the third tax map key division; and for the
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1 purposes of part X of this chapter only, two experts on transit-
2 oriented development, to be appointed one each by the president
3 of the senate and the speaker of the house of representatives;
4 and the following ex officio, nonvoting members: the
5 chairpersons of the respective senate and house of
6 representatives standing committees having jurisdiction over
7 transportation, and the chairpersons of the respective senate
8 and house of representatives standing committees having
9 jurisdiction over housing.
10 All members except the director of finance; director of
11 transportation; county directors of planning or planning and
12 permitting; director of business, economic development, and
13 tourism; chairperson of the board of land and natural
14 resources; the two experts on transit-oriented development
15 appointed by the president of the senate and speaker of the
16 house of representatives, respectively; the chairpersons of the
17 respective senate and house of representatives standing
18 committees having jurisdiction over transportation; the
19 chairpersons of the respective senate and house of
20 representatives standing committees having jurisdiction over
21 housing; or, where relevant, their respective designees; and the
22 chairperson of the Banyan Drive Hawaii Redevelopment Authority,
23 shall be appointed by the governor pursuant to section 26-
24 34. The two at-large members nominated by the president of the
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1 senate and speaker of the house of representatives shall each be
2 invited to serve and appointed by the governor from a list of
3 three nominees submitted for each position by the nominating
4 authority specified in this subsection.
5 The president of the senate and the speaker of the house of
6 representatives shall each submit a list of six nominees for
7 each district to the governor to fill the two district
8 representative positions for each community development
9 district. For each community development district, the governor
10 shall appoint one member from a list of nominees submitted by
11 the president of the senate and one member from a list of
12 nominees submitted by the speaker of the house of
13 representatives, and of the two appointees, one shall meet the
14 district residency requirement and one shall meet the district
15 small business owner or nonprofit organization officer or
16 director requirement.
17 The president of the senate and the speaker of the house of
18 representatives shall each appoint a member having expertise and
19 experience in urban planning and community development to fill
20 the two positions designated for experts on transit-oriented
21 development.
22 The authority shall be organized and shall exercise
23 jurisdiction as follows:
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1 (1) For matters affecting the Heeia community development
2 district, the following members shall be considered in
3 determining quorum and majority and shall be eligible
4 to vote:
5 (A) The director of finance or the director's
6 designee;
7 (B) The director of transportation or the director's
8 designee;
9 (C) The director of business, economic development,
10 and tourism or the director's designee;
11 (D) The director of planning and permitting for the
12 county in which the Heeia community development
13 district is located or the director's designee;
14 (E) The cultural specialist;
15 (F) The two at-large members; and
16 (G) The two representatives of the Heeia community
17 development district;
18 (2) For matters affecting the Kalaeloa community
19 development district, the following members shall be
20 considered in determining quorum and majority and
21 shall be eligible to vote:
22 (A) The director of finance or the director's
23 designee;
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1 (B) The director of transportation or the director's
2 designee;
3 (C) The director of business, economic development,
4 and tourism or the director's designee;
5 (D) The director of planning and permitting for the
6 county in which the Kalaeloa community
7 development district is located or the director's
8 designee;
9 (E) The cultural specialist;
10 (F) The two at-large members; and
11 (G) The two representatives of the Kalaeloa community
12 development district;
13 (3) For matters affecting the Kakaako community
14 development district, the following members shall be
15 considered in determining quorum and majority and
16 shall be eligible to vote:
17 (A) The director of finance or the director's
18 designee;
19 (B) The director of transportation or the director's
20 designee;
21 (C) The director of business, economic development,
22 and tourism or the director's designee;
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1 (D) The director of planning and permitting for the
2 county in which the Kakaako community development
3 district is located or the director's designee;
4 (E) The cultural specialist;
5 (F) The two at-large members; and
6 (G) The two representatives of the Kakaako community
7 development district;
8 (4) For matters affecting the Pulehunui community
9 development district, the following members shall be
10 considered in determining quorum and majority and
11 shall be eligible to vote:
12 (A) The director of finance or the director's
13 designee;
14 (B) The director of transportation or the director's
15 designee;
16 (C) The director of business, economic development,
17 and tourism or the director's designee;
18 (D) The director of planning for the county in which
19 the Pulehunui community development district is
20 located or the director's designee;
21 (E) The chairperson of the board of land and natural
22 resources or the chairperson's designee;
23 (F) The cultural specialist;
24 (G) The two at-large members; and
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1 (H) The two representatives of the Pulehunui
2 community development district;
3 (5) For matters affecting part X of this chapter only, the
4 following members shall be considered in determining
5 quorum and majority and shall be eligible to vote:
6 (A) The director of finance or the director's
7 designee;
8 (B) The director of transportation or the director's
9 designee;
10 (C) The director of business, economic development,
11 and tourism or the director's designee;
12 (D) The chairperson of the board of land and natural
13 resources or the chairperson's designee;
14 (E) The director of planning for the county in which
15 the program area is located or the director's
16 designee;
17 (F) The cultural specialist;
18 (G) The two at-large members; and
19 (H) The two experts on transit-oriented development
20 appointed by the president of the senate and the
21 speaker of the house of representatives\[.\]; and
22 (6) For matters affecting the Banyan Drive community
23 development district, the following members shall be
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1 considered in determining quorum and majority and shall be
2 eligible to vote:
3 (A) The director of business, economic development,
4 and tourism or the director's designee;
5(B) The director of finance or the director's
6 designee;
7 (C) The chairperson of the board of land and natural
8 resources or the chairperson's designee;
9 (D) The director of transportation or the director's
10 designee;
11 (E) The director of planning for the county in which
12 the Banyan Drive community development district
13 is located or the director's designee;
14 (F) The chairperson of the Banyan drive Hawaii
15 redevelopment agency;
16 (G) The cultural specialist;
17 (H) The two at-large members; and
18(I) The two representatives of the Banyan Drive
19 community development district.
20 In the event of a vacancy, a member shall be appointed to
21 fill the vacancy in the same manner as the original appointment
22 within thirty days of the vacancy or within ten days of the
23 senate's rejection of a previous appointment, as applicable.
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1 The terms of the director of finance; director of
2 transportation; county directors of planning and permitting;
3 director of business, economic development, and tourism;
4 and chairperson of the board of land and natural resources; or
5 their respective designees, or the chairperson of the Banyan
6 Drive Hawaii Redevelopment Authority,shall run concurrently
7 with each official's term of office. The terms of the appointed
8 voting members shall be for four years, commencing on July 1 and
9 expiring on June 30. The governor shall provide for staggered
10 terms of the initially appointed voting members so that the
11 initial terms of four members selected by lot shall be for two
12 years, the initial terms of four members selected by lot shall
13 be for three years, and the initial terms of the remaining three
14 members shall be for four years. The terms on the authority of
15 the chairpersons of the senate and house of representatives
16 standing committees having jurisdiction over housing and the
17 chairpersons of the senate and house of representatives standing
18 committees having jurisdiction over transportation shall run
19 concurrently with that respective legislator's term as the
20 chairperson of that respective committee.
21 The governor may remove or suspend for cause any member
22 after due notice and public hearing.
23 Notwithstanding section 92-15, a majority of all eligible
24 voting members as specified in this subsection shall constitute
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1 a quorum to do business, and the concurrence of a majority of
2 all eligible voting members as specified in this subsection
3 shall be necessary to make any action of the authority
4 valid. All members shall continue in office until their
5 respective successors have been appointed and qualified. Except
6 as herein provided, no member appointed under this subsection
7 shall be an officer or employee of the state or its political
8 subdivisions.
9 For purposes of this section, "small business" means a
10 business that is independently owned and that is not dominant in
11 its field of operation."
12 SECTION 4. There is appropriated out of the general
13 revenues of the State of Hawaii the sum of $2,000,000 or so much
14 thereof as may be necessary for the fiscal year 2026-2027 for
15 the purposes of this act for the Hawaii community development
16 authority to:
17 (1) Draft and promulgate rules; and
18 (2) Perform an environmental assessment or environmental
19 impact statement under chapter 343.
20 SECTION 5. There is appropriated out of the general
21 revenues of the State of Hawaii the sum of $______or so much
22 thereof as may be necessary for fiscal year 2026-2027 for the
23 establishment of one full-time equivalent (1.0 FTE) position
24 within the Hawaii community development authority. The sums
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1 appropriated shall be expended by the Hawaii community
2 development authority for the purposes of this Act.
3 SECTION 6. This Act shall be liberally construed in order
4 to accomplish the purposes set forth herein. If any provision
5 of this Act, or the application thereof to any person or
6 circumstance is held invalid, the invalidity does not affect
7 other provisions or applications of the Act that can be given
8 effect without the invalid provision or application, and to this
9 end the provisions of this Act are severable.
10 SECTION 7. Statutory material to be repealed is bracketed
11 and stricken. New statutory material is underscored.
12 SECTION 8. This Act shall take effect on July 1, 2026.
13
14 INTRODUCED BY: _____________________________
15 BY REQUEST
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Report Title:
Banyan Drive; Establishment of the Banyan Drive Community
Development District; Hawaii Community Development Authority;
Special Fund.
Description:
Establishes the Banyan Drive Community Development District and
the Banyan Drive Community Development District Special Fund.
Specifies the powers and duties of the Hawaii Community
Development Authority as it relates to the new development
district.
The summary description of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
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