HomeMy WebLinkAbout2026-07-09 Diamond Parking Opposition Testimony
From: Shylah Hales
To:Planning WPC Testimony
Subject: Testimony for BILL154 (S. Hales)
Date: Thursday, July 9, 2026 1:58:03 PM
Attachments: image001.png
image002.png
image004.png
Bill 154 Testimony S. Hales.pdf
To: Hawai‘i County Council
74-5044 Ane Keohokālole Highway , Building A
Kailua-Kona, HI 96740
July 8th, 2026
RE: Opposition to Bill 154: Regulation of Private Parking Facilities in Kailua Village
Dear Council Members,
I am writing to formally express strong opposition to Bill 154, which proposes to regulate
pricing and operations of private parking facilities in Kailua Village. While the intent to address
community concerns is understood, the bill, as currently drafted, represents a significant
overreach into private property rights and imposes a one-size-fits-all regulatory framework on
a highly complex and diverse market.
Bill 154 seeks to impose uniform rate caps, mandatory free parking periods, and operational
restrictions on all private parking facilities, without regard to the substantial differences in
ownership structures, financial obligations, property conditions, and business objectives.
Private properties are not all the same. They vary widely in terms of acquisition costs, lease
structures, maintenance burdens, and reinvestment needs. A blanket regulatory approach fails
to account for these realities and places an inequitable burden on property owners who rely on
parking revenue to sustain and improve their assets.
Of particular concern is the economic impact this legislation will have on both private
stakeholders and the County itself. By artificially capping parking rates and mandating free
parking periods, the bill will materially reduce parking revenue across the district. This
reduction will directly impact tax revenues derived from parking operations,
including general excise tax and other related economic activity. In effect, the
County and State risk diminishing their own tax base while simultaneously
restricting the ability of private property owners to generate income necessary for
property maintenance, compliance, and capital improvements.
Moreover, this legislation creates a troubling inconsistency in governance. The County is
seeking to regulate private parking operations while its own municipal parking facilities remain,
by its own acknowledgment, under-managed and inconsistently enforced. Imposing strict
regulatory controls on private operators, while public facilities lack comparable oversight or
effectiveness, raises serious concerns regarding fairness, equity, and administrative
justification.
From a legal and policy standpoint, Bill 154 raises significant concerns regarding regulatory
overreach. While governments may enact reasonable consumer protection measures, the
imposition of strict price controls on private property ventures into an area that may be
construed as excessive interference with lawful business operations. The proposed
restrictions do not appear to be narrowly tailored and instead broadly limit the ability of
property owners to determine how their assets are utilized and monetized.
The unintended consequences of this legislation are substantial. These include:
A reduction in reinvestment into private properties, particularly those requiring
significant capital improvements or remediation
Financial harm to small and locally owned property holders who depend on parking
revenue to offset rising costs
Distortion of market dynamics, leading to decreased availability of managed parking and
potential underutilization of private assets
Broader negative economic impacts to the Kailua Village area, including reduced
business viability and diminished visitor experience
Importantly, the issues cited as justification for this bill, such as storefront vacancies and
community dissatisfaction, are multifaceted and cannot be attributed solely, or even primarily,
to parking practices. Addressing these concerns requires a comprehensive and data-driven
approach, not a singular regulatory mandate applied uniformly across all private properties.
For these reasons, I respectfully urge the Council to reconsider Bill 154 and to consider
the diverse economic realities faced by property owners in Kailua Village.
Thank you for your consideration of these concerns.
Best,
Shylah Hales, PTMP
Regional Manager | San Diego
DIAMOND PARKING SERVICES
Direct: (808) 329-3103
100+ Years of Parking Smarter!
Regional Offices USA : Alaska, California, Hawaii Islands, Idaho, Montana, Oregon, Utah, Washington
Regional Offices Canada : Alberta, British Columbia
Help us be Green! Please do not print unless necessary.
This email is intended only for the person or entity to which it is addressed and may contain confidential information.
Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by
persons or entities other than the intended recipient is prohibited.
If you receive this e-mail in error, please contact the sender by replying to this e-mail and delete this e-mail and any
attachments from all computers without reading or saving the same in any matter whatsoever.
Hawai‘i County Council
74-5044 Ane Keohokālole Highway
Building A
Kailua-Kona, HI 96740
July 8th, 2026
RE: Opposition to Bill 154: Regulation of Private Parking Facilities in Kailua Village
Dear Council Members,
I am writing to formally express strong opposition to Bill 154, which proposes to regulate pricing
and operations of private parking facilities in Kailua Village. While the intent to address
community concerns is understood, the bill, as currently drafted, represents a significant
overreach into private property rights and imposes a one-size-fits-all regulatory framework on a
highly complex and diverse market.
Bill 154 seeks to impose uniform rate caps, mandatory free parking periods, and operational
restrictions on all private parking facilities, without regard to the substantial diƯerences in
ownership structures, financial obligations, property conditions, and business objectives.
Private properties are not all the same. They vary widely in terms of acquisition costs, lease
structures, maintenance burdens, and reinvestment needs. A blanket regulatory approach fails
to account for these realities and places an inequitable burden on property owners who rely on
parking revenue to sustain and improve their assets.
Of particular concern is the economic impact this legislation will have on both private
stakeholders and the County itself. By artificially capping parking rates and mandating free
parking periods, the bill will materially reduce parking revenue across the district. This
reduction will directly impact tax revenues derived from parking operations, including
general excise tax and other related economic activity. In eƯect, the County and State risk
diminishing their own tax base while simultaneously restricting the ability of private
property owners to generate income necessary for property maintenance, compliance,
and capital improvements.
Moreover, this legislation creates a troubling inconsistency in governance. The County is
seeking to regulate private parking operations while its own municipal parking facilities remain,
by its own acknowledgment, under-managed and inconsistently enforced. Imposing strict
regulatory controls on private operators, while public facilities lack comparable oversight or
eƯectiveness, raises serious concerns regarding fairness, equity, and administrative
justification.
From a legal and policy standpoint, Bill 154 raises significant concerns regarding regulatory
overreach. While governments may enact reasonable consumer protection measures, the
imposition of strict price controls on private property ventures into an area that may be
construed as excessive interference with lawful business operations. The proposed restrictions
do not appear to be narrowly tailored and instead broadly limit the ability of property owners to
determine how their assets are utilized and monetized.
The unintended consequences of this legislation are substantial. These include:
A reduction in reinvestment into private properties, particularly those requiring
significant capital improvements or remediation
Financial harm to small and locally owned property holders who depend on parking
revenue to oƯset rising costs
Distortion of market dynamics, leading to decreased availability of managed parking and
potential underutilization of private assets
Broader negative economic impacts to the Kailua Village area, including reduced
business viability and diminished visitor experience
Importantly, the issues cited as justification for this bill, such as storefront vacancies and
community dissatisfaction, are multifaceted and cannot be attributed solely, or even primarily,
to parking practices. Addressing these concerns requires a comprehensive and data-driven
approach, not a singular regulatory mandate applied uniformly across all private properties.
For these reasons, I respectfully urge the Council to reconsider Bill 154 and to consider the
diverse economic realities faced by property owners in Kailua Village.
Thank you for your consideration of these concerns.
Best Regards,
Shylah Hales
Regional Manager
Diamond Parking Services, LLC
shylah.hales@diamondparking.com | (808) 329-3103