Contention billows from Lahaina rebuilding board bill

Feb. 15—Enthusiasm and concern clashed Wednesday at the Legislature over a proposal to establish an elected community board under a state agency to govern Lahaina's rebuilding from fiery ruins.

Enthusiasm and concern clashed Wednesday at the Legislature over a proposal to establish an elected community board under a state agency to govern Lahaina's rebuilding from fiery ruins.

Two Senate committees held an initial hearing on a bill that aims to facilitate rebuilding Lahaina, perhaps under a master plan with new land-use rules and $200 million in funding, directed by an elected board of West Maui residents with support from the Hawaii Community Development Authority.

Concerns over Senate Bill 3381 were raised in written testimony from Gov. Josh Green, Maui County Mayor Richard Bissen, community organization Lahaina Strong, the Maui Chamber of Commerce and Lahaina's representative on the Maui County Council, Tamara Paltin.

No decision on the bill was made Wednesday by the Committee on Energy, Economic Development and Tourism and the Committee on Water and Land. But chairs of both committees endorsed the measure's general concept.

A vote on whether to advance a proposed amended draft of the bill to the Senate Ways and Means Committee, which was involved in drafting the measure, is scheduled for today at 1 p.m.

The driving intent with SB 3381 is to empower West Maui residents to facilitate and govern Lahaina's redevelopment.

Yet some members of this community see problems with the board being elected, HCDA power and how a community plan from the envisioned board would affect other government recovery efforts.

One major criticism of the proposal is that it would establish a new entity that might conflict with efforts already underway to guide rebuilding in Lahaina where a wildfire driven by high wind on Aug. 8 destroyed most of the town and killed at least 101 people.

"Establishing a new process and regulatory layer for wildfire survivors to now navigate and understand may introduce additional barriers to rebuilding and recovery efforts, " Bissen said in written testimony co-­authored by Maui County Managing Director Josiah Nishita.

Bissen and Nishita noted that the county already has established an Office of Recovery, and that much community input and dialogue has been and is still being received and acted upon, including the development of the community's initial recovery needs assessment and future long-term recovery plan.

"An aggressive plan has already been put in place to allow residents to expeditiously return to their properties, " Bissen and Nishita said. "This plan includes prioritizing infrastructure repairs to residential areas and an expedited permitting center, which will be available in the Spring of 2024."

Paltin said in written comments that having the envisioned board create a new community plan for what the bill calls the Lele Community District, which is an old name for the Lahaina district and stretches from Maalaea to Kaanapali, appears redundant given that the county's West Maui Community Plan was adopted within the last two years after extensive community discussions.

"An additional community plan would result in additional bureaucracy and would undermine the County's governance and the community's trust, " she said.

Three leaders of the Lahaina Strong organization, Jordan Ruidas, Pa 'ele Kiakona and Courtney Lazo, echoed Paltin's community plan concern and said it appears no community disaster recovery has ever been led by a redevelopment authority like the one proposed in SB 3381.

"Understanding why Lahaina necessitates the establishment of a new authority amidst a lack of precedent raises fundamental questions about the efficacy and suitability of the proposed approach, " the group leaders said.

Ruidas, Kiakona and Lazo also said several bill aspects warrant careful consideration and amendment.

Pamela Tumpap, president of the Maui Chamber of Commerce, said the proposed board may become "another level of red tape " that impedes Lahaina's recovery.

Green didn't take a position for or against SB 3381 but noted that there is already a state disaster recovery coordinator whose task includes recovery and resiliency planning in support of Maui County.

The governor also said seven state agencies focusing on areas that include planning, infrastructure, housing and natural resources are assisting with recovery support functions in coordination with Maui County, federal partners and private organizations.

This two-piece approach, Green said, is consistent with the National Disaster Recovery Framework, a structure under the Federal Emergency Management Agency developed from the collective experience of disaster recovery managers nationwide.

Several individuals who submitted testimony were about equally divided in support or opposition.

Craig Nakamoto, HCDA executive director, expressed strong support for the measure while acknowledging anticipated challenges that include mistrust or negative views of the agency.

HCDA is a board-led state agency that was established by the Legislature in 1976 to facilitate redevelopment of what was then a largely near-blighted industrial area of Honolulu with neglected city infrastructure. The agency established special zoning rules, improved infrastructure and incentivized development of high-rise housing mixed with industrial and park space.

In more recent years, the Legislature has added new development districts to the agency's jurisdiction. These include Kalaeloa, where the challenge is to turn a former military base that had no local zoning regulations and poor infrastructure, into a master-planned community that has yet to develop, and Heeia, where the agency's directive is to preserve natural resources there.

Each HCDA district has its own board where community members are a minority.

The new Lele district board under the proposed amended draft of SB 3381 all must be residents of the district and registered to vote in Hawaii.

HCDA has tools and powers the board can use, including planning expertise, zoning authority, financing capabilities and land acquisition through condemnation.

"When this bill was submitted, we viewed it as really our call to help, " Nakamoto told the committees. "And our answer was we're here to help. ... I don't know if there's another body that can really do this."

Nakamoto acknowledged that the Lahaina community may not trust HCDA, which is headquartered in Kakaako, and he suggested that he begin meeting with community members in West Maui as soon as Monday.

"I don't expect them to trust us because we're from Oahu and we're a state agency, " he said at Wednesday's hearing.

Nakamoto added that his plan will be to talk 5 % and listen 95 %, and that HCDA is well-positioned to help the community create a community plan.

The idea that Lele district board members be elected by residents of the district raised a host of issues.

The proposed draft calls for an election in 2026 and in subsequent general elections after initial appointments by the governor subject to Senate advice and consent. Sen. Donovan Dela Cruz, who co-introduced the bill, has suggested that there instead be a Jan. 1, 2025, special election to elect the board.

Paltin and the Lahaina Strong leaders said having elected board members allows financially backed special interests to land board seats. They also said initial picks by Green could be influenced by connections the governor has with special-­interest groups.

Sen. Kurt Fevella, a member of both committees that heard the bill Wednesday, said he likes the bill's concept except for having elected board members.

"I have a problem with this election thing, " said Fevella (R, Ewa Beach-Ocean Pointe-Iroquois Point ). "A lot of my Hawaiian community don't vote."

Some public testimony suggested that only district residents at the time of the wildfire be eligible for the board, as a way to qualify wildfire survivors displaced by the disaster and to exclude new residents with outside interests. This may be unconstitutional, according to the state Office of the Attorney General.

Sen. Angus McKelvey (D, West Maui-Maalaea-South Maui ), a Water and Land Committee member who introduced the bill with Ways and Means Committee Chair Dela Cruz (D, Mililani-­Wahiawa-Whitmore Village ), asked if it would be more prudent to step back from the bill and pursue a working group that can produce model legislation that addresses concerns and achieves the objective of having Lahaina residents in control of rebuilding Lahaina.

Sen. Lorraine Inouye, Water and Land Committee chair, expressed some concern over county planning work conflicting with a Lele district board backed by HCDA. But she endorsed SB 3381.

"This is a good bill, " said Inouye (D, Hilo-Pepeekeo ).

Sen. Lynn DeCoite, chair of the Energy, Economic Development and Tourism Committee, called SB 3381 not a perfect bill but one that deserves more discussion and possible changes.

"If not this, then what ?" said DeCoite (D, East and Upcountry Maui-Molokai-­Lanai ). "If not now, then when ?"