Three years back, the state Legislature considered a measure that would have wrested control of development in Kakaako from the Hawaii Community Development Authority and transferred it to the city and state.
The bill didn’t fly. And as a collection of mostly market-value — meaning expensive — and luxury — meaning really, really expensive — high-rise projects skip through HCDA’s random approval process, the city’s elected officials can only stand by as a good chunk of Oahu’s primary urban core is reshaped without their participation.
Right now, the HCDA is feeling its oats, but about eight years back, it was confronted by citizens displeased with a plan for private developers to build pricey condos and retail spaces on state land in exchange for fixing up the area. Standing with opponents was U.S. Rep. Neil Abercrombie, who called for abolishing the HCDA, the agency he alone had opposed in 1976 when he was a legislator.
Abercrombie’s criticism was aimed in part at what he said was the agency’s disregard of mass transit planning for which he was pursuing federal cash. He also said HCDA was moving too slowly in transforming the district to one in which housing would be priced “for ordinary folks” and small businesses could thrive.
As governor, Abercrombie evidently has a different perspective. His out-of-the-blue proposal for a 650-foot mega-tower on state-owned land set a hospitable stage for project developers, many of whom are petitioning HCDA to set aside rules on building heights and orientations and green spaces.
As the changing urban landscape escapes its authority, what can a benched City Council do but figure out a way to get some “revenue enhancements” — aka more tax dollars — from all of those new property owners?
Two of the Council’s proposed tax reforms would tap into the flood by creating a new class for investor-owners and for time-share properties, charging a higher rate than for owner-occupants.
Opponents of the new classifications argue that investment and time-sharing properties do not unduly burden city services. Still, taxes have long been based on property value, and to reject that foundation now would make no sense.
As for urban renewal, there are many sectors in the inner city that could benefit from smart planning, which is where city officials should start directing their attention.
That’s not to say zoning and permit regulations should be set aside, but helping building and land owners in areas such as Pawaa, Kalihi and Moiliili get through the arduous procedures more quickly, and perhaps even providing tax incentives, could spur improvements in communities.
These neighborhoods could provide housing more people could afford because they would not boast partial ocean or mountain views, which is the most Kakaako high-rises will have when the district is fully built out.
What they will have is access to a public transportation network that’s already in place instead of a promised rail system with limited destinations.
They could more easily leave their cars in the garage to shop for groceries or eat out or get to schools because renewal of established communities are already where people “live, work and play.”
