Everyone agrees that businesses along the rail’s path of construction need assistance, but it’s time for city and rail leaders to offer real solutions.
Rail construction has altered the landscape for businesses along Farrington and Kamehameha highways in a manner never before seen in Hawaii. There is no time to waste when businesses are faltering and shutting their doors.
Rail’s effect on traffic patterns has caused severe hardship for institutions such as Tanioka’s Seafood and Catering in Waipahu, which has seen fewer customers since rail construction closed a left-turn lane. Rail also was a nail in the coffin for Flamingo Restaurant and Bakery in Pearl City, which closed its doors last month.
The Honolulu City Council passed a measure Wednesday — Bill 42 — that would make grants and loans available to businesses hit hard by rail construction. The mayor has signaled his intent to sign it, pending legal review, but it’s still unclear where the funds would come from.
The Council’s intent is commendable, but without a solid plan and funding, how will businesses get the support they need?
Federal transit officials have made clear that, per federal policy, any local or state funding used as a match to federally funded projects cannot be used to help local businesses stay afloat.
There is no way that rail officials can funnel state tax dollars meant to build the project into a mitigation fund, the feds say.
During a Honolulu Authority for Rapid Transportation board meeting, new Chairman Don Horner suggested reaching out to local banks to help businesses.
Bankers are heeding the call, and that’s encouraging.
Edward Pei, executive director of the Hawaii Bankers Association, said the organization is hoping to schedule a meeting so its members can discuss ways to help businesses hurt by rail.
Until any formal plan is launched, he urges business owners to take the initiative to reach out to their banks and see what measures can be taken to ease financial burdens.
Pei suggested help could come in the form of short-term financing, or a bank could lower interest rates on an existing loan.
Banks also could help promote the rail-affected businesses and assure the public that these eateries and shops are still operating.
It may require going through a “war zone” to get to them, but they deserve our business, Pei said.
Just how that message will be delivered is up for discussion, but it’s such creative thinking that is urgently needed from both the private and public sectors.
Decision-makers should explore business loans guaranteed by the city — with reasonable caps. This would give banks the responsibility of vetting qualified businesses, not the government.
Council Chairman Ernie Martin has offered the notion of using federal Community Development Block Grant funds — and though at least one Council member has dismissed that idea, it’s an option that deserves exploration.
In Seattle, for instance, a $50 million fund was launched in the early 2000s to help businesses there that were trying to withstand several years of construction for a new light rail line. Most of that came from CDBG funds.
Property tax relief is another option, but for those who rent their spaces, it would be up to property owners to pass on the savings.
Small business owners should demand a relief plan. And Horner, of HART, said he would like to hear from small businesses at its next board meeting on Aug. 27.
Business owners also can attend a meeting Wednesday night with HART and Kiewit officials at the Filipino Community Center in Waipahu.
No matter which routes officials take in achieving a rail mitigation fund, decisions need to be made and made fast, especially with rail construction chugging fully and forcefully into Honolulu’s urbanized core.
