Folks in Waikiki bristle at a surge in events that shut off Kalakaua Avenue

Are you going to the Hugs and Hearts Festival in Waikiki next month? How about the Lucky to Be in Hawaii Festival in March? No worries if you miss those — you can make the Waikiki Spring Festival in April. Each one will close parts of Kalakaua Avenue from 4 to 10 p.m.

Those are just a few of the 37 events that could close Waikiki’s main thoroughfare this year. For those who live in the area and for some of the shop owners, the events, and the street closures that come with them, are less than welcome.

The city is rethinking its policy on Kalakaua Avenue street closures in response to complaints that many of the events don’t justify neighborhood disruptions.

Each year, the city allows 37 or more parades and events to close Kalakaua Avenue. Applicants must hire security and purchase insurance, but the city does not require them to pay rent, application fees or administrative costs.

Fourteen of these events are automatically renewed annually because they are legacy events, which have been held for at least 15 consecutive years. They include the King Kamehameha Parade, Aloha Festivals Parade and Honolulu Marathon.

Permits for 15 other events are handed out through a lottery, which is typically held the second Tuesday in September.

Honolulu Mayor Kirk Caldwell also is allowed to issue eight waivers annually to events that didn’t get selected in the lottery. First Amendment events like the Gay Pride Parade can bring the street closure count even higher.

Last year there were 29 closures, comprising four First Amendment events, 10 legacy events, 14 lottery events and one mayor’s waiver. In 2014 there were 26 closures — 10 legacy, 13 lottery and three First Amendment events. In 2013 there were 28 closures — 14 lottery, 10 legacy and four First Amendment events.

While the policy has earned mixed reviews, complaints about Kalakaua Avenue closures for parade and events have heated up since a single for-profit vendor — Millwood ‘Ohana Productions — was able to obtain 11 of this year’s 15 lottery permits.

The Waikiki Neighborhood Board passed a resolution by a vote of 11-2 during its Jan. 12 meeting asking the city to quit allowing for-profit events that don’t serve a public or cultural purpose to close Kalakaua on Saturday nights. Board members also want the city to seek their advice in tweaking its rules for permitting parade and event street closures in the district.

“I’ve been overwhelmed with complaints,” said Waikiki Neighborhood Board Chairman Robert Finley. “We’ve got residents who are yelling and screaming that they can’t get to their homes. Businesses say they are losing money.”

Steven Matsuno, executive director for Atlantis Seafood & Steak and Seafood Village, said some of Millwood’s recent closures have reduced business volume by 50 percent.

“They’ve turned Saturday nights into Monday nights,” Matsuno said, referring to the typically slow restaurant business on Mondays. “Waikiki is a world-class destination and Kalakaua is its main thoroughfare. Businesses here pay world-class rates. We’re not against closures. We just want them to be fair.”

While Millwood lawfully obtained its event schedule, Waikiki Neighborhood Board member Jo-Ann Adams questioned the wisdom of allowing the private sector to make money off public roads.

“We are picking on Millwood for this problem because there are so many events for private purposes. We’ve got parks and hotels that people can rent. Why are they being allowed to take our streets?” Adams said.

During each Millwood Waikiki event, the company rents stalls to vendors. Millwood’s website shows 104 stalls for rent at each event for prices ranging from $350 to $900 depending on whether vendors sell merchandise or food. Millwood could take in about $70,000 per event if all stalls are rented at the maximum rate.

Nadia Drews, director of operations for Millwood, said the company has provided the city with all of the information that it has requested. In addition, she said, Millwood “has been donating to various charities for each of our events.”

Drews said her boss, David Millwood, was out of town and unavailable for comment.

Drews provided the Waikiki board with comments from more than a dozen businesses that are involved in or support Millwood’s Waikiki block festivals.

“Since the International Market dismantling we have felt there has been a large void of that bazaar island feel that it gave in the midst of this tourist jungle,” Kristen Langelier of My Urban Poncho said in a letter of support. “Our visiting tourist customers were very impressed with everything.”

Rick Egged, president of the Waikiki Improvement Association, said his members want the Honolulu City Council and city administrators to review current policy.

“The problem is twofold. Events are supposed to be for a public purpose, but the requirements are not defined. My members also believe that there are just too many events. As time has gone by, Waikiki has become more congested,” said Egged, who plans to ask the City Council to reduce the number of closures allowed under the law.

Waikiki Neighborhood Board Vice Chairman Louis Erteschik said he typically enjoys Waikiki events. However, he wants to see high-quality events that meet public needs.

“The first time I saw (one of the Millwood events), I thought this is kind of a crappy festival,” Erteschik said. “It was just food trucks selling trinkets that you could get anywhere. It wasn’t like the St. Patrick’s parade or the Aloha Festivals or the NFL block party. If there were a valid purpose for these events, I’d be the first to support them. But a phony made-up block party doesn’t justify the inconvenience to residents or the business community.”

Michael Formby, director of the city Department of Transportation Services, said his staff is reviewing complaints about the city’s parade ordinance and Millwood’s Waikiki events.

“I have heard three years of complaints from the Waikiki community and its hotels. They think there are just too many events,” Formby said.

0With respect to Millwood, Formby said complaints have centered around the purpose and quality of the events.

“Community members have told us that they don’t serve a cultural or public purpose,” he said. “Others have complained that it wasn’t a well-run event. It wasn’t something that a tourist would view positively.”

The Waikiki Improvement Association also has expressed major concerns regarding any event closing Kalakaua Avenue the weekend of Valentine’s Day, Feb. 12-14. The association “believes such an event would cause traffic gridlock at a time when every restaurant and business in Waikiki is at or close to capacity. We therefore respectfully request any application for a street closure permit for the aforementioned dates be denied,” Egged said.

Formby said the lottery for permits does not mean a permit is automatically granted to lottery winners. His office can deny the permit if the winning applicant does not meet expectations or the event dates prove problematic.

Formby said he has told Millwood its Hugs and Hearts Festival scheduled for Feb. 13 must be moved to later in the month. Formby said all of Millwood’s remaining events are subject to further scrutiny. Prior to each event, Millwood will have to present its plans to the Waikiki board.

“Because the ordinance leaves discretion to the director (of DTS), it’s my pattern to look to the Waikiki board and the community to see if they felt the event served a public purpose,” Formby said.

If Millwood’s events are discontinued, Formby said the city would have to consider whether to hold a makeup lottery.

“I’d have to talk to staff about what’s fair, but I’m not inclined to go back to the bucket and draw again.”

In the meantime, Formby also has asked city staff to work on a new set of rules and suggested ordinance changes for Waikiki’s parade and events policies.

“One of my concerns is that there needs to be a better definition of public purpose,” Formby said. “We may also limit the number of applications that can be made. This is the first time one event organizer has put in so many applications.”

Formby said the city also might consider charging application and administrative fees for events that require street closures, which come at some cost to the city.

“We hope to see it go through a public process by spring. It will be the first major overhaul where people can weigh in on the rules.”