A bill that would clear the way for private sponsorship of parks and other city facilities in exchange for visual recognition was approved 7-2 by the Honolulu City Council on Wednesday despite continued warnings by opponents that it could lead to billboards and other forms of gaudy advertising.

Several Council members said they empathized with the opponents and that they would work to craft a new bill to address the concerns.

Members of the Outdoor Circle, which led the opposition, said they will talk to their attorneys before deciding whether they will take legal action if Mayor Kirk Caldwell signs the measure. Caldwell, through his spokesman, indicated Wednesday afternoon that he supports the bill.

The approval came after more than three hours of passionate testimony from supporters and opponents. Council members Carol Fukunaga and Ernie Martin voted no.

Bill 78 (2015), introduced by Council members Kymberly Pine and Ann Kobayashi, would allow the city to set up a five-year pilot program for individuals, community organizations and businesses to sponsor “city facilities, parks, programs, equipment and tangible property.”

“Sponsorship recognition” would be given to those making the contributions as “a tangible acknowledgement and expression of gratitude issued as part of the sponsorship agreement.”

The bill further states that “any physical form of sponsorship recognition must blend in with the surrounding environment.”

It’s that vague language that has led to objections from the Outdoor Circle and other opponents, who believe the bill could lead to highly visible outdoor advertising, including billboards.

While much of the discussion on the bill has focused on park sponsorship, the measure also would allow for sponsorship of all other tangible city property. City Enterprise Services Director Guy Kaulukukui told the Honolulu Star-Advertiser on Wednesday that the administration intends to use the bill to seek private sponsorship “in some small ways” to help finance upcoming improvements at the Neal S. Blaisdell Center.

Brian Bagnall, president of the Greater Waikiki branch of the Outdoor Circle, pointed to the existing electronic signs at the Blaisdell Center as “the very worst example” of what could happen. The signs distract drivers and “belong in Las Vegas,” he said.

The bill is “deceptively written and is almost certainly illegal in our opinion,” Bagnall said. “Bill 78 should be withdrawn or at least completely rewritten to remove all the ambiguities about signage on city-owned properties.”

An effort by Kobayashi to send the bill back to the Budget Committee failed.

Bridget Morgan, an attorney for the Outdoor Circle, issued a legal opinion that the state’s 1965 outdoor advertising law prohibits the city from adopting a bill that would allow what essentially amounts to signage in exchange for money in direct conflict with the state language.

“A sign is a sign, and if it draws attention or is designed to draw attention in a public space to that sign, it’s prohibited by the (state) law and I don’t think you can get around that by saying that this ordinance shall comply with the law,” Morgan said.

Pine said her intent was not to supersede existing state and city advertising or signage laws, and she pointed to bill language that “sponsorship recognition must conform to all applicable laws and rules.” On Wednesday, she amended the measure to also include the specific sections of state statutes and city ordinances that the signage or other form of sponsorship recognition could not supersede.

Deputy Corporation Counsel Geoff Kam, in response to questions from Council members, said the city’s legal advisers approved the “form and legality” of the bill’s language and would defend it if challenged.

Allowing the city to take advantage of private funding for programs and facilities would lessen its dependence on property tax revenue in a climate where city dollars are being stretched, Pine said.

Proponents of the bill said they support Bill 78 (2015) because they want to be able to provide small displays of recognition for those who contribute to their projects at city parks.

Alana Kobayashi Pakkala, a partner and executive vice president for the Kobayashi Group, and friend Tiffany Vara are heading an effort to create “a world-class regional playground” in a more than 1-acre section of Ala Moana Park. Both testified in support of the bill Wednesday, arguing that it would help them raise funding for the project being designed for everyone, including those with special needs.

David Benson of the Rotary Club of Honolulu said his organization is planning to build a park “smack in the middle of cement city” of Waikiki. “A small acknowledgement pays huge dividends and will give people a feeling of accomplishment and belonging,” he said.

Councilman Ikaika Anderson voted for the bill but said he would introduce new legislation to clear the concerns raised by its opponents. For instance, he wants the Council and public to have more say in what sponsorships would be allowed. The bill, as adopted, states that only those sponsorship agreements involving contributions of $50,000 or more, or five years or more, need Council approval.

Anderson said he’d also like to be able set parameters about what types of signage or other forms of recognition would be allowed.

In other Council action, Caldwell’s 2018 budget package got second-reading approval Wednesday. Related to that, the Council gave final approval to Resolution 17-70, setting the property tax rates for the upcoming year. Residential A homeowners, for the first time, will pay at a tiered system: $4.50 for every $1,000 of assessed value for the first $1 million of value, and then $9 for any value above $1 million. They currently pay at $6 per $1,000 on the entire value. Common residential class property owners will continue to pay at $3.50 per $1,000.

A planned hike in TheBus and Handi-Van rates drew strong opposition from a number of frequent passengers who said many riders will be hit hard financially by the increase. Several Council members said they will look at the possibility of nixing the increases but would need to find cuts in the budget in order to do that.

The budget package is expected to be finalized in June.