House Bill 2328, introduced by state House Speaker Scott Saiki and championed by former Gov. Neil Abercrombie, contains elements of an ingenious idea — to purchase and “adapt” deteriorating properties on the borderline between Chinatown and Downtown, developing affordable housing. Crucial elements are missing, however — including protections for culturally important venues now sited at these properties, commitment to historical preservation that might be required for the buildings, and, not least, analysis of the damage to Honolulu’s Arts District caused by the displacement of the artists, performers, musicians and other creatives who have studios and rehearsal spaces in those buildings now.

HB 2328 authorizes the state to purchase privately owned properties between Bethel and Fort streets to the north and south, and Pauahi Street and Chaplain Lane on the west and east. Together, they have a value of about $30 million, according to testimony from Abercrombie. Collectively, these properties are known as the “Bethel Block,” which sits squarely within Honolulu’s Arts District.

A specific affordability mix of units to be created isn’t specified in the latest draft, but HB 2328 states that the project must “target” households with incomes at or below 60% of area median income, and affordability restrictions must be permanent. Such conditions are a good start.

To avoid upsetting the creative social ecosystem on the block, the bill must also require that any state-sponsored development will support and seek to preserve existing venues, which are vital gathering places and incubators of shared and evolving local arts, culture and community.

For instance, the live-music venue and “social club” Proof on Chaplain Lane hosts artists and crafters, and features talented local musicians who could be Hawaii’s next big thing, as a now-closed Chinatown spot did for now-nationally known musician Taimane. Scarlet Honolulu, a popular self-proclaimed “drag palace” on Pauahi and Fort streets, is a downtown epicenter for LGBTQ-friendly celebration. J. Dolan’s pizza pub on Bethel is a friendly fixture and gathering place for a diverse crowd from throughout Honolulu.

Supporting HB 2328, Abercrombie testified, “Existing business activity at street level will be maintained and enhanced, with expansion encouraged. The result will be a rejuvenated community.” If the state commits to that, developing the block would be worth the cost and disruption. But nothing in the bill expresses this intent.

Unsurprisingly, fears of being driven out of business have been expressed by the Bethel Block’s current tenants. The area’s operators say they haven’t been consulted about the state’s plans by building owners or legislators; that in itself is a justifiable cause for concern.

Other unresolved issues include the potentially high cost of redevelopment, which some observers predict will be far more than $30 million, complicated by the buildings’ historic status. The Legislature doesn’t seem to have a clear handle on this.

Meanwhile, the fact that the bill’s original draft designated the Hawaii Public Housing Authority as developer, but then the Senate Housing Committee swapped in the Hawaii Housing Finance and Development Corp. — to the surprise of HHFDC — raises serious questions about just how well thought-out this plan really is.

If and when HB 2328 goes to conference committee, consultation with current tenants and provisions for explicit protective measures must be included, including firmer timelines and possible financial support or allowances. Without attention to community impact, a state takeover could drain artistic vibrancy from the Bethel Block, and that would be a serious mistake.