Reestablishing the city’s ability to obtain private sponsorships for publicly owned facilities in order to secure non-property tax revenue is the focus of new legislation now under Honolulu City Council review.
Introduced in January by Radiant Cordero, Bill 4 would revisit aspects of a prior law — Ordinance 17-16 — that established such sponsorships but was repealed in 2022.
To that end the Council’s Budget Committee is expected to review the measure today.
As drafted, Bill 4 would seek to “create and enhance public-private relationships, including with individuals, corporations, and other
organizations, through the creation of commercial sponsorships.”
“Private sponsorships will create alternate revenue streams that will increase the city’s ability to deliver services and to maintain city assets, including its facilities, parks, programs, equipment, and tangible property, and provide enhanced levels of service and maintenance beyond the core levels funded from the city’s general fund for the benefit of users and the community at large,” the bill states.
In appreciation of such support, the measure states it’s “the policy of the city to equitably acknowledge the contribution of private sponsors.”
If restarted, the new measure would allow the director of a city agency to enter into a sponsorship agreement, but only for a term of less than five years, with a
financial contribution of less than $50,000.
“All sponsorship agreements for a financial contribution of $50,000 or more must be approved by a resolution adopted by the Council,” the bill states. “All sponsorship agreements for a period of five years or more must be approved by a resolution
adopted by the Council.”
In addition, the measure says that “all funds received pursuant to sponsorship agreements will be deposited into the appropriate fund as determined by the director of the (city Department) of Budget and Fiscal Services, provided that such funds are expended for their designated purpose.”
There are exclusions to this legislation, however. Those include:
>> Gifts, grants or unsolicited donations where no sponsorship agreement
exists or is required.
>> Memorials and the naming of a city park, site or facility subject to city laws.
>> Parades or events sponsored or co-sponsored by the city pursuant to other ordinances or rules.
>> Facilities in Kapiolani Regional Park.
>> Facilities in Hanauma Bay Nature Preserve.
And restrictions for all sponsorship agreements
exist, too.
“The city shall not relinquish any aspect of the city’s right to direct, manage and control the city asset,” the measure states. “Sponsorship recognition, publications, and publicity must conform to all applicable laws and rules, including but not limited to (state laws), pertaining to sign regulations (and) to outdoor advertising, including billboards.”
“The sponsorship must not create a conflict of interest for the city as determined by the city’s Corporation Counsel,” the bill reads.
During the Council’s
Jan. 29 meeting, the panel
reviewed and adopted Bill 4 on the first of three readings.
Before the vote, Winston Welch, representing The Outdoor Circle environmental group, said he looked forward to working with the Council’s Budget Committee on Bill 4 and “to make sure that any sponsorship measures that go forward comport with the (city’s) rightly guarded and stringent sign and off-site advertising laws,” he added.
Kaimuki resident Tim Garry said he strongly supported Bill 4’s intent.
“It kind of ties into revenue so that you don’t have to jack up the seniors’ taxes,” he explained. “This is something that the city and county has neglected for years. … There’s so much private money out there in the city. … There are trusts that have to give away money, according to their trusts.”
With regard to outdoor signage related to potential city sponsorships, Garry said The Outdoor Circle “might have some criticism” of the measure, “but it doesn’t necessarily have to be a billboard sign that is invasive.”
“This can work for so many departments; one of them is Ocean Safety,” he said. “There is a ton of money out there that wants to support them.”
“Whether they take a picture with the Ocean Safety (lifeguards), use it to promote or market whatever product they have. Why would we turn that money down?” he said. “You want to jack up my taxes so you can keep feeding at the trough all of the time.”
“Let’s get innovative and think outside the box,” he added. “Let’s not be stale; have some imagination.”
Andria Tupola, whose Council District 1 spans the Leeward Coast, also supported Bill 4. She noted other U.S. cities have “foundations or funds that are just for the parks.”
“I’ve had people call me on a regular basis asking if they could redo a park or help with it,” she said. “And in my district I actually have one park that’s half private and half city and county.
“And you can imagine what both sides look like, but they don’t match.” she added. “And it’s because
privately run areas … have more funding, and you’re able to do more with it.”
Chair of the Council’s Parks Committee, Tupola noted that the Navy’s transference of 400 acres in West Oahu to the city in June meant more city parks could be developed.
But “I don’t think we’re
actually going to be able to do anything back there if
we don’t have some type
of foundation or sponsorship program, because we’ll never have the funds to
really develop that whole area,” she said.
The Council’s Budget Committee meeting begins today at 9 a.m. inside Council chambers.
