RELATING TO DEVELOPMENT.

SB2599

THE SENATE

S.B. NO.

2599

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO DEVELOPMENT
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The legislature finds that the stadium
development district was established in 2019 within the Hawaii community
development authority pursuant to part IX of chapter 206E, Hawaii Revised
Statutes.

����
Subsequently,
in 2022, the legislature created a transit-oriented development infrastructure
improvement program within the Hawaii community development authority, pursuant
to part X of chapter 206E, Hawaii Revised Statutes.
�
In establishing this program, the legislature
found that the "construction, installation, and improvement of certain infrastructure
is necessary and desirable to facilitate renewal and redevelopment of areas
designated by the State and the counties for transit-oriented
development."

����
The
legislature finds that one area designated by the city and county of Honolulu
for transit-oriented development is the Halawa area transit-oriented
development neighborhood, which surrounds the Halawa/Aloha stadium rail
station.
�
The State, through the stadium
authority and the department of accounting and general services, is currently
working with a developer to construct a new Aloha stadium in this
transit-oriented development neighborhood.

����
The
legislature finds that it is in the best interests of the State to redesignate
the stadium development district as the Halawa community development district
and to establish the Hawaii community development authority as the zoning and
entitlement agency for the district, given the State's interest in developing
both:

����
(1)
�
The new Aloha stadium, including the
land surrounding the new stadium; and

����
(2)
�
Infrastructure within the Halawa
transit-oriented development neighborhood surrounding the Halawa/Aloha stadium
rail station.

The
legislature also finds that it would be in the best interests of the State for
the Hawaii community development authority's zoning and entitlement powers to
supersede the zoning and entitlement powers of the city and county of Honolulu
for the area constituting the district upon the adoption of necessary plans and
rules by the Hawaii community development authority.

����
Through
the normal process of overseeing the Halawa community development district, the
Hawaii community development authority may assess and impose regulatory and
service fees and assessments upon beneficiaries of the district, including
permit review fees and other fees necessary to cover the Hawaii community
development authority's costs of maintaining, regulating, and providing
services to beneficiaries of and for the district.
�
As the Hawaii community development
authority's responsibilities and obligations for the district would be ongoing,
and the costs to maintain, regulate, and provide services may vary from year to
year, the general fund appropriation process may not be sufficient to
successfully implement the goals of the district.
�
Accordingly, the legislature finds that the establishment
of a special fund that satisfies the requirements of section 37-52.3, Hawaii
Revised Statutes, is appropriate and necessary to ensure that the district is appropriately
developed and maintained.

����
Accordingly,
the purpose of this Act is to:

����
(1)
�
Redesignate the stadium development
district as the Halawa community development district;

����
(2)
�
Amend the respective responsibilities
of the stadium authority and Hawaii community development authority as follows:

���������
(A)
�
The stadium authority shall be the sole
agency responsible for overseeing and facilitating the planning, design,
development, and construction of the:

��������������
(i)
�
New stadium and related facilities; and

�������������
(ii)
�
Area surrounding the new stadium; and

���������
(B)
�
The Hawaii community development
authority's responsibilities shall be limited to:

��������������
(i)
�
Regulating land use within the Halawa community development
district through its zoning and entitlement powers; and

�������������
(ii)
�
Funding, planning, designing, and building infrastructure and
public facilities for the Halawa community development district;

����
(3)
�
Clarify the Hawaii community development
authority's consultation and permitting powers with respect to public projects
within community development districts;

����
(4)
�
Establish the Halawa community
development district special fund; and

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(5)
�
Appropriate moneys.

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SECTION
2.
�
Chapter 206E, Hawaii Revised
Statutes, is amended by adding a new section to part IX to be appropriately
designated and to read as follows:

����
"
�206E-
��

��
Halawa community
development district special fund.
�
(a)
�
There is established in the state treasury
the Halawa community development district special fund.
�
Notwithstanding section 206E-16 or any other
law to the contrary, the following shall be deposited into the special fund:

����
(1)
�
All revenues, income, and receipts
of the authority derived from activities within and outside the district,
except for revenues designated for deposit into the stadium development special
fund in section 109‑3.5;

����
(2)
�
Moneys directed, allocated, or
disbursed to the district from government agencies or private individuals or
organizations, including grants, gifts, awards, donations, and assessments of
landowners for costs to administer and operate the district; and

����
(3)
�
Moneys appropriated to the fund by
the legislature.

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(b)
�
Moneys in the fund shall be used only for the
purposes of this part.

����
(c)
�
Investment earnings credited to the assets of
the fund shall become part of the fund.
"

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SECTION

3
.
�
Section 109-1,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
There shall be within the department of
business, economic development, and tourism for administrative purposes only, a
stadium authority whose responsibility shall be to maintain, operate, and
manage the stadium [
development district.
]
, facilities attached to
the stadium, and real property held by the stadium authority, including
facilitating the planning, design, development, and construction of a new
stadium and the area surrounding the new stadium, consistent with the memorandum
of agreement pursuant to section 206E-225.
�

The authority shall consist of eleven members.
�
Eight members shall be appointed by the
governor in the manner prescribed by section 26-34.

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Of
the eight public members:

����
(1)
�
One member shall be designated as the
Aiea community representative and be a resident of one of the following areas:

���������
(A)
�
Excluding Ford Island, the area
beginning at the intersection of the shoreline and Admiral Clarey (Ford Island)
Bridge and running:

��������������
(i)
�
Easterly along said bridge to Salt Lake
boulevard;

�������������
(ii)
�
Southeasterly along said boulevard to
Luapele drive;

������������
(iii)
�
Westerly along said drive to Fleet
place;

�������������
(iv)
�
Westerly along said place to Ulithi
street;

��������������
(v)
�
Southwesterly along said street to
Luapele road;

�������������
(vi)
�
Westerly along said road to Ulihi road;

������������
(vii)
�
Westerly along said road to Makalapa
drive;

�����������
(viii)
�
Southwesterly along said drive to
Halawa drive;

�������������
(ix)
�
Northwesterly along said drive to
Kamehameha highway;

��������������
(x)
�
Northerly along said highway to Halawa
stream;

�������������
(xi)
�
Westerly along said stream to the
shoreline; and

������������
(xii)
�
Northerly along said shoreline to its
intersection with Admiral Clarey (Ford Island) Bridge;

���������
(B)
�
The area beginning at the intersection
of Kaonohi street and H-1 freeway and running:

��������������
(i)
�
Southeasterly along said freeway to the
Moanalua freeway - Kamehameha highway connector;

�������������
(ii)
�
Northwesterly along said highway
connector to Kamehameha highway;

������������
(iii)
�
Northwesterly along said highway to
Aiea stream;

�������������
(iv)
�
Southerly along said stream to the
shoreline;

��������������
(v)
�
Northwesterly along said shoreline to
Kalauao stream;

�������������
(vi)
�
Northeasterly along said stream to
Kamehameha highway;

������������
(vii)
�
Northwesterly along said highway to
Kaonohi street; and

�����������
(viii)
�
Northeasterly along said street to its
intersection with H-1 freeway; or

���������
(C)
�
The area beginning at the intersection
of Waimalu stream and Koolau ridge and running:

��������������
(i)
�
Southeasterly along said ridge to
Ewa-Honolulu district boundary;

�������������
(ii)
�
Southwesterly along said boundary to
Red Hill Naval Reservation boundary;

������������
(iii)
�
Southwesterly along said boundary to
Tampa drive;

�������������
(iv)
�
Westerly along said drive to the
unnamed road;

��������������
(v)
�
Northerly along said road to Icarus
way;

�������������
(vi)
�
Westerly along said way to the unnamed
road;

������������
(vii)
�
Southwesterly along said road to
Moanalua freeway (H-201);

�����������
(viii)
�
Westerly along said freeway to H-1
freeway;

�������������
(ix)
�
Northwesterly along said freeway to
Kaonohi street;

��������������
(x)
�
Southwesterly along said street to
Moanalua road;

�������������
(xi)
�
Westerly along said road to Kaahumanu
street;

������������
(xii)
�
Northerly along said street to Komo Mai
drive;

�����������
(xiii)
�
Easterly along said drive to Punanani
gulch;

������������
(xiv)
�
Northeasterly along said gulch to the
powerline;

�������������
(xv)
�
Southeasterly along said powerline to
Waimalu stream;

������������
(xvi)
�
Northeasterly along said stream to Aiea
stream;

�����������
(xvii)
�
Easterly along said stream to Waimalu
stream; and

����������
(xviii)
�
Southeasterly along said stream to its
intersection with Koolau ridge; and

����
(2)
�
One member shall be designated as the
west Honolulu community representative and be a resident of the area beginning
at the intersection of H-1 freeway and Moanalua freeway (H-201) and running:

���������
(A)
�
Southeasterly along said freeway to
Aliamanu Military Reservation southern boundary;

���������
(B)
�
Westerly along said boundary to Wanaka
street;

���������
(C)
�
Southwesterly along said street to
Likini street;

���������
(D)
�
Northwesterly along said street to
Ukana street;

���������
(E)
�
Southwesterly along said street to
Keaka drive;

���������
(F)
�
Northwesterly along said drive to
Manuwa drive;

���������
(G)
�
Southeasterly along said drive to
Pakini street;

���������
(H)
�
Southwesterly along said street to
Keaka drive;

���������
(I)
�
Southerly along said drive to Puolo
drive;

���������
(J)
�
Westerly along said drive to Likini
street;

���������
(K)
�
Southerly along said street to Maluna
street;

���������
(L)
�
Westerly along said street to Salt Lake
boulevard;

���������
(M)
�
Southeasterly along said boulevard to
the former street entrance to U.S. Naval Reservation;

���������
(N)
�
Southwesterly along said feature to
Reeves loop;

���������
(O)
�
Southwesterly along said loop to
Radford drive;

���������
(P)
�
Westerly along said drive to H-1
freeway; and

���������
(Q)
�
Northerly along said freeway to its
intersection with Moanalua freeway (H-201).

Each public
member of the authority shall have been a citizen of the United States and a
resident of the State for at least five years next preceding the member's
appointment.
�
The remaining three members
shall include the director of business, economic development, and tourism or
the director's designee, who shall be an ex officio voting member, and the
president of the University of Hawaii and superintendent of education, or their
designees, who shall be ex officio nonvoting members of the authority."

����
SECTION

4
.
�
Section 109-2,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�109-2
�

Stadium authority; powers and duties.
�
The powers and duties of the stadium authority
shall be as follows:

����
(1)
�
To repair, maintain, and operate
the

stadium
and related
facilities [
and the stadium development district
],
including:

���������
(A)
�
Repairs, maintenance, operations, and
demolition of existing stadium facilities;

���������
(B)
�
[
Operations and maintenance
]
Repairs,
maintenance, and operations
of a new stadium[
;
]
and related
facilities;
and

���������
(C)
�
Contractual payments to developers,
contractors, or management contractors engaged by the stadium authority;

����
(2)
�
To coordinate in planning, design, and
construction activities, including on-site repairs, within [
the stadium
development district;
]
real property held by the stadium authority;

����
(3)
�
To acquire and hold title to real
property;

����
(4)
�
To prescribe and collect rents, fees,
and charges for the use or enjoyment of the stadium, facilities related to the
stadium, and real property held by the stadium authority, including entering
into leases, contracts, sponsorship and advertising agreements, food and
beverage agreements, concession agreements, parking agreements, or other
development and use agreements that may apply; [
provided that leases shall
not exceed a term of ninety-nine years;
]

����
(5)
�
To make and execute contracts and other
instruments necessary or convenient to exercise its powers under this chapter
and subject to any limitations in this chapter, to exercise all powers
necessary, incidental, or convenient to carry out and effectuate the purposes
and provisions of this chapter;

����
(6)
�
To adopt, amend, and repeal, in
accordance with chapter 91, rules it may deem necessary to effectuate this
chapter and in connection with its projects, operations, and facilities;

����
(7)
�
To appoint officers, agents, and
employees, prescribe their duties and qualifications, and fix their salaries,
without regard to chapters 76 and 89, to manage the stadium[
, the stadium
development district,
]
and related facilities, real property held by the
stadium authority,
and its contractors; [
and
]

����
(8)
�
To plan, promote, and market the
stadium and related facilities[
.
]
; and

����
(9)
�
To be the sole agency responsible
for overseeing and facilitating the planning, design, development, and
construction of the:

���������
(A)
�
New stadium and related facilities;
and

���������
(B)
�
Area surrounding the new stadium.
"

����
SECTION

5
.
�
Section
109-3.5, Hawaii Revised Statutes, is amended to read as follows:

����
"
[
[
]
�109-3.5[
]
]
�
Stadium development special fund;
established.
�
(a)
�

There is established in the state treasury the stadium development
special fund, into which funds collected by the stadium authority shall be
deposited, including:

����
(1)
�
All revenues from [
the stadium
development district,
]
real property held by the stadium authority,

including but not limited to agreements or actions generating revenue related
to stadium operations, lease or rental of facilities or land, concessions, food
and beverage, parking, sponsorship and advertising, utilities and
infrastructure, and development;

����
(2)
�
All gifts or grants awarded in any form
from any public agency or any other source for purposes of the stadium [
development
district;
]
authority;

����
(3)
�
All proceeds from revenue bonds issued
for the purpose of the stadium [
development district;
]
authority;

and

����
(4)
�
Appropriations made by the legislature
to the fund.

����
(b)
�
Moneys in the stadium development special
fund shall be used by the stadium authority for the payment of expenses arising
from any and all use, operation, repair, maintenance, alteration, improvement,
development, or any unforeseen or unplanned repairs of the [
stadium
development district,
]
real property and improvements thereon held by
the stadium authority,
including without limitation:

����
(1)
�
The development, operation,
repair,

and maintenance of a new stadium;

����
(2)
�
Food and beverage service and parking
service provided at the stadium facility; the sale of souvenirs, logo items, or
other items; any future major repair, maintenance, and improvement of the
stadium facility as a commercial enterprise or as a world-class facility for
athletic events, entertainment, or public events; and marketing the facility
pursuant to section 109-2(4) and (8); and

����
(3)
�
Contractual payments to developers or
contractors engaged by the stadium authority for the purpose of redeveloping
the site and related on- and off-site infrastructure that benefits the [
stadium
district and its development guidance policies.
]
real property held by
the stadium authority.
"

����
SECTION

6
.
�
Section 206E-3,
Hawaii Revised Statutes, is amended by amending subsection (b) to read as
follows:

����
"
(b)
�
The
authority shall consist of
the director of finance or the director's
designee; the director of transportation or the director's designee; the
director of
business, economic development, and tourism

or the director's designee; the chairperson of the board of land and natural
resources; the director of planning or planning and permitting of each county
in which a community development district is located or the director's
designee; a cultural specialist; an at-large member nominated by the president
of the senate; an at-large member nominated by the speaker of the house of
representatives; two representatives of the Heeia community development
district, comprising one resident of that district or the Koolaupoko district,
which consists of sections 1 through 9 of zone 4 of the first tax map key
division, and one owner of a small business or one officer or director of a
nonprofit organization in the Heeia community development district or
Koolaupoko district; two representatives of the Kalaeloa community development
district, comprising one resident of the Ewa zone (zone 9, sections 1 through
2) or the Waianae zone (zone 8, sections 1 through 9) of the first tax map key
division, and one owner of a small business or one officer or director of a
nonprofit organization in the Ewa or Waianae zone; two representatives of the
Kakaako community development district, comprising one resident of the district
and one owner of a small business or one officer or director of a nonprofit
organization in the district; two representatives of the Pulehunui community
development district, consisting of one resident of the island of Maui, and one
owner of a small business or one officer or director of a nonprofit
organization on the island of Maui; [
and, for the purposes of part X of this
chapter only,
] two experts on transit-oriented development, to be appointed
one each by the president of the senate and the speaker of the house of
representatives; [
and
] the following ex officio, nonvoting members:
�
the chairpersons of the respective senate and
house of representatives standing committees having jurisdiction over
transportation, and the chairpersons of the respective senate and house of
representatives standing committees having jurisdiction over housing[
.
]
;
and two representatives of the Halawa community development district,
consisting of one resident of the district, and one owner of a small business
or officer or director of a nonprofit organization selected from the areas represented
by the following Oahu tax map key numbers, as currently defined and as may be
amended by the city and county of Honolulu real property assessment division:
�
1-1-010 to 1-1-011, 1-1-023 to 1-1-024, 9‑8-001
to 9-8-002, 9-8-008, 9-8-011 to 9-8-019, 9-8-025 to 9‑8‑046,
9-8-053 to 9-8-054, 9-8-056 to 9-8-058, 9-8-60 to 9‑8‑073, 9-9-002
to 9-9-012, and 9-9-014 to 9-9-078.

����
All
members except the director of finance; director of transportation; county
directors of planning or planning and permitting; director of business,
economic development, and tourism; chairperson of the board of land and natural
resources; the two experts on transit-oriented development appointed by the
president of the senate and speaker of the house of representatives,
respectively; the chairpersons of the respective senate and house of
representatives standing committees having jurisdiction over transportation;
the chairpersons of the respective senate and house of representatives standing
committees having jurisdiction over housing; or, where relevant, their
respective designees shall be appointed by the governor pursuant to section
26-34.
�
The two at-large members
nominated by the president of the senate and speaker of the house of
representatives shall each be invited to serve and appointed by the governor
from a list of three nominees submitted for each position by the nominating
authority specified in this subsection.

����
The
president of the senate and the speaker of the house of representatives shall
each submit a list of six nominees for each district to the governor to fill
the two district representative positions for each community development
district.
�
For each community development
district, the governor shall appoint one member from a list of nominees
submitted by the president of the senate and one member from a list of nominees
submitted by the speaker of the house of representatives, and of the two
appointees, one shall meet the district residency requirement and one shall
meet the district small business owner or nonprofit organization officer or
director requirement.

����
The
president of the senate and the speaker of the house of representatives shall
each appoint a member having expertise and experience in urban planning and
community development to fill the two positions designated for experts on
transit-oriented development.

����
The
authority shall be organized and shall exercise jurisdiction as follows:

����
(1)
�
For matters affecting the Heeia
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:

���������
(A)
�
The director of finance or the
director's designee;

���������
(B)
�
The director of transportation or the
director's designee;

���������
(C)
�
The director of business, economic
development, and tourism or the director's designee;

���������
(D)
�
The director of planning and permitting
for the county in which the Heeia community development district is located or
the director's designee;

���������
(E)
�
The cultural specialist;

���������
(F)
�
The two at-large members; and

���������
(G)
�
The two representatives of the Heeia
community development district;

����
(2)
�
For matters affecting the Kalaeloa
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:

���������
(A)
�
The director of finance or the
director's designee;

���������
(B)
�
The director of transportation or the
director's designee;

���������
(C)
�
The director of business, economic
development, and tourism or the director's designee;

���������
(D)
�
The director of planning and permitting
for the county in which the Kalaeloa community development district is located
or the director's designee;

���������
(E)
�
The cultural specialist;

���������
(F)
�
The two at-large members; and

���������
(G)
�
The two representatives of the Kalaeloa
community development district;

����
(3)
�
For matters affecting the Kakaako
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:

���������
(A)
�
The director of finance or the
director's designee;

���������
(B)
�
The director of transportation or the
director's designee;

���������
(C)
�
The director of business, economic
development, and tourism or the director's designee;

���������
(D)
�
The director of planning and permitting
for the county in which the Kakaako community development district is located
or the director's designee;

���������
(E)
�
The cultural specialist;

���������
(F)
�
The two at-large members; and

���������
(G)
�
The two representatives of the Kakaako
community development district;

����
(4)
�
For matters affecting the Pulehunui
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:

���������
(A)
�
The director of finance or the
director's designee;

���������
(B)
�
The director of transportation or the
director's designee;

���������
(C)
�
The director of business, economic
development, and tourism or the director's designee;

���������
(D)
�
The director of planning for the county
in which the Pulehunui community development district is located or the
director's designee;

���������
(E)
�
The chairperson of the board of land and
natural resources or the chairperson's designee;

���������
(F)
�
The cultural specialist;

���������
(G)
�
The two at-large members; and

���������
(H)
�
The two representatives of the
Pulehunui community development district; [
and
]

����
(5)
�
For matters affecting part X of this
chapter only, the following members shall be considered in determining quorum
and majority and shall be eligible to vote:

���������
(A)
�
The director of finance or the
director's designee;

���������
(B)
�
The director of transportation or the
director's designee;

���������
(C)
�
The director of business, economic
development, and tourism or the director's designee;

���������
(D)
�
The chairperson of the board of land
and natural resources or the chairperson's designee;

���������
(E)
�
The director of planning for the county
in which the program area is located or the director's designee;

���������
(F)
�
The cultural specialist;

���������
(G)
�
The two at-large members; and

���������
(H)
�
The two experts on transit-oriented
development appointed by the president of the senate and the speaker of the
house of representatives[
.
]
; and

����
(6)
�
For matters affecting the Halawa
community development district, the following members shall be considered in
determining quorum and majority and shall be eligible to vote:

���������
(A)
�
The director of finance or the
director's designee;

���������
(B)
�
The director of transportation or
the director's designee;

���������
(C)
�
The director of business, economic
development, and tourism or the director's designee;

���������
(D)
�
The director of planning and
permitting for the county in which the Halawa community development district is
located or the director's designee;

���������
(E)
�
The cultural specialist;

���������
(F)
�
The two at-large members; and

���������
(G)
�
The two representatives of the
Halawa community development district.

����
[
In the event of
]
If

a vacancy[
,
]
occurs,
a member shall be appointed to fill the
vacancy in the same manner as the original appointment within thirty days of the
vacancy or within ten days of the senate's rejection of a previous appointment,
as applicable.

����
The
terms of the director of finance; director of transportation; county directors
of planning and permitting; director of business, economic development, and
tourism; and
chairperson of the board of land and natural resources;
or their respective designees shall run
concurrently with each official's term of office.
�
The terms of the appointed voting members
shall be for four years, commencing on July 1 and expiring on June 30.
�
The governor shall provide for staggered
terms of the initially appointed voting members so that the initial terms of
four members selected by lot shall be for two years, the initial terms of four
members selected by lot shall be for three years, and the initial terms of the
remaining three members shall be for four years.
�
The terms on the authority of the
chairpersons of the senate and house of representatives standing committees
having jurisdiction over housing and the chairpersons of the senate and house
of representatives standing committees having jurisdiction over transportation
shall run concurrently with that respective legislator's term as the
chairperson of that respective committee.

����
The
governor may remove or suspend for cause any member after due notice and public
hearing.

����
Notwithstanding
section 92-15, a majority of all eligible voting members as specified in this
subsection shall constitute a quorum to do business, and the concurrence of a
majority of all eligible voting members as specified in this subsection shall
be necessary to make any action of the authority valid.
�
All members shall continue in office until
their respective successors have been appointed and qualified.
�
Except as [
herein
] provided[
,
]
in
this section,
no member appointed under this subsection shall be an officer
or employee of the State or its political subdivisions.

����
For purposes of this section, "small
business" means a business that is independently owned and that is not
dominant in its field of operation.
"

����
SECTION
7.
�
Section 206E-13, Hawaii Revised
Statutes, is amended to read as follows:

����
"
[
[
]�206E-13[
]
]
�
Public projects.
�
Any project or activity [
of
]
undertaken
solely by, or through an independent contractor on behalf of,
any county or
agency of the State in a designated district shall be constructed, renovated,
or improved in consultation with the authority.
�

As part of the consultation requirement, the authority shall provide
its discretionary recommendation to the county or agency of the State prior to
the project or activity proceeding; provided that the county or agency of the
State shall not be required to obtain permits from the authority; provided
further that any project or activity undertaken by any county or agency of the
State in a designated district as a joint venture or in partnership with a
private party, or as otherwise provided in rules adopted by the authority under
chapter 91, shall be constructed, renovated, or improved only after obtaining
the necessary permits from the authority.
"

����
SECTION

8
.
�
Section
206E-14, Hawaii Revised Statutes, is amended by amending subsection (a) to read
as follows:

����
"(a)
�
The authority [
may
], without recourse
to public auction,
may
sell, or lease for a term not exceeding
sixty-five years, all or any portion of the real or personal property
constituting a redevelopment project to any person, upon [
such
] terms
and conditions [
as may be
] approved by the authority, if the authority
finds that the sale or lease is in conformity with the community development
plan.

����
[
For
the stadium development district, leases shall not exceed a term of ninety-nine
years.
]"

����
SECTION

9
.
�
Chapter 206E,
part IX, Hawaii Revised Statutes, is amended to read as follows:

"
[
[
]Part
IX.[
]
]
�
[
STADIUM
]
halawa
community
DEVELOPMENT DISTRICT

����
�206E-221
�

[
Stadium
]
Halawa community
development district; purpose;
findings.
�
The legislature finds that
the aloha stadium and lands [
under the jurisdiction of
]
held by

the stadium authority [
and
]
, within the
department of business,
economic development, and tourism
for administrative purposes only,
are
underutilized.
�
The stadium facility has
been in dire need of significant repair and maintenance for many years.
�
The stadium authority has considered
repairing, upgrading, and replacing the existing facility to optimize the
public's enjoyment and ensure public safety.
�

Redeveloping, renovating, or improving these public lands in a manner
that will provide suitable recreational, residential, educational, and
commercial areas, where the public can live, congregate, recreate, attend
schools, and shop, as part of a thoughtfully integrated experience, is in the
best interests of the State and its people.

����
This
part establishes the [
stadium
]
Halawa community
development
district to make optimal use of public land for the economic, residential,
educational, and social benefit of the people of Hawaii.

����
The
legislature finds that the jurisdiction of the authority shall include
development within the [
stadium
]
Halawa community
development
district.
�
Any development within the
district shall require a permit from the authority.

����
�206E-222
�

Definitions.
�
As used in this
part, unless the context otherwise requires:

����
"Authority"
[
or "stadium authority"
] means the [
stadium authority established pursuant to section 109-1.
]
Hawaii
community development authority.

����
"District"
means the [
stadium development
]
Halawa community development

district established by this part.

����
�206E-223
�

District; established; boundaries.
�
(a)
�
The
[
stadium
]
Halawa community
development district is established
and shall be composed of [
all real property under the jurisdiction of the
stadium authority established pursuant to section 109-1.
�
The stadium authority shall have sole
jurisdiction over the development of the stadium development district.
]
the
following parcels of land, identified by Oahu tax map key number:
�
9-9-003:055, 9-9-003:061, 9-9-003:070, and 9‑9‑003:071.

����
(b)
�
The authority shall [
facilitate the
development of all property belonging to the State within the district;
]
prepare
a community development plan pursuant to section 206E-5 and community
development rules pursuant to section 206E-7 to regulate the development of all
property belonging to the State within the district;
provided that
development [
is carried out in accordance with
]
plans shall consider

any county transit-oriented development plans for lands surrounding the
district.
�
In addition to any other
duties that the authority may have pursuant to this chapter, the authority's
duties shall include[
:

����
(1)
�
Coordinating with the federal
government regarding the ownership and use of, or restrictions on, properties
within the district that were previously owned or are currently owned by the
federal government;

����
(2)
�
Coordinating with other state
entities during the conveyance of properties and conducting remediation
activities for the property belonging to the State within the district;

����
(3)
�
Developing
]
developing
the infrastructure
and public
facilities
necessary to support the development of all property belonging
to the State within the district[
; and

����
(4)
�
Providing,
to the extent feasible, maximum opportunity for the reuse of property belonging
to the State within the district by private enterprise or state and county
government.
]
, consistent with the memorandum of agreement
pursuant to section 206E-225.

����
�206E-224
�
Development guidance policies.
�
The following shall be the development
guidance policies generally governing the authority's actions in the district:

����
(1)
�
Development shall be in accordance with
[
stadium development district
]
community
development plans
adopted [
by the stadium authority
]
under section 206E‑5 and
community development rules adopted under section 206E-7
for the
development of the district; provided that the plan [
or plans
] shall
consider any county development plan and
other plans developed for the
district
allow for public input in the plan's preparation and updates;

����
(2)
�
The authority, upon the concurrence of
a majority of its voting members, may modify and make changes to a
transit-oriented development plan with respect to the district to respond to
changing conditions; provided that before amending a transit-oriented development
plan, the authority shall conduct a public hearing to inform the public of the
proposed changes and receive public input;

����
(3)
�
The authority shall seek to promote
economic development and employment opportunities by fostering diverse land
uses and encouraging private sector investments that use the opportunities
presented by the high-capacity transit corridor project consistent with the
needs of the public, including mixed-use housing and housing in
transit-oriented developments;

����
(4)
�
The authority may engage in planning,
design, and construction activities within and outside the district; provided
that activities outside the district shall relate to infrastructure
development, area-wide drainage improvements, roadway realignments and
improvements, business and industrial relocation, and other activities the
authority deems necessary to carry out development of the district and
implement this part.
�
The authority may
undertake studies or coordinate activities in conjunction with the county and
appropriate state agencies and may address facility systems, industrial
relocation, and other activities;

����
(5)
�
Archaeological, historic, and cultural
sites shall be preserved and protected in accordance with chapter 6E;

����
(6)
�
Endangered species of flora and fauna
shall be preserved to the extent required by law;

����
(7)
�
Land use and development activities
within the district shall be coordinated with and, to the extent possible,
complement existing county and state policies, plans, and programs affecting
the district; [
and
]

����
(8)
�
Public facilities within the district
shall be planned, located, and developed to support the development policies
established by this chapter for the district and rules adopted pursuant to this
chapter[
.
]
; and

����
(9)
�
Development shall consider the
cultural, social, ecological, and environmental impacts of climate change and
sea level rise to inform holistically resilient development in the design and
siting of buildings and infrastructure.

����
�206E-225
�
[
Stadium
]
Halawa
community
development district governance; memorandum of agreement.
�
[
Notwithstanding sections 206E-3 and
206E-4.1, the stadium authority established pursuant to section 109-1 shall
have sole jurisdiction regarding matters affecting the stadium development
district
; provided
that the
]
The
Hawaii community development authority; department of business,
economic development, and tourism; and stadium authority shall enter into a
memorandum of agreement regarding the implementation of responsibilities of the
respective agencies[
.
]
; provided that the memorandum of
agreement shall specify that the:

����
(1)
�
Hawaii community development
authority's role is limited to:

���������
(A)
�
Regulating land use within the
district through its zoning and entitlement powers; and

���������
(B)
�
Financing, planning, designing, and
building infrastructure and public facilities for the district; and

����
(2)
�
Stadium authority is the sole agency
responsible for overseeing the plan, design, development, and construction of
the:

���������
(A)
�
New stadium and related facilities;
and

���������
(B)
�
Area surrounding the new stadium.

����
[
[
]
�206E-226[
]
]
�
Annual comprehensive report.
�
Not less than twenty days prior to the
convening of each regular session of the legislature, the authority shall
submit to the legislature an annual comprehensive status report on the progress
of development within the [
stadium
]
Halawa community
development
district."

����
SECTION
10.
�
Sections 171-2, 201H-191.5(d)(3),
and 206E‑21.5(a)(1), Hawaii Revised Statutes, are amended by substituting
the words "Halawa community development district" wherever the words
"stadium development district" appear, as the context requires.

����
SECTION
11.
�
There is appropriated out of the
general revenues of the State of Hawaii the sum of $4,000,000 or so much
thereof as may be necessary for fiscal year 2026-2027 for the purposes of this
Act.

����
The
sum appropriated shall be expended by the Hawaii community development
authority for the purposes of this Act.

����
SECTION
12.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
13.
�
This Act shall take effect on July
1, 2026.

INTRODUCED BY:

_____________________________

Report Title:

Stadium
Development District; Halawa Community Development District; Aloha Stadium;
Stadium Authority; HCDA; Public Projects; Special Fund; Appropriation

Description:

Redesignates
the Stadium Development District as the Halawa Community Development District.
�
Amends the composition of the Hawaii
Community Development Authority for purposes of the Halawa Community
Development District.
�
Amends the duties
and powers of the Hawaii Community Development Authority and Stadium Authority as
they relate to activities within the Halawa Community Development District.
�
Clarifies the Hawaii Community Development
Authority's permitting and consultation powers regarding public projects within
community development districts.
�

Establishes
the Halawa community development district special
fund.
�
Appropriates moneys.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.