RELATING TO THE STADIUM DEVELOPMENT DISTRICT.

SB2604

THE SENATE

S.B. NO.

2604

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO the STADIUM DEVELOPMENT DISTRICT.

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

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SECTION 1.
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The legislature
finds that the stadium development district comprises approximately
ninety-eight acres of state public land.
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The redevelopment of this district involves
not only the replacement of the stadium facility but also the long-term
disposition and transformation of public lands into a mixed-use,
transit-oriented community.

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The legislature finds that the Hawaii community
development authority is the State's designated redevelopment agency,
established to join the strengths of private enterprise and public regulation.
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While the stadium authority holds title to the
district, chapter 206E, Hawaii Revised Statutes, requires the Hawaii community development
authority to facilitate the development of the district.

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The legislature further finds that section
206E-224, Hawaii Revised Statutes, establishes development guidance policies
that the Hawaii community development authority must facilitate.
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Specifically, section 206E-224(3), Hawaii
Revised Statutes, mandates the promotion of economic development through
"mixed‑use housing and housing in transit‑oriented
developments[,]" and section 206E-224(1), Hawaii Revised Statutes.
requires that district plans "shall consider any county development
plan".

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The legislature recognizes that the district
master development agreement and shared infrastructure agreement, whether
pending or executed, will govern the district, utility dedications, and the
alienation of state lands for up to ninety‑nine years.
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To ensure the integrity of the State's public
land assets, the legislature declares that the Hawaii community development authority
must be legally integrated into these agreements to ensure adherence to the
statutory mandates for mixed-use housing and transit-oriented development
required by chapter 206E, Hawaii Revised Statutes.

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Accordingly, the purpose of this Act is to
condition the increase of the expenditure ceiling for the stadium development special
fund upon compliance with state planning, land use, and financing statutes.

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SECTION 2.
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(a)
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Notwithstanding any other law
to the contrary, including section 206E-225, Hawaii Revised Statutes, no moneys
appropriated under this Act shall be allotted, encumbered, or expended until
the stadium authority submits a district land use and project readiness report under
subsection (b).

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(b)
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The stadium authority shall submit a district land use and project
readiness report to the president of the senate and speaker of the house of
representatives that includes the following:

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(1)
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Documentation
verifying that the Hawaii community development authority has formal written
approval authority over any ground lease, sublease, or development parcel
agreement entered into or becoming effective on or after July 1, 2026; provided
that this requirement shall apply notwithstanding the execution date of the district
master development agreement.
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If the district
master development agreement is executed prior to the effective date of this
Act, the stadium authority shall verify that a binding amendment, supplemental
agreement, or memorandum of understanding has been executed to explicitly grant
the Hawaii community development authority approval power over the issuance of the
leases.
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This documentation shall verify
that the disposition of state lands strictly adheres to the development
guidance policies under section 206E-224, Hawaii Revised Statutes, and that the
community planning standards of the Hawaii community development authority
shall not be bypassed;

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(2)
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A
status report on the shared infrastructure and reciprocal easement agreement
verifying that the Hawaii community development authority is directly involved
in drafting provisions for district infrastructure, including roads, drainage,
and utilities to ensure they meet applicable state and city and county of
Honolulu standards prior to dedication or transfer;

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(3)
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A
definitive plan to utilize the revenue bond authority established by Act 252,
Session Laws of Hawaii 2025, including drafts of any memorandum of agreement
with the city and county of Honolulu.
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This
plan shall detail:

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(A)
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The
administration of community facilities districts under section 46-80.1, Hawaii
Revised Statutes, including the methodology for the levy and collection of
special taxes or user fees to secure the bonds; and

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(B)
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The
specific engineering standards required for the dedication of district
roadways, drainage, and sewer infrastructure to the city and county of Honolulu,
ensuring compliance with the Honolulu complete streets design manual;

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(4)
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A
copy of the governance memorandum of agreement executed pursuant to section
206E-225, Hawaii Revised Statutes, accompanied by a compliance matrix detailing
the operational coordination between agencies.
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This matrix shall verify:

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(A)
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The
department of accounting and general services' continued role in providing
technical engineering oversight and procurement management independent of the
private developer;

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(B)
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The
Hawaii community development authority's specific contributions as the district
facilitator regarding district planning integration; and

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(C)
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The
stadium authority's adherence to the consultation processes established in the
memorandum, ensuring that its exercise of sole jurisdiction under section
206E-225, Hawaii Revised Statutes, does not contravene the cooperative
requirements of the memorandum;

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(5)
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Documentation
verifying that the stadium authority has exercised its powers under section
109-2(7), Hawaii Revised Statutes, to retain and employ a qualified
professional services firm or designate specific construction management
personnel possessing demonstrated experience in the full-time, on-site
management of professional or National Collegiate Athletic Association stadium
and arena projects in the United States.
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This documentation shall verify that the persons
providing oversight are actively engaged in monitoring the dismantling and
vertical construction phases currently underway; and

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(6)
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An
updated organizational plan identifying the specific state personnel
responsible for managing the active dismantling, site remediation, and
construction of the new stadium, including a verification of the role of the department
of accounting and general services public works division, acting through its special
projects branch, in providing independent technical oversight, procurement
management, and quality control throughout the delivery phase.

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SECTION 3.
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There is appropriated out of the stadium development special fund the
sum of $49,500,000 or so much thereof as may be necessary for fiscal year
2026-2027 for the planning, design, and development of the stadium development
district.

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The sum appropriated shall be expended by
the stadium authority for the purposes of this Act.

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SECTION 4.
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This Act shall take effect on July 1, 2026.

INTRODUCED BY:

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Report Title:

Aloha
Stadium; Stadium Development District; HCDA; Stadium Authority; Public Lands;
Appropriation

Description:

Appropriates
moneys from the stadium development special fund for the planning, design, and
development of the stadium development district by the Hawaii Community
Development Authority, contingent upon the Stadium Authority submitting a
report that includes various documentation types, statuses, reports, plans, and
agreements regarding the new stadium project.

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not legislation or evidence of legislative intent.