Honolulu Board Discusses Bill 61 and Kakaako's FAR Regulations Impacting Local Businesses

The Hawaiʻi Community Development Authority (HCDA) convened on September 3, 2025, to discuss critical developments in the Kakaako area, focusing on proposed changes to the Floor Area Ratio (FAR) regulations and their implications for local businesses and urban development.

The meeting began with a discussion on the necessity of immediate action regarding the FAR, particularly in light of Bill 61 introduced at the Honolulu City Council. One board member expressed confusion over the urgency of the HCDA's action, suggesting that supporting the bill might be a more appropriate course rather than reverting to a lower FAR, which could hinder the area's growth as a Transit-Oriented Development (TOD) zone. The member emphasized the importance of encouraging higher density in Kakaako, aligning with its designation as a TOD area.

Concerns were raised about the retroactive application of the proposed city council bill, which could complicate matters for the HCDA. A board member highlighted the misalignment between the current FAR regulations and the city ordinance, noting that previous attempts to address this with the Real Property Tax Division had not been successful. The discussion underscored the need for clarity and alignment between the HCDA's rules and city regulations to avoid negative impacts on local businesses.

Another member from the Department of Business, Economic Development, and Tourism (DBEDT) supported the proposed recommendation, advocating for a balanced approach that considers both economic development and quality of life for residents. The member noted the historical significance of Kakaako as a business district with small landowners and thriving enterprises.

As the meeting progressed, the chair emphasized the importance of taking action to authorize the executive director to proceed with scheduling hearings for the proposed rule changes. This step was deemed necessary to mitigate potential adverse effects on businesses should the city council fail to pass the bill promptly.

The board concluded with a consensus on the need for proactive measures while remaining hopeful that the city council's actions would resolve the issue. The HCDA plans to move forward with scheduling hearings to ensure that the modified rules are available for appeals, should the need arise, thereby supporting the ongoing development and stability of Kakaako's business environment.