A proposal to create a Business Improvement District to revitalize downtown Hilo has been decisively killed after pushback from area business owners.
Although a Downtown Hilo Business Improvement District has been bandied about for years, former Hilo Councilman Aaron Chung formally introduced a proposal for such a district at the end of 2022. But despite general agreement about the necessity of improving the area, the residents and business owners most impacted by the district have been skeptical.
During a two-part community meeting in February, potential members of the district testified en masse against the proposal, and at a meeting of the Hawaii County Council in April, County Clerk Jon Henricks revealed that 64.2% of the affected owners had submitted declarations against the plan.
In particular, business owners rejected how the BID would be funded.
Member businesses between Ponahawai Street, Wailuku Drive, Kapiolani Street and the Hilo Bayfront would pay assessments to the BID that would be used to fund infrastructure maintenance and upgrades. But with those assessments levied at a rate of $1.50 per $1,000 of total net taxable value, business owners argued that the BID would cost members too much considering how much taxes have already increased.
Because of procedural rules, the council was unable to take a final vote on the bill prior to Thursday. But the final decision at Thursday’s meeting was less about whether to pass a bill authorizing the creation of the district than it was about how many nails to drive into its coffin.
Several business owners once again testified at Thursday’s meeting, reiterating their concerns about the measure.
In particular, businesswoman Lorraine Shin appeared and introduced herself as the interim president for the Hilo Downtown Improvement Association, an organization that has been largely defunct over the last several years.
“We are moving forward to strengthen and reenergize the Downtown Improvement Association with a new DIA team willing to work in partnership with government to develop and implement programs that promote the overall vitality of downtown Hilo,” Shin said.
Nancy Cabral, president of Day-Lum Rentals and Management, said she supports the general concept of a BID, but added that a new DIA would serve the area more effectively and allow residents and business owners to better shape revitalization efforts.
Cabral said that, once the DIA is properly set up, it will work with the county to develop further plans for downtown Hilo.
After hearing that testimony, Hilo Councilwoman Jenn Kagiwada — whose district includes the proposed BID area — moved to postpone the bill because of procedural reasons.
Kagiwada explained that voting against the bill would preclude the county from introducing a substantively similar bill for the remainder of the term. With more than a year and a half remaining in the term, Kagiwada said she was reluctant to see the BID “completely taken out of our toolbox” for such a long time.
But fellow Hilo Councilwoman Sue Lee Loy argued that a vote will conclusively settle the matter and give the downtown Hilo community “a sense of closure” while giving them time to get the DIA up and running.
Lee Loy called the bill “tainted,” saying that any similar proposal should be drafted from scratch with the input of the DIA.
The council ultimately voted unanimously against the proposal, to mahalos from the business owners in attendance.
Email Michael Brestovansky at mbrestovansky@hawaiitribune-herald.com.