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Leveraging the Honolulu Rail Transit Project for Economic Growth and Building Better Communities


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Presentation by Jesse K. Souki, Esq. of Imanaka-Asato LLLC on how to leverage the Honolulu Rail Transit Project for economic growth and building better communities.

Date: July 24, 2015
Place: Plaza Club 900 Fort Street Mall 20th Floor
Check-in/Networking: 11:45am-12:15pm
Lunch & Program: 12:15pm-1:30pm

Published in: Real Estate
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Leveraging the Honolulu Rail Transit Project for Economic Growth and Building Better Communities

  1. 1. Presentation to CCIM HawaiiChapter Jesse K. Souki, Esq. – ImanakaAsato LLLC July 24, 2015 Plaza Club
  2. 2.  Key Land Use Laws  TOD Definitions  TOD Examples  CityTOD Planning  StateTOD Planning  Resources 2
  3. 3. Hawaii State PlanningAct, State Land Use Law,Coastal Zone Management Act, PublicTrust Doctrine,Agriculture Policies
  4. 4. Hawaii State Planning Act  Purpose  Meet the physical, economic, and social needs of Hawaii's people  Provide for the wise use of Hawaii's resources  Conserve resources which are required for future generations  Implementation Mechanisms  County Plans  State Plans  Agency Decision Making Hawaii Revised Statutes Chapter 226 (1978)
  5. 5. State Land Use Law  Purpose  “preserve, protect and encourage the development of the lands in the State for those uses to which they are best suited for the public welfare[.]” See L. 1961, c 187, § 1.  Implementation Mechanisms  5-Year Boundary Review  District Boundary Amendments  ImportantAgricultural Lands Designation  State Special Use Permits Hawaii Revised Statutes Chapter 205 U 5% C 48% A 47% R 0%
  6. 6. Coastal Zone ManagementAct  Purpose  “provide for the effective management, beneficial use, protection, and development of the coastal zone.” See L. 1977, c 188, § 1.  Implementing Mechanisms  Special Management Area Permits  Federal Consistency  Comprehensive Planning and Coordination Hawaii Revised Statutes Chapter 205A
  7. 7. PublicTrust Doctrine  Purpose  Conserve and protect Hawaii's natural beauty and all natural resources  Promote the development and utilization of these resources in a manner consistent with their conservation and in furtherance of the self-sufficiency of the State  For the benefit of present and future generations  Implementing Mechanisms  Use is “reasonable and beneficial”  “Implement reasonable measures to mitigate the cumulative impact” Hawaii Constitution,Article XI, Section 1
  8. 8. ImportantAgricultural Lands  Purpose  Conserve and protect agricultural lands  Promote diversified agriculture  Increase agricultural self-sufficiency  Assure the availability of agriculturally suitable lands  Implementing Mechanisms  The legislature shall provide standards and criteria to accomplish the foregoing  HRS Ch. 205 Hawaii Constitution,Article XI, Section 3
  9. 9. Transit-Oriented Development 9
  10. 10. Definition  Compact, mixed-use development  Close to and well-served by transit  Conducive to transit riding— ridership  Multi-modal  Walkable Transit-oriented development (TOD) is compact, mixed-use development near transit facilities and high-quality walking environments.The typicalTOD leverages transit infrastructure to promote economic development and smart growth, and to cater to shifting market demands and lifestyle preferences. TOD is about creating sustainable communities where people of all ages and incomes have transportation and housing choices, increasing location efficiency where people can walk, bike and take transit. In addition, TOD boosts transit ridership and reduce automobile congestion, providing value for both the public and private sectors, while creating a sense of community and place. 10
  11. 11.  Location efficiency  Rich mix of residential and commercial choices  Value capture  Place making  Resolution of the tension between node and place 11
  12. 12.  Comprehensive plans that utilize a combination of zoning, public improvements, development financing packages, and effective marketing programs  Planning directly responds to the needs of the surrounding community  Pedestrian-Friendly Infrastructure  Parking Management and Shared Parking  Zoning that includes overlay districts, use controls, building standards and requirements for pedestrian amenities  Expedited Development Review  Successful Demonstration Projects  Public Assistance 12
  13. 13. Economic development • Increases productivity and saves time • Encourages concentration of business activity • Increases economic competitiveness and promotes a green economy • Increases property values and development potential Fiscal benefits • Savings on cost to build and maintain highways and roads • Generates stronger tax revenues Household benefits • Savings from reduced cost of driving • Improved access to jobs, schools and other destinations • Promotes health Environmental benefits • Reduces greenhouse gas emissions • Preserves agricultural land and assists with food security • Promotes energy independence 13
  14. 14. LOCATION MATTERS, BECAUSE TRANSPORTATION IS A SIGNIFICANT HOUSEHOLD EXPENSE 14 Honolulu public transportation users save $12,710 annually | $1,059 per month (American PublicTransportation Association, 2015)
  15. 15.  Increased access to workers and customers  Work force retention and attraction  Greater worker productivity 15 Downtown Honolulu (City and County of Honolulu, Dyett & Bhatia)
  16. 16.  Increased property values  Enhanced development potential  Studies show: o Properties located near transit experience a price premium of 2 to 20% o Homes in “walkable” neighborhoods have higher values. A one point improvement in “Walk Score” = $700 - $3,000 increase in home values 16
  17. 17.  Increased local spending and tax revenues  Cost savings for roads, highways, and other infrastructure  Savings from reduced health costs  Enhanced economic competitiveness  Stimulates the construction of more residential housing units 17
  18. 18. D.C., Hong Kong, SoundTransit 18
  19. 19. Washington Metropolitan AreaTransit Authority (WMATA) This is a map of theWMATA rail system. Among other features, WMATA links the airport andAMTRAK interstate rail to local commuting infrastructure. Each station is a destination, with differing amounts of residential, business, commercial, and recreational opportunities within walking distance from the stations and major universities. Expansion will include Dulles International Airport and other residential/commercial communities primarily accessible by automobile. 19
  20. 20. Hong Kong Metro This is a map of the Hong Kong rail system. Among other features, it links the airport and ferries to local commuting infrastructure. Each station is a destination, with differing amounts of residential, business, commercial, and recreational opportunities within walking distance from the stations. Tourists who visit Hong Kong are seldom required to use a taxi or bus to visit key tourist sites, shopping, and food destinations. 20
  21. 21. SoundTransit 21
  22. 22. 22
  23. 23. Source: The General Plan (1992 edition, amended in 2002).
  24. 24. "Taken in the mass, the automobile is a noxious mechanism whose destiny in workaday urban use is to frustrate man and make dead certain that he approaches his daily occupation unhappy and inefficient.“ – Mayor Blaisdell, 1966. 24
  25. 25.  City Council approves zone changes and new special districts  City’s Department of Planning and Permitting is the land use permitting agency  Current zoning tends to not maximize full development potential of the station areas  Development standards tend to favor auto use and auto-oriented development 25
  26. 26.  NeighborhoodTOD Plan  May include one or more stations  TOD development regulations foster and encourageTOD and redevelopment of each TOD zone  After January 2012, Council may establish TOD zones andTOD development regulations withoutTOD Plans 26
  27. 27.  Minimum Considerations  Overall economic revitalization, neighborhood character, and unique community historic architecture  Architectural and community design principles, open space requirements, parking standards, and other modifications to existing zoning requirements  Affordable housing opportunities  Gentrification issues  Financing opportunities that should be pursued  Population, economic, market and infrastructure analysis  Community Involvement  Consistent with the applicable regional development plan, special area plan, or community master plan  Approved by Council resolution 27
  28. 28.  Mix of land uses and affordable housing  Density and building height limits  Elimination or reduction of the number of required off-street parking spaces  Design provisions that encourage use of transit and other non- auto forms of transport  Building/parking/bicycle parking guidelines  Identify/protect/enhance important historic, scenic, and cultural landmarks  Human-scale architectural elements  Landscaping requirements that enhance the pedestrian experience, support station identity, and complement adjacent structures  Incentives and accompanying procedures to encourageTOD 28
  29. 29.  Council approves NeighborhoodTOD Plan  DPP submitsTOD Zones and Development Regs ordinance to planning commission  PlanningCommission reviews and makes recommendations to Council  Council adoptsTOD special district ordinance  Development plans may need to be amended 29
  30. 30.  Building Permits for <10 units  Rentals: 15% of the units at up to 80% of AMI  For-Sale: 30% of the units at up to 120% of AMI  Minimum required period of affordability 30 to 60 years 30
  31. 31.  Who can Apply  ½ mile from planned station  <20,000 sq. ft. (may use multiple lots)  Urban district  Specific zoning districts  Community Benefits  Mixed uses and employment opportunities  Biking, transit, and walking connectivity  Accessible public accommodations, gathering spaces, pedestrian ways, bicycle facilities, and parks  Affordable housing  City May Grant  2x the maximum FAR up to 7.5, whichever is lower  Up to 2x what zoning allows for maximum building height or 450 feet, whichever is lower  Open space may be transferred to another accessible site near the project 31
  32. 32. East Kapolei,Waipahu,Aiea-Pearl City, HalawaArea,Airport Area, Kalihi, Downtown, Blaisdell Center Mater Plan,Ala Moana 32
  33. 33. EAST KAPOLEI 33  Stations  Ho'opili  University of Hawai'i atWest Oahu  East Kapolei  Status  DPP submitting the Plan to the Planning Commission and City Council
  34. 34. WAIPAHU 34  Stations  Farrington Highway/Leoku Street  Farrington Highway/Mokuola Street  Status  Adopted by Council, 2014  DPP draftTOD zoning being considered by Council
  35. 35. AIEA - PEARL CITY 35  Stations  Leeward Community College  Pearl Highlands  Pearlridge  Status  Adopted by Council, 2014  DPP will prepare draftTOD zoning
  36. 36. HALAWA 36  Stations  Aloha Stadium  Status  Workshops held  Aloha Stadium Authority is planning as well
  37. 37. AIRPORT 37  Stations  Pearl Harbor Naval Base (Radford Drive)  Honolulu International Airport  Lagoon Drive  Status  Holding workshops
  38. 38. KALIHI 38  Stations  Middle Street  Kalihi  Kapalama  Status  Draft Final Plan, 2014  DPP submitting the Plan to the Planning Commission and City Council
  39. 39. DOWNTOWN 39  Stations  Iwilei  Chinatown  Downtown  Status  Draft Final Plan, July 2015  DPP submitting the Plan to the Planning Commission and City Council
  40. 40. BLAISDELLCENTER 40  Stations  Blaisdell Center  HCDA Jurisdiction  Status  Workshop held  DPP developing master plan for the complex
  41. 41. ALA MOANA 41  Stations  Ala Moana Shopping Center (terminus)  Status  Public Review Draft released for comments  More workshops
  42. 42. Office of Planning 42
  43. 43. 43
  44. 44.  Smart Growth America  Grant funding awarded by the Rockefeller Foundation  TOD from the State’s Perspective  Land owner/ developer  Service provider  Employer  Not duplicate ongoing efforts by the City & County of Honolulu in the area ofTOD planning  Recommendation to the Governor 44
  45. 45. 45 TOD Elements Smart Growth Principles Mix land uses to provide easy access to employment, housing, and amenities. Mix land uses. Concentrate population and employment density near transit. Take advantage of compact building design. Incorporate a range of housing and employment types based on local character and the transit station area's role within the transit network market area. Create a range of housing opportunities and choices. Create a well-connected, walkable neighborhood. Create walkable neighborhoods. Create a pleasant pedestrian environment with easy access to amenities and daily needs. Foster distinctive, attractive communities with a strong sense of place.
  46. 46. 46 TOD Elements Smart Growth Principles Concentrate development near transit to avoid growth of low-density neighborhoods. Preserve open space, farmland, natural beauty and critical environmental areas. Concentrate development near existing transit- served communities. Strengthen and direct development towards existing communalities. Provide robust regional transit access and a well- connected local street network comfortable for pedestrians and cyclists. Provide a variety of transportation choices. Plan for and incentivize development near transit stations. Make development decisions predictable, fair and cost effective. Engage communities to ensure appropriate character and mix of uses in transit station areas. Encourage community and stakeholder collaboration in development decisions.
  47. 47.  A significant proportion of state assets are in public lands  LeveragingTOD may mean reassessing the best use of some properties to help the state provide public services and amenities  Improved transit access can reduce the need for on-site parking; this can free up space for other activities or additional facilities 47
  48. 48.  Transit can enhance access to government services, education, and health care  Encouraging transit use can help the state meet other goals and objectives  Affordable Housing Opportunities  Addressing the Needs of Our Aging Baby Boomers 48
  49. 49.  The state is a major employer that can benefit from improved access to workers and increased productivity  Lowers transportation costs for state workers  The location of major State employers can also serve as a catalyst forTOD 49
  50. 50.  High development costs  High land costs  High construction costs  A lack of infrastructure  In urban neighborhoods  In areas planned for growth  A lack of local examples of “walkable” mixed- use neighborhoods 50
  51. 51. Source: Kakaako Community Transit Oriented Development Draft EIS.
  52. 52. Source: Kaka’ako Makai Map (PDF).
  53. 53.  Infrastructure  Let the developers build according to plans  Educate and interact with the community to build support  Public Private Partnerships  Develop procurement processes that are transparent, competitive, timely, and predictable 53
  54. 54.  Leveraging State Agency Involvement inTransit-Oriented Development to Strengthen Hawaii’s Economy, Final Report, State Office of Planning, Dec. 12, 2012, at content/uploads/HI-State-TOD-Strategies-Final-Report-1.pdf.  Lesa Rair, Rising Gas Prices MeanTransit Riders Save MoneyWhile Car Drivers EmptyTheir Wallets, American PublicTransportation Association, Feb. 23, 2012, at  Transit-Oriented and Joint Development: Case Studies and Legal Issues,Transit Cooperative Research Program, Aug. 2011, at  Policy, Planning, & Major Projects StationArea Planning -Transit-Oriented Development Case Studies, City of Seattle, at  Review of Current City and State Ordinances Honolulu High-CapacityTransit Corridor Project, City & County of Honolulu,Aug. 2011, at State-Ordinances-HHCTCP.pdf.  Request for Proposals - 690 PohukainaTransit-Oriented Development Project, Haw. Community Devel. Authority, at  Record of Decision on the Honolulu High CapacityTransit Corridor Project in Metropolitan Honolulu, Hawaii by the FederalTransit Administration, FTA, Jan. 18, 2011, at rod-and-transmittal-ltr-signed-dated-01182011.pdf.  Revised Ordinances of Honolulu 1990 § 21-9.100, available at  Jesse K. Souki,TOD, TAD,TAJ:Transit Development Alphabet Soup, Haw. Land Use Law & Policy, Oct. 29, 2011 at  Jesse K. Souki,Transit Oriented Development and Affordable Housing, Haw. Land Use Law & Policy, Jan. 7, 2009 at  Capturing theValue ofTransit, Center forTransit Oriented Development (2008).  HowWalkability Raises HomeValues in U.S. Cities, CEOs for Cities (2009). 54
  55. 55. Jesse K. Souki, Esq. Of Counsel, ImanakaAsato LLLC Facebook: Twitter: Web Site: 55