Downtown Honolulu's business community is pushing forward with an ambitious plan to dramatically expand their improvement district, seeking to revitalize an area hit hard by post-pandemic challenges. The proposal would transform the existing Fort Street Mall Special Improvement District into a much larger Downtown Honolulu Business Improvement District, encompassing thousands of properties across the urban core.
Introduced as Bill 51, the measure would expand district boundaries to include an area bounded by Nuuanu Avenue, South Beretania Street, Richards Street, and Nimitz Highway. The expanded district would also incorporate an adjacent commercial block bounded by Queen, Mililani, Halekauwila and Richards streets, encompassing 2,088 parcels total.
Financial Structure and Services
The proposed district would operate with a first-year budget of $1.9 million, with more than $1.7 million funded through property assessments. According to Aloha State Daily, assessments would be charged at $0.75 for every $1,000 of assessed property value, estimated at about $0.02 per square foot per month. The majority of funding—approximately $1.04 million—would support supplemental services including cleaning, maintenance, and security patrols.
"Like the successful Waikiki Business Improvement District, it is hoped that the Downtown Honolulu BID would provide needed services such as enhanced cleaning, safety patrols, and landscaping," according to a Honolulu City Council news release. The district could also coordinate festivals and activities to enliven the downtown area.
Strong Business Community Support
Christine Camp, president and CEO of Avalon Group Hawaii, strongly endorsed the proposal during City Council testimony. "Downtown is going through a transition, but without this support to focus on cleanliness and safety it may not succeed," Hawaii News Now reported Camp as saying. "And downtown is too big to fail, and if we don't do anything the chances of success may not be there."
Victor Lim, chair of the Fort Street Mall Business Improvement District, explained that all business and property owners on Fort Street support the expansion. As detailed by Aloha State Daily, Lim said their current ability to improve the area has been "handcuffed" by limited resources and scope.
Addressing Downtown's Challenges
The push for expansion comes as downtown Honolulu grapples with significant challenges. Sandra Pohl, executive director of the Downtown Art Center, testified that people are no longer patronizing downtown businesses due to "pervasive stench and filth" throughout the area, according to reports. University student Taylor Ogata expressed safety concerns, telling officials "I don't always feel safe" and that she feels "uncomfortable walking alone or passing through certain streets."
The area has seen major retail closures including Walmart, Longs Drugs, and Ross, leaving behind vacancies that have contributed to the district's struggles. As Honolulu Civil Beat reported, business leaders understand "that unless we do something it's going to be unlivable."
Opposition and Concerns
Despite widespread business support, some property owners have raised concerns about the process. Kevin Crummy, chief investment officer of California-based Douglas Emmett Management LLC, opposed the bill citing "insufficient" public outreach. Per Honolulu Star-Advertiser, Crummy argued that "many property owners, ground lessees, and businesses who will be directly impacted by this significant expansion remain unaware of this proposal."
The improvement district ordinance includes provisions for landowner objections—if owners of 51% of the land in the proposed area file written protests, proceedings to create the district must cease.
Legislative Progress
The Honolulu City Council unanimously passed Bill 51 on its first reading in July, with the measure referred to the Zoning and Planning Committee for further review. According to Honolulu Star-Advertiser, a public hearing is expected on September 3rd as part of the legislative process.
The proposal represents a critical moment for downtown Honolulu, which city leaders describe as being at a crossroads. With major investments flowing into the area and plans for residential conversions and new businesses, supporters view the expanded business improvement district as essential infrastructure for the district's revival. Whether the model that has succeeded in Waikiki can translate to downtown's unique challenges remains to be seen, but for advocates, the alternative of continued decline is not an option.
