Honolulu zoning committee hears testimony on Bill 37 to reclassify 7.292 acres in Haleiwa

The Committee on Zoning of the City and County of Honolulu on June 17 heard presentations and more than an hour of public testimony on Bill 37 (2025), a proposal to amend the State Land Use District Boundary Map (Haleiwa quadrangle) to reclassify roughly 7.292 acres of a 7.525-acre parcel (TMK 6-2-005-002) from the State Agricultural District to the State Urban District.

Why it matters: The reclassification would be the first step that could allow a later city zone change and development application for a project proposing about 150–156 low-rise apartment dwelling units, roughly 30,000 square feet of commercial space, parking and an on-site wastewater system. Supporters say the project could add workforce housing close to existing services; opponents say it would erode agricultural land, worsen traffic in Haleiwa and strain local infrastructure.

Jim Hayes, agent for the applicant (Planning Solutions, Inc.), opened the committee briefing by stressing that "Bill 37 does not approve any development or use at the site. It is only a state district boundary amendment." Hayes said the parcel sits between Kamehameha Highway and the Joseph P. Pilong bypass, is outside coastal and flood hazard zones and is currently undeveloped. He and the applicant (Haleiwa Backyards LLC; owner Bassin Project, Inc.) presented a conceptual plan showing low-rise apartment buildings (no more than three stories and not to exceed 40 feet) and neighborhood-scale commercial uses, and proposed measures such as recycled wastewater for landscaping and a prohibition on short-term rentals as part of future zone-change conditions.

Franz Kranz, chief of the Community Planning Branch at the Department of Planning and Permitting (DPP), told the committee DPP reviewed the application against the North Shore Sustainable Communities Plan and recommended approval "with conditions." Kranz summarized the department and planning commission position: the parcel is a remnant created by past Department of Transportation right-of-way acquisition, is within the community growth boundary, and — given its shape, soils and lack of agricultural water access — DPP sees limited future agricultural use. Kranz said the planning commission recommended approval conditioned on an affordable-housing agreement, an updated traffic impact analysis reviewed by DPP's traffic branch prior to a zone change, a wastewater treatment plan, and a more robust community engagement program. "We felt strongly ... that as long as these conditions are met that this should be amended to the state land use urban district," Kranz said.

Committee members and staff repeatedly noted that passage of Bill 37 would not itself authorize construction: it would remove state-level land-use jurisdiction but the developer would still need city-level zone change approvals and site permits. DPP confirmed an updated traffic impact analysis (the applicant said an earlier study dates to about 2015–16) must be completed and reviewed before any zone-change filing; the applicant said the update is in progress and urged that passage of Bill 37 would allow the zone-change process to proceed.

Public testimony was extensive and divided. Mark Anthony Clemente (Hawaii Regional Council of Carpenters) voiced support and urged conditions for affordable housing and a traffic study; "We believe that this project deserves a chance," he said. Many residents, neighborhood board members and community organizations opposed the boundary amendment. Testifiers cited traffic congestion in Haleiwa Town, the parcel's proximity to a narrow road near a cemetery and Liliuokalani Church, septic/sewer concerns, and the loss of agricultural land and local food-production potential. Representative comments included:

- Raquel Achoo (Wailua Moku, North Shore Neighborhood Board vice chair): "Rezoning and development with no nexus to ag on ag land cripples our ability to continue, strengthen, and support our agriculture in any form."

- Kathleen Pahinui (North Shore Neighborhood Board): "To call this an affordable housing project is laughable" given proposed rents and household costs.

- Natalie Mihana McKinney (lifetime Haleiwa resident): described prior infractions she attributes to the developer's other projects and said sewer and septic issues already affect the town.

Residents and board members also urged the city to wait for the North Shore Sustainable Communities Plan update (an administrative draft exists; DPP expects a public review draft later in 2025 and planning commission review in early 2026) before approving changes to state land classifications.

Project details and clarifications provided on the record

- Parcel and reclassification: approximately 7.292 acres of a 7.525-acre lot (TMK 6-2-005-002) would move from State Agricultural to State Urban district; 0.233 acres (Opaiula Road portion) is already in the urban district.

- Proposed development concept: roughly 150–156 low-rise apartment units, ~30,000 square feet of neighborhood commercial, maximum three stories/40 feet; short-term rentals would be disallowed (to be reinforced in zone-change conditions); design elements include canopy trees and recycled wastewater for landscape irrigation.

- Affordability/AMI: the applicant described the target as the "gap" or workforce group (households earning up to 120% of area median income, AMI). Comparable two-bedroom rents in the area were cited at about $2,700 today; the applicant noted market rents could change by the estimated four-year development timeline and said no HUD or other affordable-housing financing is currently committed — an affordable-housing agreement would be negotiated in the zone-change stage.

- Environmental and agricultural assessment: the applicant said environmental assessment test pits and Land Study Bureau ratings were reviewed and that soils were mixed during bypass construction; DPP and the planning commission treated that evidence as part of their consistency analysis with the sustainable communities plan.

- Transportation and infrastructure: a traffic impact analysis prepared during environmental review (circa 2015–16) is being updated and must be reviewed by DPP's Traffic Review Branch prior to any zone-change application. DPP also listed wastewater system review and community engagement among required conditions.

Committee action and next steps

No committee vote was taken tonight; the agenda item was listed as "discussion only" and DPP explained roll-call requirements for remote meetings do not apply when no vote is required. Council Chair Kiana indicated Bill 37 will be agendized for action at the committee's next meeting on June 26, 2025. If the committee and full council later approve a state land use district boundary amendment, the applicant must still pursue a city zone change, conduct permitting reviews (traffic, wastewater, site design) and negotiate any affordable-housing agreement before any construction could proceed.

The committee hearing brought into the record the DPP recommendation for conditional approval and strong community opposition centered on traffic, infrastructure, and protection of agricultural land. The project remains conceptual; next formal steps include DPP review of the updated traffic analysis and any zone-change filings.