Committee approves recommendation to accept donation of two Lanai City parcels from First Hawaiian Bank

The Maui County Water and Infrastructure Committee voted unanimously to recommend adoption of Resolution 25-122, authorizing the county to accept two parcels in Lanai City donated by First Hawaiian Bank.

The committee vote, taken June 16, 2025, was 9-0 to recommend adoption; staff reported “9 ayes, 0 nos.” The parcels are identified by tax map keys 249011018 and 249011019 and were described in the meeting as measuring 14,379 square feet and 10,510 square feet, respectively.

Cynthia Lalo, chief of staff in the Office of the Mayor, told the committee that the two lots together amount to roughly “approximately 24,000 square feet of prime land” and said the county would be interested in acquiring them despite the existing bank building being in disrepair. Guy Hiranaka, real property manager with the Department of Finance, said the building is about “2,009 square feet” and that the county’s assessment records show the structure’s assessed condition but that the cost to rehabilitate the building is unknown.

Committee members framed the committee action narrowly as legal acceptance of the donation, with detailed planning and community outreach to follow. Tom Cook, committee chair, reiterated that the meeting was to consider accepting the donation; the administration indicated community listening sessions would be held “forthwith.” Lalo said the Department of Management and Planning would take lead roles in assessment and outreach, and that the process must include stewardship planning before construction or reuse.

Council member Greg Johnson, who described the donation as a “once in a 100 years” opportunity for Lanai, and other members suggested possible community uses such as a gathering space, nonprofit offices, a commercial kitchen, Wi‑Fi hotspots for digital equity, and limited short-term lodging for visiting service providers. Committee members also discussed the possibility of placing a Lanai district office in the building to provide a county presence independent of private company facilities.

Members asked whether either parcel is historically designated; Hiranaka said the building is about 50 years old and “I highly doubt” it is on any historic registry, but that a review would be required after title transfer. The parcels’ current zoning was reported as: TMK 249011018 — Business Country Town (B‑CT), and TMK 249011019 — R‑1 residential; the R‑1 parcel was described as approximately 0.24 acres and could potentially accommodate a caretaker dwelling or similar small residential use subject to zoning rules.

Committee members also raised questions about any conditions attached to the donation. Greg Johnson reported that, to his understanding, the bank placed one condition on the donation: the site could not be used to reopen a bank branch. Members clarified there appeared to be no fee or quid pro quo connected to the transfer; the administration said it was not aware of any such conditions beyond the bank’s stated restriction.

Council member Rollins Fernandez relayed property assessment figures he had reviewed on mauipropertytax.com during the meeting, saying the residential lot’s assessed land value appeared to be about $542,800 and that the commercial parcel’s combined assessed value and building assessment figures were discussed in committee comments; the administration did not provide a single consolidated assessed-market total during the hearing. Committee members noted that full financial implications, including rehabilitation costs and any capital funding needs, were not specified and would be developed after acceptance.

The committee motion to recommend adoption of Resolution 25-122 was made by Council Chair Alice Lee and seconded by Vice Chair Yukile Sugimura. Staff reported the motion passed 9-0. The administration confirmed the item will move to the full Maui County Council for consideration.

The committee confined its action to legal acceptance of the donation; no final decisions were made about demolition, rehabilitation, zoning changes, funding, or specific uses. Members directed the administration to proceed with community engagement and preliminary assessments and to return with further information as required by county policy and any applicable permitting or review processes.