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Council amends FY2026–27 executive capital budget to CD1 after debate over land buys and Waialua funding

Budget Committee, City and County of Honolulu · March 31, 2026

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Summary

The Budget Committee amended Bill 23-2026 to a CD1 after debate over proposed land acquisitions — including a placeholder for the Japan American Institute of Management Science (JAIMS) site — and spending on the Waialua Sugar Mill site and other CIP items; Council Member Kea Aina recorded an objection over acquiring trust lands from Kamehameha Schools.

The Budget Committee of the City and County of Honolulu on March 30 amended the executive capital budget ordinance (Bill 23-2026) to a CD1 that incorporates multiple committee-driven changes and technical edits.

The committee’s discussion centered on several proposed land-acquisition items and capital projects. Chair Okimoto read a proposed amendment to add a Japan American Institute of Management Science (JAIMS) property land-acquisition entry and flagged language allocating $1.5 million for predevelopment planning for the Waialua Sugar Mill/Mill Camp affordable housing project. The committee also reviewed a list of projects subject to Public Infrastructure Map (PIM) proviso updates, including flood control, drainage improvements and the Oahu Sanitary Landfill.

Ajay, director of the Department of Housing and Land Management, told the committee the administration evaluates potential acquisitions on public purpose, departmental capacity, funding availability, project readiness and underwriting. He said the property referred to in committee discussion is owned by Bishop Estate and that he was unsure whether it was for sale; he also said the city previously invested roughly $3.5 million in the Waialua site (FY2022–2023) but has seen limited developer progress and recommended re-underwriting the project given recent storm impacts.

Vice Chair Tupala urged that any prioritized acquisitions be matched with committed partners and funding sources — private partnerships or state support — so the city does not accumulate parcels it cannot develop. Council Chair Waters framed the JAIMS item as a community-oriented placeholder, suggesting potential city uses (a satellite city hall, ambulance or police space) to prevent an incompatible development. Waters said he had met with representatives of Kamehameha Schools, who had indicated they may be open to selling the site in Hawaii Kai.

Council Member Kea Aina objected to the committee’s proposed treatment of Kamehameha Schools trust lands, saying she opposed further alienation of trust property and would vote no on the measure for that reason.

After discussion, the chair stated that, noting Kea Aina’s objection, Bill 23-2026 would be amended to a CD1 and reported out for a second reading and scheduling of a public hearing.

What happens next: The CD1 will be placed on the council calendar for a second reading and public hearing where the public and council members may again weigh in on those land-acquisition items and other project provisos.