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Panel explains CFD petition steps and 55% majority-protest safeguard

Hawaii County Communication Reports and Council Oversight Committee · July 22, 2026
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Summary

Advisors walked the committee through CFD formation steps (petition, resolution of intention, CFD report, public hearing) and explained the majority-protest safeguard: if owners holding 55% of property within a proposed district object, proceedings stop for one year.

Panelists described the formal CFD formation sequence the county follows: a petition from the landowner that triggers initial review, a resolution of intention from the council to investigate a CFD, a CFD report that lists proposed improvements, a boundary map and the RMA, and a public hearing unless waived by unanimous landowner support.

Bond counsel Brian Hirai told the committee that property owners within the proposed district have the right to file protests at or before the public hearing and that "if 55% of the owners of property within the district object, then the proceedings must stop and cannot be recommenced for a year." He noted an exception when a small number of owners hold title to all parcels (100% buy-in), in which case hearings can be waived. Panelists also explained that silent landowners are not treated as objections in the protest calculation; the 55% threshold refers to owners who file objections or appear to object.

The presentation emphasized transparency in the RMA and the importance of county oversight (independent appraisals and clear public-benefit statements) ahead of any ordinance to form a district.