SB2604

SECTION 1. The legislature finds that the stadium development district comprises approximately ninety-eight acres of state public land. The redevelopment of this district involves not only the replacement of the stadium facility but also the long-term disposition and transformation of public lands into a mixed-use, transit-oriented community.

The legislature finds that the Hawaii community development authority is the State's designated redevelopment agency, established to join the strengths of private enterprise and public regulation. While the stadium authority holds title to the district, chapter 206E, Hawaii Revised Statutes, requires the Hawaii community development authority to facilitate the development of the district.

The legislature further finds that section 206E-224, Hawaii Revised Statutes, establishes development guidance policies that the Hawaii community development authority must facilitate. Specifically, section 206E-224(3), Hawaii Revised Statutes, mandates the promotion of economic development through "mixed‑use housing and housing in transit‑oriented developments[,]" and section 206E-224(1), Hawaii Revised Statutes. requires that district plans "shall consider any county development plan".

The legislature recognizes that the district master development agreement and shared infrastructure agreement, whether pending or executed, will govern the district, utility dedications, and the alienation of state lands for up to ninety‑nine years. To ensure the integrity of the State's public land assets, the legislature declares that the Hawaii community development authority must be legally integrated into these agreements to ensure adherence to the statutory mandates for mixed-use housing and transit-oriented development required by chapter 206E, Hawaii Revised Statutes.

Accordingly, the purpose of this Act is to condition the increase of the expenditure ceiling for the stadium development special fund upon compliance with state planning, land use, and financing statutes.

SECTION 2. (a) Notwithstanding any other law to the contrary, including section 206E-225, Hawaii Revised Statutes, no moneys appropriated under this Act shall be allotted, encumbered, or expended until the stadium authority submits a district land use and project readiness report under subsection (b).

(b) The stadium authority shall submit a district land use and project readiness report to the president of the senate and speaker of the house of representatives that includes the following:

(1) Documentation verifying that the Hawaii community development authority has formal written approval authority over any ground lease, sublease, or development parcel agreement entered into or becoming effective on or after July 1, 2026; provided that this requirement shall apply notwithstanding the execution date of the district master development agreement. If the district master development agreement is executed prior to the effective date of this Act, the stadium authority shall verify that a binding amendment, supplemental agreement, or memorandum of understanding has been executed to explicitly grant the Hawaii community development authority approval power over the issuance of the leases. This documentation shall verify that the disposition of state lands strictly adheres to the development guidance policies under section 206E-224, Hawaii Revised Statutes, and that the community planning standards of the Hawaii community development authority shall not be bypassed;

(2) A status report on the shared infrastructure and reciprocal easement agreement verifying that the Hawaii community development authority is directly involved in drafting provisions for district infrastructure, including roads, drainage, and utilities to ensure they meet applicable state and city and county of Honolulu standards prior to dedication or transfer;

(3) A definitive plan to utilize the revenue bond authority established by Act 252, Session Laws of Hawaii 2025, including drafts of any memorandum of agreement with the city and county of Honolulu. This plan shall detail:

(A) The administration of community facilities districts under section 46-80.1, Hawaii Revised Statutes, including the methodology for the levy and collection of special taxes or user fees to secure the bonds; and

(B) The specific engineering standards required for the dedication of district roadways, drainage, and sewer infrastructure to the city and county of Honolulu, ensuring compliance with the Honolulu complete streets design manual;

(4) A copy of the governance memorandum of agreement executed pursuant to section 206E-225, Hawaii Revised Statutes, accompanied by a compliance matrix detailing the operational coordination between agencies. This matrix shall verify:

(A) The department of accounting and general services' continued role in providing technical engineering oversight and procurement management independent of the private developer;

(B) The Hawaii community development authority's specific contributions as the district facilitator regarding district planning integration; and

(C) The stadium authority's adherence to the consultation processes established in the memorandum, ensuring that its exercise of sole jurisdiction under section 206E-225, Hawaii Revised Statutes, does not contravene the cooperative requirements of the memorandum;

(5) Documentation verifying that the stadium authority has exercised its powers under section 109-2(7), Hawaii Revised Statutes, to retain and employ a qualified professional services firm or designate specific construction management personnel possessing demonstrated experience in the full-time, on-site management of professional or National Collegiate Athletic Association stadium and arena projects in the United States. This documentation shall verify that the persons providing oversight are actively engaged in monitoring the dismantling and vertical construction phases currently underway; and

(6) An updated organizational plan identifying the specific state personnel responsible for managing the active dismantling, site remediation, and construction of the new stadium, including a verification of the role of the department of accounting and general services public works division, acting through its special projects branch, in providing independent technical oversight, procurement management, and quality control throughout the delivery phase.

SECTION 3. There is appropriated out of the stadium development special fund the sum of $49,500,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the planning, design, and development of the stadium development district.

The sum appropriated shall be expended by the stadium authority for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2026.

INTRODUCED BY:	_____________________________

THE SENATE	S.B. NO.	2604
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII