THE SENATE	S.B. NO.	2985
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII

A BILL FOR AN ACT

relating to pali lanes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that the Pali Lanes property located in Kailua, Oahu, had been a community institution for sixty years prior to its closure in 2021, providing generations of residents an accessible and affordable recreational facility and a venue for youth sports, community events, social gatherings, hula halau performances, non-profit organizations, and special Olympics, among many others. The facility played a significant role in building community identity and a sense of place for Kailua and windward Oahu as a whole. Because of this, its preservation has garnered more public support than nearly any other endeavor in decades, including from elected officials, community leaders, the Kailua neighborhood board, and numerous petitions and surveys that have demonstrated strong support from tens of thousands of Kailua residents. The legislature also finds that, in 2018, Pali Lanes was included on the Hawaii register of historic places for its associations with the development of bowling in the State during the 1950s and 1960s and for its rare mid-century modern design.

The legislature further finds that the vast majority of commercial properties in Kailua were purchased by a single buyer in 2013, which has led to the redevelopment of many properties but also to the displacement of local businesses and loss of institutions serving the local community. Due to rising land costs, commercial rent, and extremely limited land availability, few opportunities still exist to provide affordable and accessible spaces that serve the public in the manner that Pali Lanes had for generations. The Pali Lanes property has been sitting idle since its closure because the current landowner has tried to develop multiple plans for the property, but those plans have either failed to gain traction or faced opposition from the community. The legislature finds that while a for-profit landowner must by law prioritize financial considerations, limiting the options for community-focused spaces, public facilities can prioritize community needs first and provide accessible and affordable opportunities unmatched by the private sector.

The legislature believes that preserving space for public and community use is essential to supporting the economic and social vitality of local communities. Therefore, the legislature finds it is in the public interest to acquire the Pali Lanes property, to renovate it, and to return it to community use for the benefit of the public.

Accordingly, the purpose of this Act is to:

(1) Require the department of land and natural resources to acquire by eminent domain the fee simple interest in the parcel of land with improvements thereon located at 120 Hekili street; and

(2) Appropriate funds to the department of land and natural resources for the just compensation of the acquisition of the fee simple interest in the parcel of land with improvements thereon located at 120 Hekili street.

SECTION 2. The department of land and natural resources shall acquire by eminent domain pursuant to chapter 101, Hawaii Revised Statutes, the fee simple interest in the parcel of land with existing improvements thereon found at TMK 4-2-038-020-0000, or 120 Hekili street, including the facility of Pali Lanes, for the purpose of preserving and maintaining the property for the benefit of the public.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the just compensation of the acquisition of the fee simple interest in the parcel of land with improvements thereon located at 120 Hekili street.

The sum appropriated shall be expended by the department of land and natural resources for the purposes of this Act.

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

INTRODUCED BY:

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Report Title:

DLNR; Eminent Domain; Pali Lanes; Appropriation

Description:

Requires the Department of Land and Natural Resources to acquire by eminent domain the fee simple interest in the Pali Lanes property. Appropriates funds for the just compensation of the acquisition of the fee simple interest in the Pali Lanes property by the Department of Land and Natural Resources.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.