One of the largest public investments in the history of the City and County of Honolulu, the Honolulu Rail Transit project will fundamentally change how we live and do business. Transit-oriented development (TOD) will increase property values near transit stations by providing the opportunity to take advantage of frequent transit service. The project will allow an unprecedented opportunity to direct growth to Honolulu’s Urban Core (the most populated region of the state) away from agricultural, open space, and rural areas; stimulate urban renewal projects near the 21 proposed rail stations along the approximately 20-mile route; support cost-efficient, consolidated infrastructure; and increase housing affordability by reducing one of the highest costs in a Hawaii family’s budget: transportation. This seminar will provide key insights and analysis from experts and thought leaders on policy, planning, law, and real estate market issues related to TOD.

1. Transit-Oriented Development
City Zoning, Permits, and Related Approval Processes
November 5, 2015
Speaker
Jesse K. Souki, Esq.
IMANAKA ASATO LLLC
Presented by The Seminar Group

2. Source: The General Plan (1992 edition, amended in 2002).
General Plan
Land Use Development Pattern

3. 3
The Project

4. • City & County of Honolulu
• State of Hawaii
– Department of Land and Natural Resources
– Hawaii Community Development Authority
– Office of Hawaiian Affairs
– University of Hawaii
– Aloha Stadium Authority
4
TOD Land Use Jurisdictions

5. • IPD-T
– Interim Planned Development-Transit permit,
Ordinance 14-10
• TOD Zone Change
• PD-T
– Planned Development-
Transit permit
• Special District
5
City TOD
Regulatory Programs

6. 6
TOD Zone Change

7. Process
• Minor ~45 days
– Directors Review
• Major ~90 days
– Neighborhood Board
– Agency Comments
– Public Hearing
• Negotiate “Community
Benefits”
Benefits
• Additional FAR/Height
above base but less than
PD-T/IPD-T
• Flexibility in yards and
setbacks
• Allow residential in IMX-1
7
TOD Special District Permit

8. Process
• ~185 days
• Department of Planning &
Permitting Review
• Neighborhood Board
• Negotiate “Community
Benefits”
• Council Approval of
Conceptual Plan
• Final review by DPP
Benefits
• No JDA required
• Height/FAR
– 2x FAR or 7.5, whichever is
lower
– 2x height or 450, whichever is
lower
– OR whatever is in the
adopted or draft
neighborhood TOD plan
• Transitional height setbacks
8
IPD-T & PD-T
ROH Sec. 21-9.100-5 & Proposed

9. • City’s Housing Strategy Requirements
• Affordable housing
• Open space
• Parks
• Right-of-way improvements
• Financial contributions to existing community
amenities or public uses
• Facilities that enhance the pedestrian experience
and/or improve multimodal transportation
• Or Others…
9
Community Benefits

10. PROPOSED ISLANDWIDE REQUIREMENTS
Projects needing building permits for 10 units or more
CONSTRUCTION ON-SITE:
• Rental: 15% of the units at up to 80% of AMI
• For-Sale: 30% of the units at up to 120% of AMI
CONSTRUCTION OFF-SITE:
• Rental Only: 20% of the units at up to 80% of AMI
• IN LIEU CONSTRUCTION FEE: Fee equivalent to the cost of
constructing a percentage of the total units as affordable
Minimum required period of affordability 30 to 60 years.
10
Islandwide Housing Strategy

11. • If a land use permitting decision requires a
dedication of property to offset impacts on the
public from a particular project:
1. The requisite property dedication must have a
reasonable nexus to the public impact of the
proposed project, and
2. The dedication must be roughly proportional to the
size of the impact of the project.
• Otherwise, the dedication is a taking of private
property requiring payment of just compensation
under the Fifth Amendment of the U.S.
Constitution.
11
Nollan/Dolan

12. • Applies not just to situations in which a permit
is issued with conditions but also when a
permit is denied because the landowner
rejects the conditions.
• In Koontz v. St. Johns River Water
Management Dist., the government's demand
of the permit applicant was "excessive.“
• “In lieu fees" are the functional equivalent of a
land-use exaction.
12
Nollan/Dolan

13. • Documents
– Joint Development Agreements
– Condominium Property Regime
– Declaration of Covenants, Conditions, and Restrictions
– Easement Agreements
– Ground Leases
– Transfer of Development Rights
• Issues Addressed
– Parking
– Access roads
– Air space
– Other shared amenities
– Mixing different uses
13
Types of Private Agreements &
Transactional Documents

14. Sources
• IPD-T Ordinance 14-10, http://www4.honolulu.gov/docushare/dsweb/Get/Document-
150625/DOC002%20(17).PDF
• IPD-T Application Instructions, http://www.honoluludpp.org/Portals/0/pdfs/zoning/IPD-T.pdf
• Developers Have an Option for Transit-Oriented Development (TOD) with Interim Permit,
http://www.hilanduselaw.com/2015/02/developers-have-option-for-transit.html
• Leveraging State Agency Involvement in Transit-Oriented Development to Strengthen Hawaii’s
Economy, http://www.smartgrowthamerica.org/wp/wp-content/uploads/HI-State-TOD-Strategies-
Final-Report-1.pdf
• Ala Moana Neighborhood TOD Plan Public Review Draft, July 2014,
http://www.honolulu.gov/tod/neighborhood-tod-plans/dpp-tod-alamoana.html
• DPP Director's Report with Draft Bill for an Ordinance Regarding Waipahu Neighborhood TOD Plan
Zone Change Proposal,
http://www.honolulu.gov/rep/site/dpptod/waipahu_docs/PC_ZC_Submittal.pdf
• DPP Director's Report with Draft Bill for an Ordinance Regarding the TOD Special District,
http://www.honolulu.gov/rep/site/dpptod/waipahu_docs/PC_SD_Submittal.pdf
• Housing Oahu: Affordable Housing Strategy,
http://www.honolulu.gov/rep/site/dpptod/dpptod_docs/Housing_Oahu_Draft_9-12-14.pdf
• Koontz v. St. Johns River Water Mgmt. Dist., 133 S. Ct. 2586 (2013)
• Dolan v. City of Tigard, 512 U.S. 374 (1994)
• Nollan v. California Coastal Cmty., 483 U.S. 825 (1987)
14