The Seminar Group Presents Eminent Domain and Land Use in Hawaii May 10, 2012 Honolulu, HI

Presentation by Jesse K. Souki, Esq.

Director, Hawaii State Office of Planning Deputy Corporation Counsel for Rail Transit Project Deputy Corporation Counsel for County of Maui Planning Department and Commission Private sector land use and environmental law attorney (e.g., mixed-use residential, industrial, commercial, resort) I am a transit user. Hawaii Land Use Law and Policy, http://hilanduse.blogspot.com. 2

Definitions Examples FTA TOD and Transit Joint Development (TJD)Support City Related TOD State Related TOD Resources

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TOD/TJD, successful projects do not happen on their own, or just because government has invested public money into transit and other infrastructure. TOD and joint development projects succeed, most fundamentally, because there is a market for those types of development.

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What is TOD?

Transit-oriented development (TOD) is compact, mixed-use development near transit facilities and high-quality walking environments. The typical TOD leverages transit infrastructure to promote economic development and smart growth, and to cater to shifting market demands and lifestyle preferences. TOD is about creating sustainable communities where people of all ages and incomes have transportation and housing choices, increasing location efficiency where people can walk, bike and take transit. In addition, TOD boosts transit ridership and reduce automobile congestion, providing value for both the public and private sectors, while creating a sense of community and place.

Mixed-use development Development that is close to and well-served by transit Development that is conducive to transit riding

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Location efficiency Rich mix of residential and commercial choices Value capture Place making Resolution of the tension between node and place

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Aerial view of RosslynBallston corridor in Arlington, Virginia

This photo shows how TOD can direct growth and preserve greenspace. High density, mixed use development is concentrated within mile from the Rosslyn, Court House and Clarendon Washington Metro stations (shown in red), with limited density outside that area. With or without TOD, Honolulus population will increase.

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Washington Metropolitan Area Transit Authority (WMATA)

This is a map of the WMATA rail system. Among other features, WMATA links the airport and AMTRAK interstate rail to local commuting infrastructure. Each station is a destination, with differing amounts of residential, business, commercial, and recreational opportunities within walking distance from the stations and major universities. Expansion will include Dulles International Airport and other residential/commercial communities primarily accessible by automobile.

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Hong Kong Metro

This is a map of the Hong Kong rail system. Among other features, it links the airport and ferries to local commuting infrastructure. Each station is a destination, with differing amounts of residential, business, commercial, and recreational opportunities within walking distance from the stations. Tourists who visit Hong Kong are seldom required to use a taxi or bus to visit key tourist sites, shopping, and food destinations.

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Stadium Station Apartments10

This photo shows a joint development, involving Tri-Met as the lead agency and a private developer. TriMet provides public transportation in the Portland, Oregon, metropolitan area.Joint development as a form of

transit-oriented development that is project specific, taking place on, above, or adjacent to transit agency/public property. Proximity to rail transit has been shown to enhance property values and can increase the opportunity for fostering community and development partnerships. The most common joint development arrangements are ground leases and operationcost sharing.

FTA Guidance re eligibility of joint development improvements under 49 U.S.C. 5301 et seq. (SAFTETEA-LU). To ensure maximum benefit to the people who ride public transportation. Applies to a capital project defined under 49 U.S.C. 5302(a)(1)(G). Enhances the ability of FTA grantees to work with the private sector and others for purposes of joint development.11

The public transportation improvement must Enhance economic development or incorporate private investment; Enhance the effectiveness of a public transportation project and relate physically or functionally to that public transportation project, or establish new or enhanced coordination between public transportation and other transportation; and provide a fair share of revenue for public transportation that will be used for public transportation.12

Enhances Economic Development joint development improvement will add value to

privately- or publicly funded economic development activity occurring in close proximity to a public transportation facility

Incorporates Private Investment Private investment may be cash, real property, or

other benefit to be generated initially or over the life of the joint development improvements.13

Commercial and residential development Pedestrian and bicycle access to a public transportation facility Construction, renovation, and improvement of intercity bus and intercity rail stations and terminals Renovation and improvement of historic transportation facilities14

Joint development improvements must be approved by the FTA Regional Administrator. Only FTA grantees (i.e., the City) may sponsor a joint development improvement. Execute Certificate of Compliance Joint Development Checklist Joint Development Agreement

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The Project is a 20-mile grade-separated fixed guideway rail system that begins at the University of Hawai'i - West O'ahu and ends at Ala Moana Center. It will operate in an exclusive right-of-way and will be grade-separated except in a location near Leeward Community College. The Project will include 21 transit stations and park-and-ride lots at some stations. 16

Improves Corridor Mobility The Project will substantially improve corridor mobility in the

Improves Corridor Travel Reliability

most highly congested corridor in the City

Predictable travel time for transit riders will increase

Support for Transit Oriented Developmentstations Improves New Starts Score dependency

substantially as trips are moved from buses operating on streets in mixed traffic and congested freeways to the fixed guideway

Project will support development and redevelopment around

Improves Transit Equity

Project will connect areas that have the highest transit

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Comprehensive plans that utilize a combination of zoning, public improvements, development financing packages, and effective marketing programs Planning directly responds to the needs of the surrounding community Pedestrian-Friendly Infrastructure Parking Management and Shared Parking Zoning that includes overlay districts, use controls, building standards and requirements for pedestrian amenities Expedited Development Review Successful Demonstration Projects Public Assistance18

Revised Ordinances of Honolulu (ROH) Chapter 21 City Council approves zone changes and new special districts Citys Department of Planning and Permitting is the land use permitting agency Current zoning tends to not maximize full development potential of the station areas Development standards tend to favor auto use and auto-oriented development (e.g., strip malls, surface parking lots) at the expense of pedestrians, bicyclists and transit riders19

Agricultural Districts Agriculture uses much of the agricultural land

along the alignment is planned for future development

Residential Districts Residential with supporting non-residential uses

allowed by CDU permit no max. lot size

Apartment and Apartment Mixed Use Residential and commercial in keeping with

residential apartment area20

Business District B-1 Neighborhood Districts Do not allow residential uses as part of the mix Unsupportive of the mix of uses that are typical of TOD B-2 Business Community Districts Do not allow residential uses as part of the mix Community-wide business establishments, serving several neighborhoods and offering a wider range of uses than is permitted in the B-1 District Generally unsupportive of the mix of uses that are typical of TOD21

Business Mixed Use District BMX-3 and BMX-4 Districts Mixtures of commercial and residential uses, occurring vertically and horizontally Open space bonuses BMX-4 Central Business Mixed Use District Intended for downtown area mixes of financial, office, governmental, and housing activities

Business Mixed Use designations are supportive of transit and TOD22

Industrial Districts Range of land-intensive uses Limited business activates that directly support

I-1 Limited Industrial District I-2 Intensive Industrial District I-3 Waterfront Industrial District Industrial-Commercial Mixed Use (IMX-1) District Allows a mix of commercial and employment

industrial uses

activities that are supportive of transit and TOD23

Ordinance 09-4 ROH 21-9.100 requires the formation of special districts around rail transit stations ROH 21-9.100 (c) creates a TOD zone comprised of land parcels around each station Parcels within 2,000 feet of a transit station

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TOD development regulations shall be created to foster and encourage TOD and redevelopment of each TOD zone TOD development regulations minimum requirements Neighborhood TOD Plan May include one or more stations

After January 2012, Council may establish TOD zones and TOD development regulations without TOD Plans25

Minimum Considerations Overall economic revitalization, neighborhood character, and

Community Involvement Consistent with the applicable regional development plan, special area plan, or community master plan Approved by Council resolution 26

unique community historic architecture Architectural and community design principles, open space requirements, parking standards, and other modifications to existing zoning requirements Affordable housing opportunities Gentrification issues Financing opportunities that should be pursued Population, economic, market and infrastructure analysis

Council approves Neighborhood TOD Plan DPP submits TOD Zones and Development Regs ordinance to planning commission Planning Commission reviews and makes recommendations to Council Council adopts TOD special district ordinance Development plans may need to be amended

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Mix of land uses and affordable housing Density and building height limits Elimination or reduction of the number of required off-street parking spaces Design provisions that encourage use of transit and other nonauto forms of transport Building/parking/bicycle parking guidelines Identify/protect/enhance important historic, scenic, and cultural landmarks Human-scale architectural elements Landscaping requirements that enhance the pedestrian experience, support station identity, and complement adjacent structures Incentives and accompanying procedures to encourage TOD28

Aiea-Pearl City Neighborhood TOD Plan Leeward Community College, Pearl Highlands,

Downtown Neighborhood TOD Plan East Kapolei Neighborhood TOD Plan Kalihi Neighborhood TOD Plan Middle Street, Kalihi, Kapalama West Loch, Waipahu29

Pearlridge

Iwilei, Chinatown, Downtown

East Kapolei, UH West Oahu, Hoopili

Waipahu Neighborhood TOD Plan

Downtown Neighborhood TOD Plan

Three rail transit stations are

planned for Downtown Honolulu. Downtown TOD Plan will guide development over the next 25 years. The recent February 2012 Framework Plan synthesizes feedback on the Emerging Vision articulated during the October 2011 workshops and advisory committee meetings. Community review and endorsement of the framework plan will provide direction for development of more detailed policies and standards.

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Land Use Existing and Proposed for Downtown

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Created in 1976 to plan HCDA regulates and implements the redevelopment of community development districts (CDD) throughout the state Kakaako was designated the first CDD to develop/redevelop underdeveloped and underutilized property Kakaako and Civic Center Stations fall within Kakaako CDD32

Kakaako Makai Boundary

Boundary set by the state legislature. The Kakaako Community Development District Mauka and Makai Area Plans and Rules are designed to guide the redevelopment of the area into a vibrant pedestrian-oriented urban community. The Mauka and Makai Area Plans establish the general redevelopment goals and objectives for each respective area, while the Mauka and Makai Area Rules specify regulations.

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RFP Issued January 2012 Proposal Due Date August 31 , 2012 (as of May 7, 2012) Must be consistent with Draft Mauka Area Plan and Rules Financed and constructed by a private developer(s) Mixed-use TOD project Public-private partnership elements HCDA is developing a TOD Plan and Rules Overlay for the Kakaako CDD, which will apply to future development 34

Project Location

HCDA expects to obtain

site control by the end of 2012 from the Department of Land and Natural Resources Approximately 2.17 acs Transit stop near the Project on Halekauwila Street Future TOD rules will apply All major utilities available

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Affordable for sale and/or rental housing units Market for sale residential units Minimum 25,000 s.f. civic space Community space for multi-purpose uses Minimum 30,000 s.f. of commercial space 30,000 s.f. for business incubation space is intended to be operated by the State 30% open space on grade TOD Overlay ratios of 1 per unit (Market); and 0.5 per unit (affordable). Preference for robotic parking. Exterior Space for a Bike Share Station Green Roof/Roof Garden Broadband Infrastructure Context Sensitive Solutions & Complete Streets Programming

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Lesa Rair, Rising Gas Prices Mean Transit Riders Save Money While Car Drivers Empty Their Wallets, American Public Transportation Association, Feb. 23, 2012, at http://www.apta.com/mediacenter/pressreleases/2012/Pages/120223_TransitSavingsReport.aspx. Transit-Oriented and Joint Development: Case Studies and Legal Issues, Transit Cooperative Research Program, Aug. 2011, at http://onlinepubs.trb.org/onlinepubs/tcrp/tcrp_lrd_36.pdf. Policy, Planning, & Major Projects Station Area Planning - Transit-Oriented Development Case Studies, City of Seattle, at http://www.seattle.gov/transportation/ppmp_sap_todstudies.htm. Review of Current City and State Ordinances Honolulu High-Capacity Transit Corridor Project, City & County of Honolulu, Aug. 2011, at http://www.honolulutransit.org/media/80437/20110801-Review-of-Current-City-andState-Ordinances-HHCTCP.pdf. Request for Proposals - 690 Pohukaina Transit-Oriented Development Project, Haw. Community Devel. Authority, at http://hcdaweb.org/request-for-proposals-690-pohukaina-transit-oriented-development-project. Joint Development, FTA, at http://www.fta.dot.gov/about_FTA_11009.html. Record of Decision on the Honolulu High Capacity Transit Corridor Project in Metropolitan Honolulu, Hawaii by the Federal Transit Administration, FTA, Jan. 18, 2011, at http://www.honolulutransit.org/media/7351/20110701-rodand-transmittal-ltr-signed-dated-01182011.pdf. Revised Ordinances of Honolulu 1990 21-9.100, available at http://www1.honolulu.gov/council/ocs/roh/rohchapter21art79.pdf. Downtown & Kalihi Draft TOD Framework Plans, City & County of Honolulu, Feb. 2012, at http://honoluludpp.org/planning/TOD/NBPlans/Kalihi_Downtown_FrameworkPlan.pdf. Jesse K. Souki, TOD, TAD, TAJ: Transit Development Alphabet Soup, Haw. Land Use Law & Policy, Oct. 29, 2011 at http://hilanduse.blogspot.com/2011/10/tod-tad-taj-transit-development.html. Jesse K. Souki, Transit Oriented Development and Affordable Housing, Haw. Land Use Law & Policy, Jan. 7, 2009 at http://hilanduse.blogspot.com/2009/01/transit-oriented-development-and.html.

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