If enacted, the bill mandates the Department of Hawaiian Home Lands (DHHL) to either repeal, revoke, or buy out the remaining lease. Furthermore, it requires DHHL to resell this lease at fair market value to a new party that commits to maintaining the plaza effectively. This change is significant as it centralizes responsibility under a new management that the legislature hopes will revitalize the property and restore its standing as a vital commercial space for the community.
SB654 is a legislative bill aimed at addressing the issues surrounding the management and maintenance of the Prince Kuhio Plaza, the largest enclosed mall in Hawaii, located at 111 East Puainako Street, Hilo. The bill is a direct response to the negligent maintenance by Ho Retail Properties I, Ltd., the current lessee of the property, which has led to significant deterioration, including leaks and the departure of tenant stores. The legislation seeks to ensure that this decline does not continue by facilitating the transfer of the lease to a new entity capable of better property management.
While there is support for the bill due to the evident need for improved property management at the Prince Kuhio Plaza, there may also be contention surrounding the rapidity with which DHHL must act. Concerns could arise regarding the valuation of the lease and who will ultimately take over the management. Additionally, there may be discussions around the process by which DHHL will select a new entity for the lease, as stakeholders might fear favoritism or lack of transparency in such a critical transition.