Budget, Finance, and Economic Development Committee (2025-2027) - 2026-03-03
Meeting Intelligence Preview
Meeting Summary
The Budget, Finance, and Economic Development Committee meeting on March 3, 2026 addressed four budget amendments. The committee approved $3.5 million in GET funds to cover lapsed state grant-in-aid funding for the Central Maui Regional Wastewater Reclamation Facility design project. Discussion of a $234,050 repayment to Kamalani Ventures LLC for overpayment on workforce housing units revealed only 30 of 115 required units were sold at affordable rates, with concerns raised about mortgage steering practices. The committee also discussed $1.15 million in Office of Recovery funding for the Keola Ho Community Resiliency Center and Imua Family Services Discovery Garden preschool.
Key Decisions (3)
GET Fund Transfer for Central Maui Wastewater Facility
Approved bill 30 to transfer $3.5 million from general fund carryover savings to GET fund to cover expenditures for Central Maui Regional Wastewater Reclamation Facility design after state grant-in-aid funds lapsed in June 2024 due to staff turnover and communication failures. New appropriation total is $14 million.
Kamalani Ventures LLC Repayment
Discussion on bill 34 to repay $234,050 to Kamalani Ventures LLC (Alexander & Baldwin subsidiary) for overpayment under Maui County Code 2.96.090. Developer paid $675,700 in 2018-2019 but only owed $441,650 based on 85 units (not 140) sold at market rate. Only 30 of 115 required workforce housing units were sold at affordable rates.
Office of Recovery Funding for NHEA and Imua Family Services
Discussion on bill 29 conditioning $390,000 for Native Hawaiian Education Association's Keola Ho Community Resiliency Center renovations and $758,973 for Imua Family Services Discovery Garden preschool building costs. Imua incurred $1.5 million in unforeseen off-site infrastructure improvements including sewer line replacement, fire hydrants, and manholes on Coeli Street.
Development Activity (4)
Central Maui Regional Wastewater Reclamation Facility
Largest DEM project in history. 60% design complete, 90% design expected early next calendar year. Total design contract $16.7 million, permitting contract $2 million+. EIS process nearly finalized, entering 60-day review period. Changes in zoning, DBA, and community plan amendment process to begin shortly.
Imua Discovery Garden and Preschool
Inclusion preschool building. Five-year permit application process. Required $1.5 million in off-site improvements including replacing 4-inch to 7-inch sewer line from Coeli Street to Wailuku Elementary School, additional fire hydrants and manholes, and filling hollow Coeli Street before resurfacing.
Keola Ho Community Resiliency Center
Behavioral health services and resiliency center for wildfire survivors. Three-year lease expiring August 2027 with option for two-year renewal. FY25 appropriation of $1.4 million for construction improvements with $1.26 million allocated. FY26 has $500,000 line item for services. Additional $390,000 requested to complete construction. Certificate of occupancy pending.
Kamalani Ventures Workforce Housing
460-unit project with 115 minimum required workforce housing units. Developer built 170 workforce units but only 30 sold at workforce rates. Current status: 92 owner-occupied units, 52 non-owner occupied second homes, 26 long-term rental investment units. Original sales 2017-2018 at $296,000-$515,000; recent resales at $533,000-$836,000.
Market Signals (5)
Housing Demand
Only 30 of 115 required workforce housing units at Kamalani were sold at affordable rates, with testimony suggesting mortgage steering practices prevented qualified local buyers from purchasing.
Infrastructure
Central Maui Wastewater Reclamation Facility is critical for housing and commercial development in Central Maui area, with operational target of late 2029 or early 2030.
Housing Demand
Director of Housing confirmed county now has authority under ordinance 5877 to express interest in purchasing workforce housing units before they go to market, and department is supportive of building county-controlled affordable housing inventory.
Infrastructure
Off-site infrastructure improvement requirements for development permits can add $1.5 million+ in unexpected costs and multi-year delays, as demonstrated by Imua Family Services' five-year permit process.
Sentiment
Council members expressed frustration that county's own grant compliance failures mirror strict requirements imposed on nonprofit grantees, with calls for improved grant management software and processes.