Posted on: Monday, May 5, 2003

Money for 'Ewa roads hits snag

By Mike Leidemann
Advertiser Transportation Writer

More than $500,000 collected from 'Ewa home developers to help build or widen roads in the heavily congested area is in limbo because there's no way to transfer it from the city to the state.

State lawmakers this month killed a bill that would have established a transfer process. The bill sailed through several Legislative committees early in the session but was held by the House Finance Committee.

Officials are worried that the problem could delay badly needed highway projects in the area, where thousands of homes are being built and traffic is among the worst in the state.

"It's a good concept, but the execution is proving difficult so far," said Nestor Garcia, head of the City Council's Transportation Committee.

The money is the start of more than $38 million expected to be gathered from nine developers and landowners who agreed last year to pay the impact fees, which will be used as the 20 percent local matching share of federal highway money.

City officials began collecting the impact fees this year with plans to transfer most of it to the state Department of Transportation, which will oversee development of five highway projects in 'Ewa. A sixth project will be built by the city.

"The state does not have a special fund to receive the money now, and the bill to create one appears dead for this session," city planning director Eric Crispin told City Council members last week.

"Honestly, we don't know the true reason why the bill got stuck," said Paul Schwind, senior researcher for the Land Use Research Foundation. "Nobody's given us a reason."

House Finance Committee Vice Chairwoman Bertha Kawakami, D-16th (Po'ipu, Waimea, Ni'ihau) said the bill was never scheduled for a hearing because there was no indication that it was a priority matter. It was not held for any particular problem, she said.

If state lawmakers don't establish the transfer mechanism, officials would have to either reach an intergovernmental agreement on moving the money or ask the Legislature to allow the state to collect the money, both of which could take a long time, Schwind said.

"You don't just sit down and write out a check," he said. "You've got to have a legal means of transferring the money."

Under the impact fee agreement, developers are required to pay a fee for each of the 15,000 housing units planned for the area as well as new retail, industrial, office or hotel space in the next decade. The money is collected when the city issues building permits.

That money, in turn, would cover about 20 percent of the estimated $194 million cost of the new highway work, with the federal government paying the rest.

The city ordinance establishing the impact fee program requires the money to be officially earmarked for the highway projects within six years or it will be returned to the developers.

The state projects include the new H-1 Freeway interchanges in Kapolei and Makakilo, construction of a north-south road from Kapolei to H-1 and the widening of Fort Barrett and Fort Weaver Roads. The city project involves completion of the Kapolei Parkway from 'Ewa Beach to Ko Olina. All of the projects are in the design stage.

In addition to the transfer problem, officials are concerned that a 2 percent administrative fee in the law won't cover all city expenses and worried that the state might not be totally committed to building the highways in the next few years.

"We need assurances the state will build these roads — and do it in a timely manner," Crispin said. "The worst-case scenario is the the fees are paid, the homes are built and there are still no new roadways in the area."

Ron Tsuzuki, head of the Transportation Department's Planning Branch, assured council members that the state is moving ahead on the projects.

"It's a great opportunity for government to find the additional funds to build the improvements which are needed in the area," Tsuzuki said.

Crispin said he believes the problems can be resolved.

"The process is working, and the projects are moving ahead," he said. "We're very concerned that it works smoothly. The developers are paying for it. There's $500,000 in the fund now and it's piling up every day."