Waive SMA permits for projects in Lahaina historic landmark districts

The following testimony was submitted by the Grassroot Institute of Hawaii for consideration by the Senate Committee on Judiciary on Feb. 27, 2025.
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Feb. 27, 2025, 10:01 a.m.
Hawaii State Capitol
Conference Room 016 and Videoconference

To: Senate Committee on Judiciary
       Sen. Karl Rhoads, Chair
       Sen. Mike Gabbard, Vice Chair

From: Grassroot Institute of Hawaii
            Ted Kefalas, Director of Strategic Campaigns

RE: SB1296 SD1 — RELATING TO DISASTER RECOVERY

Aloha Chair Rhoads, Vice-Chair Gabbard and other members of the Committee,

The Grassroot Institute of Hawaii supports SB1296 SD1, which would exempt any structures in the Lahaina National Historic Landmark District that were destroyed by the Aug. 8, 2023, wildfires from needing a special management area minor permit or use permit — provided that such structures are not on a shoreline parcel and are rebuilt no greater in size than they existed prior to the wildfires.

Gov. Josh Green provided multifamily dwellings an exemption from SMA rules in an October emergency proclamation, in addition to the exemption that already exists in statute for most single-family homes.[1]

In early February, the governor also created an exemption for certain commercial structures in Lahaina,[2] but a permanent legislative fix would remove the need for navigating several iterations of an emergency order.

Without a streamlined SMA process, Lahaina’s businesses will face an uphill battle to return to their community, since obtaining an SMA use permit from Maui County could take years.

Typically, obtaining an SMA permit involves an application to the Maui Planning Department and a hearing from the Maui County Planning Commission. Over the past decade, since Jan. 1, 2015, the Maui Planning Commission has issued only 41 SMA use permits.[3] At the rate of four per year, it would take the county decades to approve all the permits needed for Lahaina’s businesses to rebuild.

If businesses cannot return to Lahaina in a timely manner, there will be fewer entrepreneurial and job opportunities for residents, and the town could lose many of its residents, and certainly its historic charm and character.

We ask the Committee to advance this measure to give Lahaina’s people a better chance to rebuild and thrive.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
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[1] “Eighteenth Proclamation Relating to Wildfire,” Office of the Governor, Oct. 8, 2024, p. 10. 
[2] Brian Perry, “SMA permits suspended for wildfire-impacted Lahaina properties mauka of Front Street,” Maui Now, Feb. 6, 2025.
[3] Maui’s Automated Planning and Permitting System, accessed Jan. 31, 2025.  Plan type: SM1 – Special Management Area Use Permit – Maui. Status: Approved. Applied date: From 1/1/2025.

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