The Chamber of Commerce Hawaii believes now would be an appropriate time to take a hard look at how our government on all levels is responding to the challenges Hawaii faces on multiple fronts.
Undoubtedly, the biggest challenge and a root cause of other problems is the shortage of housing that is affordable at most income levels and not just the more affluent residents of our state. We read articles everywhere about the consequences of our skyrocketing housing costs.
A Jan. 5 Washington Post article wondered why people are leaving Hawaii, a paradise with record-low unemployment. It concluded, “One answer trumps all others: home prices.” And why are home prices so high in the islands?
The University of Hawaii Economic Research Organization (UHERO) stated that Honolulu has far more regulation of residential development than any other U.S. metropolitan area.
It said: “An index measuring land use regulation in U.S. cities — the Wharton Residential Land Use Regulatory Index — ranks Honolulu as the most regulated U.S. city. Its high score stems from multiple layers of rigorous, lengthy review by both state and county governments for all new development projects.”
Clearly, Hawaii residents are paying a high price for too much government regulation. Common sense is urgently needed to a process in which no decision seems final and any disgruntled group or individual can delay the construction of much-needed homes by engaging in continuous appeals and, if those fail, extended litigation.
The price of housing is tied to other problems, including an exodus of many of our brightest young people for more promising futures on the mainland. Homelessness can also be tied directly to the absence of affordable housing.
The homelessness crisis provides the most glaring example of the need for leadership. When homeless encampments were allowed to grow unchecked on state property at Kakaako Waterfront Park, instead of taking preemptive action, nothing was done until the park’s water and electrical infrastructure had been destroyed and the Children’s Discovery Center was forced to close because of safety and security concerns.
The state and the city owe Oahu taxpayers a plan for how they intend to solve this problem. In the case of homeless families, local businessman Duane Kurisu stepped up to bring the city and state into a public private partnership to build Kahauiki Village to take care of a percentage of this particular population.
This concept of finding solutions tailored to the challenges facing each of the groups that make up our homeless population could well become a template. And government must move forward with similar real solutions in partnership with the private sector.
A template is needed to address other issues as well. From the disrepair in our highway system to an airport that looks more like it belongs in a Third World country rather than a premier travel destination, determined leadership is needed to right our ship. For example, we find ourselves again questioning why we don’t have an independent board like a majority of states across the country, especially as tourism is our No. 1 industry. And the millions of dollars in federal funds that go unspent, need to be put to work on a host of needed improvements. Also, opportunities abound for transit-oriented developments, redevelopments and other underutilized areas.
We encourage government to actively eliminate roadblocks, explore more public-private partnerships and to work collaboratively with the business community and other stakeholders to find solutions. In business, we are constantly innovating, refreshing and redeveloping products and services because, if not, we cannot grow and compete with the rest of the world.
If our state continues to operate in the status quo, Hawaii will continue to falter behind as a place to do business. The Chamber, as the “Voice of Business,” will continue to monitor issues that impact our communities and offer our voice in implementing positive change.
Sherry Menor-McNamara is president and CEO of the Chamber of Commerce Hawaii.
