The City Council advanced a measure Wednesday that would allow a Waikiki nonprofit group to set transportation policies, handle curb and parking enforcement, and build parking garages and other transportation-related structures in the state’s No. 1 tourist destination.

Councilman Trevor Ozawa introduced Bill 64, which would create the Waikiki Transportation Management Association special improvement district. The measure, which now heads to a second reading, would exempt Kapiolani Park but cover an area bounded by the Ala Wai Canal, the shoreline and Kapahulu Avenue.

The proposed district, which would start with a five-year term, would be governed by a 26-member nonprofit board that would develop a Waikiki transportation management plan to meet the dense district’s long-term needs. It wouldn’t rely on property taxes, but would be funded with $100,000 in seed money from the Waikiki Improvement Association (WIA) and later by a cost-sharing agreement with the city to use some of the district’s transportation revenues. The mostly nongovernmental board also would pursue private and government grants and donations.

Changes could include adjustments to traffic operations, parking fees and enforcement, and commercial loading and unloading. Technology upgrades and accessibility improvements also could apply. The board also might recommend making landscaping and infrastructure improvements and building structures that promote Waikiki business activity.

“We are trying to work on (transportation) problems from a Waikiki vantage point that includes the city and residents,” said WIA President Rick Egged. “Our primary goal is curbside management of loading and unloading zones and curbside parking.”

Egged said the legislative effort stems from a transportation stakeholders group that was created in 2015 to respond to a city-commissioned traffic and parking study that recommended making all 1,017 street parking spaces in Waikiki paid, as well as metering commercial loading zones. A Waikiki transportation management association could adjust parking prices to demand, he said. A paid permit system also could be created to give residents cost breaks and schedule loading and unloading for commercial users, Egged said.

Egged is slated to provide a briefing on the proposed transportation district during the Waikiki Neighborhood Board’s meeting on Tuesday, which starts at 7 p.m. at the Waikiki Community Center.

Waikiki Neighborhood Board Chairman Bob Finley, who is a member of the transportation stakeholders group, supports the measure. However, early reactions from the community have been mixed. Naysayers have questioned allowing a nongovernmental entity to legally control public property or services. Proponents support permitting the nonprofit to work with businesses and residents on issues like managing limited curb space and avoiding gridlock and lane closures.

Egged said he expects greater support once the city doubles some Waikiki parking meter rates and expands enforcement hours under Bill 12, which was passed Wednesday. Although the increase would not include Kapiolani Park meters, which are governed by the city Parks Department, it’s been unpopular.

Ozawa voted no to Bill 12, but has said creating a Waikiki special improvement district would “allow the epicenter of our state’s tourism industry to operate more efficiently and effectively.”