Maui News

Bill proposes SMA permit exemptions for rebuilding in Lahaina historic district

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The historic Pioneer Inn in Lahaina, opposite the wharf, was destroyed in the Aug. 8, 2023, wildfire. A bill introduced by West Maui Sen. Angus McKelvey would exempt rebuilding projects in the Lahaina historic district from needing a special management area permit. The owners of the Pioneer Inn have said they want to rebuild. File photo PC: Barry Reynolds

Rebuilding in historic Lahaina town would not require special management area permits, under a bill introduced by West Maui Sen. Angus McKelvey, if the structure was destroyed by the Aug. 8, 2023, wildfire and planned reconstruction stays within the footprint of structure that stood before the disaster.

Senate Bill 1296 also would not exempt properties directly on the shoreline, while recognizing the urgent need to rebuild. The bill also increases the valuation threshold of development subject to a special management area permit from $500,000 to $750,000 when it’s located within the area covered by a federal disaster declaration on Aug. 8, 2023.

The bill acknowledges that under the Coastal Zone Management law, which controls SMA permits, special controls on developments within an area along the shoreline are “necessary to avoid permanent losses of valuable resources and the foreclosure of management options, and to ensure that adequate access, by dedication or other means, to public-owned or used beaches, recreation areas and natural reserves is provided.”

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However, the bill also includes a legislative finding that: “the 2023 Maui wildfires devastated Lahaina’s heritage, economy, and sense of place, and has deeply affected housing, businesses, jobs and treasured resources. If the area is not rebuilt in a deliberate, coordinated, and expeditious manner, the area may languish in the long term, further affecting the well-being of the land, the people and the economy.”

The bill says there’s an opportunity to rebuild Lahaina and the other parts of Maui that the wildfires destroyed in the recognized disaster areas “by preserving and reintroducing its valued resources in a manner that reflects the values and priorities of its residents and businesses, and addresses future challenges, including climate change and affordable housing.”

Rebuilding efforts in Lahaina will face “significant challenges due to the skyrocketing costs of construction, which have reached nearly $1,000 per square foot within these disaster areas.”

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The bill says SMA valuation thresholds were established in 2014 and are outdated because of significant increases in construction costs. It says that the SMA requirement has been triggered for a “disproportionate number of permits,” based on valuation, “creating undue burdens on both property owners and permitting authorities.”

The measure notes that the ongoing Los Angeles wildfires will further strain limited construction resources and regulatory capacities across the western region.

In Maui County, the Department of Planning administers the Coastal Zone Management law, and the Maui, Molokaʻi and Lānaʻi planning commissions are the decision-making authorities for SMA permits.

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According to the State Office of Planning and Sustainable Development, an SMA permit is the first permit required for developments within designated coastal areas. No agency is authorized to issue other development permits within SMA areas unless approval is first received within SMA procedures provided in state law.

Brian Perry
Brian Perry worked as a staff writer and editor at The Maui News from 1990 to 2018. Before that, he was a reporter at the Pacific Daily News in Agana, Guam. From 2019 to 2022, he was director of communications in the Office of the Mayor.
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