Maui Council advances plan to secure low-interest loans for water infrastructure projects

The Maui County Council has advanced a plan to secure nearly $64.5 million in low-interest state loans for water infrastructure projects needed as part of recovery from the disastrous August 2023 wildfires.

On Friday, council members voted unanimously to pass Bills 150 and 151 on first reading. According to a committee report, the measures authorize the administration of Mayor Richard Bissen to enter into an agreement with the State of Hawaiʻi Drinking Water State Revolving Fund, not to exceed $64.47 million, for countywide wildfire disaster relief projects.

According to Budget, Finance and Economic Development Committee Chair Yuki Lei Sugimura, the loan will support design and construction for key drinking water projects. She noted that the loan could qualify for up to 90% principal forgiveness if the bills are finalized by Dec. 31.

According to the Department of Water Supply, projects selected for funding are designed or near final design, with several already bid on or ready to award. These projects include:

• Waipuka and Kanahā Wells motor-control-center and electrical upgrades with an emergency generator. (Those wells lack a permanent generator.)
• Lahaina Waterline Improvement Project.
• Launiupoko L1 and L2 exploratory and development well phases.
• Māhinahina backup well development.
• Honolua H1 and H2 exploratory and development well phases. The Waipuka and Kanahā Wells sites lack a permanent generator, which underscores the need for resiliency upgrades.

In other action, council members:

• Passed Bill 110 on second-and-final reading, which exempts property owners rebuilding after the August 2023 wildfires from requirements to construct or improve public streets. Council Member Tom Cook noted the bill provides targeted relief for those whose structures were destroyed or severely damaged.
• Approved Bill 156 on second-and-final reading, allowing for the replacement of awnings, signs and overhead structures that encroach on public rights of way in wildfire-impacted areas, provided they meet safety codes.
• Passed Bill 167 on second-and-final reading, amending the budget to remove a $100,000 appropriation for the Professional Golfers’ Association Sentry Tournament. The funds were reappropriated to the Department of Human Concerns to fund a dormitory for Aloha House, a substance abuse treatment center.
• Approved Bill 131 on second-and-final reading, granting a conditional change in zoning for Moku Roots. The bill changes the zoning of a parcel at 1448 Front Street from residential to community business. Council Member Tamara Paltin noted the location has long been used as a parking lot.
• Adopted Resolution 25-211, approving an exemption to lower the interest rate on a loan from the Affordable Housing Fund for the Kaiāulu O Lānaʻi project. Council Member Gabe Johnson said the resolution lowers the rate from 3 to 0.25% to match state financing terms, allowing the affordable housing project to proceed without delay.
• Passed Bills 136 and 137 on first reading, appropriating $1.1 million for renovations at the 60 South Church Street building in Wailuku. Sugimura said the work includes waterproofing and electrical upgrades to allow the Maui Emergency Management Agency to move into the facility by February.
• Approved Bill 173 on first reading, updating the name of a grant recipient event from the Makawao Halloween event to the Makawao Holiday 2025 Light the Town event.
• Passed Bill 174 on first reading, updating a fiscal sponsor for a film grant from Rising From the Ashes LLC to Mana Maoli. Paltin said the film “Lahaina Rising” recently won an award at the Hawaiʻi International Film Festival.