Honolulu Council OKs sponsorship of public facilities
Legislation to allow private sponsorship of city parks and other public facilities in order to garner more revenue for the city was unanimously adopted Wednesday by the Honolulu City Council.
Introduced in January by Council member Radiant Cordero, Bill 4 will 'create and enhance public-private relationships, including with individuals, corporations, and other organizations, through the creation of commercial sponsorships.'
'Private sponsorships will create alternate revenue streams that will increase the city's ability to deliver services and to maintain city assets, including its facilities, parks, programs, equipment, and tangible property, and provide enhanced levels of service and maintenance beyond the core levels funded from the city's general fund for the benefit of users and the community at large, ' the bill states.
The measure will also allow the director of a city agency to enter into a sponsorship agreement, but only for a term of less than five years, with a financial contribution of less than $50, 000. Sponsorship agreements of $50, 000 or more and agreements for a period of five years or more must be approved by a resolution adopted by the Council, the bill says.
Bill 4's approval comes as the nine-member Council and city administration allege budgetary constraints for the coming 2026 fiscal year, which begins July 1.
Those multimillion-dollar costs include siting the city's next solid-waste landfill on Oahu ; operating and maintaining ongoing city rail services toward downtown ; and implementing a total increase of 115 % for sewer fees across all rate-paying classes over a 10-year period to address rising operational costs and fund critical sewage treatment projects within the city's $10.1 billion capital improvement program, scheduled for 2025-2040.
During public testimony, Kaimuki resident Tim Garry lauded Bill 4.
'This could be a game changer for so many things, to where we don't have to tax everybody to death, ' he said.
Garry said the measure's intent could be like the city's Adopt a Park program, 'where somebody takes responsibility for a certain part of the public ' properties.
'The possibilities are endless, ' he said. 'There are so many trusts, and foundations that are set up that have to give away money every year.'
And he added, 'I hope to see all of the Council people in NASCAR uniforms, with sponsorships all over their body.'
Council member Andria Tupola said the measure 'really gives us a real pathway to bring in revenue, create partnerships and move our city forward.'
Representing the Leeward Coast, Tupola said her focus for sponsorships included approximately 400 acres of former Barbers Point Naval Air Station lands, also known as Kalaeloa, that the city officially took possession of in June.
Mayor Rick Blangiardi's administration asserts that many in the public had asked for Kalaeloa to feature city parks and other recreational opportunities, including a racetrack.
'There is just no way we're going to come up with the kind of funds that we need to create a sports facility or a racetrack, ' said Tupola. 'We are going to need to really rely on these community partnerships.'
Council Chair Tommy Waters also supported Bill 4.
'And I just want to assure the public we're not talking about renaming the Fasi Building or Honolulu Hale, but really we're talking about things like … the basketball court at the Blaisdell Center, or the stage at the Tom Moffatt Shell, or … a sponsorship of the lawn at the Shell, ' he said. 'We're just being creative and finding other ways of raising revenues for our city.'
And alluding to a first-reading measure he had introduced at the same meeting, Waters quipped that sponsorship revenues could even be deposited in the city's sewer fund to offset costs associated with the city's pending 115 % sewer fee hike.
In March the Council adopted Resolution 50, which urged the city Department of Enterprise Services to pursue the sponsorship of naming rights for Neal S. Blaisdell Center at 777 Ward Ave.
Typically, naming rights means the city may grant people or organizations the opportunity to have their names associated with a facility, such as a stadium or arena, in exchange for financial contributions.
As an example, the resolution notes that in 2020 the University of Hawaii and Bank of Hawaii entered into a 10-year, $5 million sponsorship agreement for the naming rights of the Stan Sheriff Center, now known as the SimpliFi Arena at Stan Sheriff Center, at UH's Manoa campus.
DES Director Dita Holifield previously told the Council her department was excited to pursue this revenue-generating opportunity to improve the Blaisdell campus. But she also said that based on discussions with the city Department of the Corporation Counsel, existing city laws do not allow for the sponsorship of naming rights.
The Blaisdell Center, originally called the Honolulu International Center, was built in 1964.
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