Panelists, from left, Chris Martin, director of security for Hawaii Pacific University, Reyn Tanaka, of Kurisu Group, Christine Camp, of Avalon Group, Trevor Abarzua, executive director of the Waikiki Business Improvement Association, City Councilmember Tyler Dos Santos-Tam, and moderator Chris Fong, investment associate with Tradewind Capitol, sit onstage during a panel to discuss the creation of a Downtown Business Improvement District on Jan. 15 in Honolulu.

A revamped taxing entity involving downtown Honolulu property owners hoping to increase public safety, improve local infrastructure and promote economic revitalization in an area that’s been hard hit in recent years is now being floated as a new City Council measure.

Introduced as Bill 51, the proposal would update and rename the existing Fort Street Mall Special Improvement District to the Downtown Honolulu Business Improvement District.

That action would expand the new district’s boundaries to include an area bounded by Nuuanu Avenue, South Beretania Street, Richards Street, and Nimitz Highway, the bill indicates. And it also would include an adjacent commercial block bounded by Queen, Mililani, Halekauwila and Richards streets.

The new district comes with a management association, governed by either an elected or appointed nonprofit board.

Comprised of up to 20 voting and nonvoting members, the proposed board will include downtown property owners, along with representatives from city agencies, including the Honolulu Police Department, and other community stakeholders, the measure states.

The Council on Wednesday voted unanimously to pass Bill 51 on its first of three readings. The measure was referred to the panel’s Zoning and Planning Committee for further review.

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“Like the successful Waikiki Business Improvement District, it is hoped that the Downtown Honolulu BID would provide needed services such as enhanced cleaning, safety patrols, and landscaping, and supplemental improvements like lighting, signage, and street furniture,” a subsequent Council news release states. “The Downtown Honolulu BID could also plan and coordinate festivals and other activities to enliven the Downtown Honolulu area.”

Council member Tyler Dos Santos-Tam introduced the bill.

“Downtown Honolulu is the economic and civic heart of our city,” he said in a statement. “This bill would empower the downtown businesses to work in partnership with the city to make sure this area continues to be clean, safe, and vibrant for residents, workers, and visitors alike.”

Under the updated plan, nonresidential property owners in the district would contribute to a $1.9 million “first fiscal year” annual budget through special assessments.

These funds, according to Dos Santos-Tam, support a visible safety and maintenance presence seven days a week and help coordinate services with HPD and city agencies.

Residential properties in the district would be exempted from the assessment, the bill indicates.

Prior to the Council’s vote, two members of the business community spoke in support of Bill 51.

Ed Korybski, executive director of the Fort Street Mall Business Improvement District Association, told the Council “as many of you know downtown is going through a transition right now, from office to residential.”

“And we are in severe need of more services,” he added. “So this is a way that the business and landowners community can actually provide services.”

Christine Camp, Avalon Group Hawaii’s president and CEO, said her real estate development firm “has made huge investments in downtown Honolulu, and we’re here to support Bill 51.”

“The downtown is going through a transition, but without this support to focus on cleanliness and safety it may not succeed,” she said. “And downtown is too big to fail, and if we don’t do anything the chances of success may not be there.”

She told the Council “we’d like your support in focusing on the businesses funding to supplement the city’s services for safety and cleanliness.”

“And one last thing, residents will not be charged and homeowners will not be charged in this proposal,” Camp said. “And if it doesn’t work, the enabling legislation allows us to revisit and let it sunset in five years.”

But one downtown property owner opposes Bill 51.

In written testimony, Kevin Crummy, chief investment officer of California-based Douglas Emmett Management LLC, expressed “significant concern regarding the proposed expansion of the Fort Street Mall Business Improvement District into a broader Downtown Honolulu BID.”

“While Douglas Emmett supports efforts to improve downtown Honolulu, we believe that the public outreach for this crucial expansion has been insufficient,” Crummy wrote. “Many property owners, ground lessees, and businesses who will be directly impacted by this significant expansion remain unaware of this proposal.”

He stated “information isn’t reaching a broad enough audience through accessible channels, and crucial documents like the bylaws are not readily available to the public.”

“This significantly limits opportunities for stakeholders to understand the proposed objective, economic consequences, and operational impacts of the BID, or to provide meaningful input on these items,” he wrote. “A fundamental aspect of imposing new financial costs and other obligations on stakeholders must be robust and transparent community engagement.

Crummy urged the Council “to prioritize comprehensive public outreach before finalizing Bill 51.”

“A well-informed and engaged community is essential for the long-term success and legitimacy of any BID,” he wrote. “Taking the time now to ensure widespread understanding and participation will lead to a more effective and supported Downtown Honolulu BID.”

After the meeting, Dos Santos-Tam told the Honolulu Star-Advertiser that there are 2,088 parcels in total within the boundaries of the proposed improvement district, of which 22 are government owned.

“Many of these are condominiumized commercial units within the larger office towers,” he said. “Some entities or individuals own multiple properties.”

Larger property owners in the area include the Roman Catholic Church, First Hawaiian Bank, Douglas Emmett, Avalon Development, Meiji Yasuda America Inc. (Pacific Guardian Tower), and Hawaii Pacific University, he noted.

As far as community engagement over this proposal, Dos Santos-Tam said “supporters of this initiative, a coalition of local businesses and community members, have taken the lead on public engagement efforts to establish the proposed BID.”

“Earlier this year, a well-attended panel was held to give Downtown stakeholders and residents an opportunity to learn more and ask questions,” he asserted. “It was reported that over 200 people were in attendance. A presentation was made to the Downtown-Chinatown neighborhood board as well.”

“Our office supports continued outreach efforts and will be working on a series of town hall meetings, mailouts, and other ways of engaging the community,” he said.

As the bill progresses, Dos Santos-Tam said “there will be many more opportunities for community input, including a required public hearing which, according to the timeline set out in (city law), would have to be held on Sept. 3.”

“We invite people to attend the next hearing about the bill in committee, and may also contact my office directly,” he added.

He claimed the Downtown BID proposal “is another part of revitalizing our Downtown area, and builds upon some of the other policy changes I’ve led to enliven the area.”

“These include transferring jurisdiction of Fort Street Mall and the other downtown malls to the Department of Transportation Services, the bill to change parade permitting islandwide which will hopefully bring more events downtown, creating a pathway for office-to-residential conversions to bring more residents downtown, and making the city’s sidewalk dining program permanent,” he said.

And he suggested a shared use of private security in downtown Honolulu also could be of compelling interest to future members of the district.

“Many of the large property owners already pay for private security and maintenance,” Dos Santos-Tam said. “Banding together under a BID structure to provide these services they are already paying for may prove to be cost effective in the long run.”