Hawai'i Community Development Authority

Photo: JOHN BURNETT / HAWAII TRIBUNE-HERALD / JULY 22, 2025
Banyan trees line the roadway of Hilo’s Banyan Drive. The state Legislature passed a bill this week to support redevelopment of the area.

A redevelopment bill for Hilo’s Banyan Drive is heading to Gov. Josh Green’s desk for his signature.

Senate Bill 2001 was affirmed Wednesday by a unanimous final Senate floor vote of 25-0.

The final version, which was amended May 1 by a House-Senate conference committee, establishes the Banyan Drive-Makaoku Community Development District and Banyan Drive-Makaoku Redevelopment Agency within the Hawaii Community Development Authority.

The legislation, introduced by Sen. Lorraine Inouye of Hilo, with fellow Big Island Democratic Sens. Dru Kanuha and Joy San Buenaventura as co- signers, also establishes the Banyan Drive-Makaoku Community Development District Special Fund.

The legislation appropriates $2.375 million for HCDA to continue planning and designing the district and $270,000 for the state Department of Land and Natural Resources to fund acquisition of the 62.5-acre, nine-hole Grand Naniloa Golf Course, which is on state land leased to the Grand Naniloa Hotel’s owners.

Inouye said the amended version of her bill, which has an effective date of July 1 to become law, if not vetoed by Green, is “excellent.” The governor, who last year released $1 million secured by the late Rep. Mark Nakashima to begin master planning of Banyan Drive’s redevelopment, isn’t expected to veto the measure.

In discussion is the possibility of developing, on the golf course land, two hotels and an arena that could host the Merrie Monarch Festival hula competition, as sea-level rise is expected to claim a significant amount of shoreline real estate in the coming decades.

“We’re on the timeline we worked out with the DLNR and HCDA,” Inouye said. “And what is important is that already, within this last year, we’re doing the planning and designing. This has been much faster than I can believe, and I’m grateful my colleagues have supported us in our journey.”

Upon its passage into law, the Banyan Drive board will consist of various state and county officials, plus a cultural specialist, two at-large members, a lineal descendant of the Waiakea ahupuaa, and two representatives of the Banyan Drive Community Redevelopment District.

The lineal descendant was added by amendment in the House Water and Land Committee in late March.

The bill’s last legislative stop before landing in conference committee over amendment disagreements between the chambers was the House Finance Committee. There it received unanimous approval, 15-0 plus one yes with reservations, including aye votes from Keohokapu-Lee Loy and Kusch, as well as Rep. Chris Todd, a Hilo Democrat who represents the district and the committee chairman.

“It’s a glorious day,” Keohokapu-Lee Loy said May 1. “This is a first trajectory. For the first time since statehood, we have a lineal descendent planning our state lands on Hawaii island. … And so, to have fresh new eyes, fresh new voices at the table. We’re about to see transformation for Hawaii island.”