County bill to cap private parking rates in Historic Kailua Village postponed to consult lawyers

A bill proposing free parking and a cap on hourly and daily rates at privately owned lots in the Historic Kailua Village was postponed Tuesday to allow the Hawai‘i County Council to consult with its attorneys about the legality of the measure.

Jasmine Crusat, who works with Diamond Parking, testified in opposition to the bill, saying paid parking does not currently exist in the Hawaiʻi County Code’s Section 6, which deals with businesses, and that it crosses a clear constitutional line.

After years of residents and business owners raising concerns about what they say is predatory parking rates in downtown Kona, Hawai‘i County Council Member Rebecca Villegas proposed Bill 132 during the council’s Policy Committee on Public Works and Mass Transit on Tuesday.

It calls for free parking for the first three consecutive hours a patron parks or stores a motor vehicle in a paid parking facility in Kailua Village.

After that, with some exceptions, the paid parking facility can not charge more than $2 per hour during the first 24 hours, with a limit of $30.

“We’ve been talking about this for over three years,” Villegas said. “We’ve met in person. We’ve talked about the challenges and none of the changes that were suggested or potentially negotiated to ease the burden on small businesses in Kailua Village have been activated.”

Current rates at the patchwork of about 21 private lots range from about $9 to $21 an hour, although some lots offer free time or discounted rates for residents.

Villegas said she “low-balled” the hourly price on purpose to leave room for negotiating the rates.

“Does it need to be $5? Does it need to be $7? We have to start somewhere,” the councilwoman said. “It’s time for us to have this conversation because Kailua Village is begging for relief. Begging business owners are hanging on by a thread.”

Hawai‘i Council Council Member Ashley Kierkiewicz praised Villegas and the bill.

“It’s shameful because small businesses suffer, and we’ve heard from many local residents who just don’t frequent downtown Kona because the fees are very excessive and the signage is very confusing, and so that doesn’t serve community or small businesses,” Kierkiewicz said. “I really do hope that there is a way that we can work with Corporation Council to solve the challenge that you have been working on.”

Hawai‘i County Council Member Jennifer Kagiwada also agreed the measure is a good starting point.

“There’s clearly some damage being done to the Kailua-Kona businesses, so I’m happy to keep discussing and looking into what we can do to support the area.”

Several people testified in favor of the measure.

Kailua-Kona resident Noelle Lindenmann told the council she has seen parking lots off Ali’i Drive go from full to empty over the last few years, adding that waits and lines at eateries have also diminished.

“I used to have trouble finding a parking spot, and now I never do,” Lindenmann said of the Coconut Grove Marketplace parking.

She said she also used to have to wait for 20 minutes to get a table at Gecko Girls and 30 Minutes for one at Foster’s Kitchen. But that no longer is the case.

Lindennmann said if people are not patronizing businesses downtown, how will the local businesses survive?

Jeff Foster, owner of Foster’s Kitchen and Big Kahuna Beach Grill in the village, said while he respects private property rights and recognizes that operators must manage their assets responsibly, parking in Kailua Village serves a broader public function.

“When parking becomes excessive in cost, unpredictable in enforcement, or structured in a way that discourages short-term visitation, the economic impact is immediate,” he said. “For small businesses operating on narrow margins, even modest reductions in short-duration foot traffic can materially affect revenue stability, employment hours and local tax contributions.”

Crusat asked that the council engage directly with affected parking lot owners and work towards solutions that are practical, equitable and reflective of the needs and values of the community.

“This bill moves forward without clearly addressing the needs and concerns of the community, business owners and property owners,” Crusat told the council.

She said the bill risks discouraging local investment and economic activity, potentially leading to job loss and reduced services for residents.

“Businesses may have to close, as paid parking was a way to offset their costs for their land leases,” Crusat said.

She said the bill dictates what private property owners may charge, effectively imposing price controls on lawful private enterprise, saying that authority is reserved to the state or regulated public utilities, not county government.

“When a county exceeds delegated authority, it invites costly legal challenges and undermines the rule of law,” Crusat said. “Beyond the legal risks, this bill sends a dangerous signal to local businesses already struggling under rising wages, lease rents and operating costs.

“Government-mandated pricing does not lower costs, it drives business out, reduces services and ultimately harms the community.”

The council will discuss the measure again during the next Public Works and Mass Transit committee on March 17.