KERST suggests spending more money on local infrastructure projects

w Editor’s note: This is the fifth installment of an eight-part series diving into the county’s efforts for economic recovery.

LIHU‘E — Kaua‘i County has a group within the Kaua‘i Economic Recovery Strategy Team dedicated to bolstering the sectors of construction and public works on Kaua‘i, and the team recently released six recommendations in the area of construction, along with recommendations on rebuilding of other sectors, in a draft economic-recovery document for public review.

In the area of public works, the KERST subcommittee said its suggestion is to prioritize the upcoming list of capital-improvement projects, which is a report meant to identify infrastructure projects six years out.

“The public-works plan is meant to assess consistency and be streamlined with the General Plan and community plans,” said County Councilmember Luke Evslin.

The first key highlighted area in the report is a recommendation that Mayor Derek Kawakami work with Gov. David Ige in requesting to waive components of the state’s procurement code.

The change will ensure giving priority to local contractors and the county spending money on infrastructure projects that are going to on-island companies.

The second suggestion is that the county should recommend the Planning Department create redevelopment programs to help get stalled projects restarted.

Construction was significantly impacted by the COVID-19 shutdown, according to Evslin, chair of the council Finance and Economic Development Committee and chair of the KERST construction and the public works subcommittee.

He reported there was a major downswing in permits issued last month because of the stay-at-home order from COVID-19.

“I think we can presume there will be a slowdown in construction with less permits issued,” Evslin said. “The depth and length of the slowdown can be influenced by policies such as those in the KERST document.”

The report also recommends the Planning Department engage in development clinics with the public.

Providing information and videos will simplify the process of what homeowners and housing groups can do to build additions to existing properties and what they are allowed to build.

The document recommends the County Housing Agency develop a series of tiny homes for the homeless, which is a project that has already been started. It also includes a recommendation to eliminate or reduce building and zoning permit fees for one year. This will provide an incentive for smaller-home-construction jobs.

The last recommendation from the report suggests the county act offer loan guarantees for credit unions to provide low-interest loans for the Acute Rehabilitation Clinics and guest-house construction.

The county would not provide the money but would guarantee the money in case of default, which could reduce interest on the loan.

“We have both an economic crisis and a housing crisis on Kaua‘i,” Evslin said. “By making it easier for families to build homes we can solve both problems simultaneously.”

With the economic damage incurred by the construction industry, Evslin said he felt even with more permits issued this month, it is likely to be facing years of slowed economic activity, depending on the policies adopted in the plan.

Another issue will be the number of skilled workers to complete the upcoming projects.

“In the last recession, when construction slowed down, the construction industry lost a lot of labor,” Evslin said. “People either moved off-island or moved to different sectors of the economy. So then when construction picked up again, there was a labor shortage, which slowed down the economic recovery.”

One of Evslin’s main goals is to develop recommendations to stimulate the economy through construction jobs.

“We must ensure that the construction sector doesn’t lose labor to other industries so that our recovery can be quick,” Evslin said. “We must reduce the severity of our dire housing shortage by giving incentives for smaller-home-construction jobs to add more homes.”

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Jason Blasco, sports reporter, can be reached at 245-0437 or jblasco@thegardenisland.com.