Maui County Council members approved on second-and-final reading Tuesday land use measures to pave the way for redevelopment of Queen Kaʻahumanu Center as it struggles amid a nationwide decline in brick-and-mortar shopping malls. Bills 67 and 68 advance to Mayor Richard Bissen for final action.

The measures provide for a Wailuku-Kahului Community Plan amendment for 6.75 acres and a change of zoning from M-2 Heavy Industrial District to B-3 Central Business District for 33.8 acres for the Queen Kaʻahumanu Community Center revitalization and infill project.

In June, representatives of the mall owners said the land use bills would allow them to proceed with “evolution” of the center and evaluate opportunities based on community needs. They are considering a mixed-use development, including residential, retail, office, service, open and green space.

The mall’s current heavy industrial zoning does not allow for multifamily residential uses.

No specific development plans have been proposed. Future plans will need to be reviewed by the county Urban Design Review Board, and they’ll need a special management area permit from the Maui Planning Commission.

In 2022, 700 large shopping malls closed in the United States, due in part to the popularity of convenient online shopping with giants such as Amazon.

Former Queen Kaʻahumanu anchor tenant Sears shuttered its retail operations at the mall in November 2021. Consolidated Theatres closed its Kaʻahumanu movie theaters in July 2023, after nearly 30 years. And, in the not-too-distant future, one of the center’s two Macy’s retail stores will close and consolidate into a single store, according to a June 5 presentation by mall owners and consultants to members of the Maui County Council’s Housing and Land Use Committee.

The panel unanimously recommended approval of the center’s request for a community plan amendment and change of zoning.

In June, tenants with long-term leases occupied only 41% of the center; the remaining 51% was either vacant or at risk of becoming vacant.

The center property is owned by GSMS 2014-GC26 West Kaʻahumanu Ave. LLC. The property manager is Pacific Retail Capital Partners.

In other action Tuesday, Council members approved on second-and-final reading Bill 28. The bill, which advances to the mayor for action, amends the state land use district boundary from agricultural to urban for nearly 11.5 acres in Waiehu for the Hale Mahaolu Ke Kahua affordable housing project.

Project plans call for building 120 one-, two- and three-bedroom units for families at or below 60% of Maui County’s area median income. The project is being developed as a partnership with Hale Mahaolu, Maui Economic Opportunity Inc. and High Ridge Costa.

Before voting, council members heard public testimony disputing ownership of the property. Council Chair Alice Lee said that matter should be settled in the courts.

MEO maintains it has clear title to the property, confirmed in a 2nd Circuit Court ruling that it has “possessory and title interest” in the land and that title can be traced through King Lunalilo and a royal patent grant.

The final Council vote on final approval of the bill was 5-4, with “aye” votes from Lee and Council Members Tasha Kama, Yuki Lei Sugimura, Tom Cook and Nohelani Uʻu-Hodgins. “Nay” votes came from Keani Rawlins-Fernandez, Tamara Paltin, Shane Sinenci and Gabe Johnson.

MEO Chief Executive Officer Debbie Cabebe thanked the County Council for voting to amend the property’s state land use district classification for a project that will provide “120 badly needed rental units for low income and working families on Maui. There is a desperate need for affordable places to live, especially since the wildfires of Aug. 8, 2023.”

“While there is an outcry for affordable units, we acknowledge and understand the spirited debate over the Ke Kahua housing development,” she said. “With today’s decision, we now will be able to build a project that will bring stable, long-term housing to our local families.”

The Council also adopted a resolution honoring Capt. Riley Coon and the Trilogy Excursions ʻOhana for helping save the lives of Lahaina wildfire survivors who had escaped into the ocean to flee wildfire flames on Aug. 8, 2023.”