Oahu’s new hotel room tax will be a new source of money for the competitive rail project

HONOLULU (HawaiiNewsNow) – Honolulu Mayor Rick Blangiardi signed Bill No. 40 on Tuesday, and officials say it will allocate approximately $ 350 million to the city’s contested railroad project.

But even with the additional funding, it will likely not be enough to finish construction by the Ala Moana Center.

“If the best we can afford with the money we have that we know we have … we can possibly get to the Civic Center,” Blangiardi said during a press conference.

“We’re not saying we’re going to stop yet. There’s still time to find out how we’re going to drive the next kilometer and a half to Ala Moana. “

Critics say the city throws good money after bad money.

But the mayor says more than 58% of the money raised by the county’s 3% hotel room tax will be used for the city’s core services, some of which will be used to combat the effects of over-tourism.

Including the tax, the city has approximately $ 9.3 billion on the project, which is enough to build after Kakaako, with funding for the final 1 1/2 miles of the project in question being left to the Ala Moana Center.

The city is currently negotiating its options with the federal government.

But if the federal government doesn’t approve the shortened route, it could withhold $ 744 million in committed funds. It could also ask the city to repay $ 800 million that it has already provided.

Blangiardi said he would not seek another bailout from state lawmakers.

“I don’t intend to go to the legislature. If you ask me to extend the GET (General Excise Tax), I don’t want to do that now, ”he said.

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