Small businesses along congested Dillingham Boulevard will be eligible for up to $10,000 in annual grants as compensation for the negative impacts of rail construction. 

These businesses have complained that the warped traffic patterns to accommodate construction have resulted in lower levels of business for them. For example, Dillingham Boulevard prohibits most left turns along a nearly 2 mile stretch and restricts traffic to one lane in each direction.

On Friday, Honolulu Mayor Rick Blangiardi signed Bill 40, which intends to reinvigorate the already existing but empty Transit Construction Impact Mitigation fund. That fund hasn’t received money since 2018. 

Then, the council had deposited $750,000 into it to be disbursed to local businesses. That didn’t happen, and the money instead lapsed back into the general fund. 

Bill 40 sets up certain qualifications for businesses to meet if they want to be eligible for funding. The thinking is that having these qualifications will make it easier for the city’s administration to determine which businesses to help.

To qualify, businesses must employ fewer than 15 people, earn no more than $750,000 each year in revenue, be located within one block of active construction and have been in operation since before Jan. 1, 2022.

The fund is still empty. Discussion about next year’s city budget will begin in vigor next month in the City Council, and that will be when money can be allocated for the fund. For now, the total amount of money that will be allocated is still to be determined. 

As rail construction continues to Civic Center – and potentially beyond – businesses along the future construction path will also become eligible for the fund.

The bill was introduced in 2023 by Tyler Dos Santos-Tam and Radiant Cordero, who each represent portions of Kalihi.