The building on the right that once housed the Sunrise Cafe and Dole is a part of a complex that is being required to get a shoreline Special Management Area permit. To the left is the remnants of the state Lahaina Library. Maui News photo/ Gary Kubota

While new construction dots the landscape across Lahaina, the area along Front Street remains a long way from recovery from the Aug. 8, 2023, wildfire.

A vibrant and busy town before the fire that killed 102 people and destroyed an estimated 2,200 structures, Lahaina generated about $2.7 million a day in revenue, in addition to having deep historic and cultural significance.

In February, the U.S. Army Corps of Engineers and its partners completed debris removal for the last commercial properties in Lahaina, clearing all 148 commercial lots and allowing a clearer path to rebuilding. In total, 1,538 residential and commercial properties have been cleared of ash and debris.

However, according to the Maui County Office of Recovery, as of July 28, no commercial buildings in Lahaina had been rebuilt and occupied. So far, 33 nonresidential building permits have been issued and another 141 nonresidential permits are being processed. Residential housing has come back at a much quicker rate with 45 homes rebuilt and occupied, 423 permits issued and 183 permits currently being processed.

The number of businesses applying for permits is likely lower than what’s reflected in the nonresidential permits because those permits include multi-unit dwellings, as well as commercial buildings, according to Maui County Recovery administrator John Smith.

Smith explained that the system of permitting commercial buildings and multi-unit dwellings is more complicated and takes more time to review than single-family homes.

“Some of them have underground requirements,” he said. “Some of them have additional storm water requirements. So the complexity is what lends to take more time.”

Smith is hopeful with the recent release of $1.6 billion in federal money and the county starting up a number of recovery programs, including one for multifamily housing and another for economic revitalization programs targeted toward commercial owners.

“Simply put, the county hasn’t had the funding to put into those types of projects until now,” Smith said.

County officials recently unveiled a handful of new programs designed to help residential homeowners including a first-time homebuyer opportunity program, a single family reconstruction program, and a reimbursement program, with preference given to Lahaina survivors. The programs take effect Aug. 11.

Smith said with the money received just a couple of months ago, the county is kicking off

the homeowner programs first, and kicking off the multi family programs a little bit later this year.

“And we’re going to be kicking off some economic revitalization programs that are targeted towards commercial,” Smith added.

Smith was careful to note that the billion dollar fund will take some time to ramp up.

“But once it’s up and running, I do expect significant help to the commercial and the multi family across the board,” he said. “It’s not a monthslong thing. It’s a yearslong thing, so that the program will last at least six years from now. We expect to start seeing the results of that funding probably about a year from now, maybe a year and a half.”

County Planning director Blystone said reviewing permits for shoreline properties is more complex and takes time because of their sensitive location.

“They’re in a place that is subject to sea level rise and tsunamis,” she said.

Blystone said the county’s shoreline setback areas are based on scientific modeling and where the county expects the shoreline to be in 70 years.

“What we’re finding is that sea level rise is happening much faster than we thought,” she said.

“SMA majors typically take much longer than that,” Blystone said.

From what she’s seen, Blystone said a lot of owners are trying to figure out their path forward, whether or not they go for the full SMA for permit.

She said the biggest problem that can stall the process is when an application is incomplete or when the applicants aren’t responsive to comments by the planning department.

“That’s when things get stuck,” she said.

“We had the same problem with the Planning Commission as well. We were down to five members for a couple months,” she continued.

“So we need good people to apply for the Planning Commission – everything from clerks to planners.”

Some commercial property owners are trying to navigate the permitting process, but others have delayed applying for permits, saying they are unsure of their chances of approval and citing steep costs to pursue multiple permits.

“The processes are daunting,” said Kaleo Schneider, spokesperson for Front Street Recovery, a group representing more than 70 landowners. “They have not made it easier.”

Schneider said her family’s property once housed 15 businesses including the Sunrise Cafe, Dole, the Cookie Company and Wyland Galleries. Schneider said they are looking at being required to get 10 permits and estimated that would cost about a half a million dollars.

Some Front Street business owners have said requiring them to get a Special Management Area permit for properties generally within the shoreline hazard area has been a major hurdle, but it appears other property owners are seeing some relief.

While the maps show the Lahaina Courthouse and Pioneer Inn in the Special Management Area, they apparently have been excluded from its requirements.

The landowners said they have been told by county officials that they do not have to apply for a Special Management Area Permit because the harbor seawall fronting their properties is regarded as a hardened shoreline.

“We’re happy we’re no longer required to do the SMA at this time,” said Warren Freeland, representing the family-owned Pioneer Inn.

Additionally, the Maui Planning Commission recently approved the first Special Management Area major permit for a shoreline residence.

Blystone said the property at 21 Kai Pali Place recently received the approval from the commission after applying in August 2024.

“Those SMA majors typically take much longer than that, so that’s even an evidence of how much faster we’re moving with these,” Blystone said.

“I think the public should be really happy to know that we’re learning from our experience as we go one, and if this ever, or something like this ever happens again, our systems are going to be in much better shape,” she continued.

Blystone said the planning department is growing as they continue to refine the process, and all of this is happening while they’re short-staffed with about 20 positions open within the department — which is about 25% of its total staffing.

Schneider said her nearby family’s property is built on hardened land and protected by a reef along the shoreline and she hopes the Special Management Area Permit will be lifted for their property as well.

“It would really be awesome,” Schneider said.