DHHL Proposes New Business Park in Hilo
The Department of Hawaiian Homelands plans a 146-acre business park along Railroad Avenue to fund residential development.
Updated on Oct. 27, 2026 in Openings & Closings
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The Department of Hawaiian Homelands is planning to develop a 146-acre business park on Railroad Avenue in Hilo. This initiative aims to generate the necessary funding to support a new residential homestead development in Panaewa.
Why it matters
Developing this business park provides a critical revenue stream for residential housing projects in East Hawaii. It would mark the first significant residential development for the department in the region since 2006.
The proposed business park spans 146 acres of land, a move intended to offset the 20-year gap since the last East Hawaii residential development. Officials are exploring potential tenants, but no formal contracts are finalized.
The players
Department of Hawaiian Homelands
This is a state agency responsible for managing the Hawaiian Home Lands trust and developing land for native Hawaiian beneficiaries.
Costco
This is a multinational retail corporation that operates membership-only warehouse clubs.
The details
The project serves residents living between Puna and North Hilo, potentially housing major commercial entities. The Department of Hawaiian Homelands has held preliminary discussions with Costco, which currently operates the only island location in Kona.
Timeline
The Department of Hawaiian Homelands has not completed a residential development in East Hawaii since 2006.
Market Landscape
This project aligns with the mandate of the Hawaiian Home Lands trust to leverage commercial land for residential advancement. By establishing a business park, the agency aims to bridge the funding gap for essential housing infrastructure in the region.
Local residents in Hilo may see new commercial options and services if the business park attracts national retailers. The development specifically aims to accelerate housing availability for homesteaders in the Panaewa area.
The takeaway
This development represents a strategic move to utilize commercial land to support long-term housing goals for native Hawaiian beneficiaries. Residents should monitor future planning meetings for updates on potential commercial tenants and construction timelines.
Further reading
Learn more about local development projects in our Hilo Openings & Closings section.
Source note: This article includes information reported by KHON2.
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