Streamlining Business Permit Applications in Honolulu with Digital Processes
In an effort to reduce bureaucracy and paper-based inefficiencies, the Planning and Permitting Department (DPP) in Honolulu has announced that starting from July 1, all business permit applications will be entirely digital. While the city hopes that this move will simplify the process, many small business owners have expressed serious concerns regarding the delays they are facing due to the lack of clarity and difficulties in accessing their project plans.
The Issues with the ePlans System
While the reduction in paperwork is seen as a positive move, some business owners have highlighted a number of issues that they face with the new ePlans system. The primary concern is the inability to update project plans until all necessary agencies weigh in with their demands via the platform. This causes significant delays for small business owners – waiting for 1-2 years for a permit can come at a high cost.
“Once you sign the lease, you have to pay the rent. And if you’re paying around $5,000, $10,000, $20,000 in rent, it’s very simple. It costs me an extra $100,000 to $200,000 for that delay,” shared L&L Hawaiian Barbecue founder and owner Eddie Flores, who explained that it used to take him just three months to get a permit.
Increased Costs for Small Business Owners
Apart from rent, borrowing money is also more expensive, and investors are not willing to wait. Jack Zhang, owner of local chain Hawaii Pot Shabushabu House with six locations on Oahu, explains how delays in obtaining permits hurt small businesses. If the time is not guaranteed, he cannot guarantee the investment either. Even established businesses have difficulty obtaining permits to renew if it takes one year just to gain approval.
“One year to go, it’s ridiculous,” said McDonald’s franchisee Victor Lim, who hires an external reviewer to expedite his permit applications, claiming that it would take longer without one. It seems that some business owners are choosing to construct without permits and face fines from the City, rather than lose money. This was the case at Chick-fil-A at Ala Moana Center, as highlighted by some business owners.
How the DPP is Addressing These Concerns
The DPP has acknowledged that sometimes the delays are outside of their control, such as clients submitting unclear plans or documents waiting to be physically sent between agencies by the applicant. There are efforts to make changes to the process to speed it up, which includes employing more staff to conduct reviews, updating the permit software, and enhancing internal processes to improve efficiency. The new software will allow owners and applicants to see where their application is in the process and what needs addressing moving forward. The DPP intends to require ePlans for all commercial projects from July 1 to reduce permit times physically, routing paper plans. Lastly, the DPP has encouraged owners and applicants to submit good quality plans that provide a clear scope of work and comply with up-to-date codes and ordinances.
Honolulu Mayor Rick Blangiardi said, “If we can get some bills through, especially some of the self-certification to release some things and some of the other ordinances that have gotten in our way, I think the road ahead is very promising.” There is still some skepticism regarding the benefit of the ePlans system, but small business owners are optimistic that any improvements will be better than the status quo.
The Ripple Effect on Small Businesses in Hawaii
Delays in obtaining permits negatively affect Hawaii’s small businesses, with a ripple effect that harms the entire economy. “It is costing everyone, the entire economy, from my restaurant business to the construction business,” said Lim, highlighting the impact on his business. The delays affect not only construction but all kind of businesses, making it harder to operate smoothly.
The DPP’s efforts to reduce bureaucracy and make the process more efficient are welcomed by small business owners, but there is still much to be done. Reducing the waiting time for permits will go a long way to supporting small business owners who commit significant amounts of their financial resources to secure their businesses’ premises.
Additional Piece:
How Digital Transformation is Helping Small Businesses in Hawaii
In recent years, digital transformation has changed the way small businesses operate, and Hawaii’s small businesses are now looking toward going digital. The process of going digital has significant benefits, as businesses have access to larger markets, more efficient processes, personalized customer service, and enhanced security and data protection. Digital transformation affordability and accessibility have made it easier for small businesses to compete and grow. Below are a few ways that digital transformation could benefit small businesses in Hawaii:
Easier Access to Capital
One significant challenge that small businesses in Hawaii face is access to valuable capital. The numerous requirements and lengthy processes required by traditional financial institutions make it harder for small businesses to get loans and start operating. However, with the emergence of new fintech services, small businesses now have more funding opportunities than before. A few examples of these services include crowdfunding, peer-to-peer lending platforms, and alternative finance models such as invoice factoring.
Improved Efficiency
In the past, small business owners required numerous employees to take care of tasks such as accounting, human resources, and many other internal processes. Now, with the rise of automation, we have seen a significant change in the way businesses approach these subjects. Digital tools like social media management platforms, accounting software, and project management tools make managing daily business operations easier. Automation not only saves time but also prevents errors in administrative processes.
Ease of Collaboration
Digital transformation has allowed small businesses in Hawaii and all over the world to collaborate more easily with each other. As technology has advanced, so too has communication- allowing greater interconnectivity. Now, team members can work remotely and still be productive, thanks to centralized cloud storage, video conferencing software, and other communication tools. With instant messaging and collaboration tools in place, team members can work together easily and make informed decisions.
Increased Sales Opportunities
In the past, small businesses had limited physical venues to promote and distribute their products and services. With digital transformation, however, there are now numerous online marketplaces where businesses can securely sell their products. As more people increasingly shop online, businesses that have embraced digital transformation can increase their sales in ways that would have previously been impossible. With many free tools and platforms available, small businesses can now reach more customers than ever before.
Conclusion:
Without a doubt, digital transformation provides a unique opportunity for small businesses in Hawaii to take advantage of new technologies, enhance their businesses’ efficiency and productivity, and expand their reach to new customers. Adopting these digital tools can be a challenge, but the benefits outweigh the costs. The incorporation of digital processes in Hawaii’s administration of business permits already shows significant efficiency, and with these administrative efficiencies done to create a better business environment and collaboration at scale, Hawaii is bound to witness a competitive edge against other states.
Summary:
Honolulu’s DPP insists on digital processes for permits starting 1st July. However, small business owners are facing difficulty with the new ePlans system and are facing delays while awaiting approval for new or renewing permits. Owner of L&L Hawaiian Barbecue, Eddie Flores, believes that the delay costs him nearly $100,000 to $200, 000. Honolulu Mayor, Rick Blangiardi, believes that the self-certification bills can help shorten this delay and further streamline the process. Nonetheless, difficulties with the application process have pushed businesses down the route of building without approval and facing fines from the City. These delays disproportionately affect small businesses since they are often working under tighter budgets and timelines. However, digital transformation can help ease some of these challenges by providing increasing access to capital, improving efficiency and communication and providing increased sales opportunities. The state of Hawaii can offer lessons available for the future development by embracing digital transformation.
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HONOLULU (HawaiiNewsNow) – Starting July 1, the city’s Planning and Permitting Department will require all business permit applications to be submitted electronically.
The DPP hopes that eliminating paperwork in “red tape” will streamline the process.
But some construction professionals say they’re seeing more delays with the new ePlans system because they can’t update project plans until all agencies weigh in on the platform.
For small business owners in Honolulu, waiting 1-2 years for a permit comes at a high cost.
“Once you sign the lease, you have to pay the rent. And if you’re paying around $5,000, $10,000, $20,000 in rent, it’s very simple. It costs me an extra $100,000 to $200,000 for that delay,” said L&L Hawaiian Barbecue founder and owner Eddie Flores, adding that it used to take him three months to get a permit.
While some landlords will grant extensions, uncertainty is bad for business.
Apart from the rent, borrowing money is more expensive and investors are not willing to wait.
“I cannot guarantee the time. If I cannot guarantee the time, how can I guarantee the investment? said Jack Zhang, owner of local chain Hawaii Pot Shabushabu House with six locations on Oahu. He is applying for a permit to open another.
Even established businesses have trouble getting permits to renew.
“One year to go, it’s ridiculous,” said McDonald’s franchisee Victor Lim. He hires an external reviewer to expedite his permit applications, saying that he would take longer without one.
“If you can remove some of the checks that you have to do with each individual department for an existing business, then I think we could speed up the process,” he said.
The men say some are choosing to build without permits and face fines from the City, rather than lose money, noting that was the case at Chick-fil-A at Ala Moana Center.
“They are lucky to be able to do that. Can you imagine a smaller company coming in to do it? It’s a big expense,” Lim said.
DPP says problems are sometimes outside of its control, such as unclear plans or documents waiting to be physically sent between agencies by the applicant.
“As we review the permit process, permit times will be reduced substantially, but that will take time. Major improvements underway include hiring a sufficient number of staff to conduct reviews, updating our two-decade-old permit software, and improving internal processes for greater efficiency. The new software will have greater automation and will allow owners and applicants to see exactly where their application is in the process and what needs to be addressed moving forward. On July 1, we will require ePlans for all commercial projects to further reduce permit times to physically route paper plans. Lastly, it is important that owners and applicants submit good quality plans that provide a clear scope of work and comply with up-to-date codes and ordinances. This will ensure speedy reviews and prosecutions,” DPP Director Dawn Takeuchi Apuna said in a statement to HNN.
“If we can get some bills through, especially some of the self-certification to release some things and some of the other ordinances that have gotten in our way. I think the road ahead is very promising,” Honolulu Mayor Rick Blangiardi said.
While some are skeptical of the City’s ePlans system, small business owners hope that any improvements will be better than the status quo.
“It is costing everyone, the entire economy, from my restaurant business to the construction business,” Lim said.
They say a ripple effect hurts Hawaii’s small businesses the most.
Copyright 2023 Hawaii News Now. All rights reserved.
https://www.hawaiinewsnow.com/2023/06/10/construction-permit-delays-take-heavy-toll-honolulus-small-business-owners/?outputType=amp
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