When private groups can use City Hall grounds

(a) Notwithstanding Article 2 , the city shall not enter into any lease or permit for the use of all or any portion of the grounds of City Hall and the Mayor Frank F. Fasi Municipal Building for any event to which this article applies, or otherwise grant any license or permit for the exclusive use of the grounds of City Hall and the Mayor Frank F. Fasi Municipal Building, or any portion thereof for any event to which this article applies, except as provided in subsections (b) and (c). No person may hold a major or minor event without obtaining a lease or permit pursuant to this article. (b) The director of customer services may, upon review of an application submitted pursuant to § 38-11.5 , issue a permit, on the terms and conditions applicable to minor events under § 38-11.3 , to any person to hold a minor event. (c) The director may award a lease on the terms, conditions, and rentals applicable to major events under § 38-11.3 and approved by the corporation counsel as to form and legality, for a private organization holding a major event on the grounds and meeting all of the following criteria: (1) The private organization is a not-for-profit corporation or association chartered or otherwise authorized to do business in the State of Hawaii for charitable purposes; (2) The purposes for which the private not-for-profit corporation or association is organized provide direct benefits to the people of the city; and (3) The purposes for which the not-for-profit corporation or association is organized fall into at least one of the following categories: (A) Social services for the poor, the aged, or the youth of the city; (B) Health services, including services for those with any one or more of the following: physical or emotional/mental disabilities; (C) Any one or more of the following: educational, manpower, or training services; or (D) Services to meet a definitive cultural, social, or economic need within the city not being met by any other private organization. (d) Any lease for a major event entered into under, or permit for a minor event issued under, this article shall not be subject to the public bidding requirements of Articles 2 and 3 . (e) In determining whether to enter into a lease or grant a permit under this section, and in conditioning such a lease or permit, the director or the director of customer services, as the case may be, shall consider the potential effects of the proposed event on normal city functions.