Raise the price for TOD perks

Even as political leaders struggle over funding for rail and debate its Ala Moana endpoint, some developers are hustling to secure land-use advantages under transit-oriented development (TOD) allowances. But it must be emphasized that truly affordable housing was promised as a major TOD boon to address Oahu’s severe shortage, estimated at 24,000 units.

That’s why projects that promise luxury condo-hotels in exchange for privileges such as exceeding height limits or street setbacks should be viewed very skeptically by city officials. Developers need to hear the message, repeatedly, that they are expected to be part of our housing solution, not a reluctant self-interested player.

Today, the City Council’s Zoning and Housing Committee will give initial review to Salem Partners’ plan to develop a 400-foot condominium-hotel at 1500 Kapiolani Blvd., on the site of the former Heald College across from Ala Moana Center, about two blocks from the rail’s expected terminus. It’s a plan with some promise, especially with its latest iteration that adds 68 senior affordable rental units, targeted for those making 80 percent or less of area median income (that computes to about $64,400 for a couple).

But the offering is just a starting point — as Zoning Chairwoman Kymberly Pine has rightly noted. The 68 affordable rentals, proposed via “air rights” as a midrise building atop the current Walgreens garage, comprise just 15 percent of the condo-hotel’s 444 units — fewer than has been required of most developers.

For that, Salem Partners wants exemptions for its condotel’s double-tower structure to exceed the area’s current 250-foot limit, to allow greater building density (floor-to-area ratio), and to provide about 300 fewer parking spaces than the required 805.

The idea of divesting more residents of their cars, especially with the planned Ala Moana rail hub and walkable retail nearby, sounds wholly reasonable — as does housing for Hawaii’s aging population.

EAH Hawaii vice president Kevin Carney, who is working with Salem Partners on the affordable units, lauded the focus on seniors, “who ordinarily would not have the opportunity to live in this area of town with its many conveniences.”

In fact, the area’s convenience and walkability are expected to increase vastly. The Kapiolani corridor, stretching from Ala Moana Center to the Hawaii Convention Center, is on the cusp of major transformation. The land under Walgreens has changed hands thrice over the last several years; Target is due to open across the street in October. At least eight tower projects have been disclosed for the area; the first, the Kapiolani Residence condo mauka of Ala Moana Hotel, has started construction. Others include Avalon Group’s plans to redevelop its 1400 Kapiolani Blvd. site with a tower of market-priced condos, affordable rental apartments and hotel rooms; as well as the Hawaii Ocean Plaza condo-hotel just ewa of the Avalon site.

Salem Partners is positioning itself well at the forefront of the district’s reboot. Before the 1500 Kapiolani project, it skillfully secured TOD-type exemptions for its Manaolana Place condo-hotel, to be built on the corner of Kapiolani Boulevard and Atkinson Drive. In exchange for height, density and other land-use exemptions, terms include building at least 20 rental units within a mile of the proposed rail station or pay up to $3 million into a city housing development fund.

As Kapiolani revamps and TOD exemptions become increasingly attractive to developers, city officials and Council members must be vigilant and hard-nosed on citizens’ behalf to press for true community benefits and affordable housing. Just one year ago, for example, 1500 Kapiolani’s initial proposal did not include the 68-unit rental midrise.

Only 2,000 to 3,000 housing units are being supplied here annually, and most are priced in the luxury bracket. The promise of rail-related TOD beckons, but shrewd developers can’t be the only ones heeding the call. City leaders must keep the essential promise to Oahu’s housing-hungry citizens.