The developer of a planned wedding chapel/restaurant/boat repair facility at the Ala Wai Small Boat Harbor paid the state back rent totaling $417,662 on Tuesday to avoid having his lease terminated.
Honolulu attorney Keith Kiuchi, principal of developer Honey Bee USA Inc., said he is ready to move forward on the project with a new equity partner who would invest $5 million, while he separately secures a $28 million loan.
The state Department of Land and Natural Resources’ Division of Boating and Ocean Recreation recommended Friday that the state terminate its lease with Honey Bee for nonpayment of rent and a $938,000 performance bond.
However, the board decided to defer action for 60 days with the understanding that Kiuchi would bring lease rent current by Wednesday and continue to pay rent. Kiuchi said he will disclose his financing partner at the board’s next meeting on June 12.
"We have a strong equity joint venture partner," Kiuchi said on Wednesday. "We told the board on Friday we had two loan offers but because the equity partner is a very strong entity we thought we probably would get other offers."
The state entered into an agreement with Kiuchi in 2009 to build a boat repair facility and fuel dock with restaurants, entertainment venues, wedding chapels and space for the U.S. National Kayak Team.
The Division of Boating and Ocean Recreation issued Honey Bee a 65-year lease, which began Jan. 1, 2014, for an annual minimum base rent of $821,652 per year, with periodic rent increases through the first 30 years.
Kiuchi fell behind on the project’s responsibilities after Kyoto, Japan-based Hideaki Shimakura ended his role as the project’s primary funder. He expects to close on a $28 million loan in June.
The three-building complex designed to serve as a hub for boating and ocean activities includes 44,153 square feet of leaseable space and a 17,000-square-foot boat repair dock with parking. Construction, which was supposed to start early last year, is expected to begin in late June or early July, Kiuchi said. The facility is scheduled to open in September 2016.
Since 2010, Honey Bee has paid the state more than $1.1 million in rent and development fees. The company also cleared the property, removed contaminated soil, razed a building, secured various land-use entitlements and approvals, and obtained city permits.
Ed Underwood, administrator of the Division of Boating and Ocean Recreation, said, "It’s good for people to know that he (Kiuchi) has come current. We’re hopeful that this project can be completed. There’s a lot invested in it so far."
