UH seeks to save cash by trimming some work at West Hawaii campus

The University of Hawaii is seeking ways to close an $8.8 million shortfall so it can begin construction of a long-planned community college campus in West Hawaii.

UH wants to build the Hawaii Community College Palamanui Campus on a 78-acre site about a mile mauka of Kona Airport. Its first phase would accommodate 700 students.

UH put together $16.8 million in public and private money for the project, but after low bidder Nan Inc., with a bid of $21.5 million, withdrew, the next lowest was $25.6 million from F&H Construction.

Part of the funding gap was addressed Feb. 7 when the UH Board of Regents Budget Committee approved a request to redirect $6.5 million in housing renovation bond proceeds for Palamanui, said John Morton, UH vice president for community colleges.

The full board is scheduled to vote on the request Thursday.

Although that would still leave a $2.3 million shortfall, Morton said the university is trying to reach an agreement with the contractor to defer construction of some items, which would lower the cost.

"If we can do that, we can issue the contract and get the project going," Morton said.

State Rep. Denny Coffman (D, Naalehu-Captain Cook-Keauhou) said that is the preferred outcome. Otherwise, the Legislature would need to appropriate the $8.8 million through the budgeting process, resulting in a delay of six months or more, he said.

Coffman said the community has waited for more than 30 years for a community college in the area. The Palamanui campus site is more centralized than the present Kealakekua campus and closer to resorts, whose chefs have a relationship with HCC culinary students.

"West Hawaii is the last major underserved area for education," Coffman said. "While there has been a community college, it’s been relegated to some rented office space in a strip mall next to a bar and a pool hall (in Kealakekua).

"We’d like to grow our programs for culinary and nursing programs, possibly (programs) in the energy area. You can’t grow it if you don’t have the land space. The culinary institute is doing real well, but it needs a proper campus to put the right equipment into it."

Plans for the first phase of the Palamanui campus include a culinary arts building and a health science and student services building, with a total of 23,100 square feet of classroom, laboratory and support space — nearly double the rented space at the Kealakekua campus.

A road connecting Kaiminani Drive to the campus site has been built. Water lines and a sewage treatment facility are in place.

The campus would be next to the planned Palamanui residential and commercial development by developer Palamanui LLC, a partnership of Hunt Cos. Hawaii and Charles R. Schwab.

The Legislature appropriated $7.5 million last year for the campus, and Palamanui LLC contributed $9.7 million. About $400,000 has been spent on design, leaving $16.8 million.

The architectural design firm Urban Works has produced plans and final design documents.

Nan Inc. did not respond to inquiries about why it pulled out.

State Sen. Josh Green said he hopes regents will approve the proposal to redirect the $6.5 million in housing renovation money.

"After such a long wait for the community in West Hawaii, this jump-start for the campus has to happen now," said Green (D, Naa-lehu-Kailua).

"I’ve watched most of a generation have to leave the community for higher education," he said. "For a lot of the kids, the community college program suits them well, and then they can move on to Manoa or Hilo."

He said he foresees partnerships with other universities, the Natural Energy Laboratory of Hawaii nearby and other organizations in marine sciences, energy, hospitality and culinary arts.

The long-range plan for the campus is to build additional phases to increase capacity to 1,400 students.