The developer of a regional mall in East Kapolei — similar in size to Pearlridge Center — plans to break ground in July and open the first phase in 2014.
An affiliate of Floridabased DeBartolo Development LLC moved a step closer Thursday to beginning work on the $400 million mall, hotel and office complex named Ka Makana Ali‘i.
The state Department of Hawaiian Home Lands, which is leasing 67 acres for the project to DeBartolo, filed a draft environmental assessment with the state Office of Environmental Quality Control.
“The filing of the draft EA is another sign of progress for us, another step toward a major retail center that will provide jobs, shopping and entertainment opportunities for residents of the Ewa-Kapolei region, including thousands of Hawaiian homesteaders, as well as revenue to finance diverse homesteading opportunities,” said Alapaki Nahale-a, director of DHHL.
The assessment provided more detail on timing of the project, which will be built in two phases totaling 1.1 million square feet of retail space integrated with 200,000 square feet each of hotel and office buildings.
Pearlridge Center also has 1.1 million square feet of retail space.
DHHL said work should begin on the initial phase — a neighborhood retail center with 200,681 square feet of space on 20 acres — in July. A second phase with almost 1.2 million square feet on 47 acres is expected to open in 2015.
The draft environmental assessment is the second major advancement for the project this year. In March, the Hawaiian Homes Commission approved final lease terms that allowed DeBartolo to start with the small initial phase and defer paying rent on most of the land for up to six years. Ka Makana Ali‘i was first announced in 2006, and represents an ambitious goal to develop an open-air complex of 22 buildings in an area envisioned by the city to accommodate most of Oahu’s population growth.
DeBartolo initially anticipated opening a first phase in 2009, but pushed back the projected timetable three times before this year.
The environmental assessment will address possible effects on the land and surrounding communities.
Preliminary archaeological surveys have not resulted in culturally significant discoveries such as sinkholes or human remains. The report suggested that the site’s previous use for sugar cane cultivation and construction activity reduce the likelihood that such discoveries will be made, though more surveys will be done.
DHHL said in the report that community groups have expressed concerns about the project creating or adding to traffic congestion. The agency said existing delays at intersections along Kapolei Parkway may increase, but traffic flows are projected to remain at acceptable levels under federal standards. The agency also said some road modifications are planned.
Ka Makana Ali‘i is designed to have 4,497 parking spaces, including 1,826 in an underground garage. The developer also plans to encourage mass-transit travel by establishing bus service to the center from nearby planned rail stations and other areas.
The report said new shopping options and job opportunities will have more of a positive impact on surrounding communities.
“A regional mixed-use center will greatly benefit the surrounding community, both in terms of new employment opportunities and in terms of reducing traffic congestion on the H-1 by helping to reverse traffic flow,” the report said. “It will provide residents of East Kapolei and areas along Kapolei Parkway an alternative to trips to more congested shopping centers.”
DHHL said permanent jobs at Ka Makana Ali‘i should peak at 3,915, including 1,740 in retail, 870 in offices and 380 at two hotels each with 200 rooms. Direct construction jobs are estimated at 552 a year on average over three years.
In addition to finalizing the environmental assessment, DHHL needs approval from the state Land Use Commission to reclassify the site for mixed-use. The LUC previously classified the site for a regional sports complex under an old state plan. Though the site is zoned for agriculture by the county, DHHL is exempt from county zoning regulations.