State seeks plans for high-rise condo on Kakaako parcel

The state has released a draft request for proposals to build a residential tower in Kakaako that would rise significantly higher than any existing structure in Hawaii.

Developers would have until May 29 to submit proposals to build a condominium tower up to 650 feet high along with affordable housing and commercial and community space on two acres of state-owned land bordered by Keawe Street, Pohukaina Street and Mother Waldron Park.

Gov. Neil Abercrombie championed the plan dubbed 690 Pohukaina in October as a work force-housing initiative in close proximity to one of the city’s planned rail stations.

The Hawaii Community Development Authority, a state agency governing development in Kakaako, recently released a draft request for proposals. Selection of a proposal is expected in November 2012.

The HCDA expects proposals to meet several broad requirements, which could be adjusted in a finalized version of the bid request slated to be published in January. In the draft, minimum requirements include:

» 300 affordable residential units for sale or rent.

» 500 market-priced units for sale.

» 25,000 square feet of civic space for state office and library facilities.

» 10,000 square feet of community space.

» 30,000 square feet of ground-level commercial space.

» 30,000 square feet of high-tech business incubator and innovation space with broadband connections.

» 650 parking spaces with a preference for a robotic parking system.

» Space for a bike-share facility.

» A green roof terrace to include a community garden for residents and open space for recreation.

Anthony Ching, HCDA executive director, said the agency intends to select a proposal that provides best value to the public, including affordable-housing prices or rental rates.

HCDA rules generally conform to federal affordable-housing guidelines that would restrict 690 Pohukaina’s affordable units to residents earning no more than 140 percent of Honolulu’s annual median income, which equates to $79,970 for a single person or $114,240 for a family of four.

If affordable units were available today, maximum sale prices would be just under $400,000 for one person or a bit over $550,000 for a family of four. Maximum monthly rental rates would be about $2,000 for a studio to about $3,000 for a three-bedroom unit.

However, developers are expected to be competitive on unit pricing. By comparison, the Halekauwila Place rental tower planned by a private developer on state land next to 690 Pohukaina projects three-bedroom unit rent at $1,370 a month.

The HCDA intends to provide land for affordable rentals, civic space, commercial space and parking through a lease up to 65 years. The agency plans to transfer ownership of the land for market condos and associated parking to the developer, though the agency needs approval from the Legislature to sell the land.

The agency also will need to amend development rules in Kakaako to raise the area’s height limit from 400 feet, which is roughly the level to which Hawaii’s highest buildings rise.

The HCDA estimates that 690 Pohukaina will pump $500 million into the economy and require more than 500 construction-related jobs. If the project proceeds as envisioned, construction could be completed by 2019.