State approves 2 Ward towers

The owner of Ward Centers now has approval to begin developing three condominium towers at its 60-acre property in Kakaako, after a state agency authorized high-rises Nos. 2 and 3 on Wednesday.

Approval from the Hawaii Community Development Authority followed a go-ahead for a first tower granted last month by the agency that regulates development in Kakaako.

“We’re excited to get started,” said David Striph, senior vice president in Hawaii for Dallas-based Howard Hughes Corp., the project developer and owner of Ward Centers.

The three towers represent an initial phase in a Hughes Corp. master plan to develop 22 towers over 15 years or so, and transform Ward Centers from a largely retail and warehouse complex into Ward Village with 4,300 condo units mixed with retail.

Units in all three towers are projected to be offered for sale by the end of the year. Construction is expected to start early next year and be completed in 2016.

The tower approved last month is at 404 Ward Ave., just Ewa of Sports Authority and Ross Dress for Less, and features 424 moderate-priced units.

Of the two towers approved Wednesday, one is a luxury condo overlooking Ala Moana Beach Park makai of the Ward Entertainment Center at the corner of Kamakee Street and Ala Moana Boulevard. This project is designed with 177 units in the tower, a 317-stall parking garage, 10 townhouses fronting Ala Moana and some retail space.

Hughes Corp. asked HCDA to allow this tower to encroach 45 feet into a 75-foot setback area on Kamakee. The agency granted the request, but added a requirement to offset the change.

Under HCDA rules binding the Ward Village master plan, towers must be 75 feet from view corridor streets such as Kamakee. In exchange for building the tower 45 feet closer to the street than rules permit, Hughes Corp. will have to set back a future tower on the other side of Kamakee Street directly across from the approved tower by 120 feet, or an extra 45 feet.

Hughes Corp. had not proposed to set the tower 120 feet from the street, but said the requirement by HCDA was fine.

The developer said it needed to build the luxury tower closer to the street because the space available, a parking lot, is constrained by equipment that includes air conditioning and other mechanical systems for Ward Warehouse.

The equipment, the size of two semitrailers, can’t feasibly be moved, according to the developer, and would force the shutdown of Ward Warehouse and all its retail tenants.

“There is nowhere to move the equipment,” said Nick Vanderboom, development senior vice president for Hughes Corp.

Hughes Corp. plans to build three more towers on the block occupied by Ward Warehouse, but that would be in a later phase of development.

Another major rule departure granted by HCDA for the tower was to allow the parking garage to be 65 feet high instead of 45 feet. A 45-foot limit applies to the Ward Village master plan, but was raised to 65 feet in 2011.

Anthony Ching, HCDA executive director, said the extra height allows the garage to be lined with retail and residences that will make the street-front more attractive.

Public testimony at Wednesday’s hearing was nearly unanimously supportive of the project. About 20 people, including several architects and some contractors, testified.

The second tower approved Wednesday is on the site of Pier 1 Imports on the Diamond Head side of Kamakee Street, a little mauka of the luxury tower. This project is designed with 312 units, including 82 flats and townhouses in low-rise buildings fronting a parking garage.

The biggest rule deviation sought for this tower was building its parking garage 75 feet high. The change was granted to allow retail and residences to screen the garage.

Both projects passed by 7-0 votes by HCDA board members.