Nearby residents oppose condo tower proposal

One day they may be neighbors, but hundreds of prospective future Kakaako condominium owners are clashing with hundreds of existing Kakaako condominium owners.

The conflict was laid out Wednesday at a public hearing of a state agency considering a developer’s plan to build a 410-unit condo known as 801 South St. Tower B next to the existing 299-unit Royal Capital Plaza condo tower at the Ewa end of Kapiolani Boulevard.

The Hawaii Community Development Authority, the agency regulating development in Kakaako, received about 1,000 comments supporting or opposing the project. Most of the comments were written, though about 50 people testified in person during the contentious four-hour hearing.

Opponents, largely Royal Capital residents, contend that Tower B, which is the second phase of an already approved Tower A•with 635 units, is too dense for the site and will overwhelm infrastructure including streets and sewers.

Project developer Downtown Capitol LLC said its project will deliver badly needed homeownership for moderate-income residents under HCDA•workforce-housing rules.

Representatives of Downtown Capital also have suggested that residents of the Royal Capital tower built in 1987 are trying to stop Tower B because it will block their views.

Some Royal Capital residents denied that charge, but others have been blunt about it.

"In addition to losing what is left of our view, we will be forced to look at an aesthetically unappealing structure,"•Brandon Griffith, an architect and Royal Capital resident, said in written testimony. "The proposed residential tower will literally eclipse Royal Capital Plaza."

Many Royal Capital residents submitted versions of a form letter that suggested a variety of reasons they could choose for opposing Tower B.

Webster Nolan, a Royal Capital unit owner who testified in person, said Tower B won’t just affect views, it will cut out sunlight and create more shadows and noise.

Royal Capital owner Tricia Dang said the project will create a "concrete curtain" backdrop to Honolulu’s civic center.

While much opposition was from Royal Capital residents, others also expressed concerns or urged HCDA to reject the Tower B plan.

State Rep. Scott Saiki said he shares the concerns of Royal Capital residents over density, infrastructure, view planes and other issues. Saiki also questioned whether HCDA’s workforce-housing rules are good affordable-housing policy.

The Historic Hawaii Foundation objected to Tower B because the developer is proposing to demolish about half of a historic building constructed in 1929 for the Honolulu Advertiser newspaper so it can fit a 10-story parking garage next to the 46-story tower.

Kiersten Faulkner, foundation executive director, opposed the project because a plan the developer has mentioned for Hawaiian Dredging Construction Co. to buy the front piece of the old News Building and restore it for use as the firm’s headquarters is only a tentative plan that could lead to demolition and no preservation.

HCDA sought comments from the State Historic Preservation Division on Aug. 28, but that agency has not yet responded.

To date, HCDA•has received 271 written comments, including comments submitted online, opposing Tower B.

The agency also has received 657 written comments supporting Tower B.

Most of the supportive comments were represented by 419 letters submitted by Downtown Capital from Tower A unit buyers.

Some of those buyers also testified in person and said opportunities to buy affordable housing in Hono­lulu are rare and shouldn’t be denied.

"The need for this type of development is really great,"•said Reid Okaneku, a Tower A buyer.

Niki Tejata, a police officer who bought a studio in Tower A, countered some criticism from Tower B opponents that 801 South St. isn’t for moderate-income workers. "I am the workforce,"•she said. "You’re looking at it right now."

Downtown Capital, which is led by local affordable-housing builder Marshall Hung, said overwhelming demand exists for its projects that have included Country Club Village 6, 215 N. King and 1133 Waimanu.

For Tower A, which is sold out except for a few studios, the developer’s real estate broker said about 6,000 prospective buyers picked up applications.

"There is a tremendous unmet demand," said the broker, Jason Nishikawa.

Downtown Capital has proposed 801 South St. under an HCDA workforce housing rule that was adopted in 2011 and allows twice as much density for projects that receive no government financial assistance and make at least 75 percent of units affordable to residents earning between 100 and 140 percent of Hono­lulu’s annual median income.

The income limit ranges depending on family size. For a single person the limit is $84,574. For a family of four the limit is $120,820.

Units in Tower A were priced from $250,000 to $550,000 for studios, one-bedroom and two-bedroom condos. Tower B units range from one to three bedrooms and are priced from $360,000 to $693,000. Of the 410 units planned, 45 have three bedrooms and uppermost prices, though all units meet federal affordability guidelines for moderate-income limits.

The developer proposes to reserve for an initial 60-day sale period all Tower B•units for buyers meeting the income limits.

Another request by the developer is to exceed a 65-foot height limit for parking garages to build a 107-foot garage with 788 stalls.

HCDA•allowed a 102-foot garage with 915 stalls next to Tower A. The developer said building a separate garage would save $10 million and was necessary to deliver units in the moderate price range.

A decision by HCDA on Tower B is scheduled to be made after a second public hearing scheduled for Dec. 4.