Kalia Marketplace, a planned commercial and entertainment center that is designed to redevelop the gateway to Waikiki and serve as the hub for boating and ocean activities at Ala Wai Harbor, is expected to resume construction this month after a lengthy delay.
Developer Honey Bee USA Inc. originally envisioned March 2013 as the opening month for its $28 million project, which includes three new buildings with a total interior of 40,000 square feet and a 17,000-square-foot boat repair dock with 51 parking stalls underneath.
However, plans were pushed back after Honey Bee ran into challenges securing the state lease that allowed development of two Ala Wai Harbor parcels covering 53,568 square feet.
Final lease approval was delayed until last December due to additional environmental requirements, difficulties subdividing the site and political uncertainty over whether the now-repealed Public Land Development Corp. or the state Department of Land and Natural Resources’ Division of Boating and Ocean Recreation, or DOBOR, should execute the agreement, said Honolulu attorney Keith Kiuchi, who represents Hideaki Shimakura, the Kyoto-based head of Honey Bee.
"At this point the lease is being finalized. We had hoped to get it by February or March," Kiuchi said. "I’d guess we are about six months to a year behind on this project."
Later this month, DOBOR Administrator Ed Underwood said he anticipates issuing the lease, which once in effect will bring $900,000 in rent to the state annually.
"DOBOR already has given a right-of-entry permit to Honey Bee, and Honey Bee has started site prep and driving piles," he said.
While Hawaiian Dredging did some preliminary construction work, Kiuchi said the company’s financing requirements stopped the process from advancing without a signed lease.
Based on conversations with DOBOR, Kiuchi said he anticipates that by Oct. 21 construction could begin in earnest.
"If that happens, we could have the project completed by July or August of 2014," he said.
Jeffry Hossellman, a retired attorney and longtime Ala Wai boater, said he supports the improvements but is frustrated by the delays, which have affected the community. The structure for repairing boats has been torn out for more than a year, and the harbor’s only fuel dock is gone, he said.
"So in a whole harbor of a thousand boats, nobody can get fuel," Hossellman said. "If they are going to be a responsible tenant in that harbor, Honey Bee needs to get started dispensing fuel."
Deborah Ward, spokeswoman for the state Department of Land and Natural Resources, said Honey Bee was not given a fuel dock deadline.
"DOBOR did hire an interim fuel truck service, but due to very poor fuel sales, the vendor determined that it was not feasible to continue service," Ward said.
Kiuchi said Honey Bee will work to get the fuel docks operable for the development’s opening.
