A proposal from PACREP 2 LLC, the Los Angeles-based developer of the planned Ritz-Carlton Residences Waikiki Beach luxury tower, to expand the project with an adjacent Ritz-Carlton second tower drew mixed reviews at a Friday permit hearing.

PACREP needs a Wai­kiki special district permit to move forward on its plan to develop a new 39-story, 350-foot resort mixed-use tower on a nearly 2.6-acre lot at 2139 Kuhio Ave.

City Department of Planning and Permitting Director George Atta is not expected to issue a decision until July 14.

The company expects to begin selling units in the project soon and start construction after receiving its required permits with delivery by the end of 2016 or early 2017.

Jason Grosfeld, senior managing director of PACREP 2, said demand for 2121 Kuhio, its first Ritz-Carlton-branded tower, drove the company’s decision to build the adjacent 2139 Kuhio Avenue project.

"Most of the inventory at tower one was sold in a very short period of time during the spring of last year," Grosfeld said. "Demand for tower two feels really good. We’ve got lots of qualified prospects. We expect pricing to be fairly comparable to tower one, where unit sales ranged from the $500,000s to over $15 million."

Proponents of the two towers include the Hawaii Construction Alliance, the Pacific Resource Partnership, the AFL-CIO Trades Council and some members of Waikiki’s business and hotel community. They say the two towers will improve a derelict stretch of Kuhio Avenue, create more public open space, enliven a tired retail corridor, reduce crime, create jobs and provide additional high-end hotel rooms.

Critics, who have included some members of the Waikiki Neighborhood Board, nearby condominiums and Unite Here Local 5, have objected to 2139 Kuhio for many of the same reasons that they panned the 2121 Kuhio Avenue project. They say that this new tower also creates too much density, does not guarantee hotel jobs and does not offer enough parking. Despite modifications, some also say that the new plan violates Waikiki guidelines, which protect views and limit heights. Local 5, which previously filed a civil lawsuit against 2121 Kuhio, testified against this latest project.

"The lawsuit on the previous 2121 Kuhio project remains unresolved, and here we are doubling the problem," said Eric Gill, financial secretary-treasurer of Unite Here Local 5. "We want them to do a full environmental impact statement rather than an environmental assessment, which has allowed them to gloss over issues about jobs, parking, height and configuration."

But Grosfeld, who was also involved in development of the Trump International Hotel Waikiki Beach Walk and the Watermark, said the project has been modified to address community concerns. Grosfeld said that the proj­ect’s new stacked design and curved orientation create a smaller building footprint and thinner profile.

The Waikiki Neighborhood Board, which is on rec­ord with the city as opposing the 2139 Kuhio proj­ect, responded more favorably when PACREP 2 presented the modifications during its monthly meeting May 14.