Developer gets green light

Construction equipment may begin rolling again next week on the site of the 801 South St. Building B condominium tower in Kakaako after a state court injunction that stopped work in May was lifted Wednesday.

Circuit Judge Karl Sakamoto lifted his injunction after the project’s developer demonstrated that it corrected what the judge ruled was a violation of state historic preservation law.

The decision ends an almost six-month pause for a sold-out condo tower that was in an early stage of construction.

Sakamoto ruled earlier that the developer, Downtown Capital LLC, failed to conduct an archeological survey of the site that tests for the presence of Native Hawaiian burials and other historic artifacts.

Since the May order, Downtown Capital did the survey, which encountered no burials, and it was accepted by the State Historic Preservation Division of the Department of Land and Natural Resources.

That cleared the way for the resumption of construction, which the developer expects can happen next week.

"The development team is very happy to move the project forward," said Ryan Harada, a principal with Downtown Capital LLC, the company developing 801 South St. B. "We have a lot of buyers who have been very patient. We’re pleased with the judge’s decision."

Buyers flocked to 801 South St. B when sales began in March, and the project with 410 units priced from $352,000 to $699,000 sold out in May.

An initial 801 South St. tower dubbed Building A with 635 units also sold out fast and is nearing completion.

However, residents in the existing Royal Capitol Plaza condo tower next to 801 South St. objected to several aspects of Building B, which would be directly Ewa of their residences.

The association of Royal Capitol owners filed a lawsuit in March against the Hawaii Community Development Authority, the state agency that regulates development in Kakaako and approved a permit for Building B in December.

The lawsuit alleges numerous reasons why the permit should not have been issued, but Sakamoto agreed that one — the lack of an archeological survey — merited a halt to construction before full arguments in the case were heard, because disturbing or destroying possible iwi, or human remains, on the site would constitute public harm.

Work was halted May 30 in the midst of ground preparation work for the tower.

Sakamoto heard further arguments in September but took them under advisement.

On Oct. 24, HCDA informed the judge that all requirements of state historic preservation law had been met by the project. An attorney representing Downtown Capital filed a memorandum Friday arguing that the injunction should be lifted.

Carl Varady, an attorney representing Royal Capitol owners, could not be reached for comment Wednesday.

According to the Friday filing by Downtown Capital, Royal Capitol owners complained to Sakamoto about the substance of the survey that the developer said included nine trenches, three probes, eight borings and historical records.

Christopher Goodin, an attorney representing the developer, said in the filing that Royal Capital representatives have no basis to challenge the survey report and didn’t bother to submit public comments to the State Historic Preservation Division while the agency was reviewing the report.

"Plaintiff has not come forward with any evidence that it or its members would suffer irreparable harm unless the injunction is extended," the filing said.