The state Department of Land and Natural Resources’ Division of Boating and Ocean Recreation recommended on Friday that the state terminate its lease with Honey Bee USA Inc., the developer of the planned Waikiki Landing at the Ala Wai Small Boat Harbor for nonpayment of nearly $350,000 in back rent and a $1 million performance bond. 

However, the Board of Land and Natural Resources deferred the action for 60 days with the understanding that the principals would bring their lease rent current by next Wednesday and would present an acceptable financing partner at the board’s next meeting. The board also ordered Honey Bee to keep its rent current, pay its performance bond and cure any other defects in the next 90 days. 

“They’ll get it done or we’ll move on to someone else,”  Ed Underwood, the Division of Boating and Ocean Recreation’s administrator, said after the meeting. 

The state entered into an agreement with Honolulu attorney Keith Kiuchi, Honey Bee’s principal, in 2009 to build a boat repair facility and fuel dock combined with restaurants, entertainment venues, wedding chapels and space for the U.S. National Kayak Team.

The Division of Boating and Ocean Recreation issued Honey Bee a 65-year lease, which commenced on Jan. 1, 2014, for an annual minimum base rent of $821,652 a year, with periodic rent increases through the first 30 years. But construction still hasn’t started on the three-building development, which includes 44,153 square feet of leaseable space and a 17,000-square-foot boat repair dock with parking.

New city zoning and state legislation paved the way for the planned complex, which was designed to serve as a hub for boating and ocean activities. Since 2010, Honey Bee has paid the state more than $1.1 million in rent and development fees. The company also cleared the property, removed contaminated soil, razed a dilapidated building, secured various land-use entitlements and approvals, and obtained city permits. As a result of the preparations, a long-time fuel dock was shuttered and a boat repair facility was razed.