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Valuable but largely underused land along Honolulu’s urban waterfront is being readied for development again by a state agency, and this time a controversial element of residential use is not being sought.
The state Office of Hawaiian Affairs is resuming an effort at deciding how to redevelop 30 acres it owns makai of Ala Moana Boulevard in Kakaako, anticipating that it could solicit development proposals for the first of nine parcels — a waterfront site once occupied by Fisherman’s Wharf restaurant — next year.
Kamana‘opono Crabbe, OHA’s CEO, said the agency is proceeding with the master plan and development of the initial parcel under current rules that allow a mix of commercial and recreational uses but not residences.
OHA attempted in 2014 to get the rules changed so it could build residential towers in the area known as Kakaako Makai, but the Legislature didn’t pass the bill.
“Our conceptual master plan for our Kakaako Makai properties is based on utilizing existing entitlements,” Crabbe said in an email Thursday. “If the opportunity arises in the future to secure additional entitlements, OHA would need to carefully consider how those additional entitlements help us meet our fiduciary duty to our trust; align with our cultural and stewardship values; align with our agency vision and mission; and are viewed by our beneficiaries and the community.”
To help shape OHA’s conceptual master plan, the agency is holding community meetings to explain its goals and gather public input.
“What would you create if you were given acres of prime waterfront land in downtown Honolulu today?” OHA asks in a video posted at oha.org/kakaako. “How would you lay the foundation for our keiki so they could thrive in the 21st century in a way that was pono (righteous) — a way that was truly Hawaiian?”
The 30 acres were transferred from the Hawaii Community Development Authority, a state agency overseeing development in Kakaako, to OHA in 2012 as payment for overdue revenue from ceded lands. OHA’s mission is to support Native Hawaiians.
The Legislature approved the 2012 settlement based on the land’s appraised value of roughly $200 million. But some lawmakers felt that the deal shortchanged OHA, and tried to pass a separate bill in 2012 that would have permitted more lucrative residential development.
Residential development had long been allowed in some parts of Kakaako Makai under HCDA zoning regulations, but the Legislature passed a law in 2006 that outlawed such use in the area with the intent to kill a then-pending agreement under which HCDA had selected local developer Alexander &Baldwin Inc. to redevelop much of the same lands with a mix of uses that included retail, park space and three condominium towers.
The bill in 2012 to allow residential use on two parcels did not pass. Another bill in 2014 through which OHA sought to permit residential use on two or three of its Kakaako Makai parcels also died after contentious hearings and demonstrations at the state Capitol.
OHA at the time said an analysis it commissioned showed that it would be very difficult to achieve a financial return consistent with land valued at $200 million based on the allowed types of development, and that residential use on two or three parcels would make such a return possible.
But some residents and lawmakers felt that the 2006 decision to prohibit residential use in the area shouldn’t be undone.
In 2014 OHA anticipated moving ahead with a feasibility study on specific uses, a market analysis, an environmental impact statement and community outreach to create a master plan and position initial redevelopment for permitting in 2016. But that timetable fell away after the bill was defeated.
OHA did hold a round of community meetings in 2015, and feedback included suggestions for development that included a hotel for kamaaina travelers, restaurants and spaces for gathering and events.
Now OHA is in the midst of another round of public meetings statewide to solicit ideas and feedback. Generally, the agency is trying to strike a balance between culture and commerce, the later of which would generate income that goes toward OHA’s mission and helps its beneficiaries.
About 40 people showed up to a presentation last week at Kewalo Basin that was one of four meetings on Oahu earlier this month. Four neighbor island meetings are also being held, and OHA said it will also seek feedback online.
At the Kewalo meeting, Malia Kaaihue, president of a company called DTL that is helping OHA develop its conceptual master plan, said preparation of an environmental impact statement is expected to start before the end of June and be finalized in mid-2018. After that, proposals from private developers could be sought for the former Fisherman’s Wharf site.
Kaaihue said OHA expects to receive $4.3 million this year from the 30 acres that include parcels leased for parking, an office building, a University of Hawaii marine research facility, and restaurant and wedding chapel 53 by the Sea. Income from the parcels in 2015 was $2.1 million.
At full build-out under
existing land uses, OHA projects earning $15.8 million annually.
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