Developer proposes senior rentals

The developer of the latest Ala Moana-Kapiolani area high-rise in need of permits from the Honolulu City Council will bring along a unique feature — its own senior affordable rental building.

California-based Salem Partners wants to develop a 400-foot condominium-hotel at 1500 Kapiolani Blvd., on the site of the former Heald College Building across from Ala Moana Center.

The developer said Friday that a previously announced affordable housing rental tower, which would be built atop the existing three-story Walgreens parking structure next to 1500 Kapiolani, will be marketed for those making 80 percent or less of Honolulu’s area median income.

Resolution 17-221, which asks approval for Salem’s interim planned development-transit (IPD-T) project, will get its first airing before the Council Zoning and Housing Committee on Thursday.

The approval would also include the 68-unit senior affordable rental building, proposed to be 156 feet tall.

Salem does not require a zone change for its plans, but does need a so-called IPD-T permit, as well as a special district permit to build a hotel, to develop the tower taller and at a greater density than typically allowed for a property zoned for community-business. The IPD-T would also allow the developer to provide less parking, yard and height setback and other concessions.

Salem wants to be able to build to 400 feet, up from the current 250 feet; and to a density (floor-to-area ratio) of 9.215, up from 2.5. The developer wants to be able to create 517 parking spaces, fewer than the 805 spaces it would be required under standard zoning.

Such exemptions to standard zoning laws are supposed to be considered if they are within one-half mile of the transit stations for the upcoming East Kapolei-Ala Moana rail project as a way to encourage more development around the rail hubs. But because the Council has not yet approved rules for the stations in the Ala Moana transit-oriented development region, IPD-T permits are being considered on a case-by-case basis until then.

And while there is nothing codified that requires hotel developers to provide affordable housing like their residential counterparts, both the Department of Planning and Permitting and Council members have made it clear they want hotel builders to make a contribution.

Council Zoning Chairwoman Kymberly Pine said the 68 affordable senior rentals computes to 15 percent of the 444 condo-hotel units. That’s lower than has been required of most developers, but city officials are giving Salem credit for its willingness to provide rentals to those making 80 percent or less of area median income, where there is the greatest need for housing, for a minimum of 30 years, she said. (Under federal housing guidelines, a family of four at 80 percent of median is making about $80,000.)

The offering is just a starting point, Pine said, and the Council may try to seek more units from the developer, or at least insert language locking in the 68 units for 80 percent of AMI or below for 30 years.

“I think the language could be a lot more stronger,” she said.

Salem, in its press release Friday, said it is talking to nonprofit affordable housing developer EAH Housing about collaborating on the senior affordable rental project. “We want to do our part to help those in need, particularly seniors,” said Jim Ratkovich, a Salem Partners principal.

Kevin Carney, EAH Hawaii vice president, said his agency appreciates that the affordable units will be dedicated to seniors, “who ordinarily would not have the opportunity to live in this area of town with its many conveniences.”

Salem Partners is affiliated with Mana‘olana Partners, which is constructing the 400-foot Mana‘olana Tower with 109 residential and 125 hotel units at the corner of Kapiolani and Atkinson Drive, less than half a mile away. The Council granted the project an IPD-T in October, requiring the developer to work with a city or state public housing development agency to provide at least 20 rental units within one mile of the Ala Moana TOD area, or contribute up to $3 million to the city’s Housing Development Special Fund.

The Council received some criticism then from affordable housing advocates for not requiring more affordable units.

On Friday, housing advocate George Massengale said he’s supportive of the 68-unit senior affordable building for this project.

“Unless they’re going to be living in an ohana unit, they’re probably going to need someplace to live,” he said of Hawaii’s rapidly growing elderly population.

Massengale said he would typically be worried that units would be aimed only at those making 80 percent AMI, but isn’t bothered here because he trusts Carney and EAH to provide units for those in lower income categories.

Unite Here Local 5, the hotel workers union, has generally opposed the development of condo-hotels, arguing that it does not employ as many workers and results in shoddy service. Local 5 official Ben Sadoski said the union further wants assurances that Salem provides the units it’s promising since it had earlier sought the “air rights” for the affordable building, without guaranteeing that it would pay for their development.