Developer to seek city concessions for Waikiki rental

OliverMcMillan, the company developing approximately 500 rental units on Queen Emma trust land, told the Waikiki Neighborhood Board on Tuesday that it plans to ask the city for variances to increase density, height and transitional setbacks in exchange for providing affordable housing.

Kris Hui, OliverMcMillan development director, said the company is developing the 2.52-acre project under a planned development apartment application, which allows for zoning variances in exchange for community givebacks.

Hui said the company plans to ask for an additional 25 feet above the 260-foot zoning. It also seeks slight transitional height setbacks to accommodate design for the tower and parking podium.

“The encroachments are necessary to build our affordable housing, and they are really nominal,” Hui said.

Hui said the project’s community benefit will add approximately 100 affordable housing rentals, split between four refurbished low-rise walk-ups and a new 285-foot tower, which will sit on the current Food Pantry site, which will close when the project breaks ground.

The units, which range from studios to two bedrooms, will remain at rates catering to 80 percent of area median income for 15 years.

“We are building gap housing, which is underserved,” said Blair Suzuki, OliverMcMillan senior project manager.

At today’s rates the affordable income limits would be $58,640 or below for a single person or $66,960 or below for a couple, Hui said. The balance of the 500-unit project, comprised of studios to three-bedroom units, would be rented at market rates, he said.

The project also will include a stand-alone ABC store, and approximately 40,000 square feet of retail space on the tower’s two ground floors, including a 24,000-square-foot grocery store to replace the 20,300-­ square-foot Food Pantry.

Hui said the project’s environmental assessment is expected to be filed by early February. Construction could start by summer 2019 with opening anticipated for 2021.

In other business, concerned citizens asked for support in protesting a liquor license application for a Denny’s under construction at 2538 Kuhio Ave.

The 5,000-square-foot Denny’s is expected to open by spring.

Medhat A. Bechay, the franchise owner, applied for a license that allows businesses to serve alcohol from 6 a.m. to 2 a.m. daily. Due to protests last week, the Hono­lulu Liquor Commission continued the public hearing to 4 p.m. Thursday at the commission offices at 711 Kapiolani Blvd.

Bechay has said he plans to ask the commission to restrict his application to inside sales of beer and wine between 11:30 a.m. and 10 p.m. But several Waikiki residents say they are opposed to alcohol service at the restaurant, adjacent to Jefferson Elementary School.

Waikiki resident Melissa Filek and several others encouraged members of the public to help them protest on Thursday. If enough residents are opposed to the license, the commission would have to statutorily deny it.

“There’ll be close to 100 of us at the meeting … We’ll be arguing against the Denny’s 66 feet from the elementary school,” Filek said.

“We’ll be wearing red, and we won’t be taking ‘no’ for an answer,” said Waikiki resident Rachel Linden.