Ala Wai Small Boat Harbor redevelopment plan progresses

The state’s decision to move forward on redevelopment of the Ala Wai Small Boat Harbor through a public-private partnership drew criticism Friday during a Board of Land and Natural Resources meeting.

The board voted to allow the state Department of Land and Natural Resources Division of Boating and Ocean Recreation (DOBOR) to issue a request for proposals to redevelop four tracts of land at the Ala Wai Small Boat Harbor under a lease arrangement that could extend up to 65 years.

Ed Underwood, DOBOR administrator, said the agency intends to seek proposals for an 11-acre area with four parcels and two moles, including fast, submerged and reclaimed lands.

“The goal is to transform the harbor into a world-class marina that meets the needs of residents and visitors who use the ocean for a myriad of activities. This transformation includes development of the fast lands to improve the aesthetics of the harbor, especially since it is considered a gateway to Waikiki,” Underwood said.

Underwood said DOBOR has not yet finalized its request for proposals, but planned to keep the language broad. Underwood said projects could include any uses allowed under the Hawaii Revised Statutes, City and County of Honolulu Zoning, Special Management Area Ordinances for the Subject Property, and the Waikiki Special Design District.

However, he said, developers would be expected to incorporate elements collected by DTL Hawaii, an organization that DOBOR paid $99,885 to insert public input into the RFP process.

“I thought the scoping was to tell us what we wanted,” said BLNR board member Keone Downing, who voted no on the measure along with BLNR board member Thomas Oi. “Have we decided what we want … or are we just shooting a shotgun, looking for the deepest-pocket developer to tell us what they want to put there?”

Waikiki Neighborhood Board member Kathryn Henski read testimony from Waikiki Board Chairman Bob Finley expressing concern that “the state may lease property to a developer for major buildings without any public interaction between the boaters and the residents impacted in that area.”

Anxiety about the future of the public recreational area has been heightened since the state broadened the harbor’s redevelopment options through Act 197 and HRS 171-6(19), paving the way for a public-private partnership. It didn’t help that its first attempt at a partnership failed after Honey Bee USA went bankrupt in 2016, leaving a wake of creditors, including the state, which is still owed $500,000.

Without more oversight, Henski said she fears that DOBOR’s second attempt at a public-private partnership at the Ala Wai Small Boat Harbor will end just as badly.

Ilikai Apartment Building General Manager Rob Johnson said he was surprised to see the item on BLNR’s agenda since state lawmakers had deferred similar measures.

“The House Finance Committee deferred House Bill 1988, yet here we are with DOBOR trying to do an end run,” said Johnson, who was one of about eight Waikiki stakeholders who cared about the topic enough to wait the six hours that it took for BLNR to get to it.

Michelle Matson also encouraged BLNR to defer the measure, saying that the public should review the RFP before it goes out and that the state should consider master-planning Ala Wai Small Boat Harbor, which deserves the same attention that was given to Kakaako.