The state is soliciting developers again to revitalize its run-down Ala Wai Small Boat Harbor in Waikiki 11 years after making a similar attempt that failed amid much public criticism.
Most of the land around the harbor is being offered for lease to a developer for up to 55 years in a competitive bidding process that some harbor users have called inappropriate privatization of public lands.
The state Department of Land and Natural Resources published a request for proposals Friday seeking competitive bids to redevelop 11 acres that include parking areas, public restrooms, a former fuel dock, a former boat repair site and submerged lands extending off the fuel dock and boat repair sites.
DLNR had been considering and planning for the invitation since 2016 when a prior lease with a developer was voided.
The agency is attempting to improve the property at little cost to taxpayers after decades of substandard maintenance, in part due to low user fees.
DLNR’s Division of Boating and Ocean Recreation said in a statement that rental income sought in the lease will pay for much-needed repairs to the harbor and other recreational boating facilities in Hawaii.
“A significant reason for DOBOR’s (request) is to make the Ala Wai a more attractive and inviting destination for visitors and locals, both boaters and non-boaters alike,” the statement said. “DOBOR understands that this cannot be achieved solely with state resources, so it is seeking to partner with a private developer to realize this goal.”
Yet many community members have said the state should be the one improving its own asset, and fear that private developers will pursue inappropriate plans for the site in the name of profits.
DLNR’s invitation said plans should promote maritime activities, include green space, maintain public access, maximize financial returns to the state in a timely manner and redevelop the parcels to their “highest and best uses consistent with harbor uses.”
DLNR first tried to obtain competitive development proposals for two underutilized sites at the harbor in 2008. Two qualified bidders expressed interest, but only one submitted a proposal. The $24 million plan dubbed Waikiki Landing was made by Kyoto-based developer and yacht racer Hideaki Shimakura, heading the firm Honey Bee USA. Shimakura’s plan included three buildings with retail, restaurants and two wedding chapels along with a new fuel dock and boat repair facility.
Honey Bee obtained an environmental approval in 2010, a zoning waiver from the Legislature in 2011 and a 65-year lease from DLNR in 2013. Demolition of a fuel dock facility and boat repair yard were completed, but financial backing fizzled and Honey Bee defaulted on rent.
Keith Kiuchi, a local attorney who once represented a boat repair operator at the harbor and was a minor investor in Honey Bee, unsuccessfully tried to find new investors during a bankruptcy proceeding initiated in 2015. The lease with DLNR was finally voided in 2016. DLNR claimed $1 million in unpaid rent and fees but did receive $3.5 million in the ordeal.
Since then 27 different parties expressed interest to DLNR about the harbor redevelopment opportunity, the agency said in November. Ideas for projects included residential use, hospitality towers, a seawater air-conditioning plant and an entertainment venue with a Ferris wheel and a theater for customers to go on a virtual reality flyover of Hawaii.
DLNR said bidders should “take into consideration” community feedback summarized in a 2017 report produced under a $100,000 contract with consulting firm DTL Hawaii. This report said there was almost total opposition to housing and hotel uses. The report also said there is consensus that a fuel dock and boat repair facilities need to be restored and that most commentators want buildings no higher than two stories.
DTL’s report said there is a split in community views as to whether redevelopment should be focused on serving harbor tenants or making the area more of a general attraction with recreation uses including food and beverage establishments.
“There are a wide range of views on what should happen,” the report said.
Entities interested in submitting bids must notify DLNR of such intent by April 22. The tentative deadline for bids is July 8. The agency plans to hold an informational briefing for interested parties on Friday.
Selection of a winning bidder is subject to approval by DLNR’s board.
REDEVELOPMENT OPPORTUNITY
Previous developer ideas for Ala Wai harbor additions:
>> Wedding chapels
>> Restaurants
>> Housing
>> Resort
Online:
To see the state’s request for proposals, visit dlnr.hawaii.gov/dobor/ala-wai-rfp.
BY THE NUMBERS
11
Acres up for
redevelopment
55
Years on the lease
