Editorial: No TOD benefits for luxury condos

Honolulu Hale touts transit-oriented development as a catalyst for lively mixed-use hubs — housing (affordable housing, especially), jobs and services — within a half-mile radius of a rail station, spurring neighborhood investment and easing commuter travel.

It’s frustrating, then, that the City Council’s execution of TOD agreements in the Ala Moana corridor to date are generating a lot of tourism-focused lodging — but scant inventory of much-needed affordable housing for moderate- and low-income local households.

Three years ago, the city and Council stumbled at Ala Moana’s TOD start line, with approval of a luxury condo-hotel, Mana‘olana, now renamed Mandarin Oriental Hotel and Residences. That developer intends to offer a penthouse for a record-breaking $35 million among 99 residential units that start at $3.5 million, and 125 hotel rooms.

In exchange for greater height, more density and other land-use exemptions, the developer was tasked with either building 20 affordable rental units, which may be off-site; or paying a cash equivalent (up to $3 million) into a city housing development fund. Clearly, affordable housing is not the winner in this TOD deal.

Since then, the Council has signed off on TOD agreements that set the stage for several Ala Moana area high-rise towers, with each carving out relatively meager provisions for affordable housing. The latest proposal in the works appears to be no different.

Brookfield Property Partners, a Canada-based real estate investment and development firm, plans to ask the Council to increase height and density limits for its 50-acre Ala Moana Center property, under TOD rules, to accommodate possible residential and commercial additions.

Current zoning allows buildings at the mall up to 100 feet, or about 10 stories. Citing a desire to “match the rest of the neighborhood” taking shape under TOD perks, Brookfield wants the city to increase its allowable height for the entire property to 400 feet.

In exchange, Brookfield ostensibly would provide community benefits such as affordable housing, public plazas and other things. Given that TOD deals in the Ala Moana corridor are yielding little that resembles the resident-focused mixed-use vision, the Council must refrain from giving the nod to more of the same.

More of the same shortchanges residents. In recent years, the city has estimated that Oahu needs upwards of 20,000 affordable units to meet pent-up demand. Meanwhile, the marketplace has been adding a few thousand units annually, with many priced in the luxury range. The upshot: more high-cost-of-living struggles for many residents.

Better late than never, city leaders must seize TOD as a rare opportunity to tackle affordable housing demand. For starters, the Council must put in place forceful and unambiguous rules that provide developers with clear housing formulas and requirements.

The draft transit-oriented development plan for the Ala Moana area was completed three years ago but has not been adopted by the Council. That’s unacceptable, as it opens the door to gradual, case-by-case distortion of intent.

Also, in the case of Brookfield, its height proposal could result in permanently altering view planes — from Ala Moana’s shoreline looking to the Koolau range. On this point, the Council should hold firm to the draft TOD plan, which limits heights to 150 feet for most of the mall.

Construction of the 20-mile rail line is expected to wrap up in 2025. Trains winding to Ala Moana will significantly bump up property values and tax revenues. Development rules must better balance residential housing needs with those tied to tourism. Our residents should not be left with scraps scattered among units reserved for tourists and extended-stay visitors.