Editorial: Ala Wai harbor needs fresh start

Last year, when the state moved forward in an attempt to secure a private-public partnership to redevelop dilapidated Ala Wai Small Boat Harbor, the Division of Boating and Ocean Recreation (DOBOR), within Hawaii’s Department of Land and Natural Resources, pitched a vision of a world-class marina offering a myriad of activities.

Pointing out that Ala Wai harbor should be inviting to both visitors and residents as it serves as a gateway to Waikiki, DOBOR advocated embracing a development model similar to that employed at nearby state-owned Kewalo Basin.

Kewalo Basin’s manager, Howard Hughes Corp., is now putting finishing touches on a decade-long $23 million overhaul of the harbor carried out under a lease with a state agency. Meanwhile, at the Ala Wai harbor, much-needed upgrades are on hold — again — as a recent review of developer proposals fell flat.

DOBOR announced last week that it will reset for another attempt, starting with a review of the process. The postmortem should be conducted as a transparent public accounting.

What’s already clear is that the request for proposals (RFP) process worked as intended: Interested parties submitted documentation of development experience and provided evidence of ability to finance the project and meet its objectives.

Back in November, more than two dozen interested parties were offering up mixed-use ideas for residential and commercial construction, such as restaurants and retail, as well as entertainment magnets, including a Ferris wheel. However, at deadline time, only a few proposals advanced to a review committee.

The big dropoff in interest was due in part to RFP requirements resulting from comments received during public outreach, such as one limiting construction to a two-story height. That, in turn, limits ability to design a project that ensures public space and access “while at the same time ensuring a financially feasible project,” according to a DLNR written statement.

Further, “The higher you build the more profitable the venture, and the more change in the nature of the harbor.”

In assessing public appetite for change, participants in outreach sessions were asked to weigh possibilities ranging from no new structures to high-rise development that makes the harbor an extension of the Waikiki skyline. Sentiment favored low impact, which is aesthetically sound, though financially restrictive.

The fizzling of proposals leaves an eyesore in place on the 11-acre parcel of docks, slips and vacant land. Still, there’s good reason to oppose any plan that envisions high-rise condominiums or dense development that blocks views, diminishes the harbor’s boating mission or interferes with the public access to the shoreline area.

Statewide, DOBOR has identified upwards of $300 million in deferred maintenance needs. A large portion of that figure is tethered to the Ala Wai, which has about 700 berths. Its users are primarily recreational sailors and boaters, including 129 live-aboards, and commercial tenants.

While an increase in fees for mooring and live-abroad services — set to take effect Friday — will help fund improvements, a more-robust stream of funding also is needed.

Last year, DLNR provided the Legislature with a plan for public-private partnerships — involving management, operation and maintenance of the state small boat harbors — that’s similar to the model used at Kewalo Basin. At that site, the state Hawaii Community Development Authority negotiated a 35-year rental agreement with Hughes Corp. that will deliver $300,000 yearly in lease rent.

With the Ala Wai harbor’s future still in flux, state lawmakers should take a hard look at whether having such expertise, akin to HCDA’s authority, would finally reap the kind of project and rental income needed to help pay for harbor care across the state.