The new Aloha Stadium is near a major turning point without clear answers on how much it’ll cost or how it’ll be paid.
The state set a June 30 deadline for signing a final deal with its private partner, Aloha Halawa District Partners, to design, build, operate and maintain a stadium. The partner gets rights to develop the surrounding 98 acres as an entertainment district to include housing, a hotel and commercial attractions.
Stadium officials say they’re on schedule to start demolishing the condemned 50,000-seat existing stadium in August and open the new facility in time for the 2028 University of Hawaii football season.
After that, things get blurry.
The state believes a basic, functional stadium of about 25,000 seats can be built for the $350 million allocated by the Legislature in 2022. Planners are looking at reusing the existing stadium footprint, including end zone seating that’s reinforced concrete and not rusted steel like the other sections, potentially saving $90 million.
“Building in place can reduce the amount of utility and earthwork required, allowing the construction budget to focus more on the building itself,” said interim stadium manager Chris Sadayasu in an email.
But the private development group led by Stanford Carr wants a bigger and more elaborate stadium to draw more events and visitors to the entertainment district. Carr told the Legislature the ultimate cost of an expanded stadium could reach $650 million.
For the entertainment district to succeed, he told legislators, “You need to develop a stadium at a scale that will attract more venues, entertainers and bring people in for concerts.”
Makes you wonder if the priority is development supporting a stadium, as originally proposed, or if it’s the stadium supporting developers.
Lawmakers vowed they won’t commit more than the $350 million already approved. This session, they wouldn’t release $49.5 million in allocated funds to cover stadium-related consulting and administrative costs. Some House members wanted to kill the project and upgrade Ching Field at UH.
Plans to raise money for expansion are sketchy. A bill to put a casino on the site died quickly, and Gov. Josh Green’s search for philanthropic funding hasn’t borne fruit.
The state’s latest stadium newsletter floated tax increment financing or a community facilities district, which would use city-issued bonds repaid with future property taxes collected from the stadium development.
Mayor Rick Blangiardi didn’t respond to emailed questions about whether he’s OK with diverting property taxes reserved for counties under Hawaii’s Constitution to pay for a state project.
Sadayasu said by email, “Once further diligence is completed regarding the project’s finances, we will have a clearer picture of amounts sought (and able to be funded) and the most appropriate mechanisms. At that point, we will have formal conversations with the City and County of Honolulu and relevant state agencies.”
Before any development agreement is signed, we need firm assurances the state will get a serviceable stadium for no more than $350 million and has no further major financial obligations.
With many challenges ahead for funding higher priority needs, we can’t afford another sinkhole that swallows us like Honolulu rail.
Reach David Shapiro at volcanicash@gmail.com.
