Construction of Honolulu’s Skyline rolls on, and so do the problems. There has been no shortage of controversy in building out the more-than-$10 billion rail — now monumentally over budget, grossly overdue and with a finish line that falls far short of original promises. Construction snafus and costs remain issues — as underscored by the Honolulu Authority for Rapid Transportation’s just-approved capital-spending plan for fiscal 2026: up 38%, to $793.6 million from the current $574 million.
Meanwhile, recent dissent has focused a spotlight on consequences of snaking a 20-mile elevated rail system through dense urban sprawl.
In May, Servco Pacific Inc. requested that HART halt plans to claim eminent domain on Kakaako property where the automotive company’s servicing center now sits. According to Servco Chief Investment Officer Peter Fukunaga, who appeared before a HART board meeting on May 23, discussions over the parcel have been continuing for about a decade. After a five-year lull, Fukunaga said, HART recently informed Servco that about 19,000 square feet are needed — roughly triple initial estimates — and asked it be handed over by January.
The commercial property on Halekauwila Street is situated adjacent to Skyline’s future Civic Center Station. With existing sidewalk space at a minimum, the station and four straddle bent columns will eat into Servco’s land, and likely require demolition or relocation of a large building abutting the road.
It is not merely a question of taking property from an established and well-heeled local business. Voting for condemnation, as the HART board recently did for three other Kakaako properties and one in Kalihi, sets a worrying operating precedent. Negotiation should be a primary route of resolution; eminent domain a last resort. And in the event of condemnation, land taken must be used to its fullest potential — affordable transit-oriented development housing comes to mind.
The Servco issue has not been resolved, as the board lacked a quorum during its May meeting. However, board members appeared open to entertaining alternative measures, including the possibility of reducing condemned land and temporarily borrowing or leasing the rest.
The specter of forcible relinquishment of land has so far been relatively uncommon, but as the rail line breaches downtown, there is pressure to forego lengthy deliberation in favor of expeditious acquisition. On the other hand, Servco must understand that rail is an inevitability, and that its land is standing in the way of mandated progress. That both parties appear willing to reach an amicable resolution is encouraging.
Still, inequities remain in the rail-building process. As construction proceeds into areas dense with industry, retail and housing, HART’s board must endeavor to push forward while making whole all those businesses impacted by the project. To that end, the city’s transit construction mitigation fund (TCMF) grant program was designed to ameliorate financial shortfalls for struggling businesses located along rail’s Dillingham corridor into Kakaako. A solid idea, but the current $10,000 grant limit is too low, and too few awards are being meted out.
Of the 34 applications the city has received, 15 were deemed ineligible and 19 were returned for revision. Six grants were awarded. Anthony Han, a rail-affected business owner whose TCMF application was approved, said the $10,000 is not enough, noting he owes $60,000 in unpaid rent and is arrears to the tune of $45,000. But there is hope for Han and other small businesses.
On Wednesday, the City Council gave final approval to Bill 31, which would expand eligibility by increasing maximum annual revenues to $1 million, removing employee limits, and relaxing of length of operation requirements. All good steps, but boosting award amounts would also be welcome.
There remains much to be done, and more snags will undoubtedly arise before Skyline’s completion. HART must navigate the rough road ahead with one eye on
equity and another on execution.
