The Office of Hawaiian Affairs is requesting approval from the Hawaii legislature to build high-rise condominium towers on their land in Kakaako Makai. The OHA currently own a total of 25 acres of land between Kewalo Basin and Honolulu Harbor, on the Makai (ocean) side of Ala Moana Blvd. This land, valued at $200 million by the state, was given to OHA by the state government two years ago as part of a settlement for ceded land revenue claims that date back to 1978. However, OHA believes that the land will not achieve the $200 million value of land under existing zoning, unless residential zoning is allowed.
Eight years ago, when the land was owned by the state, the legislature passed a bill that prohibited residential development of Makai Kakaako. At that time, local developer Alexander & Baldwin wanted to build three condominium towers there, but public protests quickly attacked the idea. The difference now is that the land is owned by the Office of Hawaiian Affairs and they have a right to use the land to benefit Native Hawaiians and are not mandated by the state to serve in interests of the general public. OHA has a total of 9 parcels of land in Kakaako Makai, out of which six of them have water frontages, making them premium lots for potential developers.
State Senator Clayton Hee, who supports the request by OHA, stated, "The highest revenue generation, as evidenced by what's going on in Kakaako, is condominiums. It would provide a tremendous revenue-generating income for Hawaiians." Governor Neil Abercrombie's office released a statement stating, "The Governor stands alongside OHA to find approaches and solutions that will help OHA help its beneficiaries." However, many members of the public disagree including Stuart Coleman with the Surfrider Foundation. Coleman commented, "I was part of the Save Kakaako Alliance that helped stop luxury condos and residential units from being built on this last bit of public oceanfront land in Honolulu. The Legislature did the right thing in passing a law to ban residential development in this area, and it seems senseless to go against your own rules and make exemptions now."
Source: Honolulu Star Advertiser, 1-30-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
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