OHA Believes Land in Kakaako Makai Worth Twice As Much if Residential Condos Allowed

The Office of Hawaiian Affairs believes that their land in Kakaako Makai would be worth twice as much if the state allows them to build four or five high-rise residential condominium towers on their land.  The 30 acres of land was given to OHA two years ago by the state of Hawaii as part of a settlement to satisfy deferred ceded-land revenue payments.  At that time, the land, which is on the ocean-side of Ala Moana Boulevard between Honolulu Harbor and Kewalo Basin, was valued by the state at $200 million.  The Office of Hawaiian Affairs believes that if they are not allowed to build condominium towers, the fair market value of the land would be only $91 million.  Furthermore, the current revenue from the land is approximately $1 million per year.  If they were allowed to build condominium towers, OHA should be able to generate approximately $15 million per year.  In their statement to the Hawaii State Legislature, OHA is requesting the right to build a total of four or five condominium towers along with some retail and park space.  

Eight years ago, state lawmakers decided to pass a law forbidding the building of residential condominium towers in Kakaako Makai.  However, at that time, the land was officially being managed by the Hawaii Community Development Authority, a state agency responsible for the redevelopment of Kakaako.  Now that the land is owned by the Office of Hawaiian Affairs, things have changed, as OHA's charter and mission is to benefit the native Hawaiian people and not the citizens of Hawaii in general.  OHA's most recent report and proposal stated, "OHA has a tremendous opportunity to develop the Kakaako Makai land parcels in a unique and genuine way, through harmony and the balance of cultural, social, spiritual and economic values.  OHA can realize the balance of culture and commerce with smart decisions in harvesting monetary returns on its lands and also satisfy its fiduciary responsibilities of maximizing the land value and preserving the cultural history and significance of the land."

Source: Honolulu Star Advertiser, 2-1-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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