Update on The Waikiki Landing

The Waikiki Landing is a partnership between the state of Hawaii and Honey Bee USA INC. to redevelop the Ala Wai Small Boat Harbor.  However, Honey Bee has just announced that they have lost their major funder for the project, leaving them searching for a new source of financing to meet their contractual obligations with the state. Honey Bee is currently working with four different groups to secure $24 million of funding, and hopes to do so by the middle of this month.  Honey Bee has been paying the state approximately $37,000 per month in land and water rent since January 2014.  However, since they were unable to secure financing, they have missed their June deadline when rent increased to above $70,000 per month.When completed, The Waikiki Landing should have a new boat repair facility and fuel dock combined with restaurants, entertainment venues, wedding chapels and space for the U.S. National Kayak Team.

Debo­rah Ward, the spokeswoman for the Department of Land and Natural Resources stated that they would like to work with Honey Bee to make this project happen, but if Honey Bee is unable to comply with the terms, the lease could be terminated and a new proposal could take its place.  Ward stated, "If another (request for proposal) were to be issued, actual development could occur in a much shorter time period since the land use entitlements and approvals have already been obtained, the property has been cleared and graded, environmental issues have been addressed, foundation testing has been done and the parcels have been legally subdivided." Ward noted that Honey Bee has already paid the state more than $865,000 in rent and development fees and has cleared the property, removed contaminated soiled, razed a dilapidated boatyard building, secured various land use entitlements and approvals, and obtained city permits. Ward added, "All of this was done at Honey Bee's expense and at no cost to DLNR, the state, or the taxpayers."

Jeff Merz, a member of the Waikiki Neighborhood Board commented, "People hated the project at first, but they made changes and once the company started clearing land, the community seemed to accept it. The area is run-down and there's been crime. People understood that we needed something to energize the location. Now to be told that it could stay a big empty construction site for a longer period, the community won't like that."

Source: Honolulu Star Advertiser, 7-2-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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