Update on Artspace in Kakaako

The Hawaii Community Development Authority has voted 6-0 in favor of issuing the non-profit Artspace to build an eight story building in Kakaako.  Under Artspace's proposal, their building will feature a total of 84 rental lofts that will serve as housing for artists.  Monthly rents will range from $437 to $1,334 per month and will target those households earning between 30 percent to 60 percent of Honolulu's median income ($20,150 for a single person or $40,260 for a family of four on the low end).  "Art" for the Artspace project is defined broadly and can include literature, photography, architecture, singing, dancing, film-making and acting.  Even technicians, administrators and teachers who support art can qualify.  The quality of the art produced will not be a factor in deciding occupancy.  The building should be finished by the end of 2016.

Source: Honolulu Star Advertiser, 1-22-2015, www.staradvertiser.com
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Artspace to Proceed with Low-Income Artist Housing in Kakaako

The Hawaii Community Development Authority has announced that they have awarded nonprofit developer Artspace with a 65-year lease for a 30,000 sq ft lot on Waimanu Street to build loft-style apartments for low-income artists in Kakaako.  The lease rent will be a nominal amount of $1 per year.  Artspace plans to build an eight story building with a total of 84 rental units. They will be restricted to households earning 30 percent to 60 percent of Honolulu's median income.  That equates to a maximum of $28,750 for a single person to $57,480 for a family of four. Monthly rent will be between $437 to $1,334 per month.

Source: Honolulu Star Advertiser, 12-18-2014, www.staradvertiser.com
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HCDA Seeking Developer Bids for Micro-Units in Kakaako

The Hawaii Community Development Authority is requesting for developers to submit bids to build affordable micro-unit apartment rentals at lot that it owns at 630 Cooke Street. The concept is to build apartment units with about 300 sq ft of living space that is suitable for no more than two people. HCDA hopes that units in this building would have a monthly rent that is affordable for residents earning no more than the median income in Honolulu, which is about $57,800 for a single person or $66,100 for two people.

According to a report issued by the Hawaii Appleseed Center for Law and Economic Justice, almost one out of every four households is composed of just one occupant. Therefore, micro-units would be a wonderful way to build much needed affordable housing.

Source: Honolulu Star Advertiser, 12-12-2014, www.staradvertiser.com
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Plan Suggested for 2.1 Acres Next to Kewalo Basin

Kewalo Waterfront Partners has proposed building a new complex on the 2.1 acre parcel located between Ala Moana Beach Park and Kewalo Basin.  Under their plan, the complex will feature several small restaurants, a jazz bar, a shopping arcade, a wedding chapel and a 250-stall parking garage.  The land is owned by the state of Hawaii and is operated by the Hawaii Community Development Authority.

Several harbor business owners are very unhappy with the proposal and believe that only maritime related facilities should be developed around Kewalo Basin.  HCDA spokeswoman, Lindsey Doi, mentioned that negotiations are still ongoing and nothing has been approved as of yet.  If lease terms are tentatively agreed to, it would still be subject two several public hearings as well as an environmental assessment.

Source: Honolulu Star Advertiser, 11-9-2014, www.staradvertiser.com
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HCDA Will Decide on Three New Kakaako Condominium Towers by November 25, 2014

The Hawaii Community Development Authority has announced that they will be making their decision about whether or not they will give approval for developers Howard Hughes and MK Vida LLC to build a total of three new condominium towers in Kakaako by November 25, 2014.  The significance of this date is that when the new governor takes office on December 1, 2014, four of the nine board members of the HCDA could be replaced by new appointees. This might delay approval, as the new board members would have to be brought up to date on the entire development process.  Real estate experts believe that the plans for the three new towers will be approved in their entirety in November.

Source: Honolulu Star Advertiser, 10-28-2014, www.staradvertiser.com
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Howard Hughes Applies for Permits to Build Sixth Residential Tower in Kakaako

The Howard Hughes Corp has applied to the Hawaii Community Development Authority to build a sixth residential tower in their Ward Village project in Kakaako.  This 466-unit tower would be located adjacent to the Whole Foods store on Kamakee Street, behind the Ward Entertainment Center theaters.  The Whole Foods is expected be break ground next year and will be completed in 2017.  The tower, if approved, would be completed in 2018.  Under the plan, Whole Foods will have six levels of parking built above it with a total of 1,301 parking stalls.  The residential tower would be 38 stories tall and would also have some retail stores on its ground floor.

There will be several public hearings on the project, with the first one being on November 5, 2014.  Public testimony will be accepted at all three hearings.

Source: Honolulu Star Advertiser, 9-23-2014, www.staradvertiser.com
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Howard Hughes Requesting Clarification on Affordable Housing Rules in Kakaako

Under the current rules established by the Hawaii Community Development Authority, at least 20 percent of high-rise condominium units developed in Kakaako must be deemed "affordable" for residents earning no more than 140 percent of the annual median income of Honolulu.  This is approximately $94,000 for a single person or $134,000 for a family of four. However, developers may instead satisfy this 20 percent rule by offering rental units for residents earning no more than 100 percent of the median income for at least 15 years.  This is approximately $67,000 for a single person or $96,000 for a family of four.

The Howard Hughes Corp has submitted a petition to the Hawaii Community Development Authority asking the agency if they could offer rental units for residents earning no more than 100 percent of the median income for at least 30 years.  Their hope is that by doing so, they would have to make less than 20 percent of their total project affordable and allow for even more luxury condominiums. If this is allowed, Hughes Corp would change their planned affordable tower at 988 Halekauwila Street (formerly 404 Ward) from condos to rentals.

The 988 Halekauwila Tower was approved to have 424 condo units, of which 375 were going to qualify as affordable housing.  This equates to approximately 9 percent of the Hughes Corp's Ward Village's 4,300 units that are planned for 22 towers.

Source: Honolulu Star Advertiser, 8-29-2014, www.staradvertiser.com
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Howard Hughes Corp Requests To Build Two More Condominium Towers on Ala Moana Blvd

The Howard Hughes Corp has submitted a permit application to the Hawaii Community Development Authority to build two additional condominium towers on Ala Moana Blvd as part of their redevelopment of Ward Centers. Under the proposal, the Ward Warehouse retail center would be demolished during the second half of 2015, and the two towers would be completed sometime in 2017.  The project will also include low-rise townhomes/villas that would front Ala Moana Blvd as well as retail space and a public open space that would include a waterway between the two towers.  The first public hearing will be held on October 1, 2014.

Source: Honolulu Star Advertiser, 8-13-2014, www.staradvertiser.com
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Homeless Population in Kakaako Makai Becoming a Greater Concern

Kakaako Makai has been in the news recently due to the fact that the Office of Hawaiian Affairs had hoped to be allowed by the state of Hawaii to redevelop the neighborhood and add several high-rise condominium buildings. The state has since ruled that they will not grant OHA permission to build on this 44-acre ocean front parcel anytime in the immediate future. However, Kakaako Makai has recently been highlighted due to its increasing homeless population.  By one estimate, there were nearly 100 tents along the sidewalks and open spaces around the discovery center, the University of Hawaii John A. Burns School of Medicine, the UH Cancer Center and other buildings and parks in the neighborhood.

Officials with the Hawaii Community Development Authority, the state run organization that is responsible for the redevelopment of Kakaako, stated that they have recently received an increase in the number of complaints about disorderly conduct, public urination and defecation, as well as the fighting among the homeless.  As a result, the city is now doing twice-monthly police sweeps in which officers clear the sidewalks and confiscate belongs.  The HCDA is also increasing their own private security for Kakaako Makai.

Tracy Martin, a homeless man who has been living in Kakaako Makai with his wife and 2-year-old daughter for the last nine months, stated that the police sweeps are tough on his family and neighbors, because it costs him $200 to retrieve his belongs that the city confiscates from him. However, Martin likes the location and states, "It's centralized and close to doctors, preschools, agencies and jobs. I'm comfortable here. I know the area, and there are a lot of safe zones."

Source: Honolulu Star Advertiser, 7-20-2014, www.staradvertiser.com
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Vida - A New Luxury Condominium in Kakaako Announced

Kamehameha Schools has announced a new luxury condominium in Kakaako.  Located at 888 Ala Moana Blvd on a site currently occupied a Cutter automobile dealership, the condominium tower is tentatively named Vida.  It will be a 38-story tower with a total of 265 two-bedroom and three-bedroom units.  The Kobayashi Group and The MacNaughton Group will be developing the 3.4 acre property, and have stated that the units will range from $900,000 to about $4.7 million. Duncan MacNaughton, the chairman of the MacNaughton Group, stated that Vida will be an "understated, yet superb" residential tower. MacNaughton added, "We've built a reputation on our uncompromising standards of quality, and Vida at 888 Ala Moana will set another benchmark of excellence for future residential communities in Hawaii."

The developers will still need to obtain a permit from the Hawaii Community Development Authority, but it should be approved considering that Vida is part of Kamehameha School's master plan called Our Kakaako.  Our Kakaako as a whole has been approved to build up to seven towers with 2,750 units within nine contiguous blocks.

Source: Honolulu Star Advertiser, 6-26-2014, www.staradvertiser.com
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Proposed Obama Presidential Library Would Create Jobs and Revenue to State

According to the bid proposal submitted to the Barack Obama Foundation, building the Obama Presidential Library in Kakaako on the island of Oahu would create over $556 million in economic activity and generate 2,130 new jobs in the construction phase alone.  The museum is expected to attract 330,000 visitors every year making it one of Honolulu's top five cultural attractions.  David Lassner, the University of Hawaii President, stated, "Together, with our partners, we are proposing a vibrant institution that will explore the legacy of the 44th presidency, forge collaborative solutions to global problems and cultivate a new generation of leaders that will make lasting change."

The Hawaii Community Development Authority has offered to set aside 8 acres of land in Kakaako to host the Obama Presidential Library, interactive museum, visitor center, and presidential archive.  Most of the fundraising would be accomplished by the Barack Obama Foundation, leaving the state to pay for maintenance and upkeep. The long term financial benefits could be quite large as the Clinton Presidential Center in Little Rock, Arkansas has already brought in an estimated $2.5 billion in economic development to the city since construction began in 2001.

Source: Honolulu Star Advertiser, 6-17-2014, www.staradvertiser.com
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400 and 440 Keawe Street Projects In Kakaako Approved

The Hawaii Community Development Authority has given their approval for both 400 Keawe St and 440 Keawe Street in Kakaako.  The two mid rise buildings will be a 95-unit condominium project and an 88-unit rental complex respectively, and will be located on the square block that is currently bordered by One Waterfront Towers, Keawe St, Auahi St, and Pohukaina St.  400 Keawe St will be developed by Castle & Cooke Homes Hawaii, while Kamehameha Schools will develop the apartment complex.  There will also be some retail space and a restaurant located between the two buildings.

According to Castle & Cooke, prices are expected to range from the high $300,000s to the mid-$700,000s for one to three bedroom units.  Twenty of the 95 units will be restricted to buyers earning no more than 130 percent of Honolulu's median income.  Executive Vice President of Castle & Cooke, Bruce Barrett, commented, "We think there's a lot of demand for these price points. We have a project that differentiates itself. It's on a smaller and more human scale."

Source: Honolulu Star Advertiser, 6-11-2014, www.staradvertiser.com
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Judge Halts Construction for 801 South Street Building B

Just days after developer Downtown Capital LLC announced that all 410 units in its second tower, Building B, of the 801 South Street project had been sold, Circuit Court Judge Karl Sakamoto ruled that all work must stop due to the fact that two state agencies failed to follow state laws protecting historic places and burials. Sakamoto's verbal decision was in response to a lawsuit that was filed in March 2014 by the owners of the Royal Capitol Plaza, a neighboring building, whose views would be significantly impacted by the creation of Building B. Carl Varady, the attorney for the plaintiff, stated that he believes that Sakamoto will issue a written order that would invalidate the Hawaii Community Development Authority's permit for 801 South B.  If this happens, the HCDA would be required to hold new public hearings and issue a new decision for the project to obtain approval.

Source: Honolulu Star Advertiser, 5-31-2014, www.staradvertiser.com
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Six More Residential Towers in Kakaako Seeking Permits By End of Year

Developers are requesting approval from the Honolulu City Council and the Hawaii Community Development Authority to create a total of six new residential towers in Kakaako.  Howard Hughes Corp is asking to build a total of four new towers; two which would replace most of the Ward Warehouse along Ala Moana Boulevard, one which would be west of the Ward Entertainment Center theater, and the final tower would be next to the recently announced Whole Foods, just north of the theater.  Kamehameha Schools is working with local development firm The Kobayashi Group to build a 265-unit tower on a 3.5-acre site on Ala Moana Boulevard, currently occupied by Cutter Nissan.  The final tower (6th) would be built by SamKoo Development Company and would be located at 1391 Kapiolani Blvd, next to Ala Moana Center.  This tower would be right next to the Ala Moana rail station terminal.

Real estate experts believe that the reason why developers are pushing to secure approval to build so quickly is because this is an election year.

Source: Honolulu Star Advertiser, 5-29-2014, www.staradvertiser.com
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HCDA Approves Keauhou Lane Project in Kakaako

The Hawaii Community Development Authority has voted to approve the Keauhou Lane project in Kakaako. According to Stanford Carr, the local developer who is in charge of the tower portion of the project, the complex will feature a 43-story tower with 388 condominium units as well as a six-story rental building with 209 apartments.  There will also be a total of 35 town homes and additional restaurant and retail space on the ground floors.  Keahou Lane will be built adjacent to a planned city rail station, making it the first transit-oriented-development project in Honolulu.  Carr stated, "It's going to be urban living at its best."

Several owners living in One Waterfront Tower are concerned that Keauhou Lane would significantly block views for their building and therefore decrease property values.  Other residents argue that the 400 ft tower of Keauhou Lane would block tradewinds and therefore result in higher temperatures on their recreation deck.

Source: Honolulu Star Advertiser, 5-1-2014, www.staradvertiser.com
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Sales to Commence Soon for Rycroft Terrace, the Pagoda Hotel Condominium Conversion

Developer Peter Savio has announced that sometime towards the end of this month his company will be selling 162 units in the Rycroft Terrace, a condominium conversion of part of the Pagoda Hotel.  The units will be classified as affordable housing and will start at $123,480 for a fee-simple studio up to $274,950 for a two-bedroom unit.  Qualified buyers would have to put down as little as 5 percent down payment, provided that they make less than 100 percent of the median income.  Monthly maintenance fees will range from $231 to $559. The conversion will help to satisfy a requirement of Kamehameha Schools to create a certain number of moderate-income housing units for their 2,750 residence project in Kakaako. Officially, Rycroft Terrace is about a half-mile outside of Kakaako, but the Hawaii Community Development Authority gave their consent in 2012.  

Source: Honolulu Star Advertiser, 4-2-2014, www.staradvertiser.com
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801 South Street - Legal Update

The association of apartment owners at Royal Capital Plaza, have filed a lawsuit against the Hawaii Community Development Authority, and are hoping that a judge prevents any construction of the second tower at 801 South Street until an appeal to the permit issued by the HCDA is heard.  Tower B of 801 South Street would significantly impact the views of some of the residents living in Royal Capital Plaza.  According to the suit, the HCDA issued the permit unlawfully.  Officials of the Hawaii Community Development Authority stated that the permit approval complied with all of their rules.

Source: Honolulu Star Advertiser, 3-29-2014, www.staradvertiser.com
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Permits for The Collection Project in Kakaako Still Valid per HCDA

In August 3013, the Honolulu Community Development Authority granted local developer Alexander & Baldwin the right to build a 43-story condominium tower project in Kakaako called The Collection at 600 Ala Moana.  In September 2013, members of the condominium owners association of One Waterfront Towers, a neighboring building, and nonprofit organization Kakaako United filed an appeal with the HCDA to make the permit invalid.  On Wednesday, the HCDA has decided that they will not consider the appeal at all and that the permits are still valid, due to the fact agency rules and state law won't allow the agency to entertain an appeal of a development permit after public hearings and a board decision.

The petitioners stated that they may now appeal the case to Circuit Court.

Source: Honolulu Star Advertiser, 3-22-2014, www.staradvertiser.com
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Keauhou Lane Project Update

The Keaukou Lane project in Kakaako has moved through the initial public hearing stage without any real challenges or problems.  Developer Stanford Carr stated that the project will feature a 43-story condominium tower with 388 units.  There will also be a mid-rise town home complex featuring 35 town homes and several other mid-rise buildings that will have a total of 209 rental apartments.  All in all, there will be 632 residential units, parking for 1,038 cars, and 39,000 sq ft of restaurant and retail space.  The 4.2 acre block is bordered by South St., Pohukaina St., Helekauwila St., and Keawe St.

There will be two additional public meeting on April 12th and April 15th.  The Honolulu Community Development Authority is scheduled to make a final decision on April 30th.

Source: Honolulu Star Advertiser, 3-20-2014, www.staradvertiser.com
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Only One Bill About Kakaako Remains Before Legislature

At the start of the legislative session in January, there were a total of 17 bills that want to stop, slow down, or limit the amount of high-rise development in Kakaako.  Many of the bills were aimed at the Hawaii Community Development Authority, which is the state agency which governs development of the Kakaako neighborhood.  However, mid-way through the legislative session, there is now only one bill still up for debate.

The lone bill that has made it this far would still have major implications for the HCDA and would limit its budget, alter the makeup of its board, put development applications online for more convenient public viewing and maintain Kakaako's 400-foot building height limit. Specifically house bill 1866 would redefine who serves on the agency's board, require that the HCDA put development applications online and notify all residents within 300 feet of the proposed project, and make Kakaako's 400-foot height limit a law, thereby preventing the HCDA from ever increasing the limit to 650 feet as has been suggested for a couple of sites near the Honolulu Rail Project rail line.  The HCDA's operating budget would also zero out in the 2015 fiscal year and would require legislative approval for the agency to spend money in its revolving fund.

Kakaako resident, Michael Korman, submitted written testimony which stated, "There is a growing wall of concrete in Kakaako, and new buildings should have stricter limits on height and density. Currently planned housing projects will negatively influence the quality of the air, the open space and the quiet atmosphere that led current residents to select this neighborhood as home. Kakaako citizens feel helpless with personal well-being and quality of life in jeopardy."

Source: Honolulu Star Advertiser, 3-16-2014, www.staradvertiser.com
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