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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Three More Towers Receive Approval in Kakaako

The Hawaii Community Development Authority has approved two new towers for developer Howard Hughes and the tower Vida, which will be located just one block Ewa of Ward Avenue on Ala Moana Blvd.  Tentatively, the new Howard Hughes towers will include  a 28-story tower with 123 units and a 35-story tower with 113 units. Both towers will be fronted by low-rise townhomes along Ala Moana Boulevard and retail space along Auahi Street. Vida will be a 39-story tower with 265 units, and is projected to sell for $900,00 to $4.7 million.  It will be located at 888 Ala Moana.  This project will be developed by MK Vida LLC, a partnership between local development firms Kobayashi Group and The MacNaughton Group.  Sales for Vida are expected to begin in March 2015.

Source: Honolulu Star Advertiser, 11-26-2014, www.staradvertiser.com
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Update on Vida at 888 Ala Moana

Developer MKVida LLC is proposing to build a 39-story luxury tower, called Vida at 888 Ala Moana, with 265 units priced between $900,000 to $4.7 million in Kakaako. Representatives of the project met with members of the Hawaii Community Development Authority and noted that they did find iwi kupuna, or Hawaiian burial remains, in the archaeological survey. However, the developer stated that they have already started meeting with the appropriate parties and will build the Vida tower away from this area.  There will be an open space including a protected area over the graves.

Source: Honolulu Star Advertiser, 11-13-2014, www.staradvertiser.com
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Construction Resumes for Building B of 801 South Street Project

Circuit Judge Karl Sakamoto has lifted his injunction for Building B of the 801 South Street Project after the developer had corrected what the judge ruled was a violation of state historic preservation law.  Developer Downtown Capital LLC was required to conduct an archaeological survey of the site and found absolutely no Native Hawaiian burials. As a result, construction will resume immediately after the almost six month long break while the study was being done and official approval was given by the State Historic Preservation Division of the Department of Land and Natural Resources. Ryan Harada, a principal with Downtown Capital LLC, stated, "The development team is very happy to move the project forward. We have a lot of buyers who have been very patient. We're pleased with the judge's decision."

Residents living in the neighboring Royal Capitol Plaza are very unhappy with this decision to allow Building B to be built.  They had filed several lawsuits against the developer, but Judge Sakamoto found that only one of them, the developer's lack of obtaining an archaeological survey, merited a halt in construction.  Now that has been completed, the judge felt there was no reason to delay construction any further.

Source: Honolulu Star Advertiser, 11-13-2014, 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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The Collection in Kakaako Breaks Ground

Developer Alexander & Baldwin has announced that The Collection is the latest condominium tower to break ground in Kakaako.  Located on Ala Moana Blvd at the site once occupied by a CompUSA store, The Collection already has sold 75 percent of its 397 condominium tower units and all of their 50 low-rise units.  The building is part of the Kamehameha School's master plan called Our Kakaako, which will completely redevelop a 9 block area along Ala Moana Boulevard between South Street and Ward Avenue. Alexander & Baldwin expects to finish The Collection in late 2016.

Source: Honolulu Star Advertiser, 10-16-2014, www.staradvertiser.com
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Concern Mounts on Where the Waikiki Homeless Will Go

At the start of this year, Honolulu officials estimated that there were 560 chronically homeless people living on Oahu, out of which approximately 30 percent, or 170 people, lived in Waikiki.  Last month, the Honolulu Police Department begun enforcing a new law which prohibits lying and sitting on Waikiki's public sidewalks.  It is estimated that about 50 to 60 percent of the homeless population in Waikiki has moved away from Waikiki.  However, there has been conflicting information as to where the homeless have gone or plan to relocate to.

According to Ron Lockwood, the chairman of the McCully-Moiliili Neighborhood Board, there appears to be an increase of homeless camped out in his board's jurisdiction. Lockwood stated that the homeless are sleeping on side streets to avoid being harassed by law enforcement officers.  Neighborhood boards in Ala Moana, Kakaako, and Chinatown are also concerned if they would see an surge in homeless on their streets.  Mayor Kirk Caldwell has stated that he is committed to its "Housing First" Program which would help to provide permanent housing to those deemed chronically homeless.  However, while the funds are in place to build these units, they are still months away from completion.

Source: Honolulu Star Advertiser, 10-12-2014, www.staradvertiser.com
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Howard Hughes Presents Plans for Two Luxury Condominium Towers on Ala Moana Blvd.

Howard Hughes Corp has presented its plans to the Hawaii Community Development Authority to build two additional luxury towers on Ala Moana Blvd.  The Ward Village Gateway would redevelop most of the Ward Warehouse retail center and would construct a 28 story tower with 123 units and a 35 story tower with 113 units.  There would also be a 34,000 sq ft public recreation space between the two towers as well as some retail shops and low-rise townhouses.  Nick Vanderboom, the company senior vice president of development for Howard Hughes Corp, stated that there is no exact timetable for construction, and it would depend in part for the market demand once the project is approved.  

Source: Honolulu Star Advertiser, 10-2-2014, www.staradvertiser.com
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Stanford Carr To Build Low Income Rental Mid-Rise in Kakaako

Developer Alexander & Baldwin has announced that they will gift a parcel of land located on the corner of Piikoi and Kona Street to developer Stanford Carr for free, in exchange for Carr creating a mid-rise building for low-income residents that would satisfy A&B's requirement for affordable units for their new Waihonua residential tower. Carr's plan would be to build an eleven story building that will tentatively feature 128 units in one-bedroom, two-bedroom and three-bedroom configurations. The project is currently being called Hale Kewalo and is designed for residents earning a maximum of 60 percent of the annual median income in Honolulu, which translates to less than $34,692 for a single person or less than $49,560 for a family of four.  Monthly rents are estimated at about $1,100 for a one-bedroom unit, $1,300 for a two-bedroom unit, and $1,500 for a three-bedroom unit.  The project will remain affordable for at least 30 years, per an agreement with the state.

The land is valued at $4.7 million by the city's property tax assessment office.  Standford Carr stated that the Hale Kewalo project will cost about $50 million to build and construction will start by the end of 2015 provided that his company can arrange for the necessary financing.

Source: Honolulu Star Advertiser, 9-29-2014, 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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Hawaii One of Four Selected to Submit Formal Bid for Barack Obama Presidential Library

The state of Hawaii in conjunction with the University of Hawaii will be one of four places selected to submit a formal bid for the Barack Obama Presidential Library.  According to the Barack Obama Foundation, there were a total of 13 applications that were received, and the final four are the University of Hawaii, Columbia University in New York, the University of Chicago and the University of Illinois at Chicago.  Each university will submit a formal proposal by December 11, 2014.  In early 2015, the president and first lady will make their final decision with the help of their foundation.

Under the initial Hawaii proposal, the library would sit on an 8-acre parcel in Kakaako makai. The center would feature an interactive museum, visitor center, presidential archives, and a think tank.  Most of the funds to build the center would come from out of state through fundraising by the president's foundation.  Economists estimated that a Hawaii Obama presidential library would generate $556 million in economic activity and create 2,130 new jobs in the construction phase.  The visitor industry added that the center could attract 330,000 visitors annually.

Hawaii officials stated that they would be prepared to host the library in its entirety or would be willing to work with another university if the president decides to have two cites "co-host" the site.  Honolulu Mayor Kirk Caldwell stated, "It's fantastic. I'm so excited.  We have to be part of this, whether we get all of the center or just a part."  Lt. Gov. Shan Tsutsui added, "We understand the realities. We also know that President Clinton is in two states (Arkansas and New York)."

Source: Honolulu Star Advertiser, 9-16-2014, 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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Sales for The Lofts @ The Collection Begin Today

The Collection project in Kakaako has announced that sales will begin today for The Lofts @ The Collection.  The majority of the 27 units that are being offered are studios with approximately 475 sq ft in space and are priced between $349,000 to $375,000 Fee Simple.  There will be also three two bedroom units with approximately 800 sq ft priced between $540,999 and $580,000 Fee Simple. Prospected buyers started lining up at 1:00 AM on Friday for when the sales office opens at 9:00 AM on Saturday.

Sales in the Tower began in August 2013 and so far 65 percent of the 397 tower units have been sold.  The Collection will also have a third phase and will sell 16 town house units at some point. Construction for the entire project is expected to begin by the end of the year and will finish about two years later.

Source: Honolulu Star Advertiser, 8-23-2014, www.staradvertiser.com
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Hawaii Hopeful That State Will Be Chosen for Barack Obama's Presidential Library

The Barack Obama Foundation has announced that thirteen organizations have submitted proposals to build the Barack Obama Presidential Library, and the final decision will be made, with input from the first family, towards the end of this year.  Five of the proposed sites are in Illinois, where President Obama launched his political career, though Hawaii and New York are also considered to be top choices.  Obama previously stated that he wanted his library to be an anchor for economic development while reflecting the values of his public-service career: expanding economic opportunity and promoting peace, justice and dignity around the world.  Hawaii officials estimate that a library in Honolulu would generate millions of dollars in revenue each year, would create nearly 2,000 permanent jobs and attract up to 800,000 visitors each year.  Shan Tsutsui, Hawaii's Lt. Governor stated, "Our global orientation, multicultural population, robust visitor industry and unrivaled natural beauty make Hawaii a logical destination to house and nurture the president's legacy."

Source: Honolulu Star Advertiser, 8-10-2014, www.staradvertiser.com
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Update on Ola ka 'Ilima Artspace Lofts in Kakaako

Artspace, a Minneapolis-based nonprofit developer, hopes to build an eight-story building in Kakaako for artists to live in.  The project, called Ola ka 'Ilima Artspace Lofts, will feature a total of 84 units and will cost $37 million to build.  The Hawaii Housing Finance and Development Corp has approved $2.1 million in tax credits: $1.4 million in federal tax credits and $712,500 in state tax credits to help the project along.  The credits can be claimed annually for the next 10 years, giving them a face value of $21 million.  Artspace can in turn sell these credits to investors to help raise capital.  Greg Handberg, the senior vice president of properties for Artspace, stated, "This is the critical financing step in this project. This is the hurdle. We're off to the races."

Under their proposal, the lofts would be affordable for 65 years and restricted to households earning 30 to 60 percent of Honolulu's median income.  This equates to a maximum of $28,750 for a single person or $57,480 for a family of four.  Rent would range from about $437 per month to $1,334 per month.  Artists will receive a preference for tenancy, and this could cover a wide range of areas including literature, photography, architecture, singing, dancing, filmmaking, acting, and the teaching of art. Artspace hopes to begin construction next year and finish by late 2016.

Source: Honolulu Star Advertiser, 7-25-2014, 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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DBEDT's Report on Kakaako

The State of Hawaii's Department of Business, Economic Development and Tourism issued a report on Kakaako, hoping to give the general public a better idea about why its redevelopment is both a good thing and a much needed project for Oahu.  According to the report, the development of Kakaako would help ease the housing shortage on Oahu as well as generate $5 billion worth of economic impact for the state.  DBEDT notes that once the first 11 residential condominium towers are completed over the next five years, the population of Kakaako will approximately double to just over 20,000 people.  

Source: Honolulu Star Advertiser, 7-8-2014, www.staradvertiser.com
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