Myers loses bid for
development fee cut

The One Archer Lane project
will have to pay $5.5 million

Star-Bulletin staff

A state agency has turned down developer Jack Myers' request to lower government-imposed development fees for his One Archer Lane condominium project in Kakaako.

The Hawaii Community Development Authority board yesterday voted 6-1 against Myers request for a reduction in public-facilities and affordable-housing fees from $5.5 million to $1.8 million for his project on King Street near Ward Avenue.

Many community and affordable housing groups opposed the reduction, citing the need for money to fund government housing projects. The groups included the League of Women Voters, American Association of Retired Persons, Legal Aid Society, Affordable Housing and Homeless Alliance, and Catholic Charities Family Services.

Myers was supported by the Land Use Research Foundation, composed of developers, and attorney Alan Goda, representing Nissho Iwai Corp., a multinational trading company that has invested in the project. Goda said a decision against Myers "would be a chilling message" for future investments in Hawaii.

Myers said that "dealing a blow to our industry is not going to help anybody" and won't produce money for affordable housing. However, the authority staff noted that Myers already had received $2.8 million in reduced fees and said there was no "compelling" reason to reduce the fees further.

Myers wanted new rules adopted by the HCDA to apply retroactively to his project. The rules, adopted in April, lower or waive fees charged to developers and used for public facilities, like a park, and to build affordable housing.

Construction on One Archer Lane started in July 1996 and is scheduled for completion in March.

In other business, the HCDA board yesterday approved a staff request for $20.5 million in revenue bonds to purchase an office building at 919 Ala Moana from the Army and Air Force Exchange Service. The state owns the land and has been leasing the building since 1992.

The HCDA, which oversees Kakaako development, also is slated to decide on Aug. 6 which of three proposals will be chosen for the old Ala Moana pumping station at Keawe Street and Ala Moana.

Three developers made presentations yesterday before the board. They include a surfing museum, office, restaurant and retail complex, proposed by Construction Management & Development Inc.; a restaurant, by Weiser Companies Inc.; and a fishing museum, by Amtsberg & Amtsberg Inc.

The Hawaii Surfing Museum would be located in the 1,875-square-foot historic pumping station building, and include a surfboard manufacturing operation in a 388-square-foot building on the site.

A new three-story building and a plaza would be created to include stores, a restaurant, and offices.