Kapiolani site owner
fighting park plan

UP Corp. continues planning
development despite city wishes
to the contrary

By Jerry Tune
Star-Bulletin

UP Corp., owners of the 6.1-acre former Universal Motors site near McKinley High School, says it is moving ahead with development plans for the property despite the city administration's desire to build a park there.

The Japan-based company earlier this week got a boost from the city Planning Commission which rejected a request by Mayor Jeremy Harris' office to designate the site for park use.

Pat Onishi, the city's chief planning officer, said a change in the development-plan designation would allow the city to negotiate with UP Corp. to purchase the land, which now has zoning that allows commercial development.

Alex Jampel, an attorney for UP Corp., argued before the commission that the park designation would impede the process to get a building permit.

"There are a number of things in the works that could involve the current owner, a joint venture, or a successor owner," Jampel told the Star-Bulletin yesterday. "The park designation scares away any developer, lender or prospective buyer."

City Councilman Steve Holmes said the development plan designation does not affect property value or the ability to sell the property but is a pre-existing condition that requires the landowner to advise any prospective buyer.

Jampel would not disclose what kind of development is planned for the site, but said that an assisted-living project is one possibility. Assisted-living projects provide housing for seniors with some assistance for daily chores, such as food preparation and bathing.

After rejecting the administration's request, the Planning Commission sent its recommendation to the City Council. The rejection means that in order to change the site's development plan designation to park use, the council would need six votes instead of a simple majority of five.

Councilman Jon Yoshimura yesterday said it would be difficult to get the six votes to override the planning commission's recommendation.

But Councilman Mufi Hannemann, who is chairman of the council's planning committee, said he hasn't taken a position on the issue yet.

"I want to keep an open mind. It's a new initiative (for the park) and deserves close scrutiny," he said.

UP Corp. paid $85 million for the site when it bought it in 1995 from Asahi Jyuken Hawaii Inc. The land, also known as the former Rainbow Chevrolet site, is bordered by Kapiolani, Piikoi, Pensacola and Kamaile streets.

In a letter to UP Corp., the city planning department mentioned $40.85 million as a possible purchase price.

"The site would be developed as a neighborhood park to include a children's play area, hardcourts (basketball and volleyball), playfields, comfort station, landscaping and on-site parking," the letter said.

In objecting to the park designation, UP Corp. sent a letter back to the city saying there are "several parks in the vicinity" and three major parks -- Ala Moana, Thomas Square and Ala Wai community park -- are about a mile away from the Kapiolani site.

Harris has said he wants to add more parks in Honolulu's urban core.

The first step is to change the city's development plan to show the "park symbol" for the properties, said Onishi. "It's part of the mayor's vision for the city to create a network of green spaces and parks," the city's chief planning officer said.

However, Onishi noted that there is no money in the current city budget to buy the land.

After UP Corp. bought the land in 1995, the new owner removed old warehouse and office buildings from the property, which has been vacant ever since.

The developers need to announce their plans soon to take advantage of a one-year waiver from the Hawaii Community Development Authority's affordable-housing requirement.

To get that waiver, developers must submit a complete application by June 13, said Jan Yokota, executive director of the HCDA, the state agency that oversees Kakaako development.

Jampel said UP Corp. has not hired an architect for the development but "is talking to people who have architects and planners."

However, he acknowledged that with Hawaii's economic slump, it is "very difficult to make the numbers work" for a project.

UP Corp. was formed in 1995 and state records show its officers as Masatomi Terashi, president; Hiroshi Tominaga, vice president, and local attorney Cliff Miller, as secretary and treasurer.