Kapolei mall plans
put on hold

A mainland developer
did not renew its contract
for the land

By Rob Perez
Star-Bulletin

A national developer of megamalls has not renewed a contract giving it exclusive rights to a 40-acre parcel in Kapolei, indicating that the company has put off plans for a major retail project there.

Landowner Campbell Estate today said Mills Corp. has indicated the Hawaii project no longer is a priority, though the two parties are continuing discussions. But because Mills' exclusivity deal lapsed this month, Campbell has started contacting other prospective developers about the 40-acre site, said Donna Goth, the estate's director of Hawaii properties.

A Mills spokesman could not be reached for comment this morning.

The Arlington, Va.-based company in October announced tentative plans for a 600,000-square-foot shopping and entertainment mall on Campbell land near Consolidated Amusement Center's 16-screen Kapolei movie complex.

Mills said it intended to study the economic feasibility of the project before making a final decision on whether to go ahead with Kapolei Mills. Campbell Estate signed a six-month contract giving Mills exclusive rights to the property in exchange for payment of option fees.

But with all the other projects it is involved with, Mills determined that Hawaii wasn't a priority now, Goth said.

"They said to us right now they aren't focusing on Hawaii," she added.

Goth would not go so far as to say the proposed project is dead.

"If they do it, they're not going to move on it as fast as originally anticipated," Goth said.

She said Campbell still is a firm believer in the concept Mills proposed for the land: an entertainment-oriented destination mall that would draw people -- residents and tourists -- to the area. "We don't want to give up on the concept," Goth said.

Retail analyst Stephany Sofos said Mills' apparent decision to hold off on the project is a setback for Campbell's efforts to develop Oahu's so-called second city.

A retail project like what Mills proposed would have attracted businesses, residents and visitors to the area, she said.

But Sofos said Kapolei and the surrounding areas don't have enough residents and workers yet to support what would have been a regional-sized mall. She said she didn't think Hawaii's sluggish economy was a factor in Mills' decision, saying megamall developers typically consider much longer-term trends.

The proposed project "was a little ambitious at this point, but that's not to say it won't happen eventually," Sofos said.