Developer to include
Smith-Beretania Park

Underground parking will
replace the stalls lost
to the park space

By Gordon Y.K. Pang
Star-Bulletin

Developers of a planned twin-tower complex will put in the long-awaited Smith-Beretania Park, drawing praise from downtown leaders.

Block J and Associates, developers of the project bounded by Pali Highway, Kukui, Queen Emma and South Beretania streets, will develop the park and underground parking lot four blocks away to satisfy its recreational dedication requirements.

"It sounds like real good news, it sounds like everyone gets what they want," said Joe Leoni, a partner in Gerell Management and a member of the Downtown-Chinatown Task Force.

The city last year set aside $2.8 million for the 58,000-square-foot park site. But the project was stalled when merchants complained about losing the 120 stalls in the existing Smith-Beretania parking lot. City officials said they didn't have the money to do both a park and parking lot.

Under the Block J plan, 140 parking stalls would be under the park.

Lynn Matusow, a member of the Downtown Neighborhood, said she and her colleagues are happy with the resolution.

"The money (put aside by the city) was going to lapse in December and no progress was being made on it," she said.

Burton White, chairman of the Downtown Neighborhood Board, said the Smith-Beretania lot and Block J itself were the only two areas in downtown left that could be developed as parks.

"This new plan is the best of all possible worlds," White said.

As for the 103,000-square-foot Block J site, the developers got tentative approval from the City Council's Budget Committee to obtain a lease for its $167 million project.

Planned are a total of 913 affordable rentals, 100,000 square feet of commercial space and 1,896 parking stalls.

Only those making 60 percent of median income or less would be eligible for the units. A two-bedroom unit would rent for $871 while a one-bedroom would go for $726.

The city, in exchange for the development rights, will get a one-time $8 million premium.

The developer also would give the city in annual lease rent during the the first 10 years either $1.36 million or 50 percent of annual cash flow, whichever is higher.

The amount of annual lease rent would increase by 10 percent every 10 years after that.

The project would include 100,000 square feet of commercial space in a three-story complex below the towers.

Of the 1,896 underground parking stalls, 1,081 would be available to the public. Block J currently is the site of a 208-stall municipal parking lot.

Area Councilman Jon Yoshimura, who helped work the Smith-Beretania Park deal, said the Block J development would help bring people to downtown.

Block J and Associates is tied to Coastal Rim Properties Inc. and California developer Franco Mola.

Councilwoman Donna Mercado Kim said she wants assurances that the developer won't bail out of its obligations if it runs into financial difficulties similar to other recent city land deals like Harbor Court and Ewa Villages.

Project officials said they are putting up a $12.5 million reserve fund.

Construction is expected to take 34 months.