Friday, April 9, 1999

Myers seeks fee
refund after cutting
condo prices

The One Archer Lane developer
could get as much as $770,000
back from the state

By Jerry Tune


Developer Jack Myers says a recent 10-to-15 percent drop in the prices of his One Archer Lane condominiums entitles him to a partial refund of the fee he paid the state to subsidize affordable housing.

The Hawaii Community Development Authority, the state agency that oversees Kakaako development, estimates this refund could be about $770,000, according to a formula in its rules. The authority will hold a public hearing on Myers' request May 5 at 2 p.m. at 677 Ala Moana.

Myers has already paid the state $2.13 million in fees that are required in lieu of meeting the mandate to develop 20 percent of a Kakaako project in affordable housing. HCDA rules allow for an adjustment of fees when sales prices are lowered.

In a statement, HCDA Executive Director Jan Yokota said, "Assuming that all remaining unsold units will be sold at a 10 percent discount, the average sales price for all units would be reduced to approximately $277,000 per unit and the fee would be reduced to approximately $1.4 million."

"A final adjustment of the fee upon completion of all sales in the project will be made based on actual sales revenue," she said.

Last fall, Myers reduced the price on about 210 unsold condominiums, from the total of 330 units at One Archer Lane on King Street near Ward Avenue.

Will Beaton, Myers Corp. senior vice president, yesterday said sales have been going well since the price reduction. To date, there are 165 completed sales and 27 in escrow or under reservation.

Beaton said 138 condominiums are available at prices from $224,900 to $367,400. Those prices reflect the 10 percent price reduction. Beaton said buyers can chose a special financing deal or get their own financing and take an additional 5 percent price reduction. "We had to respond to the reality of the marketplace," Beaton said. "We've created a program attractive to first-time home buyers and seniors."

When the project pricing was first established it did not have any condominiums that met the state's affordable housing requirement for condos or rentals. The 33-story One Archer Lane project was completed in February 1998.

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