Piers project rejected

Unanimous vote Wednesday ended $300 million deal

The Aloha Tower Development Corp. has voted to cancel its $300 million contract with Texas-based Hughes Development LP.

Hughes' plans had called for a mixed-use project at Piers 5 and 6, involving a 130-foot tower with time-share and conventional condominium units, plus parking and retail space.

"The vote was unanimous," said Dana Yoshimura, an ATDC development project manager.

Sandra Pfund, the agency's chief executive officer, could not be reached for comment. But when the board decided last week to vote on the termination, she said, "We feel very strongly that we've bent over backwards to work with the developer to move things forward."

Honolulu attorney Jeff Portnoy, who represents Hughes, disagreed. "The board has no legal right to cancel the contract," he said of Wednesday's vote.

"This is a defensive and PR move to avoid all the embarrassment they are going to incur when the facts all come out."

Hughes filed a demand for arbitration in October, "because they had failed to comply with terms (of the contract)," Portnoy said. Arbitration is set for May.