StarBulletin.com

Funding snags risk UH-West Oahu


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POSTED: Sunday, February 14, 2010

More than a year after a blessing was held for a University of Hawaii-West Oahu campus in Kapolei, the long-held dream of the new campus is at a crucial juncture.

The project has yet to break ground, but construction on a campus for up to 2,750 students must be under way by the end of next year or Kapolei Property Development LLC, a subsidiary of what was formerly the Campbell Estate, will take back land it donated for the new campus.

“;Build it already,”; said Dave Rae, senior vice president of Kapolei Property Development. “;That's more of a community sentiment than speaking for Campbell.”;

Rae said his company would be “;very reluctant”; to extend the deadline, noting that Campbell Estate already granted a deadline extension for the UH-West Oahu campus in 2007.

West Oahu legislators are pushing for two key measures this session that could allow construction to start as early as August.

Without the Legislature's support, financing for the project could be delayed until after the Legislature adjourns next year, raising concerns about the ability of the university to meet the construction deadline.

Area legislators would like to appropriate up to $48 million for UH-West Oahu if there is enough bond money in the budget for regional projects.

It is the top area legislative priority, lawmakers said.

“;It would benefit the entire West Oahu region. It impacts all of our constituents,”; said Rep. Sharon Har (D, Royal Kunia-Kalaeloa), a member of the House Finance Committee.

“;If we get the money, it (UH-West Oahu) is going to get built,”; said Sen. Will Espero (D, Ewa Beach-Waipahu).

The other measure would exempt UH-West Oahu and other state properties that are not ceded lands from Act 176, which requires the approval of the Legislature to sell state land.

Proceeds from the sale of 55 acres of state land next to the campus along Kualakai Parkway (formerly known as North-South Road) are a major part of the financing for the campus construction.

The sale would require the Legislature's approval next year, unless the measure, House Bill 2561, passes this year, UH-West Oahu Chancellor Gene Awakuni said.

The university put out a request for proposals for buyers last summer and has been negotiating with developers, Awakuni said.

He wouldn't say how much developers are willing to pay, but noted that the terms of the deal—such as when and how the money would be paid—are also part of the talks.

Getting the $48 million from the Legislature “;relieves some pressure on us to have to sell the land immediately,”; Awakuni said. “;It gives us a little more time to work out the best possible deal we can get.”;

West Oahu residents have been asking for more than 30 years for a permanent home for the campus, still housed in wooden portables next to Leeward Community College.

The new campus is also a linchpin for future development in Kapolei, in part because of its location at the intersection of Farrington Highway and Kualakai Parkway. It is also an anchor for the first phase of Honolulu's mass transit system, which will run from Kapolei to UH-West Oahu.

“;We can be a catalyst for other businesses that cluster around a campus,”; Awakuni said. “;We have land. We have lots of land to support expansion.”;

Building the campus will create immediate jobs for construction workers and could also spur the construction of a new campus and dorms for Tokai University, Awakuni said. Tokai is talking with UH-West Oahu to lease other state land near the proposed Kapolei campus.

Lawmakers are also considering giving tax credits to finance the construction of a film studio next to UH-West Oahu that would tie in to the Academy of Creative Media program on campus.

The UH-West Oahu campus was supposed to be financed almost entirely by private funds from the sale of land around the campus for housing. But the Hunt Cos. pulled out of a deal to buy the land for $100 million in 2008 after the collapse of credit markets.

The cost of building UH-West Oahu has raised concerns among some UH-Manoa faculty, who would like to see their aging buildings fixed and budget cuts restored before the state embarks on new campus ventures.

“;The buildings around us are falling down, literally, and we're talking about a new campus,”; said UH-Manoa professor Meda Chesney-Lind. “;From a taxpayer standpoint, can we afford this?”;

The UH-Manoa Faculty Senate passed a resolution in 2006 questioning the financial plan and the need for the new campus.

“;Many on this campus are concerned that you'll cannibalize the other campuses to fund this,”; Chesney-Lind said.

UH President M.R.C. Greenwood said the university cannot afford to lose the UH-West Oahu land.

“;I think we will have to find a way to financially support the (UH-West Oahu) campus,”; Greenwood said.

A new UH-West Oahu campus is part of the UH strategic plan to increase college-going rates and graduation rates among local residents, Greenwood said.

The region is undeserved, she said, with students who graduate from West Oahu schools having lower college-going rates than other areas of Oahu.

“;We can double the number of graduates in a five-year period,”; Awakuni said. Since adding freshmen and sophomore classes to UH-West Oahu, enrollment jumped from 897 in fall 2006 to 1,355 last fall.

If construction starts this summer, plans call for the first classes at the new UH-West Oahu campus to start next fall.

“;When we move to our permanent home in Kapolei, the campus will boom,”; Awakuni said. “;The west side of the island of Oahu is the fastest-growing area in the state.”;

ON THE NET:

» See a video fly-through of the campus.
» See a video walkthrough of the campus.