Tower board balks

Aloha Tower's oversight group has
resisted a developer's request for
exclusive negotiating rights

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By Russ Lynch
rlynch@starbulletin.com

The Aloha Tower Development Corp. has delayed a decision on whether it will allow a private group an exclusive opportunity to negotiate for development rights to piers 5 and 6 of Honolulu Harbor.

The state agency responsible for development in the downtown pier area yesterday decided to take up Rainbow Pier Development's pitch in a month. The proposed 300-foot-high office and hotel project, with a ferry terminal, could be considered earlier; if Rainbow can come up with answers to a lot of ATDC board members' questions.

Rainbow spokesman Wayne Vieira said the development group can produce the answers, having to do with feasibility and what the taxpayers would gain from the development, but cannot come up with a financial commitment or details of who would finance the project until there is some kind of commitment from the decision-making agencies.

Without at least an agreement by the state to negotiate, the backers won't come up with the money and just to do a market feasibility study would cost $50,000, Vieira said. What Rainbow needs, he said, is some form of go-ahead that makes it worth spending such money.

Board members said they just don't have enough information to grant that approval but they are willing to listen. The property now is the base for the Navatek cruise operation, a park and some parking.

The developers want to build an office tower at the mauka end, with 10 floors of office space, topped by four floors of luxury condominium units. At the makai end, there would be an 11-floor, 242-room hotel on top of six floors of parking and a ferry terminal, bus and taxi operations.

There would be a pool deck, with a waterfall/pool structure looking out to a water view. Possibilities include a restaurant, a brew pub, spa and fitness facilities and a jogging track. Around the parking structure there would be about 60 luxury townhouses.

Rainbow Pier Development, headed by Nevada resident Matt Dillon, has been working on the idea for about three years.

Last year it got state approval for a $45 million revenue bond, to be guaranteed by the state and paid back from revenues from an interisland ferry system.