Costco looks at
expanding in
Hawaii Kai

The wholesale club is
talking with landowner
Kamehameha Schools

Costco Wholesale Corp. is talking with landowner Kamehameha Schools about expanding its Hawaii Kai Towne Center location. The move would mean that tenants in the adjacent Hawaii Kai Medical & Office Center would have to relocate.

The largest tenant in that building, Kaiser Permanente, has a clinic which occupies about 7,000 square feet. It is staffed by three physicians and serves about 7,000 area members, said Kaiser spokeswoman Jan Kagehiro. Kaiser has occupied the space since 1984.

The building also houses dentists and other smaller offices, most medical-related.

Kagehiro said Kaiser has already been notified of the plan and is currently scouting for a new location.

Stanford Murata, Kamehameha Schools director of community assets, said if an agreement is reached with Costco, the plan would likely be to demolish the building so Costco could add to its existing space.

"We are in early discussions with Costco and if those discussions lead to entering into an agreement for the expansion of Costco, then we would re-locate those tenants in the office building," Murata said.

One possibility for Kaiser would be a move to the neighboring Executive Plaza already located in Hawaii Kai Towne Center, Murata said.

Costco has expressed a desire to expand on its existing space for some time, Murata said. At 110,000 square feet, the Hawaii Kai location is smaller than its sister stores and has a smaller selection of prepared foods. Costco's Iwilei and Waipio stores each occupy 150,000 square feet.

Officials at Costco's corporate office in Issaquah, Wash., could not be reached for comment.


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