Council to vote on
sale of Block JThe city has already tentatively
accepted a $10.5 million offer
from Pflueger Group
The city has tentatively accepted an offer from Pflueger Group LLC of Honolulu to buy Block J, and redevelop the downtown parking lot into a car dealership.
Pflueger signed a letter of intent to purchase the 103,000-square-foot parking lot bordered by Beretania Street, Pali Highway and Queen Emma and Kukui streets for $10.5 million in November.
The deal has not closed, but parties are motivated to settle as expediently as possible, said Ivan Lui-Kwan, director of the city's Department of Budget and Fiscal Services.
The deal is slated to come before City Council for approval Jan. 28, Lui-Kwan said.
"We are fairly far along in the process," Lui-Kwan said, adding that he felt the purchase price was reasonable. Dan Keppel, vice president at Pflueger, said the dealership would not comment on its plans for the site until after the deal has closed.
However, Lui-Kwan said Pflueger's plans are to build an auto dealership.
Until three years ago, Block J was slated to be the site of an affordable rental project, but those plans fizzled with the sluggish economy and it was put up for sale earlier this year.
Lui-Kwan said he recommended the city sell the site to raise needed revenues. Although Lui-Kwan has told the city council that the money is already committed, councilwoman Ann Kobayashi has not given up her attempt to use the funds to pay for police raises, she sad.