City and state consider
concert venue in KakaakoCity-backed bonds would
pay for the construction on
the state's waterfront land
The Kakaako waterfront could be the site of a new outdoor concert and performing arts amphitheater, under plans being discussed by city and state officials.
"It's always been the vision for Kakaako to be a gathering place," said Ted Liu, director of the state Department of Business, Economic Development & Tourism. "In my mind the important thing it does exhibit is the definite intention to try and do something in Kakaako in this particular area, i.e., a musical performing arts venue, which I think is sorely lacking in our community."
Liu and Mayor Jeremy Harris have had discussions about whether such a proposal would be feasible.
"The state would put up the land; the city would put up basically its low-interest borrowing power capacity; and the private sector would run and operate a facility that would provide performance opportunities for our local acts as well as the opportunity to bring in some of these big international acts to generate money for this economy," Harris said.
The city would lease out the amphitheater to a private vendor, which would operate and maintain at a fee that would pay the city's debt service for the money it borrowed to build the facility, the mayor said.
The city would not proceed "until we are convinced that the lease payments would pay for the debt service on the project," Harris said.
The city's proposed capital improvements budget for the fiscal year beginning July 1 has a $3,000 appropriation, he said, mainly as a place holder for actual funding in case the city decides to move forward.
Some on the City Council questioned the wisdom of the city going forward.
"Why would we do that? Why should the city spend money on a state facility on state land? Why is the city involved in this at all?" Councilwoman Barbara Marshall asked city officials yesterday.
City officials floated one name yesterday as a possible operator: San Antonio-based Clear Channel Communications Inc. The company has a subsidiary that operates similar concert venues across the country. A call to Clear Channel executives was not returned. Clear Channel owns seven Oahu radio stations.
Liu said that while the size of the venue has not been settled, the city's proposed budget describes the project as "an approximately 15,000-seat design/build amphitheater at Kakaako makai."
Liu said there are many benefits to Kakaako, including being close to restaurants and other compatible retail outlets. The Kakaako site also would avoid some of the noise-restriction concerns that prevent some concerts from being held at the Waikiki Shell.
A same-size venue is being planned in Kapolei by Michigan-based Global Venue Group LLC, which received a conditional use permit to proceed with its project on 33.5 acres of Campbell Estate land across from Kapolei Business Park.
The four-tiered amphitheater in Kapolei, expected to cost $20 million, might be an alternative to the 50,000-seat Aloha Stadium and venues like the Waikiki Shell or Blaisdell Center, which seat fewer than 9,000.
"We looked at that. Obviously we have to be careful in terms of making sure that we don't duplicate other efforts," Liu said.
Jeff Bryant, Global Venue president and chief executive, said that before choosing Kapolei, his group also looked at Kakaako but rejected it for several reasons, including concerns about traffic.
"That would be a nightmare," he said.