New ideas pitched
for Aloha Tower
The developer selected to transform the Honolulu waterfront area near Aloha Tower proposed changes to his plan yesterday that would make the redevelopment's condominium units available for sale rather than for rent and make the state an equal partner on the project.
Ken Hughes, of Dallas-based urban development specialist UC Urban, also suggested creating an underground bypass road along Nimitz Highway to ease the redevelopment's potential traffic impact.
"We just wanted to go back and revisit the plan and think outside the box a little," said Hughes, who presented the ideas to the board of the state-run Aloha Tower Development Corp.
The ATDC and Hughes are working to reach consensus on the plan's shape before a July 31 deadline, when a pre-development agreement expires.
Though he called them mere "options", Hughes' suggested refinements were aimed at shoring up the feasibility of the project, which envisions 550 affordably-priced loft-style apartments and more than 50,000 square feet of retail and restaurant space. The area also will serve as the hub of a 2.4-mile downtown electric trolley system.
Hughes said earlier this year that more than $130 million worth of infrastructure improvements and demolition work were necessary to make the plan viable for him and has said extended delays will hurt him.
He said those concerns could be eased by forming a limited liability company in partnership with the state, the area's main landowner.
"What is key to me is that we don't spend millions of dollars building a relationship and then all of a sudden find that we don't have a good consensus with the official side," Hughes said.
"This would give us an easily identifiable partner with good resources."
Daniel Orodenker, ATDC acting executive director, said forming an LLC was a "great idea."
He added, "But I don't think the state has ever done that and we'd have to take a closer look at it."
Meanwhile, Hughes told the board that building the condos as rental units makes no financial sense given the high costs of construction in Hawaii, adding that the state could reap about $14 million in profits if they were sold in fee simple.
But selling the condominiums in fee simple was clearly more problematic, Orodenker said.
"I'm not sure how we can accomplish that right now," said Orodenker. "That would involve selling state land and we have no authorization to do that. That would be up to the Legislature."
Hughes also showed board members drawings of a possible below-grade bypass road that would carry Nimitz Highway traffic under the area, easing congestion concerns and allowing the redevelopment to knit the waterfront and downtown more closely together.
He said the bypass road could be dug as a simple extension of the demolition and excavation of the Hawaiian Electric Co. power plant on Nimitz Highway, which would be moved to another site as part of the redevelopment plan.
Board members said studies would first have to be done on whether existing utility lines might complicate that plan.
"I don't see much of a problem with that aside from the cost," said state Department of Transportation Director Rodney Hiraga, who added that federal funds could possibly be obtained to help pay for it.