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The Honolulu Advertiser
Posted on: Thursday, April 27, 2006

Setback for Kaka'ako waterfront plan

By Andrew Gomes
Advertiser Staff Writer

Today is day 57 of the session. There are three days remaining.

A plan to build high-rise condominiums on state-owned waterfront land in Kaka'ako hit a snag yesterday as a House and Senate conference committee voted to block the proposal.

The eight-member panel unanimously passed a bill that would prohibit residential use of the Kaka'ako Peninsula land.

The legislation must pass the full House and Senate, in votes likely to be held Tuesday. The measure has a good chance of passage because of bipartisan support. But if Gov. Linda Lingle, who has supported the redevelopment, vetoes the bill, a two-thirds majority in each chamber is needed to override a veto.

"The Legislature listened to the voices of the people," said Rep. Ezra Kanoho, D-15th (Lihu'e, Koloa), co-chairman of the conference committee.

Kanoho said there is merit to having residences in the area, but he deferred to those who testified against the project. "This is a good example of the democratic process; the people have spoken," he said.

Members of the grassroots organization Save Our Kaka'ako were visible and vocal at hearings on bills related to the development plan and have held several public rallies including one at the Capitol two weeks ago that drew about 75 participants.

The plan involves Alexander & Baldwin Inc. redeveloping 36.5 acres of mostly inaccessible industrial state-owned land on the Kaka'ako Peninsula with an extension of Kaka'ako Waterfront Park, a public hula amphitheater, farmers market, shops, restaurants and two 20-story condo towers.

A&B says the condos are needed to help pay for the public improvements, including maintaining the existing waterfront park, and are integral to generating more activity in the area.

CONTROVERSIAL CONDOS

A&B would buy six acres of slightly inland property for the two condo towers with about 630 units, and lease the rest of the land under an agreement that would earn the state revenue.

The Hawai'i Community Development Authority, the state agency overseeing the redevelopment, solicited proposals for the site early last year, and tentatively selected the A&B plan in September.

A subcommittee of agency directors endorsed the project in January after a third condo tower and a pedestrian bridge over Kewalo Harbor channel were eliminated from the plan in response to community concerns.

But the agency has delayed making a final decision to see what happens at the Legislature.

COMPETING VISIONS

Daniel Dinell, agency executive director, has said he believes a majority of the public, including Kaka'ako park users, supports the agency's vision for redevelopment that creates a mix of residences, businesses, academic institutions and recreational facilities.

Many opponents of the project say they want the state to convert the entire area into park space, while others have endorsed a variety of uses including commercial, low-rise apartment rentals and affordable housing.

Save Our Kaka'ako has promoted its own plan anchored by park space, museums, performance theaters and a "living" historic Hawaiian fishing village aimed at tourists and kama'aina.

The group estimates the cost of its plan at about $70 million, which is proposed to come from donations, and state revenue bonds repaid over 20 years with project revenue exceeding estimated annual operating expenses of $17 million.

'VIABLE COMMUNITY'

"We absolutely do not need to build any residential element in Kaka'ako Makai to make it a viable community," Brian Shimokawa, a Save Our Kaka'ako supporter, said in a written statement. "What we must do is build a viable community conducive to the already existing environment with the long-term vision and goal of saving and preserving one of the last undeveloped shoreline waterfronts in downtown urban Honolulu for our future generations."

Rep. Kanoho noted that if the A&B plan is rejected, the state will be abandoning private financing of public improvements to the area, as well as a benefit that required A&B to sell 20 percent of its condo units to moderate-income buyers.

"It will not be without cost to turn from what the area is now into something else such as a public park," he said.

ALTERNATE PLAN

In a related House resolution endorsed by the Senate, the Legislature is encouraging the Hawai'i Community Development Authority to form a committee that includes opponents of the pending development plan to come up with an alternate plan.

Rep. Kirk Caldwell, D-24th (Manoa), introduced the bill, HB2555, approved yesterday. Caldwell said he wants to reserve the property for public use.

Senate members of the conference committee that advanced the bill yesterday were Sens. Russell Kokubun, D-2nd (S. Hilo, Puna, Ka'u); Brian Taniguchi, D-10th (Manoa, McCully); Carol Fukunaga, D-11th (Makiki, Pawa'a); Lorraine Inouye, D-1st (Hamakua, S. Hilo); and Fred Hemmings, R-25th (Kailua, Waimanalo, Hawai'i Kai). House committee members were Reps. Ryan Yamane, D-37th (Mililani, Waipi'o); Anne Stevens, R-23rd (Waikiki, Ala Moana, Kaka'ako); and Kanoho.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.