Outrigger redevelopment project put on hold

By Robbie Dingeman
Advertiser City Hall Writer

The Honolulu City Council's Policy Committee this afternoon postponed until January any action on a proposal for the city to condemn five properties in Waikiki to make way for Outrigger Enterprises' $300 million redevelopment project.

Eight of the nine Council members sit on the policy committee, and it was clear today that the group has mixed feelings about the concept of the government taking one landowners' property to turn it over to another. In condemnation, the property owner who loses the land is paid fair market value for the land.

Council Policy Chairman Romy Cachola recommended deferring action on the proposal after about 2 1/2 hours of discussion of the matter. "This proposal is difficult, emotional and involves very complex issues," Cachola said.

Mel Kaneshige, chief operating officer for Outrigger Enterprises, said the company will try to talk more with the involved property owners and see if agreements can be reached.

Kaneshige said that it will be "extremely difficult, if not impossible" to acquire financing for the project with 10 percent of the 7.9-acre site held in leasehold. "If we are not able to raise the capital required, obviously, we won't be able to do the project."

Owners of the three of the parcels protested the condemnation plan while praising the ambitious redevelopment plan and saying they support it wholeheartedly.

Landowner Jackie Johnson told the council that she and her sister, Bronwen Welch, support the improvement project and recently negotiated a 65-year lease with Outrigger. Johnson said they can't understand why the city would act to force them to sell the land to Outrigger.

"It is not right and it is just not necessary," Johnson said.

The Council's Policy Committee is scheduled to discuss the proposal again on Jan. 9.