Posted on: Saturday, February 2,2002

Kmart keeps alive superblock project

By Andrew Gomes
Advertiser Staff Writer

KMart has renegotiated its contract with the owner of the Ke'eaumoku superblock to keep alive plans for a large store near Ala Moana Center. Associated Press

Kmart has kept alive a deal to purchase an estimated $30 million piece of land near Ala Moana Center for a Super Kmart store.

The Troy, Mich.-based retailer did not make a required escrow payment yesterday that would have automatically extended its purchase contract with local landowner Wichman Family Trust, but the two parties are negotiating to amend the contract to allow Kmart to continue with its planned project.

A Wichman trust spokes-man said there is a good possibility Kmart can proceed in spite of its Chapter 11 bankruptcy filing last week, but retail analysts say financing the project still may be difficult because of the bankruptcy.

Kmart spokeswoman Julie Fracker said the company is proceeding with plans for now but will need to further consider project feasibility.

Kmart announced its plans to build a roughly $20 million, 175,000-square-foot store on about 10 acres known as the "Ke'eaumoku superblock" last year.

The Department of Planning and Permitting plans a hearing on the project at 1:30 p.m. Feb. 5 at the City Hall Annex.