Wal-Mart deal questioned
By Scott Ishikawa
Advertiser Staff Writer
PEARL CITY — Some community leaders are questioning a purchase agreement signed by Wal-Mart for a 20-acre city parcel in Manana, saying the company may not have to pay for off-site traffic improvements when it eventually builds its 140,000-square-foot store in the already congested area.
Cory Lum • The Honolulu Advertiser
A private attorney representing the city on the transaction said Wal-Mart still could help pay for traffic improvements when the company determines by next month whether to seal the deal.
The site of the proposed Wal-Mart store is on the parcel mauka of Sam's Club at Pearl Highlands Center in Manana, Pearl City.
Wal-Mart officials are considering a conventional 140,000-square-foot store on the parcel at the corner of Acacia Road and Kuala Street behind Pearl Highlands Center, where Wal-Mart already operates a Sam's Club store.
The city in February said it would sell the 20 acres to Wal-Mart for $18 million for what would be its third store on O'ahu. The deal is part of a settlement with landowner Kamehameha Schools to give the city title to the property near Sandy Beach along East O'ahu's Ka Iwi coast.
Wal-Mart officials have not said when they would want to begin construction if the sale goes through.
It is the purchase agreement signed by Wal-Mart and the city in April that has City Council member Gary Okino concerned. The purchase agreement states that "Wal-Mart shall not be required to construct or fund any offsite improvements or pay any impact or similar fees in connection with the development of the property."
The document adds that the traffic improvements that Wal-Mart be exempt from includes, but is not limited to, building an extra dedicated right-turn lane from Kamehameha Highway onto Acacia Road leading to the Wal-Mart site. Okino said an additional lane also needs to be built along Acacia Road to deal with the increased traffic.
Okino said it was too early to say how much area traffic improvements would cost, except that it would run in the "hundreds of thousands of dollars."
"If a store like that comes in knowing what kind of traffic it will bring and the company doesn't help foot the bill, that means the city and taxpayers will," he said. "Hopefully, Wal-Mart will be good neighbors and will help us in paying for these traffic improvements."
Residents have been concerned over that section of Kamehameha Highway which handles more than 40,000 vehicles a day. The area houses Sam's Club, the Pearl City Post Office and Leeward Community College. Waimano Home Road, another busy intersection, is only a half-mile away.
Wal-Mart officials could not be reached for comment. Attorney Lex Smith, who represents the city on the land transaction, said Wal-Mart and the city are awaiting separate area traffic studies on what improvements need to be done.
"Nothing is set in stone yet," Smith said. "There's going to be a due diligence period with more dialogue on the matter."
Pearl City Neighborhood Board chairman Albert Fukushima said the Pearl City Task Force advisory group will meet at 7 p.m. June 26 at Manana Community Park to discuss the city's traffic study for the Manana area.
Okino understands that the sale of the Manana property to Wal-Mart is an important part in the city's efforts to finalize the Ka Iwi deal with Kamehameha Schools, since the proceeds from the Wal-Mart purchase would go to Kamehameha Schools.
Traffic meeting
But he said the situation also left Wal-Mart with the upper hand in negotiations.
In contrast, the city's deal over land for the Pearl City Home Depot had the company pay for traffic improvements to the busy intersection of Kamehameha Highway and Acacia Road, including traffic lights and additional left-turn lanes, before opening in July 2001.
"It was a sweet deal for them," Okino said of Wal-Mart. "They had the city over the barrel on this one."
Pearl City Neighborhood Board chairman Albert Fukushima believes the scope of the city and Wal-Mart's traffic studies should be expanded to include the H-1 Pearl City/Waimalu off-ramp and Moanalua Road, since many drivers will use that route to reach the planned Wal-Mart store.
Reach Scott Ishikawa at sishikawa@honoluluadvertiser.com or 535-2429.
