Kaka'ako agreement calls for business proposals first, then lease
By Sean Hao
Advertiser Staff Writer
The Hawaii Community Development Authority agreed yesterday to enter into a development agreement with the builder of a planned aquarium and marine research complex in Kaka'ako.
Kajima Urban Development Corp.
But Kajima Urban Development Corp. must submit a business plan to the authority before seeking a lease on about 10 acres of waterfront property to build the marine attractions and research complexes.
In one of the preliminary concepts by the developer, marine attractions, including an aquarium, and research sites are envisioned for 10 acres of waterfront property.
The authority's 11-member board unanimously authorized HCDA executive director Jan Yokota to enter into the agreement. State legislators also are considering authorizing HCDA to issue revenue bonds to help finance the project.
Marvin Suomi, chief executive for Kajima Urban Development, said the development agreement is one key to moving the project forward.
"It provides us with the footing we need to talk with potential investors and collaborators on this project," he said.
Kajima Urban Development, a wholly owned subsidiary of Japan's Kajima Corp., wants to develop a "world-class" aquarium; expand and move the University of Hawai'i's Pacific Basin Research Center; and create a private research center and incubator for startup businesses.
During a presentation to HCDA board members yesterday, Suomi was careful to differentiate his project from another aquarium project planned at the Ko Olina Resort. He stressed that the Kaka'ako development would be primarily a science and learning attraction.
Developers of a planned aquarium at Ko Olina in West O'ahu have said their focus is on entertainment. Whether both projects can co-exist remains a matter of concern and is partly why HCDA is waiting for a business plan from Kajima before entering into a lease agreement.
Typically HCDA signs a development agreement that leads to a lease, if certain criteria are met, said Yokota of the HCDA.
"This is more of a process so the agency is sure of the end result. That it's what we want," she said.
The process will include a new economic feasibility study taking into account the business impact of a second aquarium project, Suomi said. The study is expected to be conducted sometime late this year, he said.
