ISLAND VOICES
Innovative thinking will create jobs here

By James C. Hunt
Managing partner of Fluor Hawaii, LLC

In early July, a small ceremony held by the Navy at the Battleship Missouri Memorial marked the culmination of one of its most innovative military contracts in recent history — a contract that will provide a significant boost to the local construction industry.

The Navy's contract for the Ford Island Development project, made possible through special legislation, was awarded to Fluor Hawaii. The contract represents an $84 million private investment in Hawai'i for construction on Ford Island.

No military construction funding will be utilized under this contract.

Construction on Ford Island is expected to begin in 2004 and will use local subcontractors. The work will complete needed infrastructure upgrades necessary to permit additional Navy projects on Ford Island

These improvements will be the first step that will allow the Navy to fulfill its "medium-density private development" of Ford Island. In the end, the construction on Ford Island will provide the foundation for centralized Navy operations within Pearl Harbor, while preserving Ford Island's many historical sites as part of the Pearl Harbor National Historic Landmark.

What sets this project apart is the innovative real estate deal that provided a unique funding mechanism, without which the project would not have moved ahead. In order to fund the desired construction on Ford Island, the Navy leased for 65 years or sold other Navy properties on O'ahu to Fluor Hawaii. These properties are 34 acres on Ford Island, 400 acres at Iroquois Point/Pu'uloa, 130 acres at Barbers Point/Kalaeloa, 515 acres at Waikele Naval Magazine and 6.6 acres at Halawa Landing.

The lease or purchase of properties at Iroquois Point and Barbers Point/Kalaeloa allowed Fluor Hawaii to instantly begin employing local subcontractors and supplying the O'ahu market with much-needed jobs.

Local merchants and retailers in 'Ewa and Kapolei will see an immediate positive impact on their bottom line as new military and civilian residents move into the units.

The project means the Navy is provided the means by which to centralize its operations in Pearl Harbor, the local construction industry is given an added boost at a time when the Island economy truly seems to be gaining momentum, and the state is assured of the preservation of one of its most historic sites.