Waterfront project gets a boost

By Andrew Gomes
Advertiser Staff Writer

The parking lot just diamondhead of Aloha Tower Marketplace would be part of a proposed project to redevelop underused state land along the Honolulu waterfront. Deborah Booker • The Honolulu Advertiser

Helping finance a study to evaluate development risks of a proposed private project is a first for the Aloha Tower Development Corp., according to Ron Hirano, executive director of the state agency overseeing redevelopment of the area just diamondhead of Aloha Tower.

Three years ago, the agency spent $130,000 on a general feasibility study to update a master plan, but the joint study is part of the agency's new strategy to revitalize the underused waterfront.

Developer Kenneth Hughes of UC Urban and the agency recently signed a predevelopment agreement providing for the study.

The agency has been enthusiastic about UC Urban's proposal since it was made late last year and adopted as something to pursue by the agency's board in February.

Hirano said the study will take a more detailed look at obstacles "to really see if these obstacles can be overcome."

Potential barriers for the ambitious project include acquiring Hawaiian Electric Co.'s downtown power plant for conversion into a park.

Hughes said he is working with the nonprofit Trust for Public Land to help acquire the site and has previously described Hawaiian Electric as willing to discuss the possibility.

The joint study will involve seven consultants and last about four months, according to Hughes, who said the project is a stunning opportunity with many challenges for his firm and the state.

"It's a big risk analysis for us," he said. "The state is in a good position to launch an urban initiative. This is really city building. So far, I'm encouraged and pleased with the more positive aspects of things."

Dubbed Pacific Quay, the project includes 250 low-rise loft residences, 200,000 square feet of office space, a ferry terminal, boat slips and a 250-room hotel with ground-level restaurant and retail space.

The planned project also provides for extra parking for Aloha Tower Marketplace, removal of the parking area at Irwin Park and the building of a 2-mile streetcar system linking the waterfront with the rest of downtown.

If UC Urban and agency staff agree obstacles can be overcome, they would try to negotiate a development agreement with lease rent and other terms that would need board approval.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.