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The Honolulu Advertiser

Posted on: Thursday, August 5, 2004

Aquarium master plan may include a hotel

 •  Map: Proposed master plan development for Kaka'ako

By Andrew Gomes
Advertiser Staff Writer

The company proposing to develop an aquarium and ocean science center in Kaka'ako wants to expand its plans to include residential units, retail and entertainment space, parking and possibly a hotel.

Kajima Urban Development recently requested to exclusively negotiate with the state Hawaii Community Development Authority to become master developer of several waterfront parcels near the planned aquarium at the edge of Kewalo Basin and Point Panic.

KUD, which is finalizing its aquarium and ocean science center plan, said it makes sense to develop neighboring properties in conjunction with the aquarium complex, and has partnered with retail development giant and Ala Moana Center owner General Growth Properties in the effort.

"We believe that this is the most efficient way to proceed," wrote officials with KUD and General Growth in a letter to the agency last week. "It will accelerate the redevelopment of Kaka'ako and provide a master-planned development that is consistent with the goals and objectives of the (state)."

The agency, which controls development rights of state property in the area, has yet to respond to the unsolicited proposal.

State land makai of Ala Moana between Kewalo Basin and Hono-lulu Harbor has been the focus of the state's most important redevelopment effort since Aloha Tower Marketplace in the early 1990s.

During the past decade, the agency has had difficulty facilitating development of much of the property because of a weak economy, political controversy and questionable projects.

Previous development proposals included an indoor snowboarding center, high-technology park and several entertainment/shopping ideas, including one featuring a giant Ferris wheel.

More recently, the University of Hawai'i chose the area for a new medical school, which is being built by an affiliate of KUD, a subsidiary of Japan-based construction firm Kajima Corp.

In November 2002, KUD began exclusive negotiations to lease 10 acres for an estimated $200 million to $250 million facility to replace the Waikiki Aquarium and provide marine research facilities for the university and other users.

Last year, the agency said it planned to solicit development proposals for adjacent waterfront sites, and earlier this year received authorization to issue $20 million in revenue bonds to build a parking structure to support the aquarium and other waterfront development.

Parts of the KUD/General Growth proposal incorporate ideas previously suggested by the agency, such as cloaking residential units around a parking structure and creating a retail and entertainment mix of businesses along Kewalo Basin.

A business hotel was another possible use envisioned by KUD that in past years has been considered by the state.

KUD in its proposal also said it has discussed providing facilities for the National Oceanic & Atmospheric Administration, which is searching for a site to consolidate operations spread among a dozen locations on O'ahu.

"NOAA has not yet selected a site ... but is strongly interested in the KUD parcel in Kaka'ako," KUD's proposal said.

Bill Broglie, NOAA chief administrative officer in Maryland, said the federal agency has discussed the possibility with KUD, but is considering other sites and would use a competitive bid process to select a developer of its facility.

The NOAA has $29 million allocated for a Pacific Region Center to house various operations including weather forecasting, marine science studies and management of fisheries and coastal zones. NOAA also operates two research ships with a third on the way, and would like to broaden educational outreach possibly with a visitors center.

KUD is asking the state for an exclusive one-year negotiation period to allow pursuit of an agreement with NOAA, which KUD envisions as a third anchor in the area with the medical school and aquarium.

KUD also would conduct feasibility and other studies for the master plan. General Growth, which also owns Victoria Ward Centers nearby, would assist with the retail and entertainment components of the master plan.

Victoria Ward, before it was acquired by General Growth two years ago, unsuccessfully bid to develop retail shops, a farmer's market and entertainment and restaurant uses on part of the Kewalo waterfront in 1999.

"We believe it needs to be master-planned together to make it effective," said Jeff Dinsmore, Victoria Ward general manager. "Otherwise we could end up with a real mess."

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

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