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The Honolulu Advertiser
Posted on: Thursday, February 5, 2004

Council members open to approving Block J sale

By Johnny Brannon
Advertiser Staff Writer

The $10.5 million sale of a downtown city parking lot known as Block J should go forward if the buyers agree to parking, landscape and resale restrictions, City Council members say.

The Pflueger Honda dealership wants to move to the 2.4-acre site at the corner of Beretania Street and Pali Highway, and may build additional space for stores on the ground floor and condominiums above.

Council members said they wondered whether that was the best future for the property, but noted that previous plans to build rental housing and other projects there had fallen apart.

"We've been at the altar with this only to have it collapse at the last minute," Councilman Charles Djou said.

The city anticipated the sale and planned to spend the money this year, so blocking the deal would leave a financial gap, budget director Ivan Lui-Kwan said.

Councilman Romy Cachola said that had put the council "in a pressure cooker situation" needing fast approval. He said the plan could still work but needed more scrutiny.

Pflueger Honda manager Alan Pflueger said the company planned to move the dealership there but had not decided what else to build. He said he did not plan to quickly sell the property for a profit, however.

"I'm not looking to unload it, I assure you that," Pflueger said.

Lui-Kwan said another buyer had offered $15 million for the property, but did not appear to have the money lined up and wanted 18 months to close the deal. That plan was to build a residential building 350 feet high, he said.

There are 279 parking stalls on the property, including 202 with meters for public use and 77 for city employees. The lot generates about $31,000 per month for the city.

Pflueger's plan would include a parking garage with 100 stalls charging municipal rates for at least 10 years, and up to 100 more for long-term rental at other rates.

He said he would agree to such plans in writing, along with requirements to include landscaping and protect views.

Council members Ann Kobayashi, Barbara Marshall, Gary Okino and Rod Tam also said they were concerned with the way the city has handled the deal but remained open to approving it.

The council's Budget Committee plans to vote on the project during a special meeting next Wednesday. The deal would then go before the full council on Feb. 18 for final approval.

Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.