Council to vote on Pflueger deal
By Johnny Brannon
Advertiser Staff Writer
Despite concerns that a written agreement for selling a downtown city parking lot is still being drafted, City Council members agreed to move the $10.5 million deal forward for a final vote Wednesday.
The Pflueger Honda dealership wants to move from Ala Moana to "Block J," a 2.4-acre site at Beretania Street and Pali Highway, and redevelop the property. The plan may include housing in a tower up to 350 feet high if financially feasible, the Pflueger Group says.
Some council members question whether the project has been fully thought out, and want guarantees that Pflueger will include some public parking and landscaping and protect views.
City Corporation Counsel David Arakawa said he would incorporate such requirements in a written sales agreement, but gave no assurances it would be ready before the final vote to authorize the deal.
Council budget chairwoman Ann Kobayashi said the sale could be held up otherwise. "It would be hard to give final approval if we don't have these things cleared up," she said.
The city stands to net $9,680,522 from the sale after deducting fees for a real estate broker and other services. Officials say the money is badly needed. The current city budget assumed the property would be sold this year for $15 million, and holding up the deal would leave a bigger gap in city finances, budget director Ivan Lui-Kwan said.
"I don't think it means the collapse of the city, but I think it will have a significant impact," he said.
The city has been trying to sell the property for more than a decade. Earlier plans called for building subsidized housing for lower-income residents. Pflueger indicated that it may include market-rate condominiums in the project.
Some downtown residents and workers also worry the sale could increase parking headaches. There are 279 parking stalls on the property, including 202 with meters for public use and 77 for city employees. The lot is used heavily by deputy city prosecutors and others going to nearby District Court.
Pflueger's latest plan would include a parking garage with 100 stalls charging municipal rates for up to 12 years, and up to 100 more for long-term rental at market rates. Lui-Kwan said displaced city employees would receive stickers allowing them to park elsewhere.
Reach Johnny Brannon at 525-8070 or at jbrannon@honoluluadvertiser.com.
