Council approves sale of lot to Pflueger
By Johnny Brannon
Advertiser Staff Writer
The City Council yesterday gave the green light to a Honolulu auto dealership to redevelop a downtown city parking lot known as Block J.
The council voted 6-1 to sell the 2.4-acre site at Beretania Street and Pali Highway to Pflueger Honda for $10.5 million, despite concerns the property could be worth more later.
A few nearby residents and property owners complained that the deal would cause parking headaches, and several council members said they had reservations about the plan but felt it was the city's best option.
Councilman Gary Okino noted that the city's annual budget anticipated the sale would raise $15 million.
"We're already going to be $5 million short," he said. "If we don't approve it, we'll be $15 million short in our revenue stream."
Council member Barbara Marshall, the only dissenting vote, said the deal was being "ramrodded through" without enough time to consider all its impacts, and that the property could increase in value. "I think we are giving up too much for too little," she said.
Councilman Charles Djou conceded the sale was "a bit of a shotgun wedding," but said he was confident Pflueger's plan would be a good fit downtown.
Pflueger intends to move its Ala Moana dealership to the site soon, and is considering building condominiums and additional commercial space there.
The property has 279 parking stalls, including 202 with meters for public use and 77 for city employees. The lot is used heavily by people visiting nearby District Court.
Pflueger's plan includes a parking garage with 100 stalls charging municipal rates for at least 12 years, and as many as 100 more for long-term rental at market rates.
City budget director Ivan Lui-Kwan said displaced city employees would be allowed to buy stickers allowing them to park at another city facility, but details had not been worked out.
Reach Johnny Brannon at jbrannon@honoluluadvertiser.com or 525-8070.
