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The Honolulu Advertiser

Posted on: Friday, March 12, 2004

Developer to be named

By Andrew Gomes
Advertiser Staff Writer

Waikiki Royal Hawaiian Shopping Center in January expects to start a $55 million renovation, the first significant upgrade for the mall built in 1981 for $40 million.

Advertiser library photo • Oct. 2. 2001

Kamehameha Schools expects to select a developer early next month to begin a much-awaited remodeling of the Royal Hawaiian Shopping Center in Waikiki.

The $55 million overhaul is scheduled to begin in January and to be completed in December 2005.

The renovation would be the first significant upgrade for the 23-year-old center that is profitable but has struggled in recent years and has long been criticized for its concrete fortress look. The shopping center is Kamehameha Schools' single most important real estate asset in terms of value, revenue and cultural history.

The repositioning of Waikiki's largest retail complex, which spans more than three central blocks along Kalakaua Avenue, also will play a big role in revitalization of the state's primary tourism area.

"It has a very great impact to us and the greater Waikiki community," said Susan Todani, interim director of development and planning for Kamehameha Schools. "We are very excited."

Kamehameha Schools, which first confirmed conceptual renovation plans in August 2001, had previously estimated project costs at $30 million to $60 million, and a year ago said it was beginning to search for a developer.

The $5.5 billion nonprofit trust with a mission to educate children of Hawaiian ancestry said the center's repositioning will involve a management change, many new tenants, more entertainment, and better integration with the neighboring Royal Hawaiian and Sheraton Waikiki hotels.

The trust hopes the new tenants, which began with The Cheesecake Factory opening in December, will attract more Hawai'i residents to the center.

The primary focal point of the remodeling will be the central performance area with the waterfall at the intersection of Seaside Avenue.

The area, once known as the King's Grove at Helumoa because it was a home of King Kamehameha I with thousands of coconut trees, is envisioned to become a grove-like setting again with a cluster of coconut palms.

Todani likens it to a "Tamarind Park kind of place — a real nice gathering place in Waikiki. We hope that people will say, 'Meet me at the Royal Grove.' "

Making way for the renamed Royal Grove, which was also the residence of Kamehameha's great-granddaughter and Kamehameha Schools benefactor Princess Bernice Pauahi Bishop, will be the removal of three thick concrete bridges that connect the middle and diamondhead wings of the four-story center.

The bridges almost completely block the view of the pink Royal Hawaiian hotel and a banyan tree, which should become visible from the street after replacing the bridges with a single, less-dense bridge that branches at each end to serve the second and third floors.

"That's cool," said Sidney Abraham, when told of the remodeling plan. The Makiki resident, who was at Waikiki Beach yesterday with his 10-month-old son, Skanner, said he goes into Waikiki about twice a month to go to the beach, often passing through the center.

Shizuka Chase, an office worker in the Waikiki Business Plaza across from the mall, also said she thinks the remodeling plan is a good idea. But she questions whether more kama'aina will venture into Waikiki because of little affordable or free parking.

Todani said the Cheesecake Factory has proved it can draw residents into Waikiki, and believes that other nationally recognized tenants mixed with strong local retailers and restaurants can bring in more.

Todani said she couldn't identify prospective tenants or say how much space is available at the 293,000-square-foot mall that has more than 100 tenants. A tour yesterday revealed about 25 vacant spaces.

The 800-seat Aloha Showroom also has been unused since May 1999 when the Vegas-style "Legends in Concert" show featuring performances by celebrity impersonators went out of business. Todani said Kamehameha Schools is trying to reopen the showroom.

Local real estate firm Colliers Monroe Friedlander in December was selected to handle mall leasing. Management, which is handled in-house through subsidiary Pauahi Management Corp., will be outsourced later this year.

Todani said luxury retailers will be concentrated at the center's 'ewa end, and destination shops will be put on the second floor. Restaurants mostly occupy the third level. A shooting gallery and the showroom occupy the partial fourth floor.

Another focal point of the renovation will be opening up the center's diamondhead end to the Royal Hawaiian hotel courtyard. On the makai side of the center's 'ewa end facing the Sheraton Waikiki, a mall entrance will be made where former retailer McInerny once had a store opening.

Additional design aspects are to include a "softening" of the center's rough bunker-like appearance, increasing landscaping along Kalakaua, and adding more local touches similar to the kapa patterns adorning the Cheesecake Factory facade.

Architects working on the project are Honolulu-based Wimberly Allison Tong & Goo and Callison Architecture, a retail design firm in Seattle that worked on the expansion of Ala Moana Center.

Rick Egged, president of the Waikiki Improvement Association, said it appears Kamehameha Schools is committed to changing "the whole feel" of the center.

"That's a real positive thing," he said. "It's often described as Fortress Waikiki. Softening it and opening it up to the Royal Hawaiian (hotel), and giving it a more Hawaiian feel are real pluses to Waikiki."

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