Posted on: Friday, May 7, 2004

Developers sign Navy housing agreement

By Dan Nakaso
Advertiser Staff Writer

A hui of companies under the name Hawai'i Military Communities, LLC has signed a 50-year agreement with the Navy to build, renovate and manage 1,948 Navy homes on O'ahu.

Hawai'i Military Communities estimates initial development costs at $400 million.

The project is part of the Department of Defense's $2.2 billion efforts to partner with private developers and property managers who will overhaul military homes on O'ahu and manage them for 50 years.

The latest agreement means that HMC now owns 2,003 Navy homes at McGrew Point, Hokulani, Moanalua Terrace, Halsey Terrace and Radford Terrace, although the land the homes sit on still belongs to the Navy.

When the construction is finished, HMC will be responsible for managing the remaining 1,948 homes for Navy families, said Navy spokesman Lt. Cmdr. Jeff Davis.

As of Monday, HMC pays a fee similar to county property taxes to get city trash pick-up, 911 service and city police and fire response for the five Navy housing areas, Davis said.

Officials with HMC, which is a partnership between Ohio-based Forest City Enterprises, Inc. and Texas-based C.F. Jordan, L.P., have not yet decided whether to apply for a general excise tax exemption for the project, the group's president, Thomas Henneberry, said yesterday.

Congressman Neil Abercrombie, D-Hawai'i, has accused Actus Lend Lease, the developer of a similar Army housing renovation project, of trying to "extort tax exemptions" from the state and city.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.