Posted on: Thursday, October 21, 2004

$34M deal may be back on track

By Johnny Brannon
Advertiser Staff Writer

A plan to sell the city's interest in two downtown properties for $34 million moved forward yesterday, three weeks after a City Council panel had sidetracked the deal.

Council members had questioned whether the city administration had provided enough details about plans to sell the city's share of the Queen's Court and Harbor Court properties.

But officials warned that the money is factored into the annual budget that the council approved in June, so rejecting the sales would leave the city with a major cash shortage.

The council's budget committee reviewed the deals and unanimously approved them yesterday, pending a final vote by the full council next month. The buyers are apartment associations that have ownership interests in the properties on Nimitz Highway near Aloha Tower.

The council had authorized the administration months ago to market the properties, and had set the minimum price of $34 million for both. Some council members had worried that the price was too optimistic, but the administration said it would not have settled for less.

The budget panel also approved the $1.4 million sale of a portion of Helumoa Road in Waikiki to Outrigger Hotels Hawaii, which is redeveloping their properties in the area.

The plan includes a mixed-use retail, entertainment and resort project on 7.7 acres bordered by Lewers Street, Kalia Road and Beach Walk.

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