Posted on: Tuesday, September 28, 2004
A&B plans expansion of Maui Business Park
By Andrew Gomes
Advertiser Staff Writer
Major Maui landowner Alexander & Baldwin Inc. is proposing to nearly quadruple the size of its Kahului business park to meet projected demand for light industrial and commercial space over the next 20 years.
The Honolulu-based company is seeking Maui County approval to convert 179 acres of sugarcane fields, former sugar plantation buildings and fallow land into a second phase of its nearly sold out 69-acre Maui Business Park.
The expansion would make way for a variety of new businesses around the Valley Isle's commercial hub, including retail stores, offices, warehouse and distribution facilities, light manufacturing and research. Because of the site's proximity to Kahului airport, potential users also include car rental agencies, flight kitchens, freight forwarders and cargo handlers.
A&B projects a Central Maui shortage of light industrial real estate in one or two years, and demand for 290 acres over the next two decades, based on a market study.
"With the economy growing as steadily as it is, there's a clear need for industrial and commercial space on Maui, particularly in the areas close to the airport and harbor," said Stan Kuriyama, chief executive officer of A&B Properties Inc.
The project would increase development of the area, but would generate hundreds of jobs plus several hundred million dollars in new taxes for the state and Maui County.
In a draft environmental impact statement, A&B projected that the business park expansion would generate taxes of $391 million for the state and $34 million for the county over 15 years during development, followed by annual tax revenue of $52 million to the state and $3.8 million to the county.
Minus public costs associated with the project, the net annual benefit from tax revenues should be $44 million to $51 million for the state, and $1.7 million to $3 million for the county, A&B said.
Earlier this year, A&B received state Land Use Commission approval to reclassify the bulk of the property for urban use, following a tentative designation received earlier for the rest of the agriculture land.
The entire property is designated for light industrial use on the Wailuku-Kahului Community Plan, but still would need rezoning by the County Council.
Leaders of the council's planning and land use committee could not be reached for comment yesterday.
Kuriyama said A&B is trying to advance its project as quickly as possible, but recognizes it may take a while to receive approvals including rezoning, an incremental Land Use Commission approval and acceptance of the environmental impact statement.
A&B anticipates that permitting will run into 2005, and that construction of basic infrastructure would begin in 2006 if approvals are obtained. Lot sales and construction of tenant structures is anticipated to start in 2008.
According to A&B's market study, half of the business park users are expected to be commercial/retail operators, and half light industrial businesses.
The first phase of Maui Business Park, which started in 1995, includes Maui Marketplace, anchored by Borders Books & Music, Lowe's, OfficeMax and Old Navy. Home Depot and Wal-Mart also built stores on business park land bought from A&B.
As of July, about 96 percent of the park's first phase had been sold, with 2.8 acres available.
A&B said the reduction of sugar cane production by its subsidiary HC&S wouldn't be a significant loss. A dry-land taro experiment on the site would either be moved or discontinued. A surfboard repair shop and parking lot operator are on month-to-month leases.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
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