Posted on: Sunday, June 12, 2005
Warehouse plans aired
By James Gonser
Advertiser Urban Honolulu Writer
D. Otani Produce Inc. plans to build a new $8.5 million warehouse on a vacant 1.5-acre parcel located between Hart Street and Nimitz Highway in Kapalama that would allow the company to expand, maintain a controlled environment for its perishable produce and add room for other small businesses on the roof.
The land is next to the Kalihi Kai fire station and owned by the state Department of Hawaiian Home Lands, which put use of the property up for bid last year.
The 65-year lease sets a base rent for the first 25 years, after which it will be renegotiated at 10-year intervals.
Company president Dwight Otani said the timing for the project was perfect.
"I'm leaving because I'm paying too much rent here," Otani said. "The lease is up and it kind of fell into place."
The state is seeking comment on a draft environmental assessment filed for the project last week.
To comment on D. Otani's warehouse project, write to: D. Otani Produce Inc., 320-D Waiakamilo Road, Honolulu, HI 96817. Include copies for the state Department of Hawaiian Home Lands, the consultant Gerald Park Urban Planner and the state Office of Environmental Quality Control.
The deadline for public comment is July 8. "We've designed it over and over and over," he said. "Fifteen to 20 times."
The concrete structure will have 45,400 square feet of space on the ground floor, 85 percent reserved for produce storage, with office space and loading docks. A 2,800-square-foot mezzanine floor will have space for the company's accounting office, file and lunch rooms, and a weight room with men's and women's restrooms and locker facilities.
Otani plans to sublease warehouse bays on the roof of the 45-foot-tall structure. The roof will have 20,000 square feet of warehouse space, with nine bays that will be leased to contractors, wholesalers, distributors and other nonretail businesses.
The roof also will have 51 parking stalls. There also will be 15 double stalls on the ground level with room for 29 vehicles.
Otani said a recent case of contaminated carrots being served on several flights out of Honolulu, causing 45 people to suffer food poisoning, shows how careful produce suppliers must be.
"We want to be able to trace back everything and make sure our temperatures are right," he said. "The whole building will be enclosed."
Financing comes from American Savings Bank and the Hawaii Economic Development Corporation, according to the environmental assessment.
The site is zoned IMS-1 industrial commercial mixed use, and Department of Hawaiian Home Lands spokesman Lloyd Yonenaka said the warehouse is a typical use for the area. The department also owns a portion of the property under the nearby City Square Shopping Center.
The warehouse site has been empty since 2004 and was used for light industrial and commercial purposes. A soil survey found two instances of lead. The soil was removed and the state Department of Health determined that no further investigation of contamination is required, according to the assessment.
Project consultant Gerald Park said no public hearings are required for the project.
Reach James Gonser at jgonser@honoluluadvertiser.com or 535-2431.
The company, which has been in the wholesale produce business for 16 years and has 43 employees, will vacate its nearby warehouse space on Waiakamilo Road after construction is completed in about 15 months.
Otani said the design is a good fit for his produce business, with climate controls set at 55 degrees in the warehouse, and 11 loading docks providing easy access for trucks to pick up and deliver goods.
Input sought
