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The Honolulu Advertiser
Posted on: Sunday, December 2, 2007

COMMENTARY
Jobs, infrastructure on track in Kapolei

By David Rae, Senior Vice President for Development, Aina Nui Corp.

Hawaii news photo - The Honolulu Advertiser

David Rae.

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THIS WEEK

Editorial and Opinion Editor Jeanne Mariani-Belding puts Dr. Cynthia Goto, president of the Hawaii Medical Association, representing Hawai'i’s physicians, on The Hot Seat for a live blog chat Wednesday from noon to 1 p.m. at www.honoluluadvertiser.com/opinion

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Each week Editorial and Opinion Editor Jeanne Mariani-Belding hosts The Hot Seat, our opinion-page blog that brings in elected leaders and people in the news and lets you ask the questions during a live online chat.

On The Hot Seat last week was David Rae, senior vice president in charge of development for Aina Nui Corp. and Kapolei Property Development. Rae is responsible for land planning, entitlement and public affairs for the James Campbell Co. and its affiliates. He answered questions on development in Kapolei.

The following is an excerpt from that Hot Seat session. To see the full conversation, go to The Hot Seat blog at www.honoluluadvertiser.com/opinion and click on "The Hot Seat." (Names of questioners are screen names given during our online chat.)

Beverly Larranaga: Do you have a forecast or approximation of jobs in Kapolei in the next two to five years, broken down by quantity and pay? Also, the breakdown of new construction of homes by quantity and year to be completed in the next two to five years?

David Rae: The job projections for Kapolei show that there will be 35,000 jobs in 2010 and 46,000 jobs in 2015, up from 27,000 jobs today. Currently, more than a third of those who work in Kapolei hold high-paying jobs, which is defined by an annual salary of $50,000 or more.

Grayson: I've read that Kapolei Property Development is putting a lot of money into infrastructure. What will the money be spent on?

Rae: Kapolei Property Development has pledged $172 million to move construction forward on the city of Kapolei's most critical infrastructure needs. In a landmark agreement with the City and County of Honolulu, the company has agreed to facilitate Hawai'i's largest private sector-funded effort to build public infrastructure, including roads, drainage, water and sewer improvements. We will fully fund and manage the design and construction of these improvements while the city plans to use a modified third-party review process that should result in the timely completion of these improvements.

Of the $172 million:

  • $124 million will be spent on building and improving nearly five miles of roadways in and around the city of Kapolei.

  • $25 million will be spent on constructing a regional drainage system and improving an existing regional drainage channel.

  • $16 million will be used to build more than three miles of new regional sewer lines and a sewage pumping station.

  • $7 million will be used to construct two regional water reservoirs that will serve the Kapolei area.

    This commitment will bring to $381 million the amount Kapolei Property Development will have invested in Kapolei, including roadways and other public facilities.

    Nick82: What are you doing to protect the environment?

    Rae: Kapolei is designed for conserving natural resources and the wise use of energy. Green, energy-efficient features can be found in many of Kapolei's buildings, from the first building— the Campbell building — to the newer buildings like The Honolulu Advertiser and Kapolei Hale — which have won energy-efficiency awards. Here are some green facts about Kapolei:

  • We've planted more than 1,000 drought-tolerant trees in the city of Kapolei, including Kapolei Regional Park. These trees require less water and therefore help conserve water.

  • The city of Kapolei has a dual water system that separates potable water for human use and nonpotable water for uses such as irrigation.

  • Approximately 14 miles of the planned 56-mile bikeway system have already been built.

  • Small block sizes and pedestrian malls are being built to encourage walking— another way to reduce traffic and save energy.

    The company has a long-standing commitment to practice responsible stewardship by protecting and preserving conservation lands like the Honouliuli Preserve, that are critical habitats for endangered flora and fauna. This preserve sits on 4,000 acres of Campbell-owned land ... above Palehua. In 1990 Campbell estate gave The Nature Conservancy the right to manage these lands as a preserve.

    Bob Holden: I have lived in Makakilo since 1979. Kapolei has been touted as the "Second City" and is the fastest-growing community in the state. The old communities on this island include churches and other religious facilities. Kapolei doesn't. My questions are: Why not? How do churches get their foot in the door?

    Rae: We agree with you that churches are an important part of the community fabric. That is one of the reasons they were incorporated in our land sale agreement to the state in the Villages of Kapolei. We have made a number of parcels available to churches in Makakilo, in Kapolei Business Park and along Fort Weaver Road where the Catholic Church has acquired 50 acres. Our future projects also will have land appropriate for churches.

    Kapolei Resident: It appears that the model used to predict traffic flow was flawed, or at the minimum optimistic. How have you updated this model to ensure that we have adequate new infrastructure as Kapolei continues to grow?

    Rae: When we opened the first office building in Kapolei in 1993, it was the only building in the middle of the cane field and we had roads that appeared to lead to nowhere. We had invested a lot of money in the city's infrastructure and then had to weather a decade-long recession. When the economy picked up, activity in Kapolei did, too, and we were faced with having to catch up with Kapolei's growth. We are committed to making extraordinary efforts to step up the pace of building infrastructure and have pledged $172 million to move construction forward on the city of Kapolei's most critical infrastructure needs over the next five years.

    JohnK: With all the new development of homes out in Kapolei, are you working with the state or city on affordable housing?

    Rae: Over the years the Campbell Co. has made land available for the development of affordable housing so that the Kapolei region now has more affordable housing than any other community on O'ahu. We made land available to the state of Hawai'i for the Villages of Kapolei for affordable housing and to the city at West Loch and 'Ewa Villages. Additionally 30 percent of the future homes planned will be in the affordable range.

    Jeremy James Manabat: I've lived in the Kapolei area all my life, and it's been drilled in my head that Kapolei would be the "Second City," where people could live and work in Kapolei. Yet today we have a bedroom community where everyone commutes to town. What happened to that vision of living and working in Kapolei? Is that the vision still? Or is it just about plopping down retail space and cookie-cutter subdivisions?

    Rae: Unfortunately cities are not built in a day and are not built in isolation. Residential developments are absolutely essential to the development of a city. Commercial development could not happen without residential development, which is key to population growth. Population is an important statistic that influences business decisions on choosing a location. Many businesses take into account the number of people who live in an area. They look for communities that offer the potential for long-term growth. The more businesses that come to Kapolei, the more jobs they create. Having said that, Kapolei is indeed on its way to becoming a major job center.

    ReggieT: How are you planning for the rail transit if it ends up going out to Kapolei?

    Rae: Campbell Estate has been committed to transit for the past two decades. In fact, we have already committed land for both the transit alignment and a 5-acre transit hub in Kapolei. The city has determined that the full 28-mile alignment will be the locally preferred alternative. This means that the Leeward-most station will eventually be in Kapolei.

    Adrian Mols: Will state and government agencies be building or moving downtown offices west? Aside from a movie studio, are there any other unique projects aside from the basic infrastructure needs ... in store for Kapolei that will make the Second City more attractive?

    Rae: In addition to the government offices mentioned earlier and the studio, Kapolei Commons will be a major community amenity anchored by Target and a host of retail stores and restaurants.

    GaryO: What is the timeframe for the west-bound onramp from Makakilo Drive onto H-1 and the continuation of Makakilo Drive to the North/South road? Will there ever be an eastbound off to Makakilo Drive?

    Rae: The state will start construction on the onramp from Makakilo westbound at the first quarter of 2008. There will eventually be a way to access Makakilo from the Wai'anae direction through the new Kapolei interchange.

    Lehua Wilson: I feel that companies such as Schuler Homes are making so much money off of their development in the area, yet have not been accountable for infrastructure to help with the traffic problems. I would like to know what they are doing. I would also like to know that if they are expected to do infrastructure, why don't they do it before the housing is built?

    Rae: The 'Ewa area is unique on O'ahu in that there is an 'Ewa Highway Impact Fee assessed on every square foot developed (whether residential, commercial or industrial). This fee goes to the government as the developers' fair share of regional highway improvements. Roads within specific projects are the sole responsibility of developers.

    Laiho: If UH does replace Aloha Stadium and build one in Kapolei, how would that affect your plan?

    Rae: There have been discussions about locating a stadium on UH land on the mauka side of H-1. This would be entirely consistent with the Kapolei master plan.