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The Honolulu Advertiser
Posted on: Monday, September 7, 2009

Whole Foods Market/will delay opening


By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Whole Foods at Ward has revised its estimated opening date again because of bankruptcy-related construction delays by General Growth Properties.

REBECCA BREYER | The Honolulu Advertiser

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Whole Foods Market is pushing back its schedule for opening what was once envisioned as its flagship Hawai'i store at Ward Centers.

It's the second time in two years that the anticipated opening has been held up because of construction delays by the owner of Ward Centers, General Growth Properties.

The natural and organic foods retailer now projects the planned Ward store will open "late next year," reflecting a roughly six- to nine-month delay from a previously expected opening in the first quarter.

However, the updated projection is still somewhat uncertain because General Growth, which is restructuring in bankruptcy, has no estimate as to when it might finish construction of the retail complex anchored by Whole Foods.

Construction on the complex and a seven-story parking structure adjacent to Pier 1 Imports was halted about nine months ago, after $111 million was spent on the $148 million project.

Contractors weren't paid for some of the work to date, and have filed liens valued at $18 million against the property. Chicago-based General Growth, which is the nation's second-largest mall owner and operator, has been working to prioritize liens to be resolved on numerous construction projects at malls around the country. But there is no estimate as to when construction at the Whole Foods site may resume, according to company spokesman Jim Graham.

"We have no new information to share at this time concerning our Ward Neighborhood construction schedule or the opening of that store," he said.

Despite the uncertainty, General Growth and Whole Foods said they remain committed to getting the store open.

PROJECT REDUCED

The Ward store — one of four in Hawai'i planned by the nation's largest natural and organic grocery chain — initially was scheduled to open last year, and be 67,000 square feet on two levels.

But a year ago, Whole Foods said that concerns about a weakened U.S. economy and reduced consumer spending led it to downsize planned new stores, and the Ward store was cut to 35,000 square feet on one level. The initial opening postponement was attributed to a slower-than-expected construction pace that may have been due in part to repeated discoveries of iwi, or human bones, on the site.

Because of the economic downturn, Whole Foods recently has canceled some plans for new stores, but the Ward project remains in the pipeline.

"We are excited about the opportunities in Hawai'i and are working with the landlord to move forward with the opening as scheduled," said Claire Sullivan, the company's community and vendor relations coordinator in Hawai'i. "Whole Foods Market is working towards opening its store at Ward Centers in late 2010."

The first Whole Foods opened last September at Kahala Mall, and the company said it received a warm welcome from Hawai'i shoppers at the 28,000-square-foot store.

"Our first year in the Hawai'i community has been a truly exciting experience," said store manager Larry Hoover.

DELAY IN KAILUA

Besides the Ward delay, a Whole Foods store initially slated to open this year in Kailua was pushed back to the fall of 2011 about a year ago because of construction delays.

Kaneohe Ranch is developing the Kailua store for Whole Foods on a site long occupied by First Hawaiian Bank, Straub and other tenants. Construction of a new First Hawaiian building nearby exposed human burials last year, which prompted a relocation and redesign.

Mitch D'Olier, Kaneohe Ranch president and CEO, said demolition of the old First Hawaiian site is scheduled to begin in April after remaining tenants are relocated, and a new building for the 40,000-square-foot Whole Foods store should be done in April 2011, in time for a fall opening that year.

On Maui, Whole Foods is still on schedule to open a 26,366-square-foot store early next year at Maui Mall in Kahului.