The Aloha Stadium Authority yesterday waived its rental charges for University of Hawai'i football games starting with the 2006 season, saving the school more than $300,000 annually.

The stadium authority voted 7-2 to give UH free rent at the 50,000-seat stadium in Halawa. UH had been the only state agency charged rent at Aloha Stadium; other state agencies such as high school athletics pay only operational costs.

"It's just another state agency helping another state agency," Aloha Stadium Authority chairman Kevin Chong Kee said.

The UH athletic department has operated at a deficit for four consecutive years, and UH athletic director Herman Frazier has called the rent issue "the most important item on our plate."

UH had been paying $10,000 or 7.5 percent of ticket sales, whichever was higher. UH still will be responsible for stadium operating expenses, such as clean-up, electricity and security.

"We certainly appreciate the support we received from the stadium authority," Frazier said in a statement. "Moving forward, we feel there is a new spirit of cooperation and partnership between the University of Hawai'i and Aloha Stadium."

Financial projections showed Aloha Stadium can afford to waive UH's fee, said stadium authority member Howard Ikeda, who led a committee on the rent issue. Under the new rule, the stadium authority can re-establish rent if the stadium has financial shortfalls, Ikeda said.

"Operationally, every year, we've accumulated some surplus," Ikeda said. "I think the surplus balance should be about $4 million this year. Projecting forward, I think we'll be adding to that."

Ikeda said the stadium generates "about $7 million" annually. State comptroller Russ Saito said some revenues will be used to pay for Aloha Stadium's pending $130 million renovation project.

To offset the loss of UH's rent, Aloha Stadium is banking on increased swap meet revenue, parking and concession profits, and other money-making events and enhancements tied to the renovation of Aloha Stadium, Ikeda said.

stadium authority members Gilbert Kimura and Alvin Narimatsu voted against the measure.

Kimura said Aloha Stadium's revenues are transferred to the state's general fund, and the Legislature allocates money from that fund.

"I want assurances from the board that the Legislature is in full agreement to this, and we won't have any problem with the Legislature when we need money for stadium improvements," Kimura said. "We've got to go there and beg for the money."

Narimatsu, a UH graduate and former UH football player in the 1960s, said Aloha Stadium shouldn't be burdened with helping pay for UH's financial shortfalls.

Narimatsu said the UH football team made in excess of $8 million in revenues last year.

"The bottom line is the stadium authority will end up subsidizing the University of Hawai'i's athletic department," Narimatsu said. "That bothers me."

Aloha Stadium swap meet T-shirt vendor David Chen said its unfair rental fees for swap meet vendors have increased, while UH is receiving free rent. Chen said his rent recently increased from $48 to $60.

The stadium authority is also poised to double admission to the swap meet to $1.

"We are just asking for fairness," said Chen, who feared swap meet vendors and taxpayers will end up paying for capital improvement projects at Aloha Stadium. "We don't want Aloha Stadium to get in the condition Les Murakami Stadium is in. I see no benefit in lowering the rent for UH unless they help in (paying for the capital improvement program)."

Chen said UH football plays "eight or nine" home games a season, but "we're here 52 weeks a year, rain or shine. We are the ones providing major income for the stadium."

Ikeda said the swap meet rental fee increase — last done 10 or 15 years ago — was decided before and independent of the UH rent issue. The increases were adjusted after looking at fees charged at other local and Mainland swap meets, Ikeda said.

Reach Brandon Masuoka at bmasuoka@honoluluadvertiser.com.