Eight years ago, when then-Gov. Linda Lingle’s administration forged a public-
private partnership with a developer for a mixed-use project on state-owned land at Ala Wai Small Boat Harbor in Waikiki, the plan looked good on paper.
Honey Bee USA envisioned transforming slightly more than 3 acres of dry and submerged lands in the harbor, situated at the mouth of the Ala Wai Canal, with its proposed “Waikiki Landing” project, which initially included restaurants, retail and office space as well as a boat repair facility and fuel dock. The vision faded in subsequent years when the developer failed to secure promised funding from several sources that spanned Asia to the mainland.
Then, last year, Honey Bee went bankrupt and surrendered the property to the state, which was also due about $1 million for unpaid rent and fees. The Waikiki community is justified in its frustration, but it should not give up on opportunity to draft a fresh plan for the prime waterfront site.
The reasoning for establishing a public-private venture at the site remains sound in that it could provide taxpayers with needed services without draining state coffers. Deferred maintenance has long been an issue for the small boat harbor managed by the state Department of Land and Natural Resources’ Division of Boating and Ocean Recreation (DOBOR).
Unfortunately, the Honey Bee flop only exacerbated Ala Wai harbor’s troubles. It has left the community with a lingering construction site, and recreational sailors and boaters with lack of access to a fuel dock and a boat repair facility — both were torn down to make way for the development.
It’s understandable, then, that on Tuesday, when DOBOR and its consultant DTL attended a Waikiki Neighborhood Board to gather community input on how to redevelop up to four Ala Wai harbor sites, they were greeted by residents leery of any development — other than replacement of the gas dock and boat maintenance area.
Among Hawaii’s 16 small harbors, the Ala Wai is the largest, with 752 berths. Its users are primarily recreational sailors and boaters, including 129 live-aboards, and commercial tenants.
In 2009, when the state selected Honey Bee to lease and improve two parcels widely regarded as underused, there were high hopes in the community that the proposed $24 million project, would give rise to a lively venue in three stories of commercial space. Such a vision is still within reach, but first the state must continue to regroup and carefully piece together Plan B with ample community input.
Some Waikiki residents are rightly opposing any call for high-rise condominiums or dense development that blocks views, diminishes the harbor’s boating mission or interferes with the public access to the shoreline area. The state should heed those suggestions, and opt to build a low-rise project that helps revitalize what could be a social-scene magnet for residents and visitors.
It’s concerning that recent public comments collected by DTL describe the harbor site, which is near upscale Waikiki hotels and condos, as rundown and now grappling with an array of issues, such as homelessness and illegal parking, in addition to lacking harbor services.
While Honey Bee was able to obtain needed permit entitlements, it was unable to secure project financing for development costs. DOBOR’s response was extremely patient and accommodating, but left the Waikiki site with solid revenue-generating potential stranded in construction limbo. This time around, the agency should find a partner with financing safely secured before getting started.
Given our state government’s ongoing budgetary struggles, a public-private partnership is still likely the best bet for success, yielding revenues to subsidize needed improvements at the Ala Wai harbor.