Back in the mid-1960s, Neal S. Blaisdell Center opened its doors for concerts, shows and various other events in facilities touted as state-of-the-art. That luster has since faded. And these days, the center’s outdated arena, concert and exhibition halls are showing their age.
So, Honolulu Hale’s effort to size up the 22-acre site for renovation and repairs as the first step in a process to ensure that it can continue to meet our needs makes perfect sense. However, with the price tag for the city’s ongoing cash-strapped rail project looming large, Mayor Kirk Caldwell should press the pause button on a proposal for a large-scale Blaisdell Center makeover.
The city is still waiting for the Federal Transit Administration to approve a $9 billion financial plan to complete the 20-mile, 21-station full rail line to Ala Moana Center, which is expected to be paid for with a mix of Oahu general excise tax revenues, state hotel room taxes and federal dollars.
Rail’s costs have soared in the past three years — and it’s unclear whether the most recent funding boost will be enough to finish construction. Nine years ago, when city voters frustrated over traffic congestion supported the elevated rail project, it was tagged at $4.28 billion.
That likely doubling of cost should prompt a redoubling of scrutiny of the vision for Blaisdell Center.
Consider: In July, without a timeline or funding source in place, the total cost for what would be the center’s first major overhaul since its opening was estimated at between $300 million and $400 million. More recently, it was bumped up to $400 million to $500 million. But on Wednesday, when city officials hosted a third meeting for the public to weigh in on the draft master plan, the estimated cost had climbed to nearly $700 million — $534 million for the makeover, plus nearly $107 million in contingency funds and $51 million in increased material costs.
Hours before the meeting got underway, House Speaker Scott Saiki (D, Downtown-Kakaako- McCully), relayed valid fiscal concern in a letter to Caldwell that advised: “Although the concept of modernizing the Blaisdell Complex is worthy, Oahu taxpayers cannot take the brunt of paying for rail construction, rail operations and this project.”
Caldwell shot back with a statement noting that Blaisdell’s master plan funding source would be city-issued bonds and the possibility of public-private partnerships — “completely different sources” than those tapped for rail construction. Still, if both pursuits proceed as envisioned, they’ll more than likely pinch taxpayer pocketbooks for decades.
The mayor also pointed out that unless the center keeps pace with other entertainment venues, it’s sure to lose some events that could showcase Hawaii’s attributes and benefit the local economy. For example, the Miss Universe pageant, which had looked at the arena for this year’s production, opted to go elsewhere when officials determined that the 8,800-seat facility did not meet requirements for a type of modern stage-rigging that can bear especially heavy weight. A major renovation is needed to accommodate such rigging.
But it’s unclear whether such renovation would be worth the expense. While the arena’s count of 20 events booked each year is within industry standards, its overall attendance and revenues figures are low compared to those for similar venues on the mainland due in large part to Hawaii’s remote location and the absence of a major sports tenant.
Until funding issues linked to remaining rail construction and future transit operations and maintenance are settled, much of the Blaisdell Center makeover plan will have the vibe of a wish list.
Both the arena and the concert hall are “generally in an acceptable condition and size,” according to an economic feasibility and land use study released last fall. In both cases, it calls for upgrading some features as the “most cost-effective option” to address aging.
Only the exhibition hall, which gets the most event use, is flagged for demolition and new construction. But other than fixes needed to comply with the Americans with Disabilities Act, patchwork repairs and the impulse to move quickly to avoid expected increases in renovation materials costs, the overall plan lacks a pressing sense of urgency.
Other concepts, based on the input from workshops, include adding outdoor public spaces for informal performances; restaurants, cafes and bars; additional parking and improved traffic circulation; and enhanced water features and fishponds.
It all adds up to a charming vision for a visitor destination and neighborhood amenity — situated in the Kakaako Community Development District and blocks away from a planned rail transit station.
But the timing is tough on taxpayers contending with rail-related sticker shock. The city should push ahead with need-to-have Blaisdell improvements, of course, but hold off on nice-to-have renovations until we glimpse a more robust fiscal outlook.
