The Ritz-Carlton Residences, Waikiki Beach project cleared another hurdle Thursday when the Honolulu City Council Zoning Committee elected to move the project forward.
“I really put the developer through the wringer two years ago. Much of what was discussed today was rehashing what had already been approved,” said City Council Zoning Chairman Ikaika Anderson. “This is a solid project. I recommend that we move this out of committee.”
This was the third time that the city Zoning Committee has affirmed Los Angeles-based developer Pacrep LLC’s plans to construct two 350-foot, 39-story condo-hotel towers, connected by an eight-story podium, with 553 units. Multiple approvals were issued between 2012 and 2013, giving the developer the right to exceed a 300-foot height limit by 50 feet, with conditions that Pacrep provide significant public ground space and redesign the project to allow for a 75-foot separation between the two towers.
Much of the project was underway when a glitch with its original building agreement forced the developer to seek new permits. The first tower, a 307-unit condominium hotel at 2121 Kuhio Ave., was built under a joint development agreement with New York-based Metropole Realty Advisors, which owns the adjacent Luxury Row, a retail center that includes Tiffany &Co., Coach, Chanel and Gucci. But Pacrep could not reach an agreement with Metropole for the second tower. The foundation for the 246-unit second tower, which will be at 2139 Kuhio Ave., has already been poured.
The need for a new permit provided the community with a narrow window to halt the project or at the least to negotiate community givebacks, which are
required as part of the permit process. That window was essentially closed by Thursday’s Zoning Committee decision, which sends the measure to a full Council vote for final approval.
During the hearing, the developer’s consultant Jim Niermann, who is a senior planner at RM Towill Corp, argued that Pacrep already had agreed to community benefits during its earlier permitting process.
“We are offering significant green space,” Niermann said.
Department of Planning and Permitting Director George Atta, who approved the project’s latest permit request June 9, said it provides the public with a 2-acre tract of accessible, public green space fronting Kuhio Avenue. It also creates a small park adjacent to Lauula Street, Atta said.
Niermann said the project will provide an improved street-level experience for pedestrians. It also creates new commercial and social gathering spaces, and adds public performance space to a formerly run-down block of Waikiki, he said.
The project employs construction workers and upon opening will add 750 permanent jobs, Niermann said. It is expected to generate $3.16 million in conveyance taxes during its initial sales and $7.1 million in annual property taxes, he said.
Niermann said general excise tax revenue generated by the two towers has been estimated at more than $1.2 million per year, while transient accommodations taxes are expected to run upward of $3 million.
Waikiki Improvement Association President Rick Egged said another major project benefit is that it will add needed hotel capacity to Waikiki.
Dione Kalaola, a construction worker for the project, urged the committee to move the project forward.
“I’m fortunate to be part of a great team of local workers. The steady work and pay are important to me and have allowed me to provide for the many needs of my family,” Kalaola said, adding that the project will bring needed visitor industry jobs as well.
But Joli Tokusato, who represents hotel workers union Unite Here Local 5, joined a couple of Waikiki residents who testified against the project.
“They should have obtained the necessary permits years ago. Allowing them to move forward now opens the door for other developers to exploit the process,” she said.
Tokusato urged for the committee to require more on-site parking since the development will remove a 172-stall public parking lot. She said the 220 parking stalls in the Pacrep development aren’t enough to serve the public and those staying in their 553-unit hotel-condo development. Tokusato also wanted the committee to require the developer to guarantee operational jobs.
Waikiki resident Denise Boisvert-Jorgenson also testified against the project, which she said was not supported by the Waikiki Neighborhood Board. She objected to its “gigantic presence,” its orientation and concerns about light pollution from Tower 1’s stairway.
“It’s overwhelming. Why can’t they build a new low-rise structure along with restaurants, stores and a supermarket?” she asked. “They already got Tower 1. This time why don’t you go to bat for the people that call Waikiki home?”
Craig Stevens, an owner in the Four Paddle condominium, said at the very least Waikiki residents want the committee to address outstanding concerns over Tower 1’s bright lights, which are keeping people up at night.
“We are requesting that there be an explicit condition to address the light spillage,” Stevens said.
City Council members Carol Fukunaga and Anderson grilled the developer’s architect Scott Glass about the light pollution.
“It’s a balancing act between providing the required amount of light and making sure that it doesn’t spill,” Glass said. “We are trying to find a smart solution.”
Anderson said he was confident that the developer would make it right.
“I’m sure they plan to come back with future projects,” he said. “If they foul this up, they won’t want to come back before this Council. I have a long memory.”
