In the late 1980s, the master-planned community of Kapolei was conceived by state and city officials, as well as community leaders and companies like the Estate of James Campbell.
Today, the city of Kapolei is a robust community that serves as a hub for Oahu’s west side. Kapolei is almost all grown up, with its own schools, regional police station, library, municipal buildings and even a resort area with first-rate hotels. Kapolei is home to a wide array of retail strip centers, restaurants and the University of Hawaii-West Oahu.
But Kapolei is still missing its gathering place. It’s a place where the community can shop, celebrate, hang out, play and dine — all in one place.
Ka Makana Ali‘i (KMA), the proposed 1.4-million-square-foot department store-anchored regional center located at the bottom of Kualakai Parkway, on Kapolei Parkway, will be that gathering place.
On Thursday, at 10 a.m. at the Hale Ponoi Building in Kapolei, the state Hawaiian Homes Commission has again scheduled a hearing to vote on this project.
It includes 75 shops and restaurants, a cinema, two hotels and LEED-certified office space. When completed, the $350 million center would be the third-largest mall on the island, and the first to be built in West Oahu in more than 40 years. More than 80 percent of the space in Phase 1 is either already in lease or in active negotiation. Additionally, KMA provides far-reaching benefits to residents island-wide including:
» 11,000 construction jobs.
» 7,000 new direct and indirect jobs.
» $5 million in annual real property tax revenues.
» Reduced work and recreational commutes for thousands.
» Fewer cars on Oahu’s streets and highways.
» Much-needed energy-efficient office space.
» A conveniently located kamaaina hotel.
The path for the development of KMA has been unique. We are leasing 67 acres of land from the state Department of Hawaiian Home Lands, and under the agreed-upon terms, will pay more than $600 million in rent over the life of the lease, which will be 65-plus years. DHHL plans to use revenues from the master lease to finance housing for its beneficiaries and to provide other important programs for Native Hawaiians.
We commend the department for this bold and innovative action that would ensure that funds continue for Native Hawaiian homes and projects for decades to come. A court case in the early 1990s provided DHHL with a $600 million settlement that entitled DHHL to receive about $30 million annually. That settlement expires on Dec. 31, 2014. Commercial leases, including Ka Makana Ali‘i’s, are the sources of revenue that DHHL needs in order to fulfill its mission.
A "no" vote by the commission Thursday would mean a loss of more than $600 million in funding from Ka Makana Ali‘i, which would be devastating to DHHL and the Kapolei community.
DeBartolo Development has staunchly believed in the mission of DHHL and the foresight of those who envisioned and created the "Second City." We have invested seven years and more than $14 million into the development process to bring KMA to fruition, while diligently pursuing the necessary state Land Use Commission approvals, and other necessary regulatory requirements. Construction is finally within our reach.
This cannot happen, however, unless the Hawaiian Homes Commission approves our request to extend the option to lease for Ka Makana Ali‘i.
We believe KMA is the missing piece needed to complete the vision for Oahu’s "Second City," and on behalf of all who stand to gain so much with the realization of Ka Makana Ali‘i, we humbly ask the members for an affirmative vote.
