A recent approval to build a seventh condominium tower at Ward Village is now on hold after the project’s developer filed objections to a few conditions imposed by a state agency regulating development in Kakaako.
Howard Hughes Corp. is heavily opposed to one condition requiring it to create a roughly 3-acre public central plaza in its emerging neighborhood of high-rise residences within two years or before the seventh tower, named ‘A‘ali‘i, can be occupied.
The company, which has a master plan to develop what it envisions will be 16 towers with up to 4,300 residences on 60 acres formerly known as Ward Centers, filed its objections last week with the Hawaii Community Development Authority.
HCDA’s board voted 5-4 to approve a permit to build ‘A‘ali‘i on Jan. 4 and attached 26 conditions, most of which are standard requirements to ensure compliance with agency development rules.
Two other conditions opposed by Howard Hughes Corp. relate to HCDA requiring that 150 moderate-
priced units be in ‘A‘ali‘i, including an additional 50 as a price for allowing the tower’s wide base to rise higher than the limit. The developer doesn’t object to the additional requirement, but said it should be allowed to count 50 moderate-priced units it is building in another tower to satisfy at least part of the requirement.
Howard Hughes Corp. is required to produce moderate-priced housing equivalent to 20 percent of all the high-rise residences it produces in Kakaako. To date, the company is building 375 moderate-priced condos, which is 50 more than required.
Regarding the central plaza, the developer contends that it’s impossible to complete what is described in its master plan as the “heart” of its neighborhood within two years — therefore making the condition unreasonable and unlawful.
“The (deadline) is impossible to accomplish under any realistic scenario and would allow only for the demolition of buildings and the clearing of the area for temporary open space, with no features or amenities that enhance the experience for the community,” the developer said in its objection filed by attorneys with local law firm Watanabe Ing LLP.
Texas-based Howard Hughes Corp. said the most it could achieve in two years would be planning and design work, demolition of existing warehouses on the site, archaeological testing and some permitting approvals. Alternatively, the developer said it could produce a 3-acre lawn that would later have to be closed to accommodate development of other towers.
“Surely, it could not have been the intent of HCDA to obtain a central plaza that is simply a grassed area,” the objection said.
The developer also contends that HCDA cannot impose any deadline for the central plaza because that would violate terms of its approved master plan, which specifically provides for flexibility in project phasing.
Central plaza construction timing was debated during two public hearings on the ‘A‘ali‘i permit in November and December. There was disagreement between the developer and at least one board member about whether some kind of binding timetable exists.
HCDA board member Mary Pat Waterhouse argued during the November hearing that the master plan represented that the plaza would be in an initial phase. Deepak Neupane, HCDA director of planning and development, agreed.
“As part of the first phase of development, (the central plaza) should set the tone for great things to come,” the master plan states, while describing the plaza as a “place of world-class significance.”
However, in response to Waterhouse, Hughes Corp. Development Director Race Randle said HCDA’s 2008 written decision and order approving the master plan committed the plaza to being a “priority” but set no timetable or trigger for construction.
Randle said during the hearing that the plaza continues to be a priority. “We want to bring the central plaza to life as soon as possible,” he said, adding that towers next to the central plaza are slated to be developed next in conjunction with the plaza if market demand exists.
An HCDA staff report noted that ‘A‘ali‘i and all other permitted or completed projects at Ward Village represent 44 percent of building density allowed under Hughes Corp.’s master plan. To date, one tower has been completed and three are under construction. Two other towers are permitted but have yet to break ground.
The report recommended that the developer be required to start construction of the central plaza before ‘A‘ali‘i can be occupied, but the board voted to require the plaza be completed either within two years or before ‘A‘ali‘i can be occupied.
Hughes Corp., in its objection, asks that the board change its condition to what the staff report recommended. The company also said a reference to the central plaza being contiguous should be corrected because a city street, Auahi Street, bisects the plaza site.
If the board refuses, the developer could appeal the board’s decision to a Circuit Court judge.
