The new governor has an intriguing idea for refocusing the Aloha Stadium redevelopment, putting the immediate focus on rebuilding the stadium itself — and on front-loading the financing with $400 million in state funding to get it built.
This is a departure from the existing game plan, for which the request for proposals has been on hold for months. For much of the past few years, up until the waning months of the administration of former Gov. David Ige, the intent was to redevelop the new stadium in tandem with mixed uses on the 98 acres encompassing the New Aloha Stadium Entertainment District (NASED).
There are things to like about Gov. Josh Green’s plan, with details beginning to emerge. Above all, the construction and operation of the Halawa stadium become the priorities, and maintenance becomes part of the responsibility of a private partner, rather than the state, famously negligent on that score.
Further, there is some evidence of potential long-term cost savings with the revised plan. Administration officials point to a Feb. 16 analysis by the New York-based firm the state hired, PFM Financial Advisors LLC. The study projects that the 30-year cost to the state for a new stadium project under the NASED scheme, including financing and maintenance expenses, would be $1.49 billion, added costs amounting to $460 million.
Finally, delivering the new facility first is where the gaze of the state should be trained. Hawaii has let its stadium deteriorate for decades, and its principal tenants, the University of Hawaii football program above all, deserve some assurances of a replacement in the foreseeable future.
Of course, the red-letter question hanging over this is: Will a private partner show up to take on a contract to design, build, operate and maintain the stadium?
Uncertainty clouds the answer. The PFM analysis did not factor in Green’s proposal to have the private partner operate the stadium. Studying this more closely in a new analysis would be wise.
It’s difficult to find a comparable example of a stadium following precisely the same model of development, operation and maintenance. In the case of Snapdragon Stadium, the $310 million facility owned by San Diego State University that opened in September, it was built as the leading edge of a larger mixed-use development plan. So in terms of timing, at least, completing the stadium first is an approach that can work.
But although bookings of that stadium at launch seem healthy, this doesn’t mean the Honolulu market would be equally attractive to a potential bidder on Aloha Stadium. That would be worth assessing by state business researchers, if the Green administration hopes to attract stadium bidders with the upside potential for revenues.
Among the Aloha Stadium assets: It is a key stop for the under-construction rail project, which ultimately would make it accessible for event spectators.
Given that the initial launch of the first half of the rail route is set for this summer, ridership and use of the system would have time to grow. The Stadium Authority ought to aggressively plan more adjacent activities, beyond the existing swap meet, to create more of a ridership lure.
This also raises the question of what function the authority would serve if the stadium ultimately is operated by a partner. One possible role would be ensuring that the stadium, still a state-funded facility, is sufficiently available to UH and community uses. Its proposed scaled-down size — 25,000 seats, with possible later expansion — might give the public pause.
Despite all the questions, the community has voiced a desire for a new stadium. And if the governor’s plan can help provide one affordably, they are worth asking and addressing, right now.
